Atomera(US:ATOM)2020-08-10 03:54Financial Data and Key Metrics Changes - The GAAP net loss for Q2 2020 was $3.8 million or $0.21 per share, compared to a net loss of $3.6 million or $0.24 per share in Q2 2019, reflecting a larger net loss due to a $70,000 difference in revenue and lower interest income [23][24] - Non-GAAP adjusted EBITDA in Q2 2020 was a loss of $3 million, compared to a loss of $2.9 million in Q2 2019 [24] - Cash balance at June 30, 2020, was $18 million, up from $11.4 million on March 31, 2020, due to a public offering that netted approximately $9.4 million [27] Business Line Data and Key Metrics Changes - The company has 26 engagements with 19 customers, with 17 customers in the critical Phase 3 stage [9][30] - Non-GAAP research and development expenses were $1.8 million in both Q2 2020 and Q2 2019, indicating stable R&D spending despite the pandemic [25] Market Data and Key Metrics Changes - The analogue semiconductor segment accounts for 15% to 20% of the total revenue in the $400 billion semiconductor market, representing a significant opportunity for the company [44] Company Strategy and Development Direction - The company is focusing on developing joint development agreements (JDAs) with larger customers to enhance strategic relationships and accelerate technology adoption [11][12] - The installation of a new 300 millimeter EPI Deposition Tool is expected to enhance capabilities and accelerate time to revenue [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing customer engagements and technical progress, despite minor delays caused by the pandemic [30] - The company is prioritizing existing customer engagements over new customer acquisition due to high demand from current clients [10][40] Other Important Information - The company has grown its patent portfolio to 244, which is seen as a strong asset for protecting its technology [18] - The company is taking a conservative approach to growing operating expenses, reiterating guidance for 2020 non-GAAP operating expenses in the range of $12.75 million to $13.25 million [28] Q&A Session Summary Question: Implementation of the 300 millimeter tool and its impact on customer licenses - Management explained that the new tool will allow for faster experimentation and results for customers, which is expected to lead to earlier licenses [33][34] Question: Timeline for using the new tool after acceptance - It was indicated that once the tool is accepted, it would take about three to four weeks to qualify and calibrate it for customer wafers [37] Question: Conditions for prioritizing new customer acquisition - Management noted that the current focus is on existing customers due to high workload, but additional engineers have been hired to eventually allow for new customer acquisition [40][41] Question: Market opportunities for MST SP technology - The analogue semiconductor segment is highlighted as a significant market opportunity, with many customers in the pipeline working on related technologies [44] Question: Impact of JDAs on typical engagement phases - Management clarified that JDAs do not significantly alter the phased approach but may expedite the licensing process for subsequent engagements [46][48]