Atomera(US:ATOM)2020-05-03 13:18Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2020 was $3.6 million or $0.22 per share, compared to a net loss of $3.5 million or $0.24 per share in Q1 2019 [21] - Revenue in Q1 2020 was $62,000, down from $71,000 in Q1 2019, with both periods deriving revenue from integration license agreements [21][24] - The cash balance at March 31, 2020, was $11.4 million, a decline of approximately $3.5 million from $14.9 million at year-end [25] Business Line Data and Key Metrics Changes - The company reported 26 engagements with 19 customers, with 16 engagements in Phase 3, indicating growth in customer pipeline [10] - Non-GAAP research and development expense was $1.8 million in Q1 2020, a decrease from $1.9 million in Q1 2019, attributed to lower outsourced fabrication and testing expenses [22] Market Data and Key Metrics Changes - The semiconductor industry has shown some caution in spending, particularly on CapEx, due to uncertainties related to the coronavirus [10] - The company has seen delays in customer R&D engineering for new programs, impacting the initiation of new R&D lots [11] Company Strategy and Development Direction - The company is focusing on developing deeper and more strategic relationships with customers through joint development agreements (JDAs) [12] - The new 300-millimeter epitaxial deposition tool is expected to enhance R&D capabilities and customer integration runs, allowing for more efficient experimentation [16][19] Management's Comments on Operating Environment and Future Outlook - Management noted that while there have been minor delays due to the coronavirus, business has continued to grow stronger, with increasing customer engagement [28] - The company remains optimistic about the potential of JDAs to accelerate customer adoption of technology [12][28] Other Important Information - The company has cut discretionary spending in response to the economic environment and is closely monitoring hiring and expense increases [27] - The company expects no revenue in Q2 2020 due to delays caused by the coronavirus, but customer work on MST has not ceased [26] Q&A Session Summary Question: Can you discuss the expenses associated with the 300-millimeter tool? - The expenses for the 300-millimeter tool will eventually replace those of the 200-millimeter tool, with timing dependent on acceptance of the new tool [31][32] Question: What does the potential pipeline for JDAs look like? - Discussions on multiple JDAs are ongoing, with some negotiations slowed due to the coronavirus, but management remains hopeful for near-term closures [34][35] Question: What is the minimum cash level the company is comfortable operating with? - The company is closely monitoring cash levels and has no immediate plans to raise additional capital [36] Question: Which technology nodes have the best near-term opportunities for licensing? - RF SOI is seen as having the best near-term opportunity for production ramp-up, while power management also presents a lucrative market [40] Question: Is the new 300-millimeter tool expected to provide cash burn benefits? - The new tool will lead to more predictable expenses and increased productivity, although it will be at a slightly higher cost than previous outsourced runs [46]