Atomera(US:ATOM)2020-02-13 03:23Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $13.3 million for the year ended December 31, 2019, compared to a net loss of $12.9 million in 2018, primarily due to higher operating expenses [19] - Revenue for 2019 was $533,000, an increase from $246,000 in 2018, with $259,000 from license agreements and $274,000 from engineering services [19][20] - The GAAP net loss for Q4 2019 was $3 million, an improvement from a loss of $3.2 million in Q4 2018, attributed to lower operating expenses [22] Business Line Data and Key Metrics Changes - In Q4 2019, revenue consisted of $113,000 from a license agreement and $25,000 from engineering services, compared to $150,000 in Q4 2018 [22] - The company delivered more than three times the amount of MST wafers to customers in late 2019, indicating a record level of customer engagement [9][10] Market Data and Key Metrics Changes - The company is focusing on three key areas: RF SOI for 5G devices, BCD for advanced power chips, and next-generation devices, with a significant increase in customer integration runs [10][12] - The company is working with customers whose RF SOI manufacturing capacity represents more than half of the entire installed base in the industry [16] Company Strategy and Development Direction - Atomera is evolving its contract structures to accommodate longer engagement periods and deeper relationships with customers, moving towards joint development agreements [12][13] - The company aims to leverage its technology across multiple production lines and processes, enhancing customer penetration and adoption [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for growth in 2020, citing increased customer engagement and a record number of MST wafers delivered [27] - The company anticipates a cash use of approximately $13 million to $13.5 million for 2020, reflecting an increase due to planned headcount additions and delayed tool lease expenses [24][25] Other Important Information - The company reported a cash balance of $14.9 million at the end of 2019, a decline from $18.9 million at the end of 2018 [23] - The company is experiencing a bottleneck in personnel, which is impacting its ability to engage with new customers [45] Q&A Session Summary Question: Discussion on the EPI tool and its opportunities - Management confirmed that the EPI tool installation was delayed but is expected to enhance both internal R&D and customer deposition capabilities once operational [30] Question: Joint development agreements and customer eligibility - Joint development agreements are being discussed with multiple customers, primarily larger and newer ones, to prequalify Atomera's technology across multiple product lines [32][34] Question: Prioritization of resources across technology areas - The company is prioritizing customers based on their likelihood to reach production sooner, with RF SOI and BCD being the primary focus areas due to a larger customer base [36] Question: Impact of new technologies on customer engagement - There is a pent-up demand from customers interested in working with Atomera, but the company has been too busy to fully engage with them [43] Question: Cash use expectations for 2020 - The expected cash use for 2020 is in the range of $13 million to $13.5 million, reflecting increased operational expenses and headcount [46] Question: Phase 3 engagements and transition to Phase 4 - Some customers in Phase 3 are close to completing their work, but delays may occur due to external factors unrelated to Atomera's technology [51][56] Question: Impact of the coronavirus on customer engagement - The company is adapting to virtual meetings due to travel restrictions but does not foresee significant long-term impacts on existing customer relationships [60]