Atomera(US:ATOM)2023-11-02 02:26Financial Data and Key Metrics Changes - The GAAP net loss for Q3 2023 was $5 million or $0.20 per share, compared to a net loss of $4.6 million or $0.20 per share in Q3 2022 [16] - GAAP operating expenses were $5.4 million in Q3 2023, an increase of approximately $696,000 from $4.7 million in Q2 2022 [16] - Non-GAAP net loss was flat sequentially at $4.3 million in Q3 and Q2 of 2023, compared to a loss of $3.7 million in Q3 of 2022 [17] Business Line Data and Key Metrics Changes - The company reported progress with Phase 3 customers, indicating a growing number of opportunities and applications for MST technology [5] - Experiments with JDA 1 customer showed excellent technical results, focusing on a significant problem faced by one of their largest business units [9] - Interest in higher voltage technology offerings, MST, SP, and SPX has increased, with MSTcad being adopted by a large analog and power manufacturer [10] Market Data and Key Metrics Changes - The company is part of the Southwest Advanced Prototyping Hub, which received funding through the CHIPS and Sciences Act, enhancing its position in the semiconductor ecosystem [12] - The company is seeing a shift in the RF SOI market, with new silicon test results validating improvements that are critical for cellular product designers [10] Company Strategy and Development Direction - Atomera aims to build a strong and growing royalty stream by expanding its customer base across various market segments [15] - The company is focusing on establishing partnerships and ecosystems to advance its technology in complex and expensive semiconductor markets [12] - Atomera has introduced a new segment for MST technology in DRAM, targeting improvements that align with the demands of artificial intelligence [14] Management's Comments on Operating Environment and Future Outlook - Management believes the current market conditions, characterized by low capacity utilization, present opportunities for development without disruption [37] - The company anticipates a return to normal levels of activity in the semiconductor industry, with growth expected to pick up next year [37] - Management expressed optimism about the future, expecting to announce more licensing and production deals soon [15] Other Important Information - The balance of cash, cash equivalents, and short-term investments was $20.4 million as of September 30, 2023, down from $23.8 million on June 30, 2023 [18] - The company expects Q4 revenue to be in the range of $300,000 to $350,000, primarily from STMicro's first milestone payment for MST installation [19] Q&A Session Summary Question: Clarification on STMicro's timeline - Management believes there will be no delay in the 18- to 24-month timeframe for STMicro to reach production, as development work will continue regardless of installation timing [24] Question: Progress with JDA 1 customer - The focus is currently on business-related dynamics rather than technological issues, with discussions ongoing to finalize a contract for production [29] Question: Impact of STMicro on other customers - The STMicro license agreement is believed to enhance credibility and interest in MST technology among other potential customers [30] Question: Market conditions and customer sentiment - Management noted that while the market has been rough this year, low capacity utilization allows for quicker integration of new technologies without disrupting existing operations [37] Question: Engagement with STMicro - MST technology is being applied within STMicro's smart power products team, with potential applications across multiple divisions [40]