Atomera, Inc. Q3 FY2024 earnings call

• MST and power chips: Atomera is working with ST on next-gen smart power products using MST, with development going well towards production. Also, working with multiple customers on MST SPX technology for 7-48V applications, including a 48V version for data centers. - Advanced node work: Gate-all-around transistors and memory segments are tied to AI infrastructure. MST can help with dopant blocking in advanced nodes for better device performance. - RF-SOI: Continuing work with customers, and an agreement with Soitec for engineering wafers. - Collaboration: Agreement with Sandia Labs to further GaN-on-silicon technology. Customer engagement intensified, with active negotiations on transformative deals and ongoing work with multiple large customers.

In Q3 2024, Atomera's revenue was $22,000, consisting of MST CAD license revenue. GAAP net loss was $4.6 million ($0.17 per share) compared to $5 million ($0.20 per share) in Q3 2023. Non-GAAP net loss was $3.9 million in Q3 2024, lower than $4.3 million in Q3 2023. Cash balance on September 30, 2024, was $17.3 million. Q4 revenue was expected to be approximately the same as Q3.

• Full-year 2024 non-GAAP operating expenses are on track to be $15.75 million to $16 million, below prior guidance. - 2025 non-GAAP operating expenses expected to be $16 million to $17 million, with additional investments planned in sales and marketing. - No revenue guidance provided beyond Q3.

Q: Can you provide more detail on the transformative situation mentioned?

A: It's a large customer with significant revenue potential, working with them for some time in active negotiations, but details on segment and timing not disclosed.

Q: Progress with ST and other customers?

A: ST is moving towards production, while advanced node customers (gate-all-around, memory) require resources but expected to move faster. Legacy technologies take longer to decide on process node changes.

Q: Update on RF-SOI?

A: Agreement with Soitec for engineering wafers, working with customers in the area, making progress but no announcements yet.

Q: JDA1 progress?

A: In a stage where customer is requesting additional data to validate MST's effectiveness in a specific application, working on wafer runs to address requirements.

Q: Sandia Labs announcement relation to CHIPS Act?

A: Independent, but proves physical and electrical benefits of GaN-on-silicon technology, making Atomera more attractive for CHIPS Act funding and commercial customers.

Q: Funding outlook and cash needs?

A: Ended Q3 with lower cash balance, balancing stock sales to avoid over-dilution, maintaining minimum cash balance for GAAP requirements.