Atomera, Inc. Q4 FY2024 earnings call

Key Points

• The past year was productive with Atomera advancing across customer categories. A negotiation with a transformative customer stalled but confidence remains in MST's technology.
• Progress in advanced nodes: Gate-all-around in semiconductors is crucial, and MST can help with drive current, reliability, etc. Memory segment is over $125B in 2024, and MST can improve performance.
• RF-SOI: Provides performance advantage for devices like RF power switches and LNAs. Power semiconductor market is growing, with MST SP and SPX products. GaN market projected to be $12B in 5 years, with electrical results from Sandia tests imminent.
• Customer updates: STMicro is progressing, with process qualification next. Work on JDA1 and JDA2, and demos with fabless licensee. Two new transformative customers with demo wafer runs. Land-and-expand with existing customers showing deeper relationships.

In 2024, revenue was $135,000 consisting of MST CAD licensing and NRE fees. Fourth quarter 2024 GAAP net loss was $4.7 million or $0.16 per share, with revenue at $23,000. GAAP operating expenses in Q4 2024 were $4.9 million. Non-GAAP net loss in 2024 was $15.4 million, with non-GAAP operating expense $3.9 million in Q4 2024.

Guidance

• Q1 2025 not expecting revenue; wafer run with fabless licensee may yield NRE revenue in Q1 or Q2.
• 2025 non-GAAP operating expenses expected to be in the range of $17 million to $18 million, conservative with spending given limited revenue visibility.

Risks

• Stalled negotiation with a transformative customer due to internal decision-making delays and resistance to innovative ideas. Resistance to new formats like low upfront cost with ongoing royalties.

Q: Richard Shannon asked about the stalled negotiation with the transformative customer, asking if it was mainly a pricing issue.

A: Scott Bibaud said it wasn't exclusively price, with negotiation having fits and starts due to internal decision-making among many people, but belief in the technology's value remains.

Q: Richard Shannon asked about progress in leading edge logic and memory.

A: Scott Bibaud said working on advanced nodes and memory gets more pull and interest as most of the company is focused on those technologies, with gate-all-around being a game changer.

Q: Cody Acree asked about optimism on different opportunities and the data center opportunity.

A: Scott Bibaud mentioned closer engagement with advanced node and memory guys, new GaN market segment; Frank Laurencio talked about managing resources, using TCAD tools for productivity and being careful with spending.

Q: Mike Bishop asked about progress with a major analog company and STMicro's process qualification.

A: Scott Bibaud said a transformative customer is doing comprehensive wafer runs, and STMicro's process qualification is ongoing with no specific timeline provided but teams working well together.

Q: Mike Bishop asked about stage of collaboration with DRAM customers and HBM.

A: Scott Bibaud said Atomera is engaged with multiple memory customers, and MST can benefit high bandwidth memory in AI infrastructures by improving power and performance.