Atomera Incorporated Q3 FY2025 earnings call

• Work with STMicroelectronics: Achieved performance improvements in 200-millimeter platform but faced reliability trade-off. ST shifted focus to 300-millimeter, Atomera found a new MST implementation but ST couldn't incorporate it in time for BCD110 launch.
• New customers and market opportunities: Engaged with customers in power devices, Gate-All-Around, DRAM, RF-SOI. Partnership with capital equipment company to validate MST in advanced nodes.
• GaN initiative: Collaboration with Sandia National Labs on device fabrication, seeking to release electrical data.
• Sales leadership: Hired Wei Na as VP of Sales to boost sales and convert opportunities.
• R&D and materials: Abundance of new materials under development with patents filed, prototypes being made.

GAAP net loss for the third quarter of 2025 was $5.6 million or $0.17 per share, compared to a net loss of $4.6 million ($0.17 per share) in Q3 2024. GAAP operating expenses in Q3 2025 were $5.7 million, an increase of $857,000 from Q3 2024. Non-GAAP net loss in Q3 2025 was $4.4 million, compared to a loss of $3.9 million in Q3 2024. Cash and cash equivalents as of September 30, 2025, were $20.3 million. Q4 is expected to recognize between $75,000 and $125,000 of NRE revenue from wafer shipments. Gross margin was negative due to timing of cost incurrence and revenue recognition.

• Q4 expected NRE revenue: Between $75,000 and $125,000 from wafer shipments.
• Full-year 2025 non-GAAP operating expense: Expected to be in the range of $17.25 million to $17.50 million.

• Challenges in material technology adoption: Time-consuming validation cycles and trade-offs between performance and reliability.
• Dependence on customer timelines: STMicroelectronics' shift in focus affected timeline for incorporating new MST implementation.
• Uncertainty in revenue recognition: Timing issues with wafer shipments and iterative nature of customer engagements.

Q: About STMicroelectronics, what was the situation with the trade-off and timeline?

A: Explained that simulation work showed improvement, but ST's process validation in their own manufacturing process took time, and they couldn't incorporate the new MST implementation in time for their BCD110 launch.

Q: Talk about transformative customers. Which are ongoing?

A: One customer discontinued the deal but has good relations; two new transformative customers are actively engaged, and working with more large customers.

Q: What's the timeline for Gate-All-Around projects?

A: Timelines vary by customer; some are a few years out, others are looking at using MST to improve yield in current production processes.