ATOM Overview

Management Insights: Atomera's collaboration with STMicroelectronics faced setbacks due to reliability issues, leading to a shift in focus to a 300-millimeter platform and a loss of near-term royalty revenue. However, a new MST implementation was validated, promising significant performance improvements and potential for broader market applications.

Financial Performance: The company reported a GAAP net loss of $5.6 million for Q3 2025, with increased operating expenses attributed to R&D and administrative costs. Cash reserves decreased to $20.3 million, and the company raised approximately $2 million through its ATM facility during the quarter.

Outlook and Strategy: Atomera anticipates recognizing $75,000 to $125,000 in NRE revenue in Q4 2025, with a focus on rapid revenue opportunities through MST starting wafers. The appointment of a new VP of Sales aims to enhance commercial growth and license conversions.

Risks and Concerns: The loss of immediate revenue visibility from STMicroelectronics poses challenges, alongside the risks associated with customer transitions and the variability in revenue recognition due to iterative testing processes. Management is prioritizing MST products and strategic partnerships to mitigate these risks.

Kirin Holdings and Four Roses: Kirin Holdings is seeking to sell the Kentucky bourbon brand Four Roses for around $1 billion, but declining youth consumption and trade tensions with Canada may deter potential buyers.

Quantum Computing Investments: Several quantum computing companies are looking to sell equity stakes to the U.S. Commerce Department, raising concerns about government influence on corporate governance, especially as some companies may not need the funds.

Mergers and Acquisitions: Coca-Cola HBC is acquiring a 75% stake in Coca-Cola Beverages Africa for $2.6 billion, while Blackstone and TPG are set to acquire Hologic for up to $18.3 billion, reflecting ongoing consolidation in various sectors.

Bankruptcy in Subprime Lending: PrimaLend Capital Partners has filed for bankruptcy amid rising car loan delinquencies, highlighting stress in the subprime lending market, although the company plans to continue operations with existing financing.

Market Performance: Construction shares are lagging behind the market, down approximately 3.5% overall.

Leading Declines: Sterling Infrastructure and IES Holdings are the primary contributors to this decline, with losses of about 11.2% and 9.1%, respectively.

Sector Laggards: The video highlights that semiconductors and construction stocks are among the sectors underperforming on Wednesday.

Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Earnings Call Overview: Atomera Incorporated held its Q2 2025 earnings call on August 5, 2025, featuring remarks from CEO Scott Bibaud and CFO Franc Laurencio, with a focus on forward-looking statements and associated risks.

Call Format and Accessibility: The call was conducted via Zoom, allowing participants to listen only, and a replay will be available on Atomera's Investor Relations website for one year.

Insider Trading Activity: Robert J Mears, CTO of $ATOM, sold 4,196 shares for approximately $25,721, representing 2.1% of his holdings, with no insider purchases reported in the last six months despite 31 sales.

Institutional Investor Movements: In the latest quarter, 54 institutional investors increased their positions in $ATOM, while 37 reduced theirs, indicating mixed sentiment among large shareholders.