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01/11 04:06
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects mixed sentiments. The partnership with STMicro and interest from other companies are positive, but the financial performance shows increasing losses and uncertain revenue guidance. The Q&A reveals confidence in milestone payments and other companies' interest, but there's uncertainty in the timeline and execution risks. The unclear management responses and regulatory uncertainties add to the neutral sentiment. Without a clear market cap, the prediction remains neutral, indicating a potential stock price movement between -2% to 2%.
GAAP net loss $5 million or $0.17 per share in Q2 2025 compared to $4.4 million or $0.16 per share in Q2 2024. The increase in net loss was due to higher operating expenses.
GAAP operating expenses $5.2 million in Q2 2025, an increase of $565,000 from $4.6 million in Q2 2024. The increase was driven by a $415,000 rise in R&D expenses and a $215,000 rise in G&A expenses, partly offset by a decline in sales and marketing expenses.
Non-GAAP net loss $4 million in Q2 2025 compared to $3.6 million in Q2 2024. The increase was due to a $275,000 rise in non-GAAP operating expenses, primarily from higher R&D and G&A costs.
Stock compensation expense $1.3 million in Q2 2025 compared to $1 million in Q2 2024, contributing to the increase in operating expenses.
Cash and cash equivalents $22 million as of June 30, 2025, compared to $24.1 million as of March 31, 2025. The decrease was due to $3.5 million used in operating activities, partially offset by $800,000 raised under the ATM facility.
MST (Mears Silicon Technology): New applications of MST are driving business, including advanced gate-all-around and DRAM areas, as well as GaN (gallium nitride) for power and RF applications. MST is also being used to improve LNAs (low-noise amplifiers) in mobile phone front-end products.
Market Expansion in RF and GaN: Strategic collaboration with Incize to characterize MST technology for RF applications. Expansion into GaN for RF and power applications, with several potential customers expressing interest.
Customer Engagements: High level of customer wafer runs and demo activities. Multiple licensees and new customers are testing MST for production decisions.
Patents and Innovation: Over 400 issued and pending patents, showcasing innovation. Joined the National Semiconductor Technology Center to advance semiconductor technology.
Shift to 300mm Wafer Production: STMicro shifted its manufacturing to 300mm wafers, delaying the rollout of BCD 110 with MST but increasing long-term revenue potential.
Focus on RF-SOI and LNAs: Expanded offerings to include LNAs for mobile phones, addressing power consumption challenges in 5G and 6G networks.
Delay in BCD 110 rollout with MST: STMicro's decision to move directly to 300-millimeter wafers has delayed the rollout of BCD 110 with MST, pushing process qualification beyond 2025. This delay impacts Atomera's timeline for revenue generation from this initiative.
Increased operating expenses: GAAP operating expenses increased by $565,000 year-over-year, driven by higher R&D and G&A costs. This rise in expenses, coupled with ongoing net losses, could strain financial resources.
Dependence on customer adoption: Atomera's business model heavily relies on customers adopting MST technology. Delays in production decisions or lack of adoption could significantly impact revenue and growth.
Cash burn and financial sustainability: The company reported a net loss of $5 million for Q2 2025 and used $3.5 million in operating activities. While cash reserves are currently sufficient, continued losses could pose a risk to financial sustainability.
Market competition and execution risk: Atomera faces competitive pressures and execution risks in bringing MST technology to market. Delays in customer adoption or failure to meet performance expectations could hinder growth.
Regulatory and macroeconomic uncertainties: Forward-looking statements are subject to inherent risks and uncertainties, including regulatory changes and macroeconomic conditions, which could adversely impact operations.
Revenue Expectations: For Q3, the company expects to recognize a small amount of NRE revenue from wafer shipments to its fabless licensee and the customer running a large-scale demo. Timing of this revenue will depend on when wafers are shipped out to those customers.
STMicro's Manufacturing Shift: STMicro has decided to move directly to 300-millimeter silicon production for its BCD 110 process with MST, delaying the rollout and process qualification until 2026. However, this shift is expected to result in significantly higher wafer capacity and revenue potential in the long term.
Customer Engagements and Production Decisions: Several licensees and customers are conducting demo wafer runs, which are expected to lead to production decisions. The company is optimistic about turning these engagements into commercial agreements.
Advanced Technology Areas: Atomera is targeting advanced gate-all-around and DRAM areas, focusing on improving yields. The company is also expanding its work in gallium nitride (GaN) for both power and RF applications, with strategic collaborations to accelerate market adoption.
RF-SOI and LNA Improvements: The company is promoting its MST technology for low-noise amplifiers (LNAs) in RF-SOI applications, which is expected to lower power consumption and address market demands for 5G and 6G cellular technologies. This solution is anticipated to go to market more quickly due to high visibility and customer pull.
Operational Expansion: Atomera is hiring additional team members to support its growing customer activity and is tracking to the low end of its 2025 non-GAAP operating expense guidance of $17.25 million to $17.75 million.
The selected topic was not discussed during the call.
The earnings call revealed a mixed outlook. While there are promising advancements in technology and partnerships, the financial performance showed increased losses, and there were delays in key projects. The Q&A session highlighted uncertainties, especially with STMicro's decision and lack of clear timelines for transformative projects. The financial health appears strained with rising expenses, and cash reserves are decreasing. These factors, combined with the lack of immediate revenue catalysts and unclear guidance, suggest a negative sentiment towards the stock in the short term.
The earnings call reflects mixed sentiments. The partnership with STMicro and interest from other companies are positive, but the financial performance shows increasing losses and uncertain revenue guidance. The Q&A reveals confidence in milestone payments and other companies' interest, but there's uncertainty in the timeline and execution risks. The unclear management responses and regulatory uncertainties add to the neutral sentiment. Without a clear market cap, the prediction remains neutral, indicating a potential stock price movement between -2% to 2%.
The earnings call revealed a missed EPS target and lack of future revenue guidance, which are negative indicators. While a new partnership was announced, its impact is limited due to non-disclosure of the partner's identity. The Q&A highlighted competitive and partnership risks, with unclear management responses adding to uncertainty. These factors suggest a negative sentiment, likely leading to a stock price decline of -2% to -8%.
The earnings call reveals several negative factors: a net loss increase, higher operating expenses, no revenue in Q1 2025, and cash flow challenges. Despite optimistic guidance and R&D progress, the reliance on a few key customers and competitive pressures pose risks. The Q&A highlights management's lack of transparency, further unsettling investors. The ATM facility and cash position offer some stability, but overall, the financial health and market uncertainties suggest a negative outlook for the stock price.
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