ATOM — Atomera Incorporated

Atomera Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• GAAP Net Loss: $5.6 million ($0.17 per share), consistent with Q3 2024.
• GAAP Operating Expenses: Increased to $5.7 million from $4.8 million in Q3 2024, driven by higher R&D and G&A expenses.
• Non-GAAP Net Loss: $4.4 million, up from $3.9 million in Q3 2024, primarily due to increased R&D expenses.
• Cash Position: $20.3 million as of September 30, 2025, down from $22 million at the end of Q2 2025.
• Revenue Guidance for Q4: Expected to recognize $75,000 to $125,000 from non-recurring engineering (NRE) revenue related to wafer shipments.

2. Strategic Updates and Business Highlights

• STMicroelectronics Update: Atomera's collaboration with STMicroelectronics faced a setback as ST decided to discontinue development on their 200-millimeter wafers, opting to focus on 300-millimeter technology. Despite this, Atomera achieved significant performance improvements and developed a new implementation that eliminates the reliability trade-off.
• New Customer Engagements: Atomera is actively engaging with multiple large customers across various segments, including power devices, Gate-All-Around logic, DRAM, and RF-SOI, with a record number of wafers processed in the last quarter.
• Sales Leadership: Wei Na was appointed as VP of Sales to enhance customer engagement and drive revenue growth.
• GaN Initiative: Progress continues in collaboration with Sandia National Labs, with expectations to release data supporting improved electrical performance.

3. Forward Guidance and Outlook

• Atomera is focused on accelerating revenue through MST starting wafers, particularly in RF-SOI and GaN applications. The company aims to leverage partnerships and customer engagements to transition from R&D to revenue-generating licenses.
• The strategic priority remains on applications that allow for easier integration of MST to shorten time to market.

4. Bad News, Challenges, or Points of Concern

• Loss of Revenue Line with STMicroelectronics: The decision by ST to not incorporate MST in their BCD110 platform means Atomera no longer has a clear path to royalty revenue from this collaboration.
• Increased Operating Losses: The company reported higher losses compared to the previous year, raising concerns about financial sustainability amid ongoing R&D expenses.
• Market Competition: The semiconductor industry is highly competitive, and Atomera faces challenges in gaining traction against established players.

5. Notable Q&A Insights

• STMicroelectronics Trade-off: The trade-off between performance improvements and reliability was a key discussion point, with the realization that the new implementation could not be validated in time for ST's production schedule.
• Transformative Customers: Atomera is working with multiple large customers beyond the previously mentioned transformative ones, indicating a broader engagement strategy.
• Gate-All-Around Projects: The timeline for production integration varies by customer, with most looking at a few years out, although some are exploring immediate yield improvements.
• Partnership with Capital Equipment Company: The collaboration is primarily focused on Gate-All-Around technology, but there are also discussions around DRAM applications.

Overall, while Atomera has made significant strides in technology and customer engagement, the loss of a key partnership and increasing financial losses present challenges that the company must navigate moving forward.