Atomera Q3 2025 Earnings Call Summary

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.