Atomera Inc ((ATOM)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Atomera Inc’s recent earnings call painted a mixed picture, balancing technological advancements and customer engagement against financial challenges and setbacks. The company is making strides in various segments and partnerships, but the immediate revenue outlook is clouded by recent developments with STMicroelectronics.
Validation of New MST Implementation
Atomera has discovered a new implementation of its Mears Silicon Technology (MST) that promises to double performance improvement without compromising device lifetime. This breakthrough has been validated through TCAD simulations, marking a significant technological achievement for the company.
Record Wafer Processing
In the last three months, Atomera processed a record number of wafers for its customers. This milestone reflects strong engagement and demand across multiple segments, showcasing the company’s growing influence in the semiconductor industry.
Multiple Engagements with Large Customers
Atomera is actively engaged with several large customers across different segments, including Gate-All-Around logic, DRAM, power devices, and RF-SOI. These engagements highlight Atomera’s strategic positioning and potential for future growth.
Successful Partnership with Capital Equipment Company
The partnership with a leading capital equipment company is proving fruitful, helping to validate MST’s capabilities in advanced nodes. Joint visits with customers are planned to further demonstrate the benefits of MST, indicating strong collaborative efforts.
Progress in GaN Initiative
Atomera’s collaboration with Sandia National Labs is progressing well, with device fabrication underway. This initiative aims to demonstrate improved electrical performance of MST in GaN applications, potentially opening new avenues for the company.
STMicroelectronics Program Setback
A significant setback occurred with STMicroelectronics, which decided to take BCD110 to market without MST due to a required device architecture change and an aggressive launch schedule. This decision impacts Atomera’s immediate royalty revenue prospects from STMicroelectronics.
Increased Net Loss
Atomera reported a GAAP net loss of $5.6 million for Q3 2025, up from $4.6 million in Q3 2024. This increase is attributed to higher R&D and G&A expenses, reflecting the company’s ongoing investment in technology and partnerships.
Negative Gross Margin
The company’s gross margin was negative, primarily due to a timing mismatch between wafer processing costs incurred and future revenue recognition. This financial challenge underscores the complexities of Atomera’s current business model.
Forward-Looking Guidance
Looking ahead, Atomera remains focused on its collaborations and technological innovations. Despite the setback with STMicroelectronics, the company is actively pursuing opportunities with other major customers in the semiconductor industry. Atomera’s cash position remains solid at $20.3 million, providing a buffer as it navigates these challenges. The company is concentrating on areas with potential for high return on investment and breakthrough growth.
In conclusion, Atomera Inc’s earnings call reflects a company at a crossroads, balancing significant technological advancements and customer engagements against financial setbacks and strategic challenges. The overall sentiment is cautiously optimistic, with a focus on leveraging new opportunities to drive future growth.