Atomera Incorporated (ATOM) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights strong customer engagement, strategic partnerships, and promising technology developments like MST for power efficiency, which are positive indicators. Despite increased losses and expenses, optimistic guidance, strategic partnerships, and a focus on high-demand areas like AI and quantum computing suggest potential growth. The Q&A session supports this with positive analyst sentiment and confidence in MST's competitive advantage. However, unclear responses on quantum computing and evaluation timelines slightly temper the outlook, resulting in a positive but not strong positive rating.
Key Financial Performance
Revenue in 2025 $65,000, a decrease compared to the previous year. This revenue consisted of NRE fees for wafer deliveries and MSTcad licensing. The reasons for the decrease were not explicitly mentioned.
GAAP Net Loss for 2025 $20.2 million or $0.65 per share, compared to $18.4 million or $0.68 per share in 2024. The increase in net loss was primarily due to a $1.1 million increase in stock compensation expense.
Non-GAAP Net Loss for 2025 $16.1 million or $0.52 per share, compared to $15.4 million or $0.57 per share in 2024. The increase was attributed to higher R&D expenses and stock compensation.
GAAP Operating Expenses for 2025 $20.9 million, an increase of approximately $1.5 million from $19.3 million in 2024. The increase was driven by a $1.1 million rise in stock compensation expense.
Non-GAAP Operating Expenses for 2025 $15.9 million, an increase of $429,000 from $15.4 million in 2024. The increase was primarily due to a $794,000 rise in R&D expenses, offset by decreases in G&A and sales and marketing expenses.
R&D Expenses for 2025 $10.2 million, an increase of $794,000 from $9.4 million in 2024. The increase was primarily due to a $676,000 rise in outsourced engineering costs.
G&A Expenses for 2025 $4.8 million, a decrease of $272,000 from $5.1 million in 2024. The decrease was primarily due to a $421,000 reduction in compensation expense, partially offset by a $118,000 increase in professional fees.
Sales and Marketing Expenses for 2025 Decreased by $94,000, reflecting lower headcount but offset by some recruiting fees.
Compensation Expense (Non-GAAP) for 2025 Declined by $582,000 compared to 2024. The reduction was due to the Board's decision to withhold approximately $669,000 in executive bonus compensation, which may be earned in 2026 based on achieving commercial objectives.
Cash, Cash Equivalents, and Short-Term Investments as of December 31, 2025 $19.2 million, compared to $26.7 million at the end of 2024. The decrease was due to $14.9 million of cash used in operating activities during 2025.
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Operating Highlights
Gate-All-Around transistor technology: Progress made in developing solutions for 2-nanometer and below transistors, targeting AI GPUs, CPUs, and network components. Achieved silicon results proving high-volume manufacturability and superior diffusion blocking characteristics.
DRAM solutions: Developing next-generation vertical architecture solutions and wafer-based offerings for major memory suppliers. Promising preliminary results from customer tests.
RF-SOI technology: Strong performance improvements for RF switches and low-noise amplifiers. Flexible implementation options for customers.
GaN on Silicon: First commercial customer started running wafers for GaN on silicon with MST technology. Exploring applications in RF and power technologies.
Government-funded collaborative developments: First foray into government-funded projects, including a concept paper approved for Power America to advance GaN materials.
Strategic partnerships: Collaboration with a major equipment OEM to address challenges in advanced semiconductor manufacturing.
Wafer-based solutions: Emphasis on wafer-based products to accelerate time to revenue.
R&D advancements: Record number of wafer runs and new projects initiated. Use of AI for efficient development.
Shift to OEM collaboration: Partnering with a major equipment OEM to leverage their influence for material solutions.
Focus on commercial execution: Efforts in 2025 aimed at achieving commercial agreements and revenue generation.
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Risk or Challenges
Gate-All-Around transistor technology: Challenges in manufacturing next-generation transistor devices at 2-nanometer and below, requiring validation of MST technology on silicon at real-world scale. High costs and proprietary nature of advanced structures add complexity.
DRAM technology: Key inflection point in technology roadmap, requiring validation of two major solution offerings. Integration complexities and dependency on customer R&D budgets pose challenges.
RF-SOI space: Adoption challenges due to the need for broad industry acceptance and integration complexities in customer manufacturing processes.
Power applications: Setback with ST and dependency on customer interest for MST solutions in power applications. New opportunities require validation and customer buy-in.
GaN on Silicon: Dependency on customer and partner progress for development and adoption. Initial stages of development with modest external funding.
Financial performance: Net loss of $20.2 million in 2025, with increased operating expenses and dependency on achieving rigorous commercial objectives for executive bonuses. Limited revenue guidance for 2026.
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Guidance & Outlook
Gate-All-Around Transistor Technology: Atomera's MST technology is positioned to assist with challenges in manufacturing next-generation transistor devices at 2-nanometer and below. The company has made progress in validating MST's efficacy in real-world silicon at scale. They anticipate implementing this technology with leading industry players over the next few quarters.
DRAM Technology: Atomera is working on solutions to enhance the performance of next-generation DRAM architectures and products currently in production. They are validating two major solution offerings with high market potential and expect results soon. If successful, they plan to pursue joint development agreements and licenses.
RF-SOI Space: Atomera's solutions provide performance improvements for RF switches and low-noise amplifiers. They aim to drive broad adoption by working with key industry players. The company supports wafer-based solutions, which could lead to faster revenue generation.
Power Applications: Atomera is collaborating with large players on MST solutions for power applications, including energy efficiency optimization in AI data centers. They have identified opportunities for MST to improve performance by over 40% in certain applications and are engaging with potential customers.
GaN Technology: Atomera's first commercial customer has started running wafers for GaN on silicon with MST technology. They expect accelerated development and revenue generation over the next few quarters. The company is also pursuing external development funding and joint development opportunities to promote their technology.
2026 Revenue Guidance: For Q1 2026, Atomera expects to recognize revenue in the range of $50,000 to $100,000 from MST wafer shipments. They are not providing revenue guidance beyond this quarter.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Why is the confidence level high regarding Gate-All-Around technology?
A:The company has proven that MST can be deposited in tiny 2-nanometer structures and effectively block phosphorus diffusion, which is a significant challenge in the industry. Recent test data supports these claims, and the company is optimistic about customer interest.
Q:What are the alternative solutions to MST for blocking phosphorus diffusion?
A:The industry has used silicon arsenic, which is less effective at blocking dopant diffusion and is expensive and dangerous to use. MST has shown vastly better diffusion-blocking results compared to silicon arsenic.
Q:What is the company's coverage in the power space?
A:The company is engaging with a diverse customer base in the power space, including leaders in TrenchFET and GaN technologies. However, they cannot quantify their market coverage but are expanding their presence.
Q:What is the progress of the Vice President of Sales, Wei?
A:Wei joined in October and has been instrumental in driving sales efforts, engaging with existing and new customers, and leveraging his past relationships to create new opportunities.
Q:What is the current wafer activity at the fab?
A:The company has been busy with multiple wafer runs, and most of the wafers have been shipped to customers. They are awaiting test results, which take 6-9 months, to determine the next steps.
Q:Why is selling blank wafers advantageous?
A:Selling blank wafers simplifies integration challenges, as MST is deposited at the beginning of the process rather than mid-process. This approach is easier to integrate and offers faster time to revenue.
Q:How can MST help in power saving for AI?
A:MST can improve performance and lower power consumption in semiconductor manufacturing. It also supports power-efficient solutions like TrenchFET and GaN devices, which are critical for AI data centers transitioning to 48-volt power supplies for efficiency.
Q:What is the update on JDA1 and JDA2?
A:JDA1 is ongoing, with hopes for accelerated progress. JDA2 is currently running wafers with the company.
Q:Is MST being evaluated at the customer's fab for Gate-All-Around?
A:Yes, MST is being evaluated with one Gate-All-Around customer, and the company aims to expand to all four potential customers.
Q:When is the evaluation of Gate-All-Around wafers expected to be completed?
A:The timeline is uncertain, but the company is optimistic about fast adoption due to the urgency in the Gate-All-Around space.
Q:How can MST improve quantum computing?
A:The company is actively working on MST applications for quantum computing but cannot disclose details yet. Previous efforts to improve Silicon-28 purity did not succeed, and new approaches are being explored.
Q:Review of Unclear Management Responses
A:The response to how MST can improve quantum computing was vague, with no specific details provided. Additionally, the timeline for Gate-All-Around wafer evaluation was not clearly defined.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Atomera MST
GaN Silicon
Gate transistor
MST solution
MSTcad
PSUs
RF SOI
Sales
amount
assistance
atom
characteristic
concept paper
development funding
device nanometer
diffusion
energy
equipment OEM
executive
expense driver
fee
industry player
license
offering
partner month
payout bonus
proceeds
project
simulation
solution wafer
space
stock compensation
stock price
supplier
technology industry
thought
variety
wafer solution
world
ATOM Transcript
Atomera Incorporated (ATOM) Q1 2026 Earnings Call Transcript
Unknown5-5
The earnings call lacked detailed information on key financial metrics, strategic initiatives, and risks, leaving many aspects unclear. However, the strategic plan reveals potential growth in advanced technologies like GaN and MST, suggesting future opportunities. The absence of negative factors and the potential for positive developments balance out the lack of guidance, resulting in a neutral sentiment.
Atomera Incorporated (ATOM) Q4 2025 Earnings Call Transcript
Positive2-13
The earnings call highlights strong customer engagement, strategic partnerships, and promising technology developments like MST for power efficiency, which are positive indicators. Despite increased losses and expenses, optimistic guidance, strategic partnerships, and a focus on high-demand areas like AI and quantum computing suggest potential growth. The Q&A session supports this with positive analyst sentiment and confidence in MST's competitive advantage. However, unclear responses on quantum computing and evaluation timelines slightly temper the outlook, resulting in a positive but not strong positive rating.
Atomera Incorporated (ATOM) Q3 2025 Earnings Call Transcript
Unknown10-28
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.
Atomera Incorporated (ATOM) Q2 2025 Earnings Call Transcript
Unknown8-7
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%.
ATOM Slides
ATOM Report
Frequently Asked Questions
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