Atomera Stock Pops on Q2 Update


Shares of Atomera (NASDAQ: ATOM) popped on Wednesday after the corporate supplied buyers with an replace for its second quarter. Atomera continues to garner buyer curiosity for its Mears Silicon Expertise (MST) because it marches in direction of commercialization.

The present interval’s monetary outcomes aren’t too related since Atomera continues to be pre-revenue, however buyers have been inspired by the corporate’s progress.

As of 11:45 a.m. EDT, Atomera inventory was up by 22%.

The trail to commercialization

Atomera incurred $3.7 million in working bills within the second quarter, which was additionally its working loss as the corporate didn’t generate any income. Web loss was $3.7 million, or $0.17 per share. The corporate had $34.3 million in money on its steadiness sheet on the finish of the quarter.

On the convention name with analysts, CEO Scott Bibaud mentioned that the semiconductor trade “has by no means been extra tumultuous,” pointing to the COVID-19 pandemic, ongoing provide constraints, and rising geopolitical tensions. Journey restrictions have made it tough to interact with new potential prospects.

“Total, we’re weathering the storm fairly nicely with inbound buyer curiosity and no main disruptions to improvement initiatives underway,” Bibaud commented. “On this setting, we’re not stunned that the variety of prospects and engagements in our pipeline has not modified.”

Prospects already within the pipeline, nevertheless, are advancing by means of the totally different improvement phases. Atomera had beforehand introduced {that a} “main semiconductor supplier” had entered right into a joint improvement settlement (JDA), with that companion and different prospects “making headway” in direction of vital operational objectives.

The JDA buyer entered Part 4 of the event course of again in March, and there are 6 complete phases earlier than commercialization.

Buyer Engagements Variety of Prospects
Part 1 9
Part 2 0
Part 3 15
Part 4 1
Knowledge supply: Atomera.

Whereas the combo of buyer phases is identical because it was within the first quarter, it doesn’t absolutely signify the progress being made. “So though this [table] is unchanged from final quarters [sic], there’s a number of good progress hidden inside the phases and our JDA is on monitor,” Bibaud assured.

Atomera additionally just lately launched a white paper that outlines some great benefits of MST know-how and the way it can management dopant diffusion in layers thinner than 5 nanometers. Merely put, MST can tackle the problems chipmakers run into at superior manufacturing nodes.

Decreasing expense steering

As Atomera works with its prospects to get to manufacturing, the excellent news for buyers is that prices are coming in under preliminary expectations.

The corporate doesn’t anticipate to generate any income within the third quarter both, however CFO Frank Laurencio famous on the convention name with analysts that Atomera’s adjusted working bills of $6.1 million within the first half of 2021 implies a run charge decrease than the corporate’s earlier expense steering. 

The finance chief had beforehand forecast $14 million to $14.5 million in adjusted working bills for the yr, and Atomera now expects to spend simply $13.25 million to $13.75 million.

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Evan Niu, CFA has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. Millennial Cash is a part of The Motley Idiot community. Millennial Cash has a disclosure policy.



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