Detailed narrative
Gate-All-Around (GAA) Progress
Atomera achieved a significant milestone with one of its two active gate-all-around (GAA) customers, successfully demonstrating manufacturability of its unique silicon structures. This step addresses a key hurdle in the customer's evaluation process. The next phase involves the customer licensing Atomera's technology for in-fab testing, which could potentially lead to a deal as early as late this year or beyond, though further testing rounds could extend the timeline by approximately nine months.
Memory Market Expansion
The company established a new value proposition for 4F2 DRAM, a 3D structure, leveraging MST's doping profile control to simplify manufacturing and reduce costs. This concept has been validated through customer discussions and TCAD simulations, with results accepted for an IEEE conference. Additionally, Atomera identified a new opportunity in NAND flash memory, where AI demand is now pushing the need for planar periphery boost, making MST's previously developed DRAM technology applicable and potentially doubling Atomera's total addressable market (TAM) in memory.
GaN-on-Silicon Breakthrough for RF
Atomera announced a technical breakthrough in GaN-on-silicon for RF devices, with characterization partner Incize delivering outstanding RF data. The devices demonstrated effectively lossless RF with exceptional linearity, roughly 1,000x better than the GaN-on-silicon reference, and approaching the performance of advanced trap-rich RF-SOI. This advancement could enable fully integrated RF front ends, including power amplifiers, on low-cost silicon substrates, potentially shifting traditional RF-SOI designs to GaN-on-silicon and opening a new high-growth market.
Ongoing Pipeline Activities
Progress continues with a large IDM customer program, with new device test data coming in and further experiments underway. Development efforts in power, TrenchFET, and HBT are advancing, targeting efficiency and high-frequency demands from AI data centers. Wafers are still running with the second JDA partner in RF-SOI, with confidence in replicating positive results. Internal work on a high-throughput manufacturing process for RF-SOI substrate supply chain is also progressing well.
Financial Performance and Cost Outlook
Q2 FY26 revenue was $158,000. The GAAP net loss was $6.3 million ($0.17 per share), and the non-GAAP loss was $5 million. GAAP operating expenses increased to $6.9 million, up from $5.2 million in Q2 FY25, driven by higher stock-based compensation, G&A, and sales and marketing expenses. Cash, cash equivalents, and short-term investments stood at $38.4 million as of June 30, 2026. The company expects FY26 non-GAAP operating expenses to be at the high end of its $18.25 million to $18.75 million range due to increasing costs for outsourced engineering work, tool leases, metrology, and device fabrication.