The Weebit Nano Ltd (ASX: WBT) share price is slipping following the release of the company's earnings for financial year 2022 (FY22).
After opening 2.2% higher at $2.76, stock in the memory and semiconductor technology company slipped to a low of $2.64, representing a 2.2% fall.
The Weebit Nano share price has since mellowed to trade at $2.69, 0.37% lower than its previous close.
Weebit Nano shares pop then drop on FY22 earnings
Here are the key takeaways from the company's full-year results:
- Reported a pre-tax loss of $27.7 million – down from $11.2 million loss in the prior corresponding period (pcp)
- Cash flow from operating activities came to a $21.8 million outflow, lower than the pcp's $7 million outflow
- Basic earnings per share (EPS) came to an 18.5 cent loss – down from a 10.1 cent loss
- Ended the period with a $54.6 million capital surplus, up from $21 million
What else happened in FY22?
The financial year just been saw Weebit Nano sign its first commercial deal, sending its share price rocketing 27.3%.
The deal meant NASDAQ-listed SkyWater Technology would be working to commercialise the ASX-listed company's technology.
Weebit Nano went on to successfully scale its ReRAM technology to 28 nanometres in October, it underwent a capital raise in December, and announced it had released its demonstration chips to SkyWater in June.
What did management say?
Weebit Nano CEO Coby Hanoch commented on the company's year ended 30 June, saying:
Weebit Nano enters FY23 on the cusp of commercialisation within the embedded memory market. In the past year, we have delivered all our planned technical and commercial milestones, de-risking our technology with commercial validation.
Our technology has matured to a stage where potential customers can prototype their Systems-on-Chips with Weebit's ReRAM demo chips, testing our technology within future product designs … we are already having promising discussions and technical evaluations with early adopters who are looking for a competitive edge in their own next-generation products.
What's next?
The current financial year will likely see the company secure its first customers and revenue.
It also expects to qualify its technology, commence volume production with SkyWater, scale its ReRAM technology to 22 nanometres, and move closer to a discrete memory solution.
"FY23 is shaping up to be the most important year in Weebit's journey so far," Hanoch said. "We remain confident in our growth outlook and look forward to an exciting year ahead."
Weebit Nano share price snapshot
The Weebit Nano share price has struggled through 2022 so far. However, it's outperforming many of its peers.
The stock has tumbled 7% since the start of 2022. It has also lost 2.5% since this time last year.
Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has fallen 27% year to date and 30.5% over the last 12 months.
