Aeluma Q1 Earnings Call Highlights

Key Points

• Revenue declined and losses widened: Fiscal Q1 2027 revenue fell to $568,000 from $1.4 million a year earlier, while net loss grew to $3.8 million. Aeluma attributed higher expenses to increased investment in hiring, product development, and commercialization.
• AI data-center opportunities are developing: Aeluma is discussing potential engineering investments and products with customers across the supply chain, including hyperscalers and system integrators. The company sees possible large-volume opportunities from 2028 onward, though customer qualification can take nine to 18 months.
• Funding and manufacturing capacity: Aeluma ended the quarter with $53.9 million in cash and no debt, and is negotiating a possible CHIPS program award of up to $30 million, which is not yet finalized. It has ordered a new MOCVD system for expansion but says existing capacity is sufficient for near-term commercialization.

Aeluma NASDAQ: ALMU reported lower revenue and a wider loss for the first quarter of fiscal 2027 as it increased spending on product development and commercialization, while executives said customer discussions are expanding in the market for AI data-center connections.

Revenue fell to $568,000 from $1.4 million a year earlier and came primarily from government research and development contracts, Chief Financial Officer Christopher Stewart said. The company posted a net loss of $3.8 million, or $0.19 per share, compared with a loss of $1.5 million, or $0.09 per share, in the prior-year quarter.

Adjusted EBITDA loss widened to $2.7 million from $450,000. Stewart attributed the year-over-year change primarily to increased investment in headcount, product development and operational capabilities to support customer programs and commercialization.

AI Datacom Discussions Expand

Founder and CEO Jonathan Klamkin said Aeluma is negotiating possible non-recurring engineering, or NRE, investments and product opportunities with customers in AI datacom and other markets. Some could involve large volumes to support infrastructure development between 2028 and 2032, he said.

Aeluma’s technologies under development include Lynx high-speed photodetectors and Quasar quantum dot lasers. Klamkin said the company’s nearer-term opportunities are likely to involve microdetectors and microemitters for “slow and wide” connections, which distribute information across multiple channels to conserve power.

Such optical connections are being considered for linking computing equipment within and between racks as copper cables encounter limits at high data rates and over longer distances, Klamkin said. He added that several optical architectures are expected to coexist in data centers.

The CEO said Aeluma is developing both standard offerings and products tailored to individual customers. Customer-specific qualification could take nine to 18 months, he said, while significant industry volume increases are expected in 2028 and beyond.

Asked which parts of the supply chain Aeluma is targeting, Klamkin said the company has discussions across the value chain, including with hyperscalers, system integrators and Tier 1 suppliers. He said a Tier 1 supplier could potentially be a customer, partner, sales channel or competitor.

Manufacturing Expansion and Funding

Aeluma has agreed to procure an AIXTRON MOCVD system for capacity expansion and advanced development using 150-millimeter and 200-millimeter gallium arsenide and silicon substrates. Klamkin said the company could not comment on an installation timeline.

The new equipment is not needed for commercialization, he said, because Aeluma’s existing in-house capacity and a capacity commitment from partner Sumitomo Chemical Advanced Technologies are sufficient for the foreseeable future. The company continues to work with Sumitomo on MOCVD wafers and with fabrication partners.

Klamkin said Aeluma’s approach does not require indium phosphide substrates or fabrication facilities. The company is developing technologies that can use existing gallium arsenide and silicon fabs, he said.

Aeluma ended the quarter with $53.9 million in cash and cash equivalents, down from $56 million at June 30, 2026, and had no debt. Stewart said the company is continuing diligence and contract negotiations on a CHIPS program letter of intent for up to $30 million in proposed funding. Terms are not final, and any award remains subject to definitive agreements and applicable conditions.

For fiscal 2027, Klamkin said incoming revenue is expected to come from R&D contracts and commercial NRE. Asked whether potential NRE arrangements would involve upfront payments, capacity reservations or milestone payments, he did not specify payment terms. He said arrangements could range from funding technology development to providing samples for qualification ahead of potential product ramps.

About Aeluma (NASDAQ:ALMU)

Aeluma, Inc. develops semiconductor materials and optoelectronic devices using technology designed to integrate compound semiconductors with silicon wafers. Its approach aims to combine the performance of compound semiconductors with the scale and manufacturing advantages of silicon-based processes. The company's technology is intended for applications in areas such as optical communications, sensing, and other photonics markets. Potential device applications include lasers and photodetectors, which can be used to generate or detect light in electronic systems.

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