ACADEMIA

Intermolecular announced results for its fourth quarter and full year ended December 31, 2011.

Fourth Quarter 2011 Results

Revenue for the fourth quarter of 2011 was $15.1 million representing 7% growth over revenue of $14.2 million in the same period a year ago.

As reported under U.S. generally accepted accounting principles (GAAP), we had a net loss of $(25.6) million for the fourth quarter of 2011, or $(1.19) per basic common share, compared with a net loss of $(3.0) million, or $(0.54) per basic common share, for the fourth quarter of 2010.

Net loss for the fourth quarter of 2011 includes a $25.3 million one-time, non-recurring expense in Other Income and Expense that the Company recognized upon completion of its intellectual property (IP) asset purchase agreement with Symyx. Intermolecular recorded a two year note payable to Symyx in the amount of $27.3 million, and as a result, the Company now owns all the patents previously held by Symyx that relate to combinatorial processing.

We report revenue, costs of revenue, gross margin, operating income (loss), net income (loss) and earnings per share in accordance with GAAP and additionally on a non-GAAP basis. A reconciliation of the difference between the non-GAAP financial measures with the most directly comparable GAAP measure, as well as a description of the items excluded from the non-GAAP measures, is included in the financial statements portion of this press release.

Non-GAAP net income for the fourth quarter of 2011 was $0.2 million, or $0.00 per diluted share. This compared with non-GAAP net income of $1.5 million or $0.04 per diluted share for the fourth quarter of 2010.

"We executed on our business strategy in 2011, by expanding our collaborative development programs and increasing our licensing and royalty mix to 27% of total revenue," said David Lazovsky, President and CEO of Intermolecular. "We achieved a number of significant milestones, including diversifying our portfolio of customers to include the semiconductor foundry market, and securing ownership of core IP protecting our HPC innovation platform. So far in 2012, we are off to a solid start, including the recent multi-year extension and expansion of our collaborative development and technology licensing agreement with Guardian Industries."