Intermolecular (NASDAQ:IMI) is a research and development firms which partners with semiconductor and clean energy firms to improve their innovative abilities and time to market constraints. IMI creates interdisciplinary teams which works with clients to help them develop proprietary technologies faster than they would with traditional research and development. The company is focused mostly on high-volume semiconductor businesses. Intermolecular makes money by charging its clients service fees during their collaboration and royalty fees once the client begins to commercialize the product.[1]

Business Overview

For the full year 2010, Intermolecular's total revenue was $42.7M. This corresponds to a 57% increase over the $26.9M of total revenue reported for the full year 2009. However, the company reported a net loss of $1.8M for 2010. During the first 9 months of 2011, Intermolecular reported a net loss of $4.5M.[2]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on November 17, 2011. The company offered 9.65M shares each for $10. This was at the bottom of the $12-$14 price range. The company had originally announced that it would sell 10M shares. The deal raised a total of $9.65M. The lead mangers of the deal were Morgan Stanley, JP Morgan, and Barclays.

Trends & Forces

Focus on semiconductors

Intermolecular has focused historically on semiconductor companies, but the company hopes to enter into clean tech, LEDs, and photovoltaics. The company hopes that this will help to diversify as well as expand the business substantially. However, the differences in processes and technologies involved in these industries may vary greatly. As a result, Intermolecular may not maintain significant advantages in experience. Furthermore, the company's unique model for improving research and development may not directly carry over. [3]

  1. IMI S-1/A 2011 PROSPECTUS SUMMARY "Our Company" p. 1-2
  2. IMI S-1/A 2011 PROSPECTUS SUMMARY "Summary Consolidated Financial Data" p. 9
  3. Seeking Alpha "Intermolecular Prices Friday's IPO at $13" 16 Nov 2011
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