The 4DS Memory (ASX:4DS) share price plummets 5% today. Here’s why

The 4DS Memory (ASX: 4DS) share price has plummeted in early trade this morning after the company released its half-year results.
The post The 4DS Memory (ASX:4DS) share price plummets 5% today. Here’s why appeared first on The Motley Fool Australia. –

A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

The 4DS Memory Ltd (ASX: 4DS) share price has plunged in early trade this morning after the semiconductor developer announced its half-year results.

At the time of writing, the 4DS Memory share price is trading down 5.26% at 18.5 cents.

The numbers, what do they mean?

4DS has been building out its patent portfolio as it continues working towards its next-generation memory. Between August to December last year, the company added 6 additional USA patents. All of these were in relation to the company’s interface Switching ReRAM technology.

Progress continues to be made towards the development of the company’s memory. In late December, 4DS’ Second Non-Platform Lot underwent analysis – the results were deemed positive on 1 February, as we reported on.

However, all of these business activities come at a cost. 4DS is still in the development stages of its memory, which means little to no revenue is being derived from operational activities. For the half-year reported, 4DS recorded $29,378 in revenue, down 4% from the prior year.

Meanwhile, the company expanded bottom-line losses by 6% to $3.1 million. Most of the loss is due to the continued investment in research and development – which accounted for $2.13 million of expenditure in the half.

Remind me, where’s the memory up to?

The positive results confirmed on 1 February from the Second Non-Platform Lot produced some key takeaways:

  • The company has been able to repeat the results for key memory characteristics (speed, endurance, and retention).
  • 19 out of the 21 device wafers were functional, with the nonfunctional wafers developed outside the imec process window.
  • Additional process parameters insights were gained.

Now, 4DS is awaiting results from its Second Platform Lot. These wafers commenced production at imec in Belgium on 27 January. Worth noting, this lot is using imec’s memory platform that has the capability to read and write selected bits and bytes.

Furthermore, results from the Second Platform Lot are expected in the second quarter of 2021. 4DS has stated the results from the Second Platform Lot will pave the way for fabricating wafers with chips that are fully functional megabit memories.

4DS share price recap

The 4DS Memory share price has experienced volatility throughout the year. For the shareholders that have held on, however, the returns have been pleasant. In the last 12 months, the 4DS share price has appreciated by 222%. It’s not all smooth sailings, 4DS is more volatile than 75% of Australian stocks over the past 3 months. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The 4DS Memory (ASX:4DS) share price plummets 5% today. Here’s why appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!