Intermolecular Inc (IMI) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

Exhibit 99.1

Intermolecular Reports Fourth Quarter and Full Year 2018 Financial Results

2018 Marked First Full Year of Positive Adjusted EBITDA Since 2013

Positive Operating Cash Flow of $5.9 million in 2018

SAN JOSE, Calif., February 12, 2019 -- Intermolecular, Inc. (Nasdaq: IMI),

Q4 2018 Financial and Operational Highlights

Full Year 2018 Financial and Operational Highlights

Management Commentary

“Our performance in 2018 reflected the successful execution of our plan – with $5.9 million of operating cash flow generated by the combination of strong performance with existing customers, commencement of major contracts with new customers, higher gross margins, a reduced cost structure and better working capital management,” said Intermolecular President and CEO Chris Kramer. “While we concluded certain programs to our customers’ satisfaction in 2018 which resulted in a short-term dip in our revenues that will continue in the first quarter of 2019, we retain excellent relationships with each of these customers, and we have secured major new customer programs that position us well for growth going forward.   

“We entered 2019 on solid footing with a strong balance sheet and a robust pipeline of business.  Following the major new customer we won in late 2018, we secured another contract with a new top tier leading global semiconductor company in the first quarter. With our lower cost structure and higher gross margins, our high throughput services platform now has strong operating leverage which will drive our profitability as we continue to scale our business.”

Fourth Quarter of 2018 Financial Results

Revenue for the fourth quarter of 2018 was $6.3 million, a decrease of 20% from $7.9 million in the third quarter of 2018, and a decrease of 40% from $10.6 million in the same period a year ago. Program revenue was $6.0 million, an 18% decrease from $7.4 million in the third quarter of 2018, and a 32% decrease from $8.9 million in the same period a year ago.