Spectra7 Announces Second Quarter 2023 Financial Results
- Record H1 revenue and gross margin
- Expecting orders from data center customers
- ACC connectivity market opportunity
- None.
Record H1 2023 Revenue and Gross Margin at
"We are excited to report second quarter revenue of
"The rising demands of increasingly power and data intensive applications such as AI and ChatGPT are mandating that our hyperscale data center partners and customers implement new 800G and 1.6TB standards for which our Active Copper Cable (ACC) technologies provide the perfect balance of high speed, low cost and low power.1 Test and qualification activities centered around these 800G and 1.6TB data rate interconnect upgrades are increasing quickly – with particular attention to Spectra7's ACC solutions to meet top-of-the-rack and short-run connectivity requirements. We expect this process will generate orders from key data center customers in
"As an early sign of our potential for success in this market, Spectra7 is currently engaged with one of the major data center operators to deploy our ACC solutions in their AI clusters, which we expect will drive revenue growth in the coming quarters and provide additional validation of the benefits for deploying ACC solutions,"1 said Mr. Halim.
Second quarter 2023 financial highlights
- Second quarter 2023 revenue of
, and$3.3 million through the first six months of 2023.$6.4 million - Gross margin2 as a percentage of revenue in the second quarter increased to
63% , from43% in the same quarter in the prior year. - Non-IFRS operating expenses4 were
in the second quarter, similar to$2.4 million in the same quarter in the prior year as the Company continues to maintain a cost-efficient operating approach.$2.4 million - Basic and diluted loss per share for the second quarter was
, compared to a basic and diluted loss per share of$(0.03) in the same period a year ago.$(0.05) - EBITDA5 loss in the second quarter was
, compared with an EBITDA loss of$148,000 in the same period a year ago.$600,000
2H 2023 Outlook1
The Company anticipates revenue for second half of 2023 to be in the range of
Notes:
1 This is forward-looking information and is based on a number of assumptions, which include the current and anticipated customer purchase orders received, supply outlook and anticipated operational expenditures. See "Cautionary Notes".
2 Gross margin is a non-GAAP measure which is computed as revenue less cost of sales divided by revenue. Refer to "Revenue and Gross Margin" in the MD&A, which is available on SEDAR at www.sedarplus.ca, for a reconciliation to measures reported in the Company's financial statements.
3 Spectra7 internally generated model based on 650Group silicon chipsets for Ethernet optical transceivers and active cable alternatives posted July 2023.
4 Non-IFRS operating expenses is a non-GAAP measure which includes research and development, sales and marketing, general and administrative expenses and depreciation and amortization for capital equipment and right-of-use assets and excludes share-based compensation expenses, non-recurring termination costs, interest and related financing costs, change in fair value of warrant liabilities, foreign exchange gain/loss and gain/loss from property and equipment disposal. Refer to "Non-GAAP Measures" in the MD&A, which is available on SEDAR at www.sedarplus.ca, for a reconciliation to measures reported in the Company's financial statements in the previous quarter.
5 EBITDA or earnings before interest, tax, depreciation, and amortization is a non-GAAP measure. EBITDA excludes share-based compensation, amortization, depreciation, interest, and tax expenses. Refer to "Non-GAAP Measures" in the MD&A for reconciliation to measures reported in the Company's financial statements.
ABOUT SPECTRA7 MICROSYSTEMS INC.
Spectra7 Microsystems Inc. is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in virtual reality, augmented reality, mixed reality, data centers and other connectivity markets. Spectra7 is based in
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTES
Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, the Company's expected revenue in the second half of 2023, the expected datacenter upgrade cycle, the expected size of the ACC connectivity market by 2027, the expected orders from datacenter customers in
For more information, please contact:
Matt Kreps
Darrow Associates
214-597-8200
ir@spectra7.com
Spectra7 Microsystems Inc.
Bonnie Tomei
Chief Financial Officer
408-770-2915
ir@spectra7.com
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SOURCE Spectra7 Microsystems Inc.