Spectra7 Announces Third Quarter 2023 Financial Results
Record First 9 Months 2023 Revenue
SAN JOSE, Calif., Nov. 7, 2023 /PRNewswire/ -- (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced its financial results for the three and nine months ended September 30, 2023. A copy of the interim consolidated financial statements for the three and nine months ended September 30, 2023 and the corresponding management's discussion and analysis (the "MD&A") will be available under the Company's profile on www.sedarplus.ca. Unless otherwise indicated, all dollar amounts in this press release are expressed in US dollars.
"We are excited to report third quarter revenues of $3.2 million, maintaining our record revenue pace through the first nine months of the year of $9.6 million, even with the delayed hyperscaler upgrade cycle that we believe will offer significant sales opportunities for our Active Copper Cable solutions ahead1. We have also maintained our cost-efficient operating structure, with non-IFRS operating expenses2 of approximately $2.5 million for the third quarter," said Raouf Halim, Chief Executive Officer.
"We are pleased to see clear signs of progress toward leading edge 800G and 1.6TB data rate interconnects to be deployed in the most advanced implementations at our hyperscale customers. New high-growth applications, such as artificial intelligence, are increasingly sensitive to not only bandwidth demands, but also the high-power requirements of other cabling options, some of which even exceed the power required by the switch itself. Spectra7's ACC cables provide a unique solution to this challenge, reducing both the capital cost and operating cost of a hyperscale data center. We believe the ACC connectivity market opportunity is estimated to reach $1 billion by 20273," said Mr. Halim.
"We are actively engaged with a major data center operator to deploy our ACC solutions in their AI clusters, and working with a range of industry players to support additional data center needs at other customers as they upgrade to next generation switches. Given our continued record sales pace, we have updated our second half revenue outlook to between $6.0 million and $6.8 million as we continue to build upon our technology leadership position in ultra-high-speed cabling for datacenters and hyperscalers1," said Mr. Halim.
Third quarter 2023 financial highlights
The Company anticipates revenue for the second half of 2023 to be in the range of $6.0 million to $6.8 million, updated from a range of $5.5 million to $7.0 million. The Company also anticipates maintaining its efficient operating expense structure and non-IFRS operating expenses2 for 2H 2023 at a range of $4.5 million to $4.9 million (non-IFRS operating expenses for 1H 2023 were $4.6 million).
CFO Leave of Absence
The Company also announces that its Chief Financial Officer, Bonnie Tomei, is taking a personal leave of absence effective December 1, 2023 due to a family medical matter. The leave is expected to be for approximately three months but may be adjusted as necessary. Spectra7 expects to hire an interim CFO and does not anticipate any interruption to its ongoing business plans or outlook1.
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 San Jose, California with a design center in Cork, Ireland and a technical support location in Dongguan, China. For more information, please visit www.spectra7.com.
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.
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 expectation that gross margin will improve in Q4 2023, the expected datacenter upgrade cycle, the expected size of the ACC connectivity market by 2027, the expected orders from datacenter customers in North America, the expected implementation of ACC technology in response to increased power and data demands, and the Company's ability to maintain its efficient operating expense structure and working capital management and the Company's strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to, the risk factors discussed in the Company's management's discussion and analysis for the year ended December 31, 2022. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.
For more information, please contact:
Spectra7 Microsystems Inc.
View original content to download multimedia:https://www.prnewswire.com/news-releases/spectra7-announces-third-quarter-2023-financial-results-301979481.html
SOURCE Spectra7 Microsystems Inc.
Future of CX Expo #TECHSUPERSHOW Booth Crawl
The Secret to Making Hybrid Work Work â€“ Collaboration from Anywhere