SAN
JOSE, Calif., Oct. 25,
2023 /CNW/ -- (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 preliminary
unaudited revenue results for the three months ended September 30, 2023 and updated its outlook for
the second half of 2023. Unless otherwise indicated, all dollar
amounts in this press release are expressed in US dollars.
"We expect to report third quarter revenues of $3.1 million and operating expenses of
approximately $2.5 million and are
updating 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 Raouf
Halim, Chief Executive Officer.
"We continue to see progress with our hyperscale customers as
they move toward leading edge 800G and 1.6TB data rate
interconnects deployed in the most advanced implementations, such
as artificial intelligence. Hyperscalers are also increasingly
sensitive to the high power requirements for other cabling options,
which can exceed the power required by the switch itself.
Spectra7's ACC cables provide a unique solution to this challenge
and reduce 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
20272," said Mr. Halim.
2H FY 2023 Outlook1
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 expenses3 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).
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 Spectra7 internally generated model based on
650Group silicon chipsets for Ethernet optical transceivers and
active cable alternatives posted July
2023. This is forward looking information. See "Cautionary
Notes."
3 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 Company's management's discussion and analysis for
the three months ended June 30, 2023,
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. A reconciliation to measures
reported in the Company's financial statements for the three and
nine months ended September 30, 2023
and for the year ended December 31,
2023 will be provided in the Company's management's
discussion and analysis for those periods.
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.
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 expected datacenter upgrade cycle, the
expected size of the ACC connectivity market by 2027, the Company's
expected revenue in the second half of 2023, and the Company's
ability to maintain its efficient operating expense structure and
non-IFRS operating expenses 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:
Matt Kreps
Darrow Associates
214-597-8200
ir@spectra7.com
Spectra7 Microsystems Inc.
Bonnie Tomei
Chief Financial Officer
669-212-1089
ir@spectra7.com
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SOURCE Spectra7 Microsystems Inc.
