Company Reiterates Guidance for Q1 2024 and
Provides Liquidity Update
SAN
JOSE, Calif., April 29,
2024 /CNW/ -- (TSXV: SEV) (OTCQB: SPVNF) Spectra7
Microsystems Inc. ("Spectra7" or the "Company"), a
leader in high-performance analog semiconductors for broadband
connectivity markets, such as AI networks, hyperscale data centers,
and AR/VR, today announced its financial results for the year ended
December 31, 2023. A copy of the
audited consolidated financial statements for the year ended
December 31, 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.
Fourth quarter and full year 2023 financial
highlights
- Fourth quarter 2023 revenue was $0.3
million. Full-year 2023 revenue was $9.9 million, or approximately 88% of the
$11.3 million in the prior year.
- Full-year gross margin1 was 57%, compared to 50% in
the prior year.
- Full year non-IFRS operating expenses2 were
$10.7 million, up from $8.8 million in 2022.
- Basic and diluted loss per share for the year was $(0.21), compared with a basic and diluted loss
per share of $(0.21) in the prior
year.
- EBITDA3 loss for the full year was $4.1M, compared with an EBITDA4 loss
of $2.2M for the prior year.
As previously announced, the Company expects 2024 first quarter
revenue to be approximately $0.75
million4, compared to $3.1
million for the first quarter of 2023, as a result of the
continuing slower data center buildout activity in China.
The Company previously announced that it has limited liquidity
and is exploring alternatives to address the situation, including
emergency funding, a restructuring of the Company's capital, a sale
of the Company, a merger or other business combination.
Although focused on funding and restructuring its capital, the
Company continues to work with its advisors in pursuing all
alternatives. There can be no assurances that any of the
explored alternatives will be successful.
NOTES:
1 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, for reconciliation to
measures reported in the Company's financial statements.
2 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 expense, 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 for reconciliation to measures reported
in the Company's financial statements.
3 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 annual financial statements.
4 This information is subject to change based on the
reported interim financial results for the three months ended
March 31, 2024, expected to be
reported no later than May 30,
2024.
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 Company's anticipated revenue in the first
quarter of 2024, the Company's ability to obtain emergency funding,
the Company's ability to complete a restructuring of its capital, a
sale of the Company, a merger or other business combination, 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 MD&A.
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, Managing Director
Darrow Associates Investor Relations
mkreps@darrowir.com
214-597-8200
Spectra7 Microsystems Inc.
Dave Mier
Interim Chief Financial Officer
925-858-7011
ir@spectra7.com
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SOURCE Spectra7 Microsystems Inc.