Then closed 10.7 million Canadian dollars In the New Capital May 2024
Exclusion 11.7 million Canadian dollars Convertible bonds
San Jose, California, May 30, 2024 /CNW/ — (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. (“Spectra 7” or “companyThe company, a leader in high-performance analog semiconductors for broadband connectivity markets including AI networks, hyperscale data centers and AR/VR, today announced financial results for the fiscal year ending March 2019. March 31, 2024Copy of interim consolidated financial statements for the three months March 31, 2024and corresponding management discussion and analysis (“business administration” is available through the Company's profile at www.sedarplus.ca Unless otherwise noted, all amounts in this press release are expressed in U.S. dollars.
Q1 2024 Financial Highlights
-
Revenues for the first quarter of 2024 $800,000increased from $300,000 In the fourth quarter of 2023 $3.1 million In the first quarter of 2023.
-
gross profit1 This compares to 57% last quarter and 63% in the same period last year, at 41%.
-
Non-IFRS operating expenses2 was $2.1 milliondecreased from $3.5 million Q4 2023 and $2.2 million In the first quarter of 2023.
-
Basic and diluted loss per share for the first quarter of 2024 $(0.06)Basic and diluted losses per share were $(0.11) Q4 2023 and $(0.03) In the first quarter of 2023.
-
EBITDA3 First quarter loss $1.4 millionEBITDA loss $3.2 million EBITDA loss for Q4 2023 $70,000 In the first quarter of 2023.
Since the end of the first quarter, the Company has completed non-brokered private placements of the following units: 10.7 million Canadian dollars Total revenue is $1 million. In addition, the Company 11.7 million Canadian dollars Gives the company the right to voluntarily convert existing bonds into shares at any time prior to maturity. The company has implemented a compulsory conversion of bonds. May 15, 2024This will essentially eliminate the company's long-term debt.
Spectra7 remains focused on securing commercial orders from top global data center customers for its active copper cable products scheduled for delivery in the second half of 2024.Four
“We are pleased to have strengthened our balance sheet and eliminated our long-term debt to support our growth plans,” he said. Rauf Halimchief executive officer.
Note:
1 Gross margin is a non-GAAP measure calculated as revenue less cost of goods sold divided by revenue. See “Revenue and Gross Margin” in the MD&A and the table below for a reconciliation to measures reported in our interim financial statements.
The table below details revenue and gross profit over a three-month period. March 31, 2024 and March 31, 2023.
|
Three months ending March 31 |
||||||
|
(in thousands) |
||||||
|
2024 |
2023 |
change |
||||
|
$ |
$ |
$ |
% |
|||
|
Revenue |
816 |
3,134 |
(2,318) |
(74%) |
||
|
Cost of sales |
483 |
1,172 |
(689) |
(59%) |
||
|
gross profit |
333 |
1,963 |
(1,629) |
(83%) |
||
|
Gross Margin % |
41% |
63% |
(twenty two%) |
|||
2 Non-IFRS operating expenses are non-GAAP measures that include research and development expenses, sales and marketing expenses, general and administrative expenses, depreciation of capital equipment and right-of-use assets, and exclude stock-based compensation expense, non-recurring severance costs, interest and related financing costs, change in fair value of warrant liability, foreign exchange gains and losses, and gains and losses on disposals of property, plant and equipment. See the table below for a reconciliation of “Non-GAAP Measures” in MD&A to measures reported in our interim financial statements.
|
In thousands |
|||||||||||
|
2022 |
2023 |
2024 |
|||||||||
|
June 30 |
September 30 |
December 31 |
March 31 |
June 30 |
September 30 |
December 31 |
March 31 |
||||
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||
|
Total Costs – IFRS |
3,331 |
2,936 |
3,210 |
3,053 |
3,330 |
3,086 |
4,479 |
2,575 |
|||
|
Stock-Based Compensation |
646 |
567 |
469 |
541 |
486 |
288 |
334 |
182 |
|||
|
Interest on lease obligations for right-of-use assets |
Five |
Four |
3 |
1 |
Four |
Four |
3 |
1 |
|||
|
Increased costs |
389 |
463 |
425 |
370 |
389 |
411 |
493 |
538 |
|||
|
Other Revenues and Income |
(12) |
– |
– |
– |
(12) |
(30) |
(9) |
– |
|||
|
Exchange gain |
57 |
(9) |
354 |
(72) |
57 |
(110) |
143 |
(211) |
|||
|
Non-IFRS operating expenses |
2,246 |
1,911 |
1,959 |
2,212 |
2,407 |
2,523 |
3,515 |
2,065 |
|||
|
In thousands |
|||||||||||
|
2022 |
2023 |
2024 |
|||||||||
|
June 30 |
September 30 |
December 31 |
March 31 |
June 30 |
September 30 |
December 31 |
March 31 |
||||
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||
|
Research and development expenses (after investment deduction) |
1,158 |
985 |
928 |
995 |
1,195 |
1,409 |
1,154 |
1,040 |
|||
|
Sales and Marketing |
258 |
224 |
280 |
269 |
252 |
271 |
325 |
279 |
|||
|
General Management |
875 |
635 |
684 |
881 |
891 |
762 |
1,947 |
657 |
|||
|
Depreciation of right-of-use assets |
113 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
|||
|
Depreciation of tangible fixed assets |
Ten |
7 |
8 |
8 |
8 |
twenty one |
28 |
28 |
|||
|
Non-IFRS operating expenses |
2,414 |
1,911 |
1,959 |
2,212 |
2,407 |
2,523 |
3,515 |
2,065 |
|||
3 EBITDA or earnings before interest, taxes, depreciation and amortization is a non-GAAP measure. EBITDA does not include stock-based compensation, amortization, depreciation and interest or tax expense. See “Non-GAAP Measures” in the MD&A and the table below for a reconciliation to measures reported in our interim financial statements.
|
In thousands |
|||||||||||
|
2022 |
2023 |
2024 |
|||||||||
|
June 30 |
September 30 |
December 31 |
March 31 |
June 30 |
September 30 |
December 31 |
March 31 |
||||
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||
|
Net loss |
(1,586) |
(1,461) |
(1,231) |
(1,090) |
(1,275) |
(1,500) |
(4,315) |
(2,242) |
|||
|
Depreciation of right-of-use assets |
113 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
|||
|
Depreciation of tangible fixed assets |
Ten |
7 |
8 |
8 |
8 |
twenty one |
28 |
28 |
|||
|
Depreciation Expense – COGS |
18 |
31 |
35 |
35 |
30 |
31 |
31 |
32 |
|||
|
Amortization – Intangible Assets |
145 |
137 |
55 |
76 |
105 |
90 |
179 |
167 |
|||
|
Stock-Based Compensation |
646 |
567 |
469 |
541 |
486 |
288 |
334 |
182 |
|||
|
Interest on lease obligations for right-of-use assets |
Five |
Four |
3 |
1 |
Four |
Four |
3 |
1 |
|||
|
Increased costs |
232 |
463 |
425 |
370 |
389 |
411 |
493 |
538 |
|||
|
Other Revenues and Income |
– |
– |
– |
– |
(12) |
(30) |
(9) |
– |
|||
|
Foreign Taxes |
– |
– |
(216) |
– |
– |
– |
(119) |
– |
|||
|
Exchange gain |
34 |
(9) |
354 |
(72) |
57 |
(110) |
143 |
(211) |
|||
|
Extinction of convertible bonds |
– |
– |
– |
– |
– |
– |
– |
– |
|||
|
Other Revenues and Income |
(217) |
– |
– |
– |
– |
– |
– |
– |
|||
|
EBITDA |
(600) |
(201) |
(38) |
(70) |
(148) |
(734) |
(3,172) |
(1,445) |
|||
Four This is forward-looking information and is based on certain assumptions. See the cautionary statement below.
About SPECTRA7 MICROSYSTEMS INC.
Spectra7 Microsystems Inc. is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial designs for leading electronics manufacturers in virtual reality, augmented reality, mixed reality, data center and other connected markets. Spectra7 San Jose, California Design Center Cork, Ireland Technical Support Center Dongguan, ChinaFor more information, 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.
Notes
Certain statements contained in this press release constitute “forward-looking statements.” All statements other than statements of historical facts contained in this press release (such as the expected increase in commercial orders for data center products in the second half of 2024, which is dependent on the success of various sampling efforts currently underway, and our strategy, plans, objectives, goals and targets) and statements preceded, followed by or including words such as “believe,” “expect,” “aim,” “intend,” “plan,” “continue,” “will,” “may,” “would,” “anticipate,” “estimate,” “predict,” “project,” “seek,” “should” or the negative thereof are forward-looking statements. These statements are not historical facts and represent only our expectations, estimates and projections of 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 those expressed, implied or projected 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 analysis of fiscal 2017, including, but not limited to, the risks … December 31, 2023Management provides forward-looking statements because it believes they will provide useful information to investors when considering their investment objectives, and investors are cautioned not to place undue reliance on forward-looking information. Accordingly, all forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary or factors contained in this press release, and there can be no assurance that actual results or developments will be realized or, even if substantially realized, will have the expected results or effects on the Company. These forward-looking statements are made as of the date of this press release, and the Company undertakes no obligation to update or revise them to reflect subsequent information, events, circumstances or otherwise, except as required by law.
For further information, please contact:
Matt KrebsPresident
Darrow Associates Investor Relations
inquiry
214-597-8200
Spectra 7 Microsystems, Inc.
Dave Mear
Interim Chief Financial Officer
925-858-7011
email address
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SOURCE Spectra7 Microsystems Inc.
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