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What would be nice is an update from company about current relationship with potential customers.
If we are that close to orders flowing money should be easy to raise.
LOC with letters of intent would be nice
We will see what the message means. At least things are moving
Steve, are you talking about the possible financing?
I'm hoping that would be a partnership, merger or sale. I think dilution at this time would be quite large.
Thanks Robert for posting all that.
Looks like Macon can use SEV. From DesignCon and posted by Alan Weckel of 650 Group, “Embedded with Spectra7's cutting-edge GC1122 chips, Volex's QSFP-DD High Speed #CableAssemblies soared past industry standards, delivering low pre-FEC bit error rates.”
Why spend more money on R&D when it's already been built for you?
I'm wondering just how much dilution will take place? I hear cables currently being evaluated by two of the bigger players. No I can't confirm so I'd rather not give the names at this time.
You have CRDO without the very product being discussed in the CC and wanted by the hyperscaler's.
So way more dilution or a decent sale and I don't mean getting ripped off. I mean a fair offer.
Anyway just my thoughts.
Srini Pajjuri
Good morning guys. Thanks for taking my question. One of the questions on the data center, I think copper connections are becoming more-and-more important as AI gains traction especially clusters, AI clusters gain traction. I'm just trying to understand the market size is the way you think about it Steve, maybe and your positioning?
Because we keep hearing that this could be hundreds of millions of dollars of opportunity longer term. So I just want to hear your thoughts on, how you think about the ACC market in particular? And how you're positioned to kind of capture and leverage that potential?
Steve Daly
Yeah. Well, we certainly hear the same things. And what we're trying to do is, make sure that we have the best equalizers in the market to capture market share, to work with all of the cable manufacturers, work directly with the network folks, work with people that are designing next-generation switches, working with people that are struggling to improve Signal Integrity. And so that is where we sit in terms of a position in the market.
You are correct to say that there is a lot of copper deployed in the data centers. More-and-more that's becoming electrified to carry higher speed data. And the limitation is certainly distance. You can get it to work very well over short distances. But as you go longer in distances, you need to most likely switch over to an active optical cable or a pluggable solution and use a DSP, especially if it's a long link.
So, I think there is a spot inside of the data centers for active copper cable. You have to recognize that the history of our data center revenue has always revolved around analog solutions and the active copper cable end product that we're designing is exactly that. It's an analog solution, which makes adjustments in terms of the signal integrity through the copper.
It's also early in this cycle, and we think over the next few years, there is certainly great potential. It's probably one of the highest volume products in the data center, especially due to the reconfiguration of the data centers these days. And so yes, we are -- we see the opportunity. We are very sober about what that means to MACOM and how much revenue we'll generate. There's competition. There will be more competition. And so, we think we're in a lead position from a technology point of view and we'll work hard to try to keep that.
Tore Svanberg
Got it. So maybe because of that, how should we think about the volatility of the data center business? Because it grew very strongly for two quarters last year, then it took a breather this last quarter now starting to grow again. So is that sort of the cadence going forward sort of like two quarters of strong growth over one digestion? Any other types of visibility there would be helpful
Steve Daly
Well, I think you hit the nail on the head. It's a very volatile end-market. And we can't control that volatility. So I think investors need to expect continued volatility overtime so long as the trend line is showing that overall the business is growing and becoming more diversified, I think we'll be able to manage that business.
So you're certainly right that, it can turn on and off. You typically see that when the ISPs release large orders into the supply chain, as they're doing a build-out or you see that when they're moving from one data rate to another. Some people are saying that the speed of these transitions is increasing.
And so we're trying to keep up with all of that. But yes, you are exactly right. The data center is certainly a volatile end market. We have a very conservative approach to forecasting and managing the business so that we don't get ahead of ourselves in terms of investor expectations.
Q – Quinn Bolton
Hi, guys. Thanks for taking my question. I wanted to follow up on the Data Center opportunity. One of the big things that seem to come out of OFC is that, you're starting to see potentially a pretty large ACC opportunity at 200 gig per lane to connect GPUs together in -- across somewhere between eight to 16 racks, sounds like this opportunity could reach into the 10s, if not exceed $100 million as it ramps. And I wanted to see, how MACOM is positioned -- guys think that that's a significant opportunity for you, as you look into fiscal or calendar 2025.
Steve Daly
Well, I -- we certainly, heard and saw the same things at OFC. So, I don't think we would disagree with the fact that there's a big opportunity there. And -- so we'll have to wait and see on that. I guess, would be the best thing to say, Quinn. So, it is a big opportunity. There's more customers coming online at the higher data rates, which plays to our favor. We have a lot of different products and form factors and solutions for these customers. But you have to understand that, there's still a lot of work being done, a lot of testing, a lot of qualification and we think that this year will really be the year where we can secure strong positions for 200-gig ACC. But I would say that, yes, there's an opportunity. I think you're -- we're seeing the same things, you are.
https://seekingalpha.com/article/4688672-macom-technology-solutions-holdings-inc-mtsi-q2-2024-earnings-call-transcript
Now with that said, the data center market is doing really well. We're having a great year this year. We expect as I talked about in my script a very strong year, next year. The data rates are going higher and this makes it more complex in terms of fielding solutions due to the sort of the changes going on inside the data center we find that there is a tremendous amount of opportunities for short-reach high data rate connectivity. And that's where we play.
And then the industry is trying to bring on different ways to solve the same problem. And that's why I spoke about the LPO MSA, which is really the industry coming together and saying how do we make an optical or a copper link that uses less power. And we are absolutely right in the mix of that. And what we're very happy to see is a growing number of companies joining the MSA leading networking companies leading module manufacturers and even leading chip companies. And so we think over the long term that will be a tailwind to our business.
I'm not sure what you're getting at, but I'm sensing a lot of hostility. I posted information I gathered from the MD&A. It sure looks like management is still supporting this with their actions and their wallets. That's what management does when they see great potential. That's all
You come onto the board with SiliconValleyExec as your screen name and your first post if positive toward management. What do you think all of the rest of us would think? Did you not think we might assume you are connected to Spectra?
Again, I'm still trying to decide if management is grossly incompetent or dishonest or both. What's your opinion SiliconExec?
As does fear. Both are opportunity makers.
Unfortunately, greed often overweights common sense when it comes to investing.
Low cap companies then?
Spectra7 is hardly a startup…
Yes, still it’s normal to have more misses in startups then anything else.
steve,
you seem like a smart well connected guy?!
When you are evaluating a company, do you take into consideration(if at all) the management and a companies financial situation?
Top management in companies that are having liquidly crisis often take pay cuts, or go without their salary, as well as lending the company money.
Thanks for that info. If they're putting money in, that's a very positive sign.
We have some angry shareholders(rightfully so for some) and former shareholders(rightfully so for some) that either hate seeing positive positives or don't believe positive posts like yours.
We do have some posters that have never owned, lie that they do own or simply some paid shills. Kytrader77 I believe actually held shares and was blindsided.
And I should have stated, if management pockets are SO deep as you say, why didn't they fund the entire PP and save shareholders a 75% share price cut?
2+2 = 1 in this case. What you say doesn't add up.
Roauf is this you?!? lol
If so, you could not have possibly have handled this raise, or lack there of, and the PR around it any worse than you have. Like, literally, the worst I've ever seen in my 30+ years of investing. Mind boggling bad.
Spectra needs new management in the worst way. Something still doesn't add up here folks and I can't put my finger on it yet but legitimate companies don't operate this way.
Imagine a raise at these levels for 4-5 million,they would likely set price at 10 cents and would require 40-50 million new shares,thus ownership of company through majority stake.
Cheap really
Kinda makes you wonder why we can't access money.
Doesn't add up
Blackrock's Larry Fink Jumps On "Next AI Trade", Warning World Will Be "Short Power"
Tuesday, Apr 30, 2024 - 06:00 PM
At the start of April, we penned a lengthy report for premium subs discussing why artificial intelligence data centers, the electrification of the economy, and onshoring trends will result in a major upgrade of the nation's power grid. We followed the note up on Monday with a report titled Everyone Is Piling Into The "Next AI Trade."
Now , BlackRock Chairman and Chief Executive Larry Fink has jumped on the "Next AI Trade" theme at a World Economic Forum event on Monday.
"I do believe to properly um build out AI. We're talking about trillions of dollars of investing. So data centers today could be as much as 200 megahertz - and they're now talking about data centers being one gigawatt. That powers a city," Fink told the audience.
He pointed out that he spoke with the head of one tech company, who said their data centers currently require about 5 gigawatts of power. By 2030, the person told Fink that number could jump to 30 gigawatts.
"The amount of power that's needed to use AI has a huge impact on society," Fink said.
He then asked: "So where's that power going to come from? Are we going to take it off the grid? What does that mean for elevated energy prices?"
Fink then said the surge in power demand because of AI data centers is a "huge investment opportunity."
He warned: "The world is going to be short power - short power - and to power these data companies you cannot have this intermittent power like wind and solar."
"You need dispatchable power because they can't turn off and on these data centers," he continued.
https://www.zerohedge.com/commodities/blackrocks-larry-fink-jumps-next-ai-trade-warning-world-will-be-short-power
That was my reaction as well
And we pray the news would not be about CEO stepping down.
'As of April 29, 2024, the Company owes an aggregate of $540,000 to the Director Lenders (the “Director Loans”)'
They just made these loans in the past weeks. They have deep pockets. They believe in this and will continue to fund it until such time that it grows on its own, which will begin shortly.
These are opinions.
All the info is in the management discussion and analysis. I just had a chance to skim through.
In short, execs loaned money to the company in feb and march.
In april, they got loans from 2 shareholders for $200k+ at 10% interest.
Considering execs are providing the emergency funding, this is a good sign
I believe they license the use of Patents for a very attractive fee. That would legitimatize the technology and patents and provide the needed cash.
So zero unexpected news here. We await another announcement. We shall see what the deal is going to be. I can't imagine this PR having any material effect on the SP. If it dips this am I'd imagine it will go back up to its present price (or higher). Something must be happening behind the scenes along the lines of an acquisition if I were to guess. I can't imagine their patents and team going to waste.
The YE results issued last minute. It says it all.
Spectra7 Announces Financial Results for Year Ending December 31, 2023
https://www.spectra7.com/year-end-financials-2023
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.
I'm worried for LWLG now.. Here are future's portfolio in case SEV is looking to park that money from DJT
Spectra7 Microsystems Inc (SEV) 1,163
Lightwave Logic Inc (LWLG) 143
Charge Enterprises Inc (CRGEQ) 22
SavWatt USA Inc (SAVW) 379
Next Galaxy Corp. (fka NXGA)
That was my thought Spectra. Something just doesn't add up after all the great news out of the conferences, especially this.
SAN JOSE, Calif., March 5, 2024 /CNW/ -- (TSXV: SEV) (OTCQB: SPVNF) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), the leader in high-performance analog semiconductors for broadband connectivity markets, such as AI networks, hyperscale data centers, and AR/VR, announces that its previously demonstrated market-leading performance of 800G Active Copper Cables ("ACCs") embedded with Spectra7 semiconductors has been confirmed by the leading North American AI hyperscale data center switch manufacturer.
"We are gratified that this significant player in the AI hyperscale data center space has confirmed the market-leading performance of our proprietary ACC semiconductor products," said Raouf Halim, CEO of Spectra7. "High speed cables are the vital arteries of AI networks. This paves the way for Spectra7 to be an important supplier to the $3 billion ACC market for hyperscale data centers.1 We expect these products to be in full commercial production and sale in the second half of this year."
Extension of Convertible Debentures
Spectra7 also announces that it has received commitments from holders (the "Consenting Holders") of the requisite 80% of outstanding principal amount of its existing $8.873 million of 14% unsecured convertible debentures (the "Debentures") to extend the maturity of the Debentures from December 31, 2024 to June 30, 2025 (the "Amendment"). As consideration for the Amendment, the Company has agreed to pay a non-convertible extension bonus at maturity to the Debenture holders equal to 1.5% of the principal outstanding on the effective date of the Amendment.
The Consenting Holders confirm that they remain committed to the execution of the Company's roadmap, and believe the extension will provide the runway to reach significant commercialization milestones
I have a house that in my opinion costs 1.5m, but nobody seems to want to buy it! You get the idea…
If their patents are any good and robust enough... purchased by a large player who can monetize them in both a means of production and protection by suing those who infringe - that's their worth along with their team who can assist in rapid product rollout. For all we know management pulled out the.deal last minute as there was another, more appetizing (solid or potential) offer presented (either to their personal and/or retail investors benefit).
If it's VR/AR chip sets they are not worth much
They have about $3m of inventory. What that inventory is made up of, i dont know. But, presumably some of it can be sold to somebody
They do have other products other then 800 g
Re: “but i would expect he has some vested interest in this atleast morally”. There is no morality in play when it comes to money, and we all know that.
Why would one expect orders at this point in time? The qualifications are not complete yet. It takes 6 months, so we are looking at July as the earliest. And this was known when they announced the start of the qualification process in January.
Why would one expect orders at this point in time? The qualifications are not complete yet. It takes 6 months, so we are looking at July as the earliest. And this was known when they announced the start of the qualification process in January.
I mentioned that, not sure if anyone else did as well.
It was one investor that committed and then backed out.
Someone posted earlier that Ron said that when they gave him a call
YOU DO NOT WAIT TILL YOU ARE DRIVING ON FUMES TO LOOK FOR A GAS STATION.
I agree with most of what you wrote.
So why do you think that someone pulled out?
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