Spectra7 Microsystems Inc (SEV)

[prototype_101]

2 Price Target Cuts, why? Spectra7 Microsystems Inc Price Target Cut to C$0.10/Share From C$0.15 by Eight Capital

12:09 pm ET March 19, 2019 (Dow Jones)

Ratings actions from Baystreet: http://www.baystreet.ca

(END) Dow Jones Newswires

March 19, 2019 12:09 ET (16:09 GMT)

Spectra7 Microsystems Inc Price Target Cut to C$0.10/Share From C$0.15 by Eight Capital

12:09 pm ET March 19, 2019 (Dow Jones)

Ratings actions from Baystreet: http://www.baystreet.ca

(END) Dow Jones Newswires

March 19, 2019 12:09 ET (16:09 GMT)

Outlook for 2019 and beyond looks GREAT! >

CEO COMMENTARY

"After a very difficult first half of 2018 driven by VR market softness, the VR markets recovered nicely in the second half of 2018 as revenues in the second half of 2018 increased by approximately 44% compared to revenue in the first half of 2018," said Spectra7 CEO Raouf Halim. "We are also delighted by our strong momentum in the Data Center market and expect multiple Data Center deployments of our Active Copper Cable solutions in the second half of 2019."

Quarterly Highlights

-- The Company continues to experience strong traction with its data center solutions and announced nine new customer design-ins in Q4 2018, for a total of 45 to date.

-- The Company announced a key partnership with Molex, a major Data Center Interconnect supplier.

-- The Company achieved Low Latency Error Free Performance with Mellanox ConnectX-5 Network Adapters.

-- The Company has now announced key partnerships with 4 of the top 5 global cable assembly companies.

-- A major China Hyperscaler Data Center Operator has selected Spectra7 Active Copper Cable technology to deploy starting in the second half of 2019.

-- The Company showcased 25/100/200/400 Gbps Data Center Interconnects at DesignCon and OFC in early 2019 including demonstrations with leading system OEMs including: Arista, Cisco, Intel, Juniper and Mellanox.

-- With increased Data Center prototype revenue in the Q4 2018, the Company expects to achieve production revenue ramp in the second half of 2019.

Outlook

Despite seasonal weakness in the first quarter, the Company entered the first quarter of 2019 with its highest starting backlog to date. The Company expects significant annual year over year revenue growth in 2019 driven by the expected ramp of Data Center products coupled with the recovery of the VR market. The Company is currently evaluating various capital raise options, including but not limited to, a loan based on its valuable patent portfolio.