Spectra7 Announces Preliminary First Quarter 2019 Financial Results
7:00 am ET April 23, 2019 (BusinessWire)
(TSX:SEV) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced preliminary selected unaudited financial results for the three month period ended March 31, 2019. Unaudited financial results for the three months ending March 31, 2019 will be released in May 2019. The information contained herein may change based on final results. Unless otherwise indicated, all amounts in this release are expressed in US dollars.
PRELIMINARY Q1 2019 RESULTS
The Company expects to report revenues of approximately $1.4 million for the first quarter of 2019, flat versus the prior quarter and up 55% from the same quarter in 2018. The quarter's revenue was driven primarily by the continued recovery of Spectra7's core virtual reality ("VR") business as well as the ramp of new VR design wins, coupled with continued pre-production revenue from its patented active copper cable solutions for the Data Center market. Gross margin(1) as a percentage of revenue is expected to be approximately 55%, up from 53% in the prior quarter due to a richer mix of higher margin products and flat versus the year-ago quarter. Non-IFRS operating expenditures are expected to be approximately $ 2.8 million, a slight increase from Q4 2018 and down 13% from the same quarter a year ago, due to strong operating expense discipline.
"I am pleased with our Q1 performance in what is seasonally a down quarter in our industry. I am particularly encouraged by our continued design win traction in the data center market coupled with continued strong share of the VR market with industry-leading OEMs," said Spectra7 CEO Raouf Halim. "The anticipated production deployment of our data center active copper cable solutions with a major China hyperscale operator in the second half of this year, recovery in our core VR business, and continued operational discipline puts us in a strong position in 2019."
-- Spectra7 continues to experience strong traction with its data center solutions and announced ten new customer design-ins in Q1 2019, for a total of 55 to date.
-- A major China Hyperscaler Data Center Operator is on track to deploy active copper cables enabled by Spectra7 technology starting in the second half of 2019.
-- A major Ethernet Switch OEM has chosen to develop their own branded active copper cables with Spectra7 embedded ICs for production shipments beginning this year.
-- The Company announced that it now has key partnerships with 4 of the top 5 global cable data center interconnect companies.
-- The Company showcased 25/100/200/400 Gbps data center interconnects at DesignCon and OFC in the first quarter including demonstrations with leading system OEMs such as Arista, Cisco Systems, Intel, Juniper and Mellanox.
-- The Company believes it is on track to achieve significant revenue growth in the second half of the year.
The Company continues to evaluate various capital raise options, including but not limited to, a loan based on its valuable patent portfolio.
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 design centers in Cork, Ireland and Little Rock, Arkansas. For more information,please visitwww.spectra7.com.