Spectra7 Announces Financial Results for Year Ending December 31, 2023
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.
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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.
