03:24:06 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Spectra7 Microsystems Inc
Symbol SEV
Shares Issued 164,575,711
Close 2017-08-08 C$ 0.33
Market Cap C$ 54,309,985
Recent Sedar Documents

Spectra7 talks revenue, omits Q2 P&L from NR

2017-08-08 16:38 ET - News Release

Mr. Raouf Halim reports

SPECTRA7 ANNOUNCES RECORD FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2017

Spectra7 Microsystems Inc. has released its unaudited financial results for the three and six months ended June 30, 2017. The unaudited consolidated financial statements for the three and six months ended June 30, 2017, prepared in accordance with international financial reporting standards and the corresponding management's discussion and analysis, will be available under the company's profile on SEDAR. All amounts are in U.S. dollars unless otherwise noted.

Financial highlights for the quarter ended June 30, 2017:

  • Revenue for the three months ended June 30, 2017, was a record $3.1-million, representing an increase of 16 per cent from the prior quarter and 18 per cent compared with the second quarter of the prior year.
  • Gross margin (1) as a percentage of revenue grew to 63 per cent for the three months ended June 30, 2017, up from 60 per cent in the previous quarter, as a result of an improved margin product mix.
  • Operating expenditures for the company, excluding non-cash items, decreased by $200,000 from the prior quarter.
  • Operating losses dropped over 30 per cent second quarter fiscal 2017 over second quarter fiscal 2016.

Chief executive officer commentary

"I am very pleased with the second quarter's record revenue and overall financial results," said Spectra7 CEO Raouf Halim. "Design win activity remains robust, and we expect this activity to convert into revenue in the coming quarters. Activity across the AR [augmented reality]/VR [virtual reality]/MR [mixed reality] market remains strong, and we are optimistic that we will end the year with continued growth. Data centre initiatives are progressing, and we anticipate delivering initial revenue from this segment in 2018."

Other quarterly highlights:

  • On June 27, 2017, the company closed a bought deal offering of units for aggregate gross proceeds of $4.6-million and the first tranche of a private placement of units for additional gross proceeds of $1.3-million.
  • The company gained two additional Tier 1 mixed-reality (MR) design wins in second quarter.
  • Critical Tier 1 design wins, secured in first quarter, progressed with material revenue growth expected in the second half of 2017.
  • Two Tier 1 data centre customers completed first-round technical evaluations of the company's GaugeChangerPlus solution. The company continues to see strong market traction with this solution.

Subsequent to quarter-end:

  • The company confirmed two additional mixed-reality design wins in second quarter followed by three subsequent to the end of the quarter. This brings to eight the total wins in this market that management reaffirms will be the most important wins in the AR/VR/MR industry. These designs will begin to ramp into production in third quarter with significant expected revenue contribution in fourth quarter.
  • On July 21, 2017, the company closed the final tranche of its private placement of units, which, together with the bought deal and the first tranche of the private placement, raised aggregate gross proceeds of $6.0-million.

About Spectra7 Microsystems Inc.

Spectra7 Microsystems 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 centres and other connectivity markets. Spectra7 is based in San Jose, Calif., with design centres in Markham, Ont., Cork, Ireland, and Little Rock, Ark.

(1) Additional generally accepted accounting principle measure: Gross margin is presented in this press release consistent with information presented in the company's financial statements. Gross margin has been calculated by deducting manufacturing cost of sales and provision for inventory writedowns from revenue. Management of the company believes that providing this information allows investors to better understand the company's historical and future financial performance.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.