Mr. Raouf Halim reports

SPECTRA7 ANNOUNCES PRELIMINARY THIRD QUARTER 2023 REVENUE AND UPDATES SECOND HALF OF 2023 OUTLOOK

Spectra7 Microsystems Inc. has released preliminary unaudited revenue results for the three months ended Sept. 30, 2023, and updated its outlook for the second half of 2023. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States dollars.

"We expect to report third quarter revenues of $3.1-million and operating expenses of approximately $2.5-million, and are updating our second-half revenue outlook to between $6-million and $6.8-million as we continue to build upon our technology leadership position in ultrahigh-speed cabling for data centres and hyperscalers," said Raouf Halim, chief executive officer.

"We continue to see progress with our hyperscale customers as they move toward leading-edge 800 G and 1.6 TB data rate interconnects deployed in the most advanced implementations, such as artificial intelligence. Hyperscalers are also increasingly sensitive to the high power requirements for other cabling options, which can exceed the power required by the switch itself. Spectra7's ACC cables provide a unique solution to this challenge, and reduce both the capital cost and operating cost of a hyperscale data centre. We believe the ACC connectivity market opportunity is estimated to reach $1-billion by 2027," said Mr. Halim.

H2 FY 2023 outlook

The company anticipates revenue for the second half of 2023 to be in the range of $6-million to $6.8-million, updated from a range of $5.5-million to $7-million. The company also anticipates maintaining its efficient operating expense structure and non-IFRS (international financial reporting standards) operating expenses for H2 2023 at a range of $4.5-million to $4.9-million (non-IFRS operating expenses for H1 2023 were $4.6-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 a design centre in Cork, Ireland, and a technical support location in Dongguan, China.

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