Today Spectra7 released its preliminary Q3 2023 results and as communicated earlier, its inline to expectations.
I suppose the official news about ACC’s orders with hyperscale customer is something we all are waiting for, lets see if we get the official news during Q4 2023 or early 2024. Fingers crossed.
Here is the Q3 results and forward looking statement:
Spectra7 Announces Preliminary Third Quarter 2023 Revenue and Updates Second Half of 2023 Outlook
October 25th, 2023 SAN JOSE, CA – (PR NewsWire) – (TSXV:SEV) (OTCQB:SPVNF) Spectra7 Microsystems Inc. (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, today announced preliminary unaudited revenue results for the three months ended September 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 US 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 $6.0 million and $6.8 million as we continue to build upon our technology leadership position in ultra-high-speed cabling for datacenters and hyperscalers1,” said Raouf Halim, Chief Executive Officer.
“We continue to see progress with our hyperscale customers as they move toward leading edge 800G and 1.6TB 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 center. We believe the ACC connectivity market opportunity is estimated to reach $1 billion by 20272,” said Mr. Halim.
2H FY 2023 OUTLOOK1
The Company anticipates revenue for the second half of 2023 to be in the range of $6.0 million to $6.8 million, updated from a range of $5.5 million to $7.0 million. The Company also anticipates maintaining its efficient operating expense structure and non-IFRS operating expenses3 for 2H 2023 at a range of $4.5 million to $4.9 million (non-IFRS operating expenses for 1H 2023 were $4.6 million).
NOTES:
1 This is forward-looking information and is based on a number of assumptions, which include the current and anticipated customer purchase orders received, supply outlook and anticipated operational expenditures. See “Cautionary Notes”.
2 Spectra7 internally generated model based on 650Group silicon chipsets for Ethernet optical transceivers and active cable alternatives posted July 2023. This is forward looking information. See “Cautionary Notes.”
3 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 expenses, 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 Company’s management’s discussion and analysis for the three months ended June 30, 2023, which is available on SEDAR+ at www.sedarplus.ca, for a reconciliation to measures reported in the Company’s financial statements in the previous quarter. A reconciliation to measures reported in the Company’s financial statements for the three and nine months ended September 30, 2023 and for the year ended December 31, 2023 will be provided in the Company’s management’s discussion and analysis for those periods.
Busy And Useful 