|By Marketwired .||
|April 23, 2014 06:42 PM EDT||
TORONTO, ONTARIO and PALO ALTO, CALIFORNIA -- (Marketwired) -- 04/23/14 -- Spectra7 Microsystems Inc. ("Spectra7" or the "Company") (TSX VENTURE:SEV), a high performance analog semiconductor company delivering unprecedented speed, resolution and signal fidelity to consumer and wireless infrastructure products, today announced its audited financial results for the fifteen month period ended December 31, 2013. A copy of the audited consolidated financial statements for the fifteen month period ended December 31, 2013 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 www.sedar.com. All amounts are in US dollars unless otherwise noted.
-- Revenue increased 45% for the 12 months ended December 31, 2013 to $3.0 million compared to $2.1 million for the 12 months ended December 31, 2012. -- Revenue increased 61% for the quarter ended December 31, 2013 to $1.0 million compared to $0.6 million for the prior quarter ended September 30, 2013. -- Product gross margins(1) were strong at 80% for the quarter ended December 31, 2013 and 71% for the 12 months ended December 31, 2013. -- Announcement of five new products during the year ended December 31, 2013. -- Equity financings of $8.8 million to accelerate product development.
"The Company is now delivering on its vision to develop, launch and command value for best-in-class products across multiple high growth segments," said Tony Stelliga, CEO of Spectra7. "Our latest products are being adopted by market leaders in UltraHD displays, consumer interconnects and wearable computing as we showcase their extensive capabilities and consumer benefits. The year ended December 31, 2013 included a major acquisition, with the successful consolidation and streamlining of operations and costs. Shortly after the year end, the Company closed an upsized CDN$7.0 million public offering to further accelerate the roll-out of these new products."
Following completion of the Company's previously disclosed qualifying transaction (the "Qualifying Transaction"), the Company changed its financial year end from September 30 to December 31 which resulted in a 15 month period (October 1, 2012 to December 31, 2013) for its first reporting period.
Since completing the Qualifying Transaction, the Company has made significant progress with respect to capital, products and customers. Re-affirming preliminary financial results announced on January 24, 2014 for the fifteen month period ended December 31, 2013, the Company had revenue of $3.1 million. For the three month period ended December 31, 2013, the Company exceeded previously disclosed results with revenue of $1.0 million, an increase of 61% over the prior quarter ended September 30, 2013 and exceeded revenue for the same quarter of the previous year by almost nine fold.
Product gross margins(1) for the three month period ended December 31, 2013 were 80%, above the preliminary results previously announced, due to product mix consisting of higher margin products. Product margins continue this trend, which started in the three months ended March 31, 2013, resulting in product gross margins(1) for the twelve month period ended December 31, 2013 of 71% compared to 67% for the twelve months ended December 31, 2012.
On March 28, 2014, the Company announced it had closed a public offering of 23,333,333 units for gross proceeds of CDN$7.0 million. The Company intends to use the proceeds from the offering as disclosed in the final prospectus dated March 24, 2014.
Results for the fifteen month period ended December 31, 2013 includes RedMere from the date of acquisition, February 5, 2013. Results prior to February 5, 2013 include Fresco results only.
Fifteen Month Period Ended Year ended December 31 September 30 2013 2012 $000 $000 -------------------------------- Revenue 3,100 3,495 Cost of Sales 1,153 1,867 Gross Margin 1,948 1,627 Expenses 14,590 8,854 Other expense 5,445 4,591 Net loss (18,087) (11,818)
The Company believes that the most meaningful presentation of the financial results is to discuss the results based on the new year-end for twelve months ended December 31.
The following table outlines key financial information for the twelve month period ended December 31, 2013 and 2012 and the three month period ended December 31, and September 30, 2013.
Twelve Twelve Three Three months months months months ended ended ended ended December December December September 31 31 31 30 2013 2012 Percent 2013 2013 Percent $000 $000 Change $000 $000 Change ---------------------------------------------------------- Product Revenue 2,662 1,796 48% 643 613 5% License IP Revenue 346 278 346 - ---------------------------------------------------------- Total Revenue 3,008 2,074 45% 989 613 61% Product Cost 880 690 28% 200 193 4% Inventory Provision 186 279 -33% 173 - ---------------------------------------------------------- Total Cost of Sales 1,066 969 10% 373 193 93% Gross Margin 1,942 1,105 43% 616 420 47% Product Gross Margin % 71% 67% 4% 80% 69% 11% Total Gross Margin % 65% 53% 11% 62% 69% -6% Expenses 10,509 7,246 31% 2,492 2,773 -10% Amortization of intangibles other than licenses 2,726 2,726 Other expense 4,471 4,463 0% 393 856 -54% Net loss (15,764) (10,604) (4,995) (3,209)
Revenue for the twelve months ended December 31, 2013 was $3.0 million compared to $2.1 million for the year ended December 31, 2012, an increase of 45% year over year. The Company experienced strong demand for its active cable signal processing technology which is used by market leading customers to design, develop and launch next-generation interconnects for HD displays, wearable computing and second screen viewing.
Revenue for the quarter ended December 31, 2013 was $1.0 million, an increase of 61% over the previous quarter. There was strong interest for the Company's broader analog IP technology from major system on chip companies which contributed to the revenue increase in the quarter.
Product gross margins(1) improved year over year from 67% in 2012 to 71% in 2013 reflecting the
Company's strategy to modify traditional distribution channel modes and focus on higher margin products.
Product gross margins(1) represent revenue less the direct costs of manufacturing including yield loss and freight costs. Total gross margin represents product gross margin less a provision to write-down surplus, obsolete, or on-hand inventory to its recoverable amount which was done for demodulators, tuner and cable components. The Company does not expect further significant provisions in the foreseeable future.
Expenses increased year over year by 31% as a result of certain one-time expenses relating to the completion of the Qualifying Transaction and opening of the Company's office in Silicon Valley.
For the quarter ended December 31, 2013, expenses were 10% lower than the previous quarter as a result of cost control programs to reduce variable expenses such as travel.
For a complete discussion of expenses please refer to the financial statements and management's discussion and analysis.
Product and Customer Development
During the quarter ended December 31, 2013, the Company announced the VR7100 chip which delivers the speed and low latency to enable new levels and lengths of ultra-light and wearable connectivity between virtual reality ("VR") headsets and compute cluster or gaming machine. The VR7100 seeks to address the bulk and weight of previous VR platforms.
On September 24, 2013, the Company announced CouchConnect(TM), a portable, five meter / 16 foot, plug'n'play, ultra-light and ultra-long active HDMI cable capable of delivering true, real-time 1080p HD or 4K UltraHD content from any mobile device to any large screen display. On January 7, 2014, the Company announced that CouchConnect(TM) would be sold on Walmart.com. In March 2014, the Company announced that it had expanded its retailer presence with the availability of CouchConnect(TM) on Newegg.com.
On January 7, 2014, the Company unveiled its Detectiv4K(TM) integrated audio/video performance monitoring technology and announced that Detectiv4K(TM) was now embedded in Monster® Cable's Black Platinum® cable, adding to the existing use of the Company's home theatre technology in Monster's Core Power® and MSeries® cable lines.
ABOUT SPECTRA7 MICROSYSTEMS INC.
Spectra7 Microsystems Inc. is a high performance analog semiconductor company delivering unprecedented speed, resolution and signal fidelity to consumer and wireless infrastructure products. Spectra7's new system-level components address throughput bottlenecks and satisfy the exponential demand for more bandwidth and lower costs in mobile and internet infrastructure equipment, including handsets, tablets, base stations and microwave backhaul systems. Spectra7 is headquartered in Markham, Ontario with development centers in Silicon Valley, Irvine, California and Cork, Ireland. For more information, please visit www.spectra7.com.
ADDITIONAL GAAP MEASURES
Gross margin is an additional GAAP measure. Gross margin is presented in this press release as additional information regarding the Company's financial performance. The Company's method of calculating gross margin may differ from other methods used. Gross margin has been calculated by deducting manufacturing cost of sales from revenue excluding any provision for inventory write- downs. Gross margin helps the Company to plan and forecast for future periods as well as being a close proximity to cash. Management of the Company believes that providing this information, in addition to IFRS measures, allows investors to see the Company's results through the eyes of management, and to better understand its historical and future financial performance.
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, those regarding the Company's future financial position and results of operations, strategy, proposed acquisitions, 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 Company's annual MD&A for the year ended December 31, 2013. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(1) Gross margin is an additional GAAP measure. See "Additional GAAP Measures".
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
Dec. 5, 2016 07:15 AM EST Reads: 1,248
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Dec. 5, 2016 06:45 AM EST Reads: 966
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 5, 2016 06:45 AM EST Reads: 1,788
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 5, 2016 06:45 AM EST Reads: 1,588
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 06:30 AM EST Reads: 680
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 5, 2016 06:15 AM EST Reads: 852
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Dec. 5, 2016 06:00 AM EST Reads: 1,677
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
Dec. 5, 2016 04:30 AM EST Reads: 5,210
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
Dec. 5, 2016 04:15 AM EST Reads: 1,610
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Dec. 5, 2016 04:00 AM EST Reads: 5,404
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Dec. 5, 2016 04:00 AM EST Reads: 5,111
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
Dec. 5, 2016 04:00 AM EST Reads: 4,697
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 03:30 AM EST Reads: 643
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 03:30 AM EST Reads: 939
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 5, 2016 01:30 AM EST Reads: 757