Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

News Feed Item

Spectra7 Reports Record Revenue and Continued Strong Gross Margin for Q2'14

First Half Revenues increase to more than $2.0 million; Gross Margins Continue Strong at 76%

TORONTO, ONTARIO -- (Marketwired) -- 08/15/14 -- Spectra7 Microsystems Inc. ("Spectra7" or the "Company") (TSX VENTURE: SEV), a high performance interconnect company delivering unprecedented bandwidth, speed, and resolution to enable new classes of industrial design for market-leading consumer electronics, today announced its unaudited financial results for the three and six month periods ended June 30, 2014. A copy of the unaudited condensed interim consolidated financial statements for the three and six month periods ended June 30, 2014 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.

Q2 Highlights


--  Commenced production of the Company's Virtual Reality VR7100 product
    based on design wins and subsequent purchase orders for use of the
    Company's product in leading wearable computing and virtual reality
    platforms to meet increasing consumer demand;
--  Continued to achieve milestones in pursuit of design wins for
    DisplayDirect™ with continued successful product demonstrations to
    leading tier-one flat panel OEMs;
--  Attained record revenue for the quarter of $1.1 million and exceeded
    $2.0 million for the first half ending June 30, 2014, up 44% year-over-
    year and 33% over the prior quarter;
--  Delivered strong quarterly gross margins of 76% for the quarter and for
    the first half ending June 30, 2014; an increase of 11% compared to the
    first half of 2013;
--  Expanded the Company's market footprint with the launch of
    CouchConnect™ for Gamers, a low latency, ultra-light active HDMI
    gaming interconnect that brings the power of mobile gaming on handheld
    devices to the a large screen HDTV; and
--  Closed the fully exercised over-allotment option bringing total
    aggregate proceeds of the Company's unit public offering to
    Cdn.$8,050,000.

"Spectra7 is at the cusp of a new and exciting growth phase driven by the global growth of wearable computing, virtual reality and ultra-thin high resolution displays," said Tony Stelliga, CEO of Spectra7. "Recent first market availability of leading consumer products featuring the Company's latest products underscore the Company's ability to rapidly deliver new products that enhance consumer experience. Our high performance analog signal processing capabilities and strong system expertise enable us to deliver on our vision of setting the industry standard for ultra-light, micro thin extended interconnects capable of delivering ultra-high resolution and dramatic consumer appeal of product industrial design. As a result, Spectra7 continues to demonstrate its ability to execute operationally to drive revenue growth and gross margin."

Financial Summary

The following table is a summary of the financial information presented in the financial statements:


                                                          Six months
                          Three months ended June         ended June

                                 2014         2013         2014         2013
                          (unaudited)  (unaudited)  (unaudited)  (unaudited)
                                    $            $            $            $
                        ----------------------------------------------------

Revenue                     1,145,992    1,110,046    2,007,734    1,395,487

Cost of Sales                 272,156      330,474      481,112      495,517

Gross Margin                  873,836      779,572    1,526,662      899,970
Gross Margin %                    76%          70%          76%          64%

Operating Expense           3,314,661    3,257,184    5,690,977    5,303,152

Other expense                 806,514      635,046    1,861,191    3,350,122

Net loss                  (3,247,339)  (3,112,658)  (6,025,546)  (7,753,304)

Revenue

Revenue for the quarter attained a record $1.145 million and topped $2.0 million for the first half, ended June 30, 2014 up 44% compared to the first half of 2013. Interconnect product revenue increased by 129% for the first half ended June 30, 2014 year-over-year and 24% over the prior quarter. This increase is driven by demand for active cable products for high resolution HD displays and by market availability of the Company's Virtual Reality products in market-leading VR platforms that commenced volume production in the quarter to meet consumer demand. Wireless revenue for the six month period ended June 30, 2014 was $0.309 million, 53% lower than the same period the previous year. This was due to the Company decision to refocus its resources on high growth revenue opportunities.

Gross Margins

Product gross margins remained strong at 76% for the first half, up 12% year-over-year as a result of improved product mix and higher margins for interconnect products with orders placed from the Company's new and existing customers.

Expenses

Operating expenses for the six month period ended June 30, 2014 are 7% higher than the same period in the previous year. While the Company has significantly reduced resources, the loss of eligibility for the Scientific Research and Experimental Development investment tax credits and the higher tape-out costs related to new products have resulted in operating expense increases.

On July 24, 2014, the Company commenced the closure of its Irvine, California office to allow the Company to further optimize interconnect product development and delivery efforts. Expenses in the third quarter of 2014 are expected to decrease as the Company integrates the Irvine location into the Company's Palo Alto Design Center.

Product and Customer Highlights

During the three month period ended June 30, 2014, the Company made significant progress to accelerate its product development as market-leading platforms with the Company's technology commenced volume shipments including:


--  Commenced production and shipments for the Company's DisplayDirect™
    Virtual Reality VR7100 product based on design wins and purchase orders
    to use the Company's product in leading wearable computing and virtual
    reality platforms;
--  Announced CouchConnect™ for Gamers, an ultra-light, active HDMI
    gaming interconnect that enables immersive, real-time mobile gaming from
    a handheld device onto a large screen HDTV at the E3 Expo, one of the
    largest virtual reality and gaming events in North America; and
--  Introduced the WR7100, the first chip of its kind to enable ultra-thin
    near transparent weavable interconnects that can deliver real-time deep
    color 4K UHD resolution from wearable visual systems to on-person mobile
    phones and storage devices, shortly after the end of the quarter.

ABOUT SPECTRA7 MICROSYSTEMS INC.

Spectra7 Microsystems Inc. is a high performance analog semiconductor company delivering unprecedented speed, resolution and signal fidelity that enables ultra-light, high-speed, micro-thin interconnects which enable new classes of industrial design for market-leading consumer electronic products including Ultra-HD 4K Displays and Televisions, Virtual Reality, Wearable Computing and Tablets. Spectra7 is headquartered in Markham, Ontario with development centers in Silicon Valley, California and Cork, Ireland. For more information, please visit www.spectra7.com.

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, 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.

Contacts:
Sean Peasgood
Investor Relations
t: 416.565.2805
t: 416.565.2805
w: www.spectra7.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
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
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to ma...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...