(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 selected unaudited financial results for the three month period ended September 30, 2021.
Preliminary Q3 2021 Results
The Company expects to report revenue of approximately $1.5 million in the third quarter of 2021, compared to $0.3 million in the third quarter of 2020. Revenue more than doubled sequentially from $0.7 million in the second quarter of 2021. These results represent an increase of more than 400% year-over-year and 100% sequentially.
Gross margin as a percentage of revenue in the third quarter is expected to be approximately 58%, compared to 55% in the third quarter of 2020 and 59% in the second quarter of 2021. Non-IFRS operating expenditures for the Company are expected to be in the range of $1.8 million to $2.0 million, compared with $1.1 million in the third quarter of 2020 and $1.8 million in the second quarter of 2021, as the Company continues to focus on its production ramp to meet rapidly growing demand from its data center customers.
CEO Commentary
“Customer shipments continued to ramp in the third quarter, leading to revenue more than doubling on a sequential basis to $1.5 million,” said Raouf Halim, Chief Executive Officer. “We expect this momentum to continue in the fourth quarter, with our outlook calling for revenue to again double on a sequential basis, driven by strong backlog of confirmed customer orders now stretching into 2022.”
Q4 2021 Financial Outlook4
Led by increasing order backlog for its data center products, the Company expects significant growth in revenue for the fourth quarter of 2021, to a range of between $2.5 million and $3.5 million. At the midpoint, this would represent an increase of almost 800% compared to revenue of $0.4 million in the fourth quarter of 2020. Total order backlog starting Q4 2021 has grown to over $7.2 million.
With this current outlook, the Company anticipates that it will achieve EBITDA profitability in Q4 2021.
