SAN JOSE, Calif., April 15, 2024 /PRNewswire/ -- (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 its expected revenue for the first quarter of 2024, and presented a liquidity update. Unless otherwise indicated, all dollar amounts in this press release are expressed in US dollars.
As previously announced, revenue for the fourth quarter of 2023 was $0.1 million1, as the Company delayed order fulfillment in the quarter to manage distributor inventories, resulting from slower buildout activity in China. Spectra7 expects 2024 first quarter revenue to be approximately $0.75 million1, compared to $3.1 million for the first quarter of 2023, as a result of this continuing slowdown.
In its March 5, 2024 press release, the Company stated that it expects commercial production and sale of its industry leading Active Copper Cable ("ACC") semiconductor products in the second half of 2024. The Company also stated that it intended to effect a private placement of equity securities to provide working capital to support the production ramp of its new ACC semiconductor products, as well as general corporate purposes. The Company has not yet been able to complete a private placement of securities for these purposes, which has resulted in existing cash levels that will support operations only through the end of April 20242.
As a result, the Company's Board of Directors has initiated a process to explore a range of strategic alternatives to address its current liquidity position and focus on maximizing shareholder value. These alternatives could include, but are not limited to, emergency funding, a restructuring of the Company's capital, a sale of the Company, a merger or other business combination. There can be no assurance that the Company will be able to raise additional funding on terms favorable to the Company, if at all.
The Company has engaged Craig-Hallum Capital Group, a leading financial advisory firm, to assist in this comprehensive review.
"Spectra7's Board of Directors and management team are committed to exploring all strategic options to ensure the long-term success and sustainability of our business," said Ron Pasek, Chair of Spectra7's Board. "We believe that by pursuing these alternatives, we will identify the best opportunities to enhance value for our shareholders and strengthen our financial position."
The Company will continue to focus on its operational responsibilities and commitments to all stakeholders including employees, customers and suppliers.
NOTES:
1 All information herein is subject to change based on the reported audited annual financial results, expected to be reported no later than April 29, 2024, and the interim financial results for the period ended March 31, 2024, expected to be reported no later than May 30, 2024.
2 This is forward-looking information and is based on a number of assumption, which include the Company's projected cash burn for the month of April. See "Cautionary Notes".
ABOUT SPECTRA7 MICROSYSTEMS INC.
Spectra7 Microsystems Inc. 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 centers and other connectivity markets. Spectra7 is based in San Jose, California with a design center in Cork, Ireland and a technical support location in Dongguan, China. For more information, please visit www.spectra7.com. 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.
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, the Company's expected revenue for Q1 2024, the Company's cash forecasts through to the end of April; the ability to raise additional funding on terms favorable to the Company, if at all; changes in the terms or availability of financing due to market conditions or other factors; the ability to implement a restructuring of capital effectively; the outcome of any discussions held with potential acquirers or the results of the strategic review process; other risks associated with the completion of the strategic review and potential sale or restructuring; and the Company's strategy, 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 management's discussion and analysis for the year ended December 31, 2022. 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.
For more information, please contact:
Matt Kreps
Darrow Associates
214-597-8200
ir@spectra7.com
Spectra7 Microsystems Inc.
Ron Pasek
Chair of the Board of Directors
408-710-6462
ronpasek@yahoo.com
Spectra7 Microsystems Inc.
Dave Mier
Interim Chief Financial Officer
925-858-7011
ir@spectra7.com
Spectra7 Microsystems Inc.
John Mitchell
Public Relations
650-269-3043
pr@spectra7.com
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SOURCE Spectra7 Microsystems Inc.
