SAN
JOSE, Calif., April 15,
2024 /CNW/ -- (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.