Spectra7 Microsystems Inc (SEV) Quote

Would be nice to hear about orders,revenue and in general supply agreements.
I guess that comes later

Houston, we are going down...

Late night? Do you live in India?

Speaking to a friend last night who also owns SEV shares, told me we should hear something shortly on a new leader. Late night so corrected previous post. :)

Speaking to a friend last night who also owns SE shares, told me we should hear something shortly on new head leader.

https://www.similarweb.com/website/the-sun.com/#traffic
The source you quoted is only read by north Americans, and mostly those from the US.
It says it all...

Market Opportunity materializing ? https://www.the-sun.com/motors/12439887/volvo-ex90-nvidia-self-driving-road-tech-safety/?utm_source=flipboard&utm_content=topic%2Fautomotive

Thanks. I published the break down of what I have. It is over $500k invested with 90+ % paper loss
Current share count is about 360k

I feel for you,I'm glad I didn't keep buying on promises made 2 years ago and finally did a buy to get my breakeven in what I call a possible range if they simply announce 1 order.

mine is x10 of the current price...

https://www.cnbc.com/2024/09/10/oracle-is-designing-a-data-center-that-would-be-powered-by-three-small-nuclear-reactors.html?utm_source=flipboard&utm_content=topic%2Fnews

Whats your B/E number.

Mine is 27 cents on my 175000 shares.

Breaking even has become a dream for me…

I'm fairly certain that SEV said their cables(chips) have interoperability, signal integrity, reliability and power savings. I believe they were top dog at conferences back in the winter, especially because of how well they did when it came to latency. I guess as it stands right now CRDO could be the to go to but from what I heard, SEV when recently tested by some of the top hyperscalers, SEV passed in flying colors.

### Competition Between AECs and Other Cable Solutions:
- **Question (Karl Ackerman, BNP Paribas):** Active copper cables (ACCs) with redrivers are receiving attention. How do they compare to AECs with retimers, and how do you view the market for both solutions?
- **Answer (Bill Brennan):** We do not see the market for **passive copper cables** or **ACCs** as large in the long term. ACCs are primarily driven by **NVIDIA’s strategy** and are not a broad market trend. **Hyperscalers prefer AECs** due to their **interoperability, signal integrity, and reliability**. AECs are the **de facto choice** for **100G per lane** and above.

NVIDIA has not changed their insight into the cable tech: https://docs.nvidia.com/networking/display/cableovpub/dacs,+accs,+aocs,+and+transceiver+interconnects
Still no AEC.

This chat gpt is handy but what it replies is nothing more than what you can gain from all of the information available by just reading it. It is not providing anything new or unknown. But thanks. It's fun to read what a computer writes.

Ghat GPT - Which is better? If you're choosing between ACC and AEC, it largely depends on your particular requirements such as distance, data rate, power consumption, and cost. ACC is more common and generally used in situations where high-bandwidth, shorter distances are involved. AEC might be chosen for specialized applications or where specific performance characteristics are needed.
In summary, both technologies aim to enhance signal quality and extend the effective range of copper cables, but your decision should be guided by the specific technical and budgetary constraints of your application.

Besides, what else one would expect from a Credo speaker? Of course the person would say game is over and AEC cables will be the standard moving forward.

Success is not always straight forward :)

Then again....while Spectra 7 chips do improve signal integrity and can reduce noise compared to basic linear amplifiers, whether they entirely resolve the noise issue compared to AEC’s re-timers depends on the specific implementation and application context. In some cases, the advanced processing of Spectra 7 chips might bring performance closer to or even surpass that of AEC’s re-timers, but AEC’s re-timers generally offer a more straightforward and proven approach to signal reconditioning and noise reduction.

Goes to show why time and testing is so critical.

CRDO has been untruthful in the past too when it comes to AEC and plug and play actually lying about ACC. CRDO is desperate to look like the winner. Stock was pummeled recently after no significant growth in AEC

At this point nothing is set in stone which type will be used in the future

Perhaps power savings isn't the top priority. Quality of data delivery takes the cake according to this snippet:

AEC resolved the issue of data loss by incorporating re-timers, placed at both ends of the cable. These re-timers recondition the data signal during transmission, improving data quality by reducing noise and amplifying the signal. As a result, AEC ensures cleaner and more precise data delivery. On the other hand, ACC is another type of cable that includes active electronic components. Unlike re-timers, ACC utilizes linear amplifiers instead. While linear amplifiers amplify the signal, they do not recondition it, and as a consequence, they amplify the noise as well. This means that while ACC offers a more cost-effective option, re-timers in AEC deliver a significantly cleaner signal. In summary, AEC with re-timers provides a superior solution for maintaining data integrity by improving signal quality and reducing noise, compared to ACC which uses linear amplifiers.

During the Q1 FY2025 earnings call of **Credo Technology Group**, several questions were raised regarding **Active Electrical Cables (AECs)**. Below is a summary of the key questions and answers concerning AECs:

### Acceleration of AEC Growth in the Second Half of FY2025:
- **Question (Toshiya Hari, Goldman Sachs):** Can you provide more insights into the key factors that will drive the acceleration of AEC growth in the second half of the year? How do you see AEC opportunities beyond in-rack connectivity as we move towards calendar years 2025 and 2026?
- **Answer (Bill Brennan, CEO):** AEC adoption is broadening and has become the **de facto standard** for the lengths we currently address, primarily in-rack. As rack densities increase and there is a shift towards **liquid cooling**, we expect AECs to also be used for **rack-to-rack connections** of 5 to 7 meters. This could lead to an expansion of the **Total Addressable Market (TAM)** for AECs in the long term. Credo is well-positioned with **400G and 800G AEC solutions** and looks forward to future **1.6T markets** with energy-efficient products.

### New Customers and Market Expansion for AECs:
- **Question (Suji Desilva, ROTH Capital):** You expect a new 10% customer in Q2. Is this customer just starting, or is it a gradual growth?
- **Answer (Bill Brennan):** This is an **existing customer** we’ve been working with for several years. As their spending increases, they become a more important customer for us. This is an **emerging hyperscaler**, and we are seeing AEC adoption increasing among both established and emerging hyperscalers.

### Expansion of AECs to Rack-to-Rack Connections:
- **Question (Suji Desilva):** Can you provide more details on how increasing rack density and shorter distances expand the TAM for AECs?
- **Answer (Bill Brennan):** With the increasing **density of racks** and the shift towards **liquid cooling**, the physical lengths for backend network connections are becoming shorter. This opens up the possibility for AECs to be used for **rack-to-rack connections** of 5 to 7 meters, significantly expanding the TAM for AECs.

### Competition Between AECs and Other Cable Solutions:
- **Question (Karl Ackerman, BNP Paribas):** Active copper cables (ACCs) with redrivers are receiving attention. How do they compare to AECs with retimers, and how do you view the market for both solutions?
- **Answer (Bill Brennan):** We do not see the market for **passive copper cables** or **ACCs** as large in the long term. ACCs are primarily driven by **NVIDIA’s strategy** and are not a broad market trend. **Hyperscalers prefer AECs** due to their **interoperability, signal integrity, and reliability**. AECs are the **de facto choice** for **100G per lane** and above.

### Advantages of AECs Over Optical Solutions:
- **Question (Richard Shannon, Craig-Hallum):** You mentioned that AI clusters might shift from optical connections to active copper solutions like AECs. Can you elaborate on this and explain if this trend will continue?
- **Answer (Bill Brennan):** Customers are increasingly focused on **network quality**. AECs have significantly fewer **link flaps** compared to laser-based optical solutions, which is critical in AI clusters where a single failure can result in substantial costs. The **high reliability** of AECs makes them attractive for both **in-rack** and **rack-to-rack connections**, and we expect this trend to continue.

### Future AEC Products and Form Factors:
- **Question (Tore Svanberg, Stifel):** Can you elaborate on the various AEC form factors and the 400G AI AEC backend network solution that you have sampled in recent quarters?
- **Answer (Bill Brennan):** We are pleased with the current ramp of our AEC products, including the **400G solutions**. We see growing demand across the board and expect that **new products and form factors** will contribute to our growth in the second half of FY2025 and beyond.

### Summary:
- **Growth and Adoption:** AECs remain a **key driver** of revenue growth, with an expected acceleration in the second half of FY2025.
- **Market Expansion:** The TAM for AECs is growing due to increasing rack densities and the potential for **rack-to-rack connections**.
- **Competitive Advantages:** AECs offer **superior reliability** and **network quality** compared to both passive copper cables and optical solutions.
- **Customer Base:** Expanding to new customers, including emerging hyperscalers, strengthens Credo’s position in the market.

Credo’s management is **optimistic** about the future of AECs and sees **significant opportunities** for further growth and market penetration.

Good. I think my order will fill next week.

Thank you. One moment for our next question. Our next question comes from the line of Karl Ackerman from BNP Parabas. Your line is open.

Karl Ackerman

I have two. Thank you very much. Gentlemen, first off, I wanted to discuss how active copper cables have received a lot of attention recently which use a redriver instead of retimer that's used in active electrical cables. Each, of course, has their own trade-offs. But do you view these applications as catalystic to each other or is the market opportunity for passive copper cable is large enough for both applications. And as you address that question, how am I using an AEC with a half free time DSP improve the power and cost between perhaps active electrical and active copper cables. And I have a follow-up. Thank you.

Bill Brennan

Yes. So we see the market for passive copper as well as what you refer to as active or ACC or what we refer to as amplified solutions. We see the market for both of those not being big, long-term. As it relates to some of the references in the market to ACCs. I think that's really been driven by NVIDIA's strategy. And so it's really not something that I would say is a broad market type of opportunity. And even with the introductions that they've made in the past three to six months. I think it's questionable as to what role ACCs will play or amplified solutions will play. The key is that we don't see anybody in kind of the rest of the market meaning hyperscalers that are looking at building their own ecosystems. We don't see really anybody considering those solutions. And the reason is because really not following industry standards at this point. And so when we talk about interoperability and we talk about basically things like signal integrity, having the AEC or the fully retimed, fully equalized solution, that's really the way you deliver the kind of -- the kind of interoperability, the performance that would be expected. And so that's where we really haven't seen any competition and that's globally really, especially at the 100 gig per lane level. As it gets to 200 gig per lane, 1.6T, I think it plays even a smaller role. And that I think generally in the market, the game is over. Fully retimed AECs are really the choice by the broad market. And when I refer to de facto, that's really the only solution that's being considered by many of the customers that we talk to. And so we can kind of go down the path of doing LRO for AECs that has not really been a priority for the customer base just because the power levels we're delivering are meeting the objectives. But the opportunity would exist in the future if that becomes a priority amongst our customers.

https://seekingalpha.com/article/4719096-credo-technology-group-holding-ltd-crdo-q1-2025-earnings-call-transcript

The question is what steps the mgmt takes to change this. Answer: none

How many retail investors of Volex and NVIDIA know about a tiny start up sub contractor of theirs? A tiny percentage. We are not on any radar ...at present.

Now regarding our AEC product line, during the first quarter, AEC has continued to be our main source of revenue, and we anticipate that ADCs will play a crucial role in driving growth in fiscal '25, and beyond.

ADC's?

Credo’s revenues

https://finance.yahoo.com/news/q1-2025-credo-technology-group-125022240.html

Looks like they are selling AECs

At some point people will wake up an start to buy.
It's when it will happen is the question.
I holding back until I see first order.

Thanks Steve

Semtech

https://www.morningstar.com/news/business-wire/20240903726445/semtech-optical-expert-to-present-at-ifoc-2024

In his presentation on Sept. 9, 2024 at 9:55 am local time, Mr. Deng will discuss the advantages of ultra-low latency, low power analog multimode linear pluggable optics (LPO) and active copper cable (ACC) technologies to help enable data center architects to balance capacity growth and power consumption constraints with advanced analog solutions.

Some would say we are flying under the radar.
Not

You don’t even have to try to analyze the situation. Trading says it all. There is zero interest in the company on all fronts.

S7 has made several attempts over the years to call the timing of the market and have failed miserably disappointing investors.

They always have been 100% at the mercy of their buyers as far as when orders will commence and I'd imagine things are very hush hush until the last minute, especially with respect to implementing new products into the mix.

Having close ties with Tier 1 companies there is no need to even market their products to smaller players who will follow the lead from Tier 1 players as far as adoption.

In their last press release they mentioned what they are working towards with no promises/timelines. I'm not sure what else they could say that wouldn't simply amount to fluff.

As it stands their products remain highly relevant. Not much more else to say.

Unlike times past, it's been made clear that we are reaching a critical juncture as far as when ACCs are getting ready for full scale deployment.

Watching water come to boil is equally as painful.

From the perspective of someone who has never heard of S7s technology things are progressing at a rapid pace which by no means discredits their innovation.

The party turned to a funeral a while ago.

I get that but if your going to late to a party don't you call the host and say so,common curtesy, in business you let people know you will be behind schedule and here are the reason why so customers and or investors can make decisions whether to ride it out or make different plans.
Honesty goes along way in business,deception not so much.
Again these are just my thoughts.
Not trying to be argumentative

Well if they're not in control than it's end user that have had timelines wrong. Bonnie even mentioned that in a couple of presentations.

Possibly,they have yet to get one right

Could it be they are not in control of timeline?

My issue is the time-line,they can't get it straight, first it was Ar/Vr then q4 revenue of 3 million but reported 100000which brings us to today and 2nd half ramp up which is not until next year.
They just can't be trusted in my opinion.
Just my thoughts on the matter.
Maybe next year will be our year.

Gary, the last thing the company mgmt is a worried about is us, shareholders. You should have learned this by now.

Why you have your timeline semtech just told you how and when the data centers will replace dac with acc. But for all you know I could just be a janitor at a company. What do I know?

Wouldn't it be nice if S7 put out a shareholder letter stating where things stand.
Clearly the 2nd half ramp up is not on schedule.
Just a suggestion

Well worded to appear like they are the major partner to AI data centers but a closer read tells you rightly where they are. They say they are working with Nvidia but it is clear that is their only current partnership. They hope to get more from other companies.This very transcript may well be used to describe what is going on with s7 macom and semtech. This is truly good news for us all and we are also in the 3rd quarter going to the 4th for our own nominal acceleration heading into a ramp the next fiscal year. As a matter of fact a very close read suggests s7 is actually ahead as they have engaged multiple data centers vs the one semtech now states. Let the chariots out of the gates. The race has begun!

https://www.msn.com/en-us/money/other/semtech-corporation-nasdaq-smtc-q2-2025-earnings-call-transcript/ar-AA1pA5vg?apiversion=v2&noservercache=1&domshim=1&renderwebcomponents=1&wcseo=1&batchservertelemetry=1&noservertelemetry=1

My meetings with the chief system architects in data center ecosystem since joining as CEO confirmed that my belief that the transportation of bids within data center has by far the greatest power optimization opportunities. Lower power consumption and latency reduction for transport are key considerations for AI computing. Delivering on this transport opportunities will allow a greater allocation of power to compute and memory. And the Semtech team has every intention on delivering our low power, low latency solutions through embedded customer engagement and now depth of analog expertise. Semtech's copper edge continuous time linear equalizers have a well-documented application where we partnered with Nvidia to implement low power, low latency active copper cables or ACCs for Blackwell racks and pods.

For our 200 g copper edge linear redrivers, we have received the purchase orders from ACC cable manufacturers and expect the shipments to start in our fiscal third quarter in limited quantities, a nominal ramp in the fourth quarter and acceleration in the next fiscal year. Qualifications are on schedule and we currently estimate our annual opportunities specific to the single platform exceeds the floor case we provided last quarter. That said, Semtech's ACC opportunities extend beyond a single platform and a single customer. We estimate data centers currently deploy 10s of millions of direct attached copper cables or DAC cables per year. These DAC cables are passive. And as data rates and cable length increase, we expect there will be natural progression from DAC cable to ACC to meet signal integrity requirements.

The market is moving towards us and a replacement of only a small fraction of DAC cables to ACC will represent a substantial increase to Semtech's SAM. Indeed, Semtech is currently engaged with a number of companies in the AI ecosystem on just such opportunities. On this front, while we believe standards bodies in MSAs have their place in this market to promote interoperability and backwards compatibility, the time to develop and approve those standards inevitably extend the time to deploy. We believe the pace of data center innovation is optimized with Semtech's direct engagement with our end customers and allows us to create a purpose-built solution for hyperscalers to address their specific challenges. We are absolutely at the right moment to adopt this approach.

I used chatgpt to summarize the information about Spectra 7's testing in the Sedar filings. I had it use the link from the ceo.ca site.
Sedar filing link from ceo.ca

The outlook for Spectra7, as discussed in the Interim Management’s Discussion and Analysis (MD&A) for the period ending August 29, 2024, is cautiously optimistic. Here are the key hints that suggest a positive outlook:

Progress in Testing: The company has made significant strides in testing its 100Gbps Active Copper Cable (ACC) products with top global data center customers. The MD&A indicates that these tests are progressing well, and Spectra7 is moving closer to securing commercial orders. This progress is a strong positive sign, suggesting that their technology is meeting the requirements of potential customers.

Strengthened Balance Sheet: The successful conversion of C$11.7 million in long-term debt into equity and the raising of approximately C$12.5 million in a private placement have significantly improved Spectra7's financial stability. This enhanced financial position gives the company the resources needed to continue developing its products and pursuing new business opportunities, which is essential for future growth.

Market Demand: The MD&A discusses the growing demand for high-speed networking solutions in data centers, particularly those that can handle the increased data transfer needs driven by AI and cloud computing. Spectra7's ACC products are positioned as a key solution in this space, which could lead to substantial commercial opportunities.

Strategic Focus: The company remains focused on advancing from testing to commercial orders, indicating a clear strategic direction. This focus, coupled with the technological progress and financial improvements, suggests that Spectra7 is well-positioned to capitalize on market opportunities in the near future.

While these points provide a basis for optimism, the MD&A also acknowledges the inherent risks and uncertainties, such as competition and market adoption rates, which could impact the company's ability to fully realize these opportunities.

I did not know you can “buy market”