Sivers Semiconductors (SIVE) Q2 2024 earnings summary

Executive summary

• Net sales grew 14% year-over-year in Q2 2024 to SEK 52.3 million, with Wireless leading at 26% growth and Photonics up 2%.

• Product sales surged 186% in Q2, now representing 39% of total sales, progressing toward the 2026 target of over 80%.

• Major design wins include a significant 5G CPE project with a global company and continued progress in Track-to-Train and Japanese NRE projects.

• CEO transition planned, with a new leader expected to start before the end of August.

• Adjusted EBITDA improved by 25% to SEK -12.4 million, and EBIT improved by 12% to SEK -40.7 million year-over-year.

Financial highlights

• Q2 2024 net sales: SEK 52.3 million (up 14% y/y); H1 2024 net sales: SEK 108.4 million (up 4% y/y).

• Adjusted EBITDA Q2: SEK -12.4 million (improved from -16.6 million); EBIT Q2: SEK -40.7 million (improved from -46.2 million).

• Net loss after tax Q2: SEK -43.5 million, mainly due to negative net financials and FX effects.

• Cash and equivalents at period end: SEK 50.8 million, with reduced cash burn expected in the second half.

• Earnings per share Q2: SEK -0.18; equity per share: SEK 5.06.

Outlook and guidance

• Management anticipates significantly stronger growth in the second half of 2024, with Q4 typically being the strongest quarter.

• Long-term average growth target remains at a 40% CAGR, consistent with the past eight years.

• Product sales expected to reach 80% of total revenue by 2026, with significant volume ramp-ups from new design wins.

• No formal financial forecast for 2024 has been published.