Spectra7 Microsystems (SEV) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was $0.9M, up from $0.8M in Q1 2024 but down from $3.3M in Q2 2023.

• Gross margin improved to 64% in Q2 2024 from 41% in Q1 2024 and 63% in Q2 2023.

• EBITDA loss widened to $1.7M in Q2 2024 from $1.4M in Q1 2024 and $148K in Q2 2023.

• Strengthened balance sheet with C$12.5M in new capital and elimination of C$11.7M in debt.

• Focus remains on advancing to commercial orders for 100Gbps active copper cable products.

Financial highlights

• Q2 2024 revenue declined 74% year-over-year; six-month revenue down 74% year-over-year.

• Non-IFRS operating expenses rose to $2.5M in Q2 2024 from $2.1M in Q1 2024 and $2.4M in Q2 2023.

• Basic and diluted loss per share was $(0.17) in Q2 2024, compared to $(0.06) in Q1 2024 and $(0.03) in Q2 2023.

• Gross profit for Q2 2024 was $548K, down from $2.1M in Q2 2023.

Outlook and guidance

• Actively engaged in data center testing and expects to advance to commercial orders for new products.

• Forward-looking statements highlight risks and uncertainties regarding future performance.