TORONTO, ONTARIO--(Marketwired - Aug. 15, 2014) - Spectra7 Microsystems Inc.("Spectra7" or the "Company") (TSX VENTURE:SEV), a high performance interconnect company delivering unprecedented bandwidth, speed, and resolution to enable new classes of industrial design for market-leading consumer electronics, today announced its unaudited financial results for the three and six month periods ended June 30, 2014. A copy of the unaudited condensed interim consolidated financial statements for the three and six month periods ended June 30, 2014prepared in accordance with International Financial Reporting Standards and the corresponding Management's Discussion and Analysis will be available under the Company's profile on www.sedar.com. All amounts are in US dollars unless otherwise noted. Q2 Highlights -- Commenced production of the Company's Virtual Reality VR7100 product based on design wins and subsequent purchase orders for use of the Company's product in leading wearable computing and virtual reality platforms to meet increasing consumer demand; -- Continued to achieve milestones in pursuit of design wins for DisplayDirect(TM) with continued successful product demonstrations to leading tier-one flat panel OEMs; -- Attained record revenue for the quarter of $1.1 millionand exceeded $2.0 millionfor the first half ending June 30, 2014, up 44% year-over- year and 33% over the prior quarter; -- Delivered strong quarterly gross margins of 76% for the quarter and for the first half ending June 30, 2014; an increase of 11% compared to the first half of 2013; -- Expanded the Company's market footprint with the launch of CouchConnect(TM) for Gamers, a low latency, ultra-light active HDMI gaming interconnect that brings the power of mobile gaming on handheld devices to the a large screen HDTV; and -- Closed the fully exercised over-allotment option bringing total aggregate proceeds of the Company's unit public offering to Cdn. $8,050,000.
"Spectra7 is at the cusp of a new and exciting growth phase driven by the global growth of wearable computing, virtual reality and ultra-thin high resolution displays," said Tony Stelliga, CEO of Spectra7. "Recent first market availability of leading consumer products featuring the Company's latest products underscore the Company's ability to rapidly deliver new products that enhance consumer experience. Our high performance analog signal processing capabilities and strong system expertise enable us to deliver on our vision of setting the industry standard for ultra-light, micro thin extended interconnects capable of delivering ultra-high resolution and dramatic consumer appeal of product industrial design. As a result, Spectra7 continues to demonstrate its ability to execute operationally to drive revenue growth and gross margin."
The following table is a summary of the financial information presented in the financial statements:
Six months Three months ended June ended June 2014 2013 2014 2013 (unaudited) (unaudited) (unaudited) (unaudited) $ $ $ $ ---------------------------------------------------- Revenue 1,145,992 1,110,046 2,007,734 1,395,487 Cost of Sales 272,156 330,474 481,112 495,517 Gross Margin 873,836 779,572 1,526,662 899,970 Gross Margin % 76% 70% 76% 64% Operating Expense 3,314,661 3,257,184 5,690,977 5,303,152 Other expense 806,514 635,046 1,861,191 3,350,122 Net loss (3,247,339) (3,112,658) (6,025,546) (7,753,304)
Revenue for the quarter attained a record
Product gross margins remained strong at 76% for the first half, up 12% year-over-year as a result of improved product mix and higher margins for interconnect products with orders placed from the Company's new and existing customers.
Operating expenses for the six month period ended
Product and Customer Highlights
During the three month period ended
-- Commenced production and shipments for the Company's DisplayDirect(TM) Virtual Reality VR7100 product based on design wins and purchase orders to use the Company's product in leading wearable computing and virtual reality platforms; -- Announced CouchConnect(TM) for Gamers, an ultra-light, active HDMI gaming interconnect that enables immersive, real-time mobile gaming from a handheld device onto a large screen HDTV at the E3 Expo, one of the largest virtual reality and gaming events in
North America; and -- Introduced the WR7100, the first chip of its kind to enable ultra-thin near transparent weavable interconnects that can deliver real-time deep color 4K UHD resolution from wearable visual systems to on-person mobile phones and storage devices, shortly after the end of the quarter.
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, those regarding the Company's future financial position and results of operations, strategy, proposed acquisitions, 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 annual MD&A for the year ended
FOR FURTHER INFORMATION PLEASE CONTACT:
Sean PeasgoodInvestor Relations t: 416.565.2805 t: 416.565.2805 w: www.spectra7.com Source: Spectra7 Microsystems Inc.