Spectra7 Announces Fourth Quarter and Annual Financial Results For The Year Ended December 31, 2017

Spectra7 Microsystems (TSX:SEV) has announced its audited financial results for the year ended December 31, 2017.

As quoted in the press release:

A copy of the audited consolidated financial statements for the 12-months ended December 31, 2017 prepared in accordance with International Financial Reporting Standards and the corresponding management’s discussion and analysis (“MD&A”) will be available under the Company’s profile on www.sedar.com. All amounts are in US dollars unless otherwise noted.

2017 Financial and Operational Summary

• Revenue for the year ended December 31, 2017 was $10.6 million as compared to $8.6 million in the previous year, representing a 23% increase.
• Gross marginⁱ as a percentage of revenue for the year ended December 31, 2017 remained strong at 58%, consistent with gross margin percentage of 58% in the previous year.
• EBITDAⁱⁱ improved to a loss of approximately $6.0 million from a loss of approximately $8.1 million in 2016.
• The Company added three new executive team members; Gerald Hamilton as Senior Vice President of Worldwide Sales, Antony Ng Yukshing as Vice President of Operations, and Darren Ma as Chief Financial Officer.
• Closed an aggregate of CAD $6.0 million bought deal public offering and private placement equity financings in June/July 2017.
• The Company successfully expanded its corporate headquarters by moving from Palo Alto, California to San Jose, California. The new facility provides upgraded engineering facilities and reduced operating costs.

Q4 2017 Financial Summary

• Revenue for Q4 2017 was approximately $2.9 million, representing a 45% increase over the prior quarter and 16% over the same period in the prior year.
• Gross margin in Q4 2017 was 55%, approximately flat sequentially and down from 60% over the same period in the prior year.
• Supply constraints experienced in Q3 2017 were resolved in the fourth quarter.
• A $1.6M non-cash impairment charge was taken for goodwill accrued in connection with the acquisition of RedMere Technology Limited in February 2013. The Company continues to see strong adoption of its active copper cable products within its core markets.

Click here to read the full press release.