TORONTO and PALO ALTO, Calif., Jan. 24, 2014 /PRNewswire/ -- (TSX-V:SEV) Spectra7 Microsystems Inc. ("Spectra7" or the "Company"), a high performance analog semiconductor company delivering unprecedented speed, resolution and signal fidelity to consumer and wireless infrastructure products, today announced strong revenue growth for the year ended December 31, 2013.
Following completion of the Company's previously disclosed qualifying transaction, the Company changed its financial year end from September 30 to December 31 which resulted in a 15 month period (October 1, 2012 to December 31, 2013) for its first reporting year. Effective January 1, 2014, the Company will now have a 12 month financial year.
For the 15 month reporting year ended December 31, 2013, the Company had revenue of $3.0 million. For the three month period ended December 31, 2013, the Company had revenue of $0.9 million, an increase of 49% over the prior quarter ending September 30, 2013 and exceeding revenue for the same quarter of the previous year by almost nine fold. Product gross margins(1) for the three month period ended December 31, 2013 exceeded 70%, continuing the strong margin trend first established in the three months ended March 31, 2013. Audited annual financial statements for the 15 month reporting year ended December 31, 2013 are expected to be released in April 2014. The information contained herein may change based on final audited results.
"Our vision of leveraging our intellectual property into new disruptive products and channels is beginning to pay off," commented Tony Stelliga, CEO of Spectra7. "The significant growth opportunities that we have targeted are reaching their inflection points as Spectra7's products are being deployed, putting us in a very favorable position for future growth and shareholder value creation."
Since being listed on the TSX Venture Exchange in February 2013, the Company has announced five new products and over a dozen new design wins including the recent announcement that Walmart.com will carry the Company's flagship CouchConnectTM product starting early 2014.
ABOUT SPECTRA7 MICROSYSTEMS INC.
Spectra7 Microsystems Inc. is a high performance analog semiconductor company delivering unprecedented speed, resolution and signal fidelity to consumer and wireless infrastructure products. Spectra7's new system-level components address throughput bottlenecks and satisfy the exponential demand for more bandwidth and lower costs in mobile and internet infrastructure equipment, including handsets, tablets, base stations and microwave backhaul systems. Spectra7 was recently identified by CIBC World Markets as one of the hottest technology companies. Spectra7 is headquartered in Markham, Ontario with development centers in Silicon Valley, Irvine, California and Cork, Ireland. For more information, please visit www.spectra7.com.
ADDITIONAL GAAP MEASURES
Gross margin is an additional GAAP measure. Gross margin is presented in this press release as additional information regarding the Company's financial performance. The Company's method of calculating gross margin may differ from other methods used. Gross margin has been calculated by deducting manufacturing cost of sales from revenue excluding any provision for inventory write-downs. Gross margin helps the Company to plan and forecast for future periods as well as being a close proximity to cash. Management of the Company believes that providing this information, in addition to IFRS measures, allows investors to see the Company's results through the eyes of management, and to better understand its historical and future financial performance.
Certain information in this news release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Spectra7 assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Spectra7. Additional information identifying risks and uncertainties is contained in Spectra7's filings with the Canadian securities regulators available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(1) Gross margin is an additional GAAP measure. See "Additional GAAP Measures".
SOURCE Spectra7 Microsystems Inc.