Valens Semiconductor Ltd., a leading provider of high-performance connectivity solutions for the audio-video and automotive markets, announced its financial results for the second quarter of 2023. The company reported record revenues of $24.2 million, which exceeded expectations and demonstrated better profitability metrics.
During the second quarter, Valens Semiconductor executed a plan to enhance its efficiency by streamlining its development platforms. The company’s automotive business continued to grow, with the VA6000 chipset being widely deployed in various Mercedes-Benz car models, including Electric Vehicles (EV). The demand for advanced driver-assistance systems (ADAS) from automotive OEMs also remained strong, particularly for vision-based systems used in applications like surround-view, parking assist, and reverse assist. The VA7000 chipset family, designed for vision-based systems, showed promising growth in the bid pipeline, indicating potential mass production deployment.
In the audio-video segment, Valens Semiconductor is set to ship engineering samples of the VS6320, the first single-chip for high-performance USB extension, to select customers in the fourth quarter of 2023. The company foresees the launch of new products integrating the VS6320 for videoconferencing, industrial, and medical applications in the second half of 2024.
Valens Semiconductor is actively pursuing its long-term growth opportunities by leveraging its disruptive connectivity offerings in both the audio-video and automotive sectors. The company’s strong balance sheet, with $138 million in cash and no debt as of June 30, 2023, provides a solid foundation for executing its growth strategy.
Key financial highlights for the second quarter include a 7.5% increase in revenues compared to the same period in 2022, a GAAP gross margin of 61.8% (non-GAAP gross margin of 63.1%), a GAAP net loss of $(4.6) million (compared to $(10.0) million in Q2 2022), and an Adjusted EBITDA loss of $(0.8) million (compared to $(4.5) million in Q2 2022). The company also implemented an efficiency improvement plan projected to save approximately $9 million annually.
Looking ahead, Valens Semiconductor reaffirms its revenue guidance for the third quarter of 2023, expects to reach Adjusted EBITDA breakeven by the end of 2023, and anticipates becoming cash-flow positive in 2024. The company is focused on achieving long-term growth and delivering value to its stakeholders by continuously exploring new market opportunities.
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