Strong Start to 2022 with Record Quarterly Revenue Driven by
Solid Demand Across All Markets
HOD HASHARON, Israel,
May 11, 2022 /PRNewswire/ -- Valens
Semiconductor Ltd. (NYSE: VLN), a premier provider of high-speed
connectivity solutions for the automotive and audio-video
markets, today reported financial results for the first
quarter ended March 31, 2022.
"In the first quarter of 2022, Valens Semiconductor reported the
company's highest ever quarterly revenues of $21.6 million, up 62% from Q1 2021, as we
delivered on strong demand from customers in our audio-video and
automotive markets," said Gideon
Ben-Zvi, CEO of Valens Semiconductor. "Interest for our
market leading audio-video solutions continues to build across all
geographic regions and is expanding into new applications within
multiple verticals – corporate, education, government, industrial,
and medical. In our emerging automotive segment, we continue to
make inroads as Valens continues to grow its automotive revenues,
and we are receiving positive feedback from prospective customers
and partners evaluating our next generation MIPI A-PHY compliant
VA7000 chipset. Since December 2021,
we have been shipping engineering samples to a growing number of
automotive OEMs, Tier 1s and Tier 2 partners. With our automotive
product portfolio of the non-symmetric VA7000 chipset and the
symmetric VA6000 chipset family, installed in vehicles today,
Valens Semiconductor is a one-stop-shop for in-vehicle wired
high-speed connectivity required by OEMs.
"As a result of the better than anticipated start to 2022 and
our outlook for the rest of the year, we are raising our full year
2022 guidance. Our continued success and ability to capitalize on
the significant secular growth trends in both our served automotive
and audio-video markets demonstrate once again why we believe
Valens is well-positioned to create long-term value for our
stakeholders."
Key Financial and Business Highlights
- Record quarterly revenues of $21.6
million, up 61.8% from Q1 2021 and up 4.3% from Q4 2021
- Q1 2022 GAAP gross margin was 71.4% compared to 71.3% in Q1
2021 (non-GAAP gross margin was 72.1% compared to 71.8% in Q1
2021)
- Q1 2022 GAAP Net Loss was $(5.1) million, better than the
$(6.4) million in Q1 2021, and
Adjusted EBITDA loss in the first quarter was $(4.1) million, compared with $(4.3) million in Q1 2021
- Automotive:
- Increased the number of OEMs, Tier 1s and Tier 2s evaluating the
company's MIPI A-PHY VA7000 chipset to more than 30, doubling OEMs
to eight
- Announced partnership with OMNIVISION, a leading Tier 2 supplier
for in-vehicle camera sensors, for a MIPI A-PHY compliant camera
solution for Advanced Driver-Assistance Systems (ADAS)
applications
- Audio-video:
- Joined the Logitech Collaboration Program to develop a solution
using Valens technology and products in Logitech's USB peripheral
suite of products for both onsite and remote hybrid settings, e.g.,
in classrooms and corporate meeting rooms
- Increased demand for the Stello VS3000, Valens' newest
audio-video product family, with leading audio-video manufacturers
embedding it in additional products, addressing various
end-markets
- Met all demand from customers, in a severely supply constrained
environment
- Strong balance sheet with $165.5
million in cash, cash equivalents and short-term deposits as
of March 31, 2022
Second Quarter and Full Year 2022 Outlook
"Q1 was a strong start to the year, positioning us for a better
than originally anticipated 2022," said Dror Heldenberg, CFO of Valens
Semiconductor.
"Valens is introducing second quarter 2022 guidance. Revenue is
expected to range between $21.6
million and $22.0 million.
Gross margins are expected to range between 66.3% and 67.3%, and
Adjusted EBITDA loss is expected to be in the range of $(9.8) million to $(8.8)
million.
"We are also raising our revenue, gross margin and Adjusted
EBITDA guidance for the full year 2022. The company now
expects revenue to range between $86.5
million and $88.0 million, up
from a range of between $83.0 million
and $85.0 million. Most of
this increase is attributed to audio-video, while also
essentially doubling the automotive revenue from the full year
2021. Gross margins are expected to range between 66.0% and 67.3%,
and Adjusted EBITDA loss is expected to be in the range of
$(37.2) million to $(35.5) million," concluded Heldenberg.
Adjusted EBITDA is a non-GAAP measure. See the tables below for
additional information regarding this and other non-GAAP metrics
used in this release.
Conference Call Information
Valens will host a conference call today, Wednesday, May 11, 2022, at 8:30 a.m. Eastern Time (ET) to discuss its first
quarter 2022 financial results and business outlook. To access this
call, dial (at least 10 minutes before the scheduled time) +1 (888)
642-5032 (U.S.), 0 (800) 917-5108 (UK), 03 918 0609 (Israel) or +972 3 918 0609 (all other
locations).
A live webcast of the conference call will be available via the
investor relations section of Valens' website at Valens -
Financials - Quarterly Results. The live webcast can also be
accessed by clicking here. A replay of the conference call will be
available on Valens' website shortly after the call concludes.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"estimate," "plan," "project," "forecast," "intend," "will,"
"expect," "anticipate," "believe," "seek," "target" or other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding the anticipated transaction and future
economic and market conditions. These statements are based on
various assumptions, whether or not identified in this press
release, and on the current expectations of Valens' management and
are not predictions of actual performance. These forward-looking
statements are provided for illustrative purposes only and are not
intended to serve as, and must not be relied on by any investor as,
a guarantee, an assurance, a prediction or a definitive statement
of fact or probability. Actual events and circumstances are
difficult or impossible to predict and will differ from
assumptions. Many actual events and circumstances are beyond the
control of Valens.
These forward-looking statements are subject to a number of
risks and uncertainties, including changes in domestic and foreign
business, market, financial, political and legal conditions;
failure to realize the anticipated benefits of the business
combination; future global, regional or local economic and market
conditions; the development, effects and enforcement of laws and
regulations; Valens' ability to manage future growth; Valens'
ability to develop new products and solutions, bring them to market
in a timely manner, and make enhancements to them; the effects of
competition on Valens' future business; the outcome of any
potential litigation, government and regulatory proceedings,
investigations and inquiries; the effects of health epidemics, such
as the recent global COVID-19 pandemic, have had and could in the
future have on Valens' revenue, its employees and results of
operations; the cyclicality of the semiconductor industry; Valens'
ability to adjust its supply chain volume due to changing market
conditions or failure to estimate its customers' demand, including
during any downturn in the automotive or audio-video markets;
disruptions in relationships with any one of Valens' key customers;
difficulty selling products if customers do not design Valens
products into their product offerings; Valens' dependence on
winning selection processes and ability to generate timely or
sufficient net sales or margins from those wins; political
conditions in Israel; and those
factors discussed in Valens' annual report on Form 20-F filed with
the SEC on March 2, 2022 under the
heading "Risk Factors," and other documents of Valens filed, or to
be filed, with the SEC. If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Valens does not presently know or that
Valens currently believes are immaterial that could also cause
actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Valens' expectations, plans or forecasts of future events
and views as of the date of this press release. Valens anticipates
that subsequent events and developments may cause Valens'
assessments to change. However, while Valens may elect to update
these forward-looking statements at some point in the future,
Valens specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Valens' assessment as of any date subsequent to the
date of this press release. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
About Valens Semiconductor
Valens Semiconductor pushes the boundaries of connectivity by
enabling long-reach, high-speed video and data transmission for the
Automotive and Audio-Video industries. Valens' HDBaseT technology
is the leading standard in the Audio-Video market with tens of
millions of Valens' chipsets integrated into thousands of products
in a wide range of applications. Valens' Automotive chipsets are
deployed in systems manufactured by leading customers and are on
the road in vehicles around the world. Valens is a key enabler of
the evolution of ADAS and autonomous driving and its advanced
technology is the basis for the new industry standard for
high-speed in-vehicle connectivity. For more, visit
https://www.valens.com/.
VALENS SEMICONDUCTOR
LTD.
|
SUMMARY OF FINANCIAL
RESULTS
|
(U.S. Dollars in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
Three Months
Ended March
31,
|
|
2022
|
2021
|
Revenues
|
21,620
|
13,364
|
Gross Profit
|
15,440
|
9,532
|
Gross Margin
|
71.4%
|
71.3%
|
Net loss
|
(5,050)
|
(6,376)
|
Cash, cash equivalents
and short-term deposits[1]
|
165,522
|
57,564
|
Net cash used in
operating activities
|
(8,403)
|
(3,208)
|
Non-GAAP Financial
Data
|
|
|
Non-GAAP Gross
Margin[2]
|
72.1%
|
71.8%
|
Adjusted
EBITDA[3]
|
(4,086)
|
(4,303)
|
Loss per share[4]
(in U.S. Dollars)
|
(0.02)
|
(0.42)
|
|
|
|
[1] As of the last
day of the period.
|
[2] GAAP Gross
Profit excluding share-based compensation and depreciation
expenses, divided by revenue.
For the three months ended March 31, 2022, and 2021, share-based
compensation and depreciation
expenses were $140 thousand and $57 thousand
respectively.
|
[3] Adjusted EBITDA
is defined as net profit (loss) before financial income (expense),
net, income taxes, equity
in earnings of investee and depreciation and amortization, further
adjusted to exclude share-based
compensation, which may vary from period-to-period. We caution
investors that amounts presented in
accordance with our definition of Adjusted EBITDA may not be
comparable to similar measures disclosed
by other issuers, because not all issuers calculate Adjusted EBITDA
in the same manner. Adjusted EBITDA
should not be considered as an alternative to net loss or any other
performance measures derived in
accordance with GAAP or as an alternative to cash flows from
operating activities as a measure of our
liquidity. Please refer to the appendix at the end of this press
release for a reconciliation to the most directly
comparable measure in accordance with GAAP.
|
[4] See
reconciliation of GAAP to non-GAAP financial
measures.
|
VALENS SEMICONDUCTOR
LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(U.S. Dollars in
thousands, except share and per share amounts)
|
|
(Unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
REVENUES
|
21,620
|
|
13,364
|
|
COST OF
REVENUES
|
(6,180)
|
|
(3,832)
|
|
GROSS
PROFIT
|
15,440
|
|
9,532
|
|
OPERATING
EXPENSES:
|
|
|
|
|
Research and development expenses
|
(14,127)
|
|
(10,398)
|
|
Sales and marketing expenses
|
(4,209)
|
|
(3,110)
|
|
General and administrative expenses
|
(4,301)
|
|
(2,178)
|
|
TOTAL OPERATING
EXPENSES
|
(22,637)
|
|
(15,686)
|
|
OPERATING
LOSS
|
(7,197)
|
|
(6,154)
|
|
Change in fair value of
Forfeiture Shares
|
2,604
|
|
-
|
|
Financial expenses,
net
|
(115)
|
|
(167)
|
|
LOSS BEFORE INCOME
TAXES
|
(4,708)
|
|
(6,321)
|
|
INCOME
TAXES
|
(346)
|
|
(55)
|
|
LOSS AFTER INCOME
TAXES
|
(5,054)
|
|
(6,376)
|
|
Equity in earnings of
investee
|
4
|
|
-
|
|
NET
LOSS
|
(5,050)
|
|
(6,376)
|
|
EARNINGS PER SHARE
DATA:
BASIC AND DILUTED
NET LOSS PER ORDINARY
SHARE[5] (in U.S. Dollars)
|
(0.05)
|
|
(0.93)
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES USED
|
97,150,054
|
|
10,834,415
|
|
USED IN CALCULATION
OF NET LOSS PER ORDINARY
|
|
|
|
|
|
|
[5] See note
4.
|
VALENS SEMICONDUCTOR
LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(U.S. Dollars in
thousands)
|
(Unaudited)
|
|
ASSETS
|
|
March 31,
2022
|
|
December 31,
2021
|
CURRENT
ASSETS
Cash and cash
equivalents
|
|
|
44,994
|
|
|
56,791
|
Short-term deposits
|
|
|
120,528
|
|
|
117,568
|
Trade accounts receivable
|
|
|
10,213
|
|
|
7,095
|
Inventories
|
|
|
12,466
|
|
|
9,322
|
Prepaid expenses and other current assets
|
|
|
7,737
|
|
|
8,255
|
TOTAL CURRENT
ASSETS
|
|
|
195,938
|
|
|
199,031
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
2,791
|
|
|
2,741
|
Operating lease right-of-use asset[6]
|
|
|
4,729
|
|
|
-
|
Other assets
|
|
|
724
|
|
|
828
|
TOTAL LONG-TERM
ASSETS
|
|
|
8,244
|
|
|
3,569
|
TOTAL
ASSETS
|
|
|
204,182
|
|
|
202,600
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
CURRENT
LIABILITIES[7]
|
|
|
19,442
|
|
|
15,699
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Forfeiture shares
|
|
|
2,054
|
|
|
4,658
|
Non-current operating
leases[8]
|
|
|
2,648
|
|
|
-
|
Other long-term liabilities
|
|
|
46
|
|
|
46
|
TOTAL LONG-TERM
LIABILITIES
|
|
|
4,748
|
|
|
4,704
|
TOTAL
LIABILITIES
|
|
|
24,190
|
|
|
20,403
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
179,992
|
|
|
182,197
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
204,182
|
|
|
202,600
|
|
|
|
|
|
|
|
[6] As of January 1,
2022, the company has implemented the FASB ASU No. 2016-02, Leases
(ASC 842),
on the recognition, measurement, presentation, and disclosure of
leases for both parties to a contract
(i.e., lessees and lessors).
|
[7] Includes $2,000
thousand of current maturities of operating leases; see footnote
6.
|
[8] See footnote
6.
|
VALENS SEMICONDUCTOR
LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(U.S. Dollars in
thousands)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
|
|
|
|
2022
|
|
2021
|
|
CASH FLOW FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net loss for the period
|
|
|
|
|
(5,050)
|
|
|
(6,376)
|
|
Adjustments to reconcile net loss to net cash used in
operating activities:
|
|
|
|
|
|
|
|
|
|
Income and expense items not involving cash
flows:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
320
|
|
|
256
|
|
Stock-based
compensation
|
|
|
|
|
2,791
|
|
|
1,595
|
|
Exchange rate
differences
|
|
|
|
|
471
|
|
|
314
|
|
Interest from
short-term deposits
|
|
|
|
|
(163)
|
|
|
182
|
|
Change in fair value of
forfeiture shares
|
|
|
|
|
(2,604)
|
|
|
-
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Operating lease right
of use asset
|
|
|
|
|
420
|
|
|
-
|
|
Operating lease
liabilities
|
|
|
|
|
(501)
|
|
|
-
|
|
Trade accounts
receivable
|
|
|
|
|
(3,118)
|
|
|
3,242
|
|
Prepaid expenses and
other current assets
|
|
|
|
|
518
|
|
|
(1,130)
|
|
Inventories
|
|
|
|
|
(3,144)
|
|
|
(789)
|
|
Long-term
assets
|
|
|
|
|
104
|
|
|
(5)
|
|
Current
liabilities
|
|
|
|
1,553
|
|
|
(490)
|
|
Other long-term
liabilities
|
|
|
|
|
-
|
|
|
(7)
|
|
Net cash used in operating activities
|
|
|
|
|
(8,403)
|
|
|
(3,208)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Investment in short-term deposits
|
|
|
|
|
(18,252)
|
|
|
-
|
|
Maturities of short-term deposits
|
|
|
|
|
15,500
|
|
|
17,000
|
|
Purchase of property and equipment
|
|
|
|
|
(180)
|
|
|
(378)
|
|
Net cash provided by (used in) investing activities
|
|
|
|
|
(2,932)
|
|
|
16,622
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Exercise of options
|
|
|
|
|
54
|
|
|
76
|
|
Net cash provided by financing activities
|
|
|
|
|
54
|
|
|
76
|
|
Effect of exchange rate changes on cash and cash
equivalents
|
|
|
|
|
(516)
|
|
|
(314)
|
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
(11,797)
|
|
|
13,176
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
|
|
|
|
56,791
|
|
|
26,316
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
|
|
|
|
44,994
|
|
|
39,492
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENT
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
Cash
paid for taxes
|
|
|
|
|
56
|
|
|
77
|
|
NON-CASH
ACTIVITY
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
on account of property and equipment
|
|
|
|
|
190
|
|
|
-
|
|
Operating lease
liabilities arising from obtaining operating right-of-use
assets
|
|
|
|
|
246
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
VALENS SEMICONDUCTOR
LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
(U.S. Dollars in
thousands)
|
(Unaudited)
|
|
The following table
provides a reconciliation of Net loss to Adjusted EBITDA, a
non-GAAP measure. Adjusted
EBITDA is defined as net profit (loss) before financial income
(expense), net, income taxes, equity in earnings
of investee and depreciation and amortization, further adjusted to
exclude share-based compensation, which
may vary from period-to-period. We caution investors that
amounts presented in accordance with our definition
of Adjusted EBITDA may not be comparable to similar measures
disclosed by other issuers, because not all
issuers calculate Adjusted EBITDA in the same manner. Adjusted
EBITDA should not be considered as an
alternative to net loss or any other performance measures derived
in accordance with GAAP or as an
alternative to cash flows from operating activities as a measure of
our liquidity.
|
|
Although we provide
guidance for Adjusted EBITDA, we are not able to provide guidance
for projected Net
profit (loss), the most directly comparable GAAP measures. Certain
elements of Net profit (loss), including
share-based compensation expenses and warrant valuations, are not
predictable due to the high variability
and difficulty of making accurate forecasts. As a result, it is
impractical for us to provide guidance on Net profit
(loss) or to reconcile our Adjusted EBITDA guidance without
unreasonable efforts. Consequently, no
disclosure of projected Net profit (loss) is included. For the same
reasons, we are unable to address the
probable significance of the unavailable information.
|
|
|
Three Months
Ended March
31,
|
|
2022
|
2021
|
|
|
|
Net loss
|
(5,050)
|
(6,376)
|
Adjusted to exclude the
following:
|
|
|
|
Change in fair value of
Forfeiture Shares
|
(2,604)
|
-
|
|
Financial expense,
net
|
115
|
167
|
|
Income taxes
|
346
|
55
|
|
Equity in earnings of
investee
|
(4)
|
-
|
|
Depreciation
|
320
|
256
|
|
Share-based
compensation expenses
|
2,791
|
1,595
|
Adjusted
EBITDA
|
(4,086)
|
(4,303)
|
|
|
|
|
VALENS SEMICONDUCTOR
LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP Tables
|
(U.S. Dollars in
thousands)
|
(Unaudited)
|
|
The following tables
provide a calculation of the GAAP Loss per share and reconciliation
to Non-GAAP Loss per share.
|
|
|
Three Months
Ended March
31,
|
|
GAAP Loss per
Share
|
2022
|
2021
|
|
|
|
|
|
GAAP Net
Loss
|
(5,050)
|
(6,376)
|
|
Adjusted to include the
following:
|
|
|
|
Accrued dividend
related to Preferred Shares
|
-
|
(3,691)
|
|
Total Loss used for
computing Loss per Share
|
(5,050)
|
(10,067)
|
|
Earnings Per Share
Data:
|
|
|
|
GAAP Loss per Share
(in U.S. Dollars)
|
(0.05)
|
(0.93)
|
|
Weighted average
number of shares used in calculation of net loss per
share
|
97,150,054
|
10,834,415
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
Non-GAAP Loss per
Share
|
2022
|
2021
|
|
|
|
|
|
GAAP Net
loss
|
(5,050)
|
(6,376)
|
|
Adjusted to exclude the
following:
|
|
|
|
Stock based
compensation
|
2,791
|
1,595
|
|
Depreciation
|
320
|
256
|
|
Total Loss used for
computing Loss per Share
|
(1,939)
|
(4,525)
|
|
Earnings Per Share
Data:
|
|
|
|
Non-GAAP Loss per
Share (in U.S. Dollars)
|
(0.02)
|
(0.42)
|
|
Weighted average
number of shares used
in calculation of net loss per share
|
97,150,054
|
10,834,415
|
|
|
|
|
|
|
For more information, please contact:
Daphna Golden, VP Investor
Relations
Valens Semiconductor Ltd.
investors@valens.com
Moriah Shilton
Financial Profiles, Inc.
US: +1 310-622-8251
Valens@finprofiles.com
View original
content:https://www.prnewswire.com/news-releases/valens-semiconductor-reports-first-quarter-2022-results-301544745.html
SOURCE Valens Semiconductor