HOD HASHARON, Israel, Nov. 11, 2021 /PRNewswire/ — Valens Semiconductor Ltd. (NYSE: VLN), a premier provider of high-speed connectivity solutions for the audio-video and automotive markets, today reported financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Highlights
- Record revenue of $19.1 million in the third quarter of 2021, an increase of 48.8% from the third quarter of 2020
- Audio-video revenues reached $17.1 million, up 38.5% from the third quarter of 2020
- Automotive revenues reached $2.0 million, an increase of more than 300% from the year-ago quarter, and representing 10.4% of third quarter revenue
- Gross profit increased from $9.5 million from third quarter 2020 to $13.8 million
- Gross margin was 72.4% compared to 74.4% last year, primarily driven by an increase in automotive revenues that incur lower gross margin than audio-video products
- Record quarterly bookings of $36.0 million, up more than 200% year-over-year
- Record backlog of $73.4 million as of September 30, 2021
- Closed Business Combination with PTK Acquisition Corp. (the “Merger”), raising $155 million in gross proceeds (before deal-related expenses) and listed on the NYSE on September 30, 2021
- Substantially strengthened the balance sheet with $205.6 million of cash, cash equivalents and short-term deposits with zero debt
- Introduced fourth quarter guidance and increased guidance for the full year 2021
“Valens Semiconductor delivered strong quarterly results, demonstrating solid business execution and reflecting our continued momentum,” said Gideon Ben-Zvi, CEO of Valens.
“We reported record quarterly revenue exceeding $19 million, and a robust backlog that will support Valens’ continued growth. We ended the quarter with a fortress balance sheet following the closing of our business combination with PTK and the PIPE investment,” continued Mr. Ben-Zvi.
“Valens is well-positioned in our industry with our unique standard-setting technology and our leadership position in the large and growing automotive and audio-video markets we operate in, powered by our high-speed digital connectivity solutions. We are excited by the opportunities we have as a newly public company, and we are focused on creating value for our shareholders,” concluded Mr. Ben-Zvi.
Fourth Quarter 2021 Outlook
Valens is introducing fourth quarter 2021 revenue guidance of an expected $19.4 million to $20.6 million with expected gross margins of approximately 70%-72%. This guidance reflects an increase of previous full year 2021 revenue guidance from $69 million to an expected range of $69.4 million to $70.6 million.
Conference Call Information
Valens will host a conference call today, Thursday, November 11, 2021, at 8:30 a.m. Eastern Time (ET) to discuss its third quarter 2021 financial results and business outlook. To access this call, dial (at least 10 minutes before the scheduled time) +1 (855) 979-6654 (U.S.), 072 258 7959 (Israel) or +44 20 3936 2999 (all other locations). The conference call access code is 365140.
A live webcast of the conference call will be available via the investor relations section of Valens’ website at https://investors.valens.com/. 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.
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 proposed 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’ Form F-1 filed with the SEC on October 20, 2021 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.
Valens (NYSE:VLN) is a leading provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video and data transmission for the audio-video and automotive industries. Valens’ Emmy® award-winning HDBaseT technology is the leading standard in the professional audio-video market with tens of millions of Valens’ chipsets integrated into thousands of HDBaseT-enabled products. Valens Automotive is a key enabler of the evolution of autonomous driving, providing chipsets that are on the road in vehicles around the world. The underlying technology has been selected to become the basis for MIPI A-PHY, the global standard for automotive connectivity. Founded in 2006, Valens is based in Israel, with offices in the US, Europe and Asia. For more information: www.valens.com.
For more information, please contact:
Vice President Investor Relations
Valens Semiconductor Ltd.
Matthew Keating, CFA
Financial Profiles, Inc.
US: +1 310-622-8230
SOURCE Valens Semiconductor