Valens Announces Second Quarter 2021 Results

HOD HASHARON, Israel, Sept. 1, 2021 - Valens Semiconductor Ltd. ("Valens"), a premier provider of high-speed connectivity solutions for the audio-video and automotive markets, today announced its financial results for the second quarter and six months ended June 30, 2021.

Second Quarter 2021 Financial Highlights:

  • Revenue of $17.5 million, an increase of 9.2% from the second quarter of 2020
  • Gross profit and gross margin of $12.5 million and 71.2%, respectively, compared to $12.7 million and 79.1% in the second quarter of 2020, primarily due to the increase in automotive revenues that have lower gross margins than audio-video products
  • Record bookings of $35.3 million, an increase of 200% from the second quarter of 2020, driving a book-to-bill ratio of 2.02 in the quarter
  • Total orders backlog of $56.5 million as of June 30, 2021
  • Automotive revenues were $2.0 million, an increase of over 400% from the second quarter of 2020 and represents 11% of total revenue
  • Raised full year 2021 revenue guidance to $69 million, up from $67 million
  • Balance sheet remains strong with cash, cash equivalents and short-term deposits of $51.9 million and no debt
  • 100% of 2021 full year revenue is fully covered by orders backlog
  • Entered into a Definitive Merger Agreement with PTK Acquisition Corp. (NYSE:PTK) ("PTK")

Second Quarter 2021 Operational Highlights:

 

  • The latest audio-video chipset family, Valens Stello, was released to market and embraced by leading industry players, with over 30 customers in product development and integration, and with dozens of products expected to be in the market by year-end
  • Valens' first-generation VA6000 automotive chipsets are now in mass production and on the road in several car models
  • The MIPI Alliance announced that the IEEE has officially adopted the MIPI A-PHY standard, which is based on Valens technology
  • Successful bring-up of Valens' next-generation automotive product, the VA7000 family, the first MIPI A-PHY compliant chipset in the market
  • Production of VA7000 chipsets is expected to begin later this year with delivery to more than 15 potential partners including leading automotive OEMs and Tier1 suppliers for their evaluation of the technology into their next-generation platforms

"We are very pleased to have delivered strong revenue growth and attractive gross profit margins for the second quarter and year-to-date," said Gideon Ben-Zvi, CEO of Valens. "We exceeded our revenue forecast for the first six months of 2021 and we anticipate a strong second half based on our robust orders backlog. We are seeing solid traction in our well-established audio-video business from the introduction of our latest product, the Valens Stello, as well as a market recovery from the effects of the pandemic. The demand for long-reach, high resolution connectivity is expanding in a number of verticals, including video conferencing, hybrid education, medical and industrial applications."

"In our automotive business, this is the first year that our products are on the road in mass production, leading to a fast ramp-up of revenues. Automotive revenues contributed 12% of the total revenues during the first six months of 2021, and we expect the trajectory of this growth to continue. Additionally, we are working closely with more than 15 potential partners, including leading automotive OEMs and Tier 1 suppliers on deploying our technology into their next-generation car models and continue to expect to release our industry first MIPI A-PHY standard-compliant chipsets to select customers later this year. We believe that our high-speed connectivity solution for the automotive market is poised to gain significant share based on its unique ability to handle the increasing amount of data originating from the growing number of sensors, displays and infotainment systems, with an un-matched performance" added Mr. Ben-Zvi.

In May 2021, Valens entered into a definitive merger agreement with PTK, a special purpose acquisition company, that would result in Valens being listed on the New York Stock Exchange under the symbol "VLN" following the close of the transaction. The transaction is expected to close in the fall of 2021 and is subject to customary closing conditions. The registration statement, as amended, which has been filed with the Securities and Exchange Commission ("SEC") has been declared effective as of August 27, 2021.