Valens Semiconductor Reports Third Quarter 2021 Results

HOD HASHARON, Israel, Nov. 11, 2021 - 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.