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| Statement |
|---|
| In addition to the excellent electromagnetic compatibility, known as EMC immunity test, we passed in Japan by JASPAR earlier in 2023 |
| Against this backdrop, at Valens Semiconductor, we continue to expand our engagement and partnerships across the various verticals we serve, enhance our innovative high-performance connectivity offerings and improve the visibility of our technology |
| I would like to reiterate, looking ahead, Valens Semiconductor's growth prospects for the medium and longer term remain positive |
| GAAP net loss for the full year 2023 improved to $19.7 million from $27.7 million in 2022 |
| And adjusted EBITDA was $2.2 million for the fourth quarter and a loss of $10.3 million for the full year, substantially better than our guidance |
| More substantial was Valens' robust cash position, which enabled us to benefit from the rise in interest rates on the deposits we hold |
| Valens Semiconductor's robust balance sheet allows us to continue investing in innovation and pursue long-term growth opportunities as we overcome these headwinds |
| Looking ahead, I'm confident that Valens Semiconductor is well positioned with a highly relevant and compelling set of solutions to address customer demand as we see market tailwinds return |
| Valens Semiconductor offers the most innovative, high-performance connectivity solutions with the most advanced chipset in the industry, and we were honored to receive recognition by IFS for developing one of the most advanced chipsets for automotive |
| We have over 50 years of innovation excellence in the semiconductor industry and a strong balance sheet with the cash necessary to withstand market fluctuations |
| Our offering is designed to benefit from the positive long-term trends in the video conferencing, education, industrial and medical imaging sectors, among others |
| You are the force driving Valens Semiconductor forward with your passion, dedication and an unmatched innovative spirit |
| We feel that we are very well positioned to execute growth plan |
| Automotive business revenues rose to a record $26.8 million, up 65.5% from $16.2 million in 2022 |
| The better-than-guided adjusted EBITDA in Q4 2023 was achieved mainly due to lower OpEx |
| We believe the inventory consumption is in good progress |
| It's an industry which has own mannerism and own decision-making speed, and it's a B2G, it's business to government, but we are also see an upside here |
| And finally, we benefited from a positive foreign exchange rate impact |
| But it is -- the certainty about the uniqueness and the need of the market is -- we feel it very strong |
| We also believe it will benefit from capturing new untapped market with our USB3 extension |
| Momentum around the VS6320 is strong, with dozens of products under development by Valens Semiconductor customers, a dozen of which were introduced at ISE |
| We saw exceptional enthusiasm around VS6320 chipset embedded into cameras, which will eliminate the need to use external extension boxes and dedicated power suppliers |
| The product that we just launched and got all those awards, the VS6320, it's a product we are very, very proud of |
| All in all, once the markets we serve recover, we are well positioned to execute our growth plan, and we are all prepared for that |
| Combining Valens' USB3 extension technology with the docking technology provides unparalleled, cost-efficient and easy-to-install huddle rooms |
| Even with the current headwinds in automotive, we are excited about the progress we are making and can leverage our technology to capitalize on a growing set of opportunities in this multibillion-dollar market in the coming years |
| We expect revenues from the VS6320 to begin ramping up in the second half of 2024 and believe that Valens Semiconductor will capture a substantial share of this largely untapped and growing market opportunity in the coming years |
| We are also targeting industrial applications with the USB3 extension chipset, and are extremely excited about this opportunity as USB3 brings benefits to factory automation, which heavily relies on machine vision that increasingly utilizes AI |
| We believe that it gives us opportunities |
| Valens Semiconductor's new VA700R chipset will uniquely solve the lack of visibility for trucks on the highway by delivering an unparalleled combination of bandwidth and link distances for both the surround view and rear-view visibility |
| Statement |
|---|
| As you all know, the past year has been challenging for the semiconductor industry, largely due to macroeconomic headwinds, including customer inventory levels, high interest rates and inflation |
| The current environment is also impacting our visibility and is likely to lead to a challenging first half |
| Revenue from the audio-video business were $57.4 million compared to $74.5 million in 2022 as customers worked through accessing inventory, which slowed the pace of orders |
| As with the rest of the semiconductor industry, Valens Semiconductor continues to encounter challenging macroeconomic conditions and shorter lead times, which influenced ordering and inventory consumption patterns |
| We have a technical problem |
| This compares to an adjusted EBITDA loss of $4.6 million in Q4 2022 |
| Currently -- we'll start with the softness of the industries in our ecosystem that is still -- we still feel it |
| Operating expenses in Q4 2023 totaled $15.3 million, significantly lower than $24.1 million in Q4 2022 |
| SG&A expenses of $6.6 million were 13.5% lower compared to $7.7 million in Q4 2022 |
| Non-GAAP loss per share for 2023 was $0.05 |
| The penetration level is very low |
| And this is where the amount of data that is required becomes a lot more essential as important, and the resilience of the link that takes all this data back from the camera to the ECU is more and more essential, because if you lose this link because of electromagnetic influence, the AI, the whole AI might function less good than pre-AI system |
| With the introduction of this groundbreaking product, Valens Semiconductor addresses the most prominent industry pain points |
| So, at this stage, we have kind of limited the visibility into the first half of '24 and all over '24 |
| As of the end of 2023, our inventory balance was $13.8 million, down from $16.9 million at the end of September 2023, and down from $23.8 million at the end of 2022 |
| The change in gross profit mainly resulted from the lower number of units shipped |
| Adjusted EBITDA is expected to range between a loss of $9.7 million and $9.1 million |
| I believe we hope that it is -- we are going out of this weakness by the second half of 2024 |
| The year-over-year decrease of $12.3 million in OpEx was driven by several factors |
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