SOURCE: Spectra7 Microsystems Inc.

Spectra7 Microsystems Inc.

October 07, 2015 07:15 ET

Spectra7 Achieves Record Bookings in Third Quarter; Appoints Vice President of Data Center Products

Embedded Products Drive Order Book Growth as Company Targets Next High Growth Segment

PALO ALTO, CA and TORONTO, ON--(Marketwired - October 07, 2015) - (TSX: SEV) Spectra7 Microsystems Inc. ("Spectra7" or the "Company") is pleased to announce that it achieved confirmed orders or "bookings" of US$2.5 million during the third quarter of 2015, representing a record for the Company and an increase of 85% from the prior quarter bookings of US$1.4 million. A majority of this growth is driven by bookings for the Company's high performance embedded products. Revenue for the third quarter of 2015 is expected to be approximately US$0.9 million, yielding a book to bill ratio of 2.78 versus an industry average of 1.06. The Company expects to report its financial results for the three and nine months ended September 30, 2015 on or about November 16, 2015.

"Spectra7's record bookings reflect the unique value of the Company's products, technology and business model across a growing range of high growth market segments including virtual reality, augmented reality, wearable computing and consumer electronics," said Tony Stelliga, CEO of Spectra7.

SPECTRA7 TARGETS THE DATA CENTER MARKET

The Company is also pleased to announce the appointment of Ebrahim Abunasrah as Vice President of Data Center Products. Mr. Abunasrah was previously employed at Molex Corporation and earned his B.Sc. EE, M.S.EE and M.B.A. at the University of Arkansas at Little Rock. Mr. Abunasrah brings extensive interconnect knowledge to the Company and will lead product development and entry into the rapidly expanding data center market with new high speed active interconnects based on the Company's technology.

"Our appointment of Mr. Abunasrah is expected to accelerate our entry into our next target segment -- the high growth data center market -- as we expand the reach of our patented high performance active interconnect technology," added Mr. Stelliga.

According to a recent industry research report, the colocation data center market represents approximately US$23 billion in annual revenue and occupies a global footprint of 109 million square feet. The report predicts that by the end of 2017, that footprint is expected to grow to over 140 million square feet, with annual revenue growing 63% to approximately US$37 billion. According to the report, this market remains fragmented, with about 75% of current revenues being derived by local providers with less than US$500 million in annualized colocation revenue. The Company believes its active interconnect technology can significantly reduce operational and capital expenses for these smaller, more cost conscious providers.

ABOUT SPECTRA7 MICROSYSTEMS INC.

Spectra7 Microsystems Inc. is a high performance consumer connectivity company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading consumer electronics manufacturers in virtual reality, wearable computing and ultra-HD 4K/8K Displays. Spectra7 is based in Palo Alto, California and Markham, Ontario with a Design Center in Cork, Ireland. For more information, please visit www.spectra7.com.

CAUTIONARY NOTES

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's annual MD&A for the year ended December 31, 2014 and the interim MD&A for the six months ended June 30, 2015. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

Contact Information

  • For more information, please contact:

    Sean Peasgood
    Investor Relations
    t: 416.565.2805
    e: ir@spectra7.com

    Robert Bosomworth
    Chief Financial Officer
    t: 416.576.4719
    e: pr@spectra7.com