Valens Semiconductor Reports 2nd Quarter 2022 Results.

HOD HASHARON: 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 second quarter ended June 30, 2022.

"In Q2 2022, Valens Semiconductor reported its highest ever quarterly revenues of $22.5 million, up 28.4% from Q2 2021, as we continued to meet the growing demand from customers in our audio-video and automotive markets," said Gideon Ben-Zvi, CEO of Valens Semiconductor. "In audio video, the main trends we are seeing are the transition to higher resolutions and growing demand for high bandwidth video connectivity and camera imaging extensions, as organizations aim to enhance and optimize content transmission. It is clear that our audio-video distribution technology will continue to play an important role in fields such as work, education, medical, government and others. In our automotive business, revenues from our VA6000 from Mercedes Benz cars continue to ramp. We made strides advancing our rear-view camera for trucks project with Stoneridge, who will incorporate our VA6000 chipsets into a safety connectivity solution. With a sizable number of potential automotive customers and partners looking to integrate our VA7000 chipsets to support Advanced Driver-Assistance Systems (ADAS) into their platforms, we believe that we are on track to attain design wins by mid-year 2023.

Considering our better than anticipated first half of the year and visibility into the second half of 2022, we are increasing our full year revenues, gross margin and adjusted EBITDA guidance. Through our ongoing conversations with prospective customers and partners, we are learning more about their priorities, plans and timing for use of our current and next generation solutions. To match their roadmaps, we recently realigned and optimized our automotive R&D efforts for the next two years, which we believe will also contribute to us reaching adjusted EBITDA breakeven towards the end of 2023. Now more than ever, Valens Semiconductor is well-positioned to create long-term value for our stakeholders.

Key Financial and Business Highlights

Record quarterly revenues of $22.5 million, up 28.4% from Q2 2021 and up 4.0% from Q1 2022

Q2 2022 GAAP gross margin was 70.2% compared to 71.2% in Q2 2021 (non-GAAP gross margin was 71.0% compared to 71.1% in Q2 2021)

Q2 2022 GAAP Net Loss was $(10.0) million, which included net financial expenses of $3.6...