HOD HASHARON, Israel, Nov. 8, 2023
/PRNewswire/ -- Valens Semiconductor Ltd. (NYSE: VLN), a premier
provider of high-performance connectivity solutions for the
audio-video and automotive markets, today reported financial
results for the quarter ended September 30,
2023.
"Valens Semiconductor revenues reached 14.2 million dollars in the third quarter of
2023, at the top end of our guidance and we achieved better than
anticipated profitability metrics," said Gideon Ben-Zvi, CEO of Valens Semiconductor.
"Valens Semiconductor is well-positioned to gain market share in
the emerging multi-billion-dollar automotive market. Our chipsets
are designed to provide seamless connectivity for the growing
number of sensors and infotainment systems in today's and future
vehicles. This is an unstoppable trend, supported by content uplift
as regulatory and safety requirements are increasingly adopted,
primarily for advanced-driver-assistance-systems (ADAS) and other
safety-related solutions. Our VA6000 chipset, which is being
broadly deployed across many Mercedes-Benz car models, including
electric vehicles, continued to contribute to our automotive
revenue. In parallel, we continued to gain traction with our VA7000
MIPI A-PHY compliant chipsets. LG Electronics Vehicle Component
Solutions, for example, selected our VA7000 for its active safety
next-generation camera system project, and we are also making
progress on the various OEM bids we are participating in for the
VA7000. As the decision process may take longer than originally
anticipated, design win awards could be extended into 2024. Most
important, once customers embed our chipsets into their vehicles,
Valens Semiconductor should benefit from a long-term recurring
revenue stream.
"Our audio-video connectivity solutions continue to lead the
industry in transforming digital experiences in sectors including
corporate, medical, education, industrial, and transportation.
While the audio-video industry is still facing inventory digestion,
as it is working through a longer-than-typical cycle, we remain
committed to solving the industry's most pressing needs. To that
point, we recently launched our VS6320 chipset, which delivers
high-performance extension for USB3.2 peripherals. We have begun
shipping engineering samples to select customers, and some have
already started embedding our unique, low-power, single-chip
extension into their products. The VS6320 is well positioned to
capture substantial share in this nascent market, and we expect
revenue will begin ramping up in the second half of 2024.
"At Valens Semiconductor, we keep the focus on managing those
elements within our control as we aim to reach our revenue and
profitability goals. The semiconductor industry is still working
through a prolonged cycle of global uncertainty resulting in
inventory adjustments that are causing customers to remain
relatively cautious. We continue to focus on winning additional
awards in the automotive market, where we see a significant market
opportunity that has a long runway. In the audio-video market, we
believe our investments in new offerings will deliver meaningful
results as we expand in both our traditional markets and into new
emerging verticals.
"On October 7th,
Israel experienced a tragedy with
the brutal attack by Hamas terrorists that changed our world
overnight. Given our country's history, we have developed a culture
of flexibility and strength as a nation, as individuals and as a
company. Valens Semiconductor's fabless model, with manufacturing
outsourced to third parties in Europe and Asia, supports managing our operations without
disruption. I am grateful to all of our dedicated employees and am
extremely proud of everyone's participation in supporting our
country in some way. These are the fundamentals that are part
of our DNA, and they are embedded in the fabric of Valens
Semiconductor," concluded Ben-Zvi.
Key Financial and Business Highlights
- Q3 2023 revenues reached $14.2
million, compared to $23.1
million in the third quarter of 2022
- GAAP gross margin was 58.9% for Q3 2023 (non-GAAP gross margin
was 61.1%). Q3 2023 GAAP Net Loss was $(12.5) million, compared to $(5.3) million in Q3 2022
- Adjusted EBITDA Loss in Q3 2023 was $(8.8) million, compared to $(1.7) million in Q3 2022
- Strong balance sheet as of September 30,
2023. Working capital of $152.6
million, including $142.7
million in cash, cash equivalents and short-term deposits,
and no debt
- Inventory balance reached $16.9
million on September 30, 2023,
down from $19.0 million on
June 30, 2023
- Audio-video: Launched and began shipping the
VS6320 chipset for high-performance extension of USB3.2
peripherals, at up to 100 meters/328 feet in Q4. Revenues expected
to ramp up during the second half of 2024
- Automotive VA7000 chipsets: LG Electronics Vehicle
Component Solutions selected the VA7000 for its active safety
next-generation camera system project. Together with Smart Radar
Solutions, we showcased how our chipsets are transforming
high-speed sensor connectivity for ADAS. Continued to Progress on
the various automotive OEM bids
- Released the company's second Environmental, Social and
Governance (ESG) Report
Financial Outlook
Disclaimer: Valens Semiconductor does not provide GAAP net
profit (loss) guidance as certain elements of net profit (loss),
including share-based compensation expenses and warrant valuations,
are not predictable due to the high variability and difficulty of
making accurate forecasts. Adjusted EBITDA is a non-GAAP measure.
See the tables below for additional information regarding this and
other non-GAAP metrics used in this release.
"We reached the high end of our revenue guidance for Q3 2023,
and exceeded gross margin and Adjusted EBITDA guidance," said
Yael Rozenberg-Haine, Interim CFO of
Valens Semiconductor. "We continued to maintain a strong balance
sheet which allows us to execute our strategy, fund our future
growth and drive profitability. At the end of the September 2023 quarter, we had $142.7 million in cash, which provides us
operational flexibility to grow our business."
"For the fourth quarter 2023, the company is providing revenues
guidance at the range between $21.6
million and $22.0 million. The
Company is also providing gross margin guidance, which is expected
to range between 61.6% and 62.7%. Our most recent Adjusted EBITDA
guidance was to reach breakeven by the end of 2023. Adjusted EBITDA
is now expected to be in the range of breakeven to profit of
$0.6 million.
"For the full year 2023, the company is reaffirming its revenue
guidance and improving its gross margin and Adjusted EBITDA
guidance. Revenues are expected to range between $83.8 million and $84.2
million, of which automotive revenues are expected to reach
about 30%. Gross margin for the full year 2023 is now expected to
range between 62.5% and 62.8%. Adjusted EBITDA loss in 2023 is now
expected to be in the range of $(12.5)
million to $(11.9)
million."
Below is a table summarizing our updated guidance for the full
year 2023:
|
Metric
|
Previous Guidance
(August 9, 2023)
|
Current
Guidance
|
|
Revenue (U.S. dollars
in millions)
|
$83.8 –
$84.2
|
$83.8 –
$84.2
|
|
Gross margin
|
62.2% –
62.5%
|
62.5% –
62.8%
|
|
Adjusted EBITDA (U.S.
dollars in millions)
|
$(16.2) –
$(15.6)
|
$(12.5) –
$(11.9)
|
Conference Call Information
Valens Semiconductor will host a conference call today,
Wednesday, November 8, 2023, at
8:30 a.m. Eastern Time (ET) to
discuss its third quarter 2023 financial results and business
outlook. To access this call, dial +1 (888) 281-1167 (U.S.), 0
(808) 101-2717 (UK), 03 918 0610 (Israel) or +972 3 918 0610 (all other
locations).
A live webcast of the conference call will be available via the
investor relations section of Valens Semiconductor's website at
Valens - Financials - Quarterly Results. The live webcast can also
be accessed by clicking here. A replay of the conference call will
be available on Valens Semiconductor's website shortly after the
call concludes.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"estimate," "plan," "project," "forecast," "intend," "will,"
"expect," "anticipate," "believe," "seek," "target" or other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding our anticipated future results, including
financial results, currency exchange rates, and contract
wins, and future economic and market conditions. These
statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of Valens Semiconductor's ("Valens") management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on by any investor as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. Actual events and circumstances are difficult
or impossible to predict and will differ from assumptions. Many
actual events and circumstances are beyond the control of Valens
Semiconductor.
These forward-looking statements are subject to a number of
risks and uncertainties, including the cyclicality of the
semiconductor industry; the effect of inflation and a rising
interest rate environment on our customers and industry; the
ability of our customers to absorb inventory; the effects of health
epidemics, such as the recent global COVID-19 pandemic; the impact
of the global pandemic caused by COVID-19 on our customers' budgets
and on economic conditions generally, as well as the length,
severity of and pace of recovery following the pandemic;
competition in the semiconductor industry, and the failure to
introduce new technologies and products in a timely manner to
compete successfully against competitors; if Valens fails to adjust
its supply chain volume due to changing market conditions or fails
to estimate its customers' demand; disruptions in relationships
with any one of Valens' key customers; any difficulty selling
Valens' products if customers do not design its products into their
product offerings; Valens' dependence on winning selection
processes; even if Valens succeeds in winning selection processes
for its products, Valens may not generate timely or sufficient net
sales or margins from those wins; sustained yield problems or other
delays in the manufacturing process of products; our ability to
effectively manage, invest in, grow, and retain our sales force,
research and development capabilities, marketing team and other key
personnel; our ability to timely adjust product prices to customers
following price increase by the supply chain; our ability to adjust
our inventory level due to reduction in demand due to inventory
buffers accrued by customers; our expectations regarding the
outcome of any future litigation in which we are named as a party;
our ability to adequately protect and defend our intellectual
property and other proprietary rights; the market price and trading
volume of the Valens ordinary shares may be volatile and could
decline significantly; political, economic, governmental and tax
consequences associated with our incorporation and location in
Israel; and those factors
discussed in Valens' Form 20-F filed with the SEC on March 1, 2023 under the heading "Risk Factors,"
and other documents of Valens filed, or to be filed, with the SEC.
If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that Valens does not presently know or that Valens
currently believes are immaterial that could also cause actual
results to differ from those contained in the forward-looking
statements. In addition, forward-looking statements reflect Valens'
expectations, plans or forecasts of future events and views as of
the date of this press release. Valens anticipates that subsequent
events and developments may cause Valens' assessments to change.
However, while Valens may elect to update these forward-looking
statements at some point in the future, Valens specifically
disclaims any obligation to do so. These forward-looking statements
should not be relied upon as representing Valens' assessment as of
any date subsequent to the date of this press release. Accordingly,
undue reliance should not be placed upon the forward-looking
statements.
About Valens Semiconductor
Valens Semiconductor is a leader in high-performance
connectivity, enabling customers to transform the digital
experiences of people worldwide. Valens' chipsets are integrated
into countless devices from leading customers, powering
state-of-the-art audio-video installations, next-generation
video-conferencing, and enabling the evolution of ADAS and
autonomous driving. Pushing the boundaries of connectivity, Valens
sets the standard everywhere it operates, and its technology forms
the basis for the leading industry standards such as HDBaseT® and
MIPI A-PHY. For more information, visit
https://www.valens.com/.
|
VALENS SEMICONDUCTOR
LTD.
|
|
SUMMARY OF FINANCIAL
RESULTS
|
|
(U.S. Dollars in
thousands, except per share amounts)
|
|
|
Three
Months Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
Revenues
|
14,166
|
23,141
|
|
62,221
|
67,242
|
|
Gross Profit
|
8,338
|
16,136
|
|
39,065
|
47,360
|
|
Gross Margin
|
58.9 %
|
69.7 %
|
|
62.8 %
|
70.4 %
|
|
Net loss
|
(12,492)
|
(5,305)
|
|
(22,451)
|
(20,350)
|
|
Working
Capital[1]
|
152,560
|
166,638
|
|
152,560
|
166,638
|
|
Cash, cash equivalents
and short-term deposits[2]
|
142,696
|
152,936
|
|
142,696
|
152,936
|
|
Net cash provided by
(used in) operating activities
|
6,088
|
(3,610)
|
|
(2,223)
|
(16,264)
|
|
Non-GAAP Financial
Data
|
|
|
|
|
|
|
Non-GAAP Gross
Margin[3]
|
61.1 %
|
70.5 %
|
|
64.2 %
|
71.2 %
|
|
Adjusted EBITDA
Loss[4]
|
(8,831)
|
(1,738)
|
|
(12,471)
|
(10,293)
|
|
Non-GAAP Loss per share
(in U.S. Dollars)[5]
|
$(0.08)
|
$(0.02)
|
|
$(0.11)
|
$(0.15)
|
|
|
[1] Working Capital is calculated as
Total Current Assets, less Total Current Liabilities, as of the
last day of the period.
[2] As of the last day of the
period.
[3] GAAP Gross Profit excluding
share-based compensation and depreciation expenses, divided by
revenue. For the three months ended September 30, 2023, and
2022,
share-based compensation and depreciation expenses were $312
thousand and $189 thousand, respectively. For the nine months
ended September 30, 2023, and 2022,
share-based compensation and depreciation expenses were $872
thousand and $510 thousand, respectively.
[4] Adjusted EBITDA is defined as Net
profit (loss) before financial income (expense), net, income taxes,
equity in earnings of investee and depreciation and
amortization,
further adjusted to exclude share-based compensation and change in
fair value of Forfeiture Shares, which may vary from
period-to-period. We caution investors that
amounts presented in accordance with our definition of Adjusted
EBITDA may not be comparable to similar measures disclosed by other
issuers, because not all issuers
calculate Adjusted EBITDA in the same manner. Adjusted EBITDA
should not be considered as an alternative to Net loss or any other
performance measures derived in
accordance with GAAP or as an alternative to cash flows from
operating activities as a measure of our liquidity. Please refer to
the appendix at the end of this press release
for a reconciliation to the most directly comparable measure in
accordance with GAAP.
[5] See reconciliation of GAAP to
non-GAAP financial measures.
|
|
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. Dollars in thousands, except share and per share
amounts)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
REVENUES
|
14,166
|
|
23,141
|
|
62,221
|
|
67,242
|
|
COST OF
REVENUES
|
(5,828)
|
|
(7,005)
|
|
(23,156)
|
|
(19,882)
|
|
GROSS
PROFIT
|
8,338
|
|
16,136
|
|
39,065
|
|
47,360
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
Research and development expenses
|
(13,419)
|
|
(12,714)
|
|
(39,540)
|
|
(41,745)
|
|
Sales and marketing expenses
|
(4,015)
|
|
(4,196)
|
|
(13,330)
|
|
(12,878)
|
|
General and
administrative expenses
|
(3,843)
|
|
(4,365)
|
|
(11,376)
|
|
(13,006)
|
|
TOTAL OPERATING
EXPENSES
|
(21,277)
|
|
(21,275)
|
|
(64,246)
|
|
(67,629)
|
|
OPERATING
LOSS
|
(12,939)
|
|
(5,139)
|
|
(25,181)
|
|
(20,269)
|
|
Change in fair value of
Forfeiture Shares
|
89
|
|
(370)
|
|
1,618
|
|
3,772
|
|
Financial income
(expenses), net
|
368
|
|
221
|
|
1,160
|
|
(3,454)
|
|
LOSS BEFORE INCOME
TAXES
|
(12,482)
|
|
(5,288)
|
|
(22,403)
|
|
(19,951)
|
|
INCOME
TAXES
|
(16)
|
|
(21)
|
|
(61)
|
|
(410)
|
|
LOSS AFTER INCOME
TAXES
|
(12,498)
|
|
(5,309)
|
|
(22,464)
|
|
(20,361)
|
|
Equity in earnings of
investee
|
6
|
|
4
|
|
13
|
|
11
|
|
NET
LOSS
|
(12,492)
|
|
(5,305)
|
|
(22,451)
|
|
(20,350)
|
|
EARNINGS PER SHARE
DATA:
BASIC AND DILUTED
NET LOSS PER ORDINARY
SHARE[6] (in U.S.
Dollars)
|
$(0.12)
|
|
$(0.05)
|
|
$(0.22)
|
|
$(0.21)
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES USED
IN CALCULATION OF NET LOSS PER ORDINARY
SHARE
|
102,216,654
|
|
98,058,696
|
|
101,659,653
|
|
97,550,370
|
|
|
[6] See note 5.
|
|
VALENS
SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
|
|
|
ASSETS
|
|
September 30,
2023
|
|
December 31,
2022
|
|
CURRENT
ASSETS
Cash and cash
equivalents
|
|
11,186
|
|
20,024
|
|
Short-term deposits
|
|
131,510
|
|
128,363
|
|
Trade accounts receivable
|
|
7,620
|
|
11,514
|
|
Inventories
|
|
16,902
|
|
23,816
|
|
Prepaid expenses and other current assets
|
|
3,724
|
|
4,793
|
|
TOTAL CURRENT
ASSETS
|
|
170,942
|
|
188,510
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Property and equipment, net
|
|
2,821
|
|
2,790
|
|
Operating lease right-of-use
assets[7]
|
|
2,666
|
|
3,824
|
|
Other assets
|
|
528
|
|
535
|
|
TOTAL LONG-TERM
ASSETS
|
|
6,015
|
|
7,149
|
|
TOTAL
ASSETS
|
|
176,957
|
|
195,659
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT
LIABILITIES[8]
|
|
18,382
|
|
24,789
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Forfeiture Shares
|
|
133
|
|
1,751
|
|
Non-current operating leases
liabilities [9]
|
|
543
|
|
1,624
|
|
Other long-term liabilities
|
|
127
|
|
54
|
|
TOTAL LONG-TERM
LIABILITIES
|
|
803
|
|
3,429
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
19,185
|
|
28,218
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
157,772
|
|
167,441
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
176,957
|
|
195,659
|
|
|
[7] As
of January 1, 2022, the company has implemented the FASB ASU No.
2016-02, Leases (ASC 842), on the recognition,
measurement, presentation, and disclosure of
leases.
[8] As
of September 30, 2023, and December 31, 2022, include $1,698
thousand and $1,811 thousand, respectively, of current maturities
of
operating leases liabilities; see footnote 7.
[9] See
footnote 7.
|
|
VALENS SEMICONDUCTOR
LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. Dollars in thousands)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
2022
|
|
CASH FLOW FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
(12,492)
|
|
(5,305)
|
|
(22,451)
|
|
(20,350)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Income and expense
items not involving cash flows:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
400
|
|
349
|
|
1,193
|
|
1,016
|
|
Stock-based
compensation
|
|
3,708
|
|
3,052
|
|
11,517
|
|
8,960
|
|
Exchange rate
differences
|
|
1,379
|
|
567
|
|
3,652
|
|
5,539
|
|
Interest from
short-term deposits
|
|
22
|
|
(344)
|
|
(367)
|
|
(639)
|
|
Change in fair value
of forfeiture shares
|
|
(89)
|
|
370
|
|
(1,618)
|
|
(3,772)
|
|
Reduction in the
carrying amount of ROU assets
|
|
478
|
|
436
|
|
1,464
|
|
1,280
|
|
Equity in earnings of
investee, net of dividend received
|
|
6
|
|
4
|
|
13
|
|
11
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
8,429
|
|
1,982
|
|
3,854
|
|
(970)
|
|
Prepaid expenses and
other current assets
|
|
643
|
|
1,797
|
|
1,046
|
|
5,560
|
|
Inventories
|
|
2,115
|
|
(4,556)
|
|
6,914
|
|
(12,552)
|
|
Long-term
assets
|
|
(40)
|
|
(144)
|
|
(6)
|
|
39
|
|
Current
Liabilities
|
|
1,916
|
|
(1,372)
|
|
(6,256)
|
|
1,370
|
|
Change in operating
lease liabilities
|
|
(392)
|
|
(443)
|
|
(1,251)
|
|
(1,755)
|
|
Other long-term
liabilities
|
|
5
|
|
(3)
|
|
73
|
|
(1)
|
|
Net cash provided by
(used in) operating activities
|
|
6,088
|
|
(3,610)
|
|
(2,223)
|
|
(16,264)
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Investment in short-term deposits
|
|
(64,189)
|
|
(100,837)
|
|
(173,342)
|
|
(132,177)
|
|
Maturities of short-term deposits
|
|
47,803
|
|
90,287
|
|
166,757
|
|
127,687
|
|
Purchase of property and equipment
|
|
(180)
|
|
(368)
|
|
(1,099)
|
|
(792)
|
|
Net cash used in investing activities
|
|
(16,566)
|
|
(10,918)
|
|
(7,684)
|
|
(5,282)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Exercise of stock options
|
|
279
|
|
383
|
|
1,265
|
|
533
|
|
Net cash provided by financing activities
|
|
279
|
|
383
|
|
1,265
|
|
533
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(25)
|
|
(527)
|
|
(196)
|
|
(3,873)
|
|
INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
|
(10,224)
|
|
(14,672)
|
|
(8,838)
|
|
(24,886)
|
|
CASH AND CASH
EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
|
21,410
|
|
46,577
|
|
20,024
|
|
56,791
|
|
CASH AND CASH
EQUIVALENTS AT THE END OF THE PERIOD
|
|
11,186
|
|
31,905
|
|
11,186
|
|
31,905
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENT
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
Cash
paid for taxes
|
|
10
|
|
37
|
|
262
|
|
158
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Trade accounts payable
on account of property and equipment
|
|
0
|
|
74
|
|
125
|
|
74
|
|
Operating lease
liabilities arising from obtaining operating right-of-use
assets
|
|
33
|
|
166
|
|
469
|
|
516
|
|
VALENS
SEMICONDUCTOR LTD.
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(U.S. Dollars in
thousands)
|
|
|
The following table
provides a reconciliation of Net loss to Adjusted EBITDA, a
non-GAAP measure. Adjusted EBITDA is defined as Net profit (loss)
before
financial income (expense), net, income taxes, equity in earnings
of investee and depreciation and amortization, further adjusted to
exclude share-based
compensation and change in fair value of Forfeiture Shares, which
may vary from period-to-period. We caution investors that
amounts presented in
accordance with our definition of Adjusted EBITDA may not be
comparable to similar measures disclosed by other issuers, because
not all issuers calculate
Adjusted EBITDA in the same manner. Adjusted EBITDA should not be
considered as an alternative to Net loss or any other performance
measures derived
in accordance with GAAP or as an alternative to cash flows from
operating activities as a measure of our liquidity.
|
|
|
Although we provide
guidance for Adjusted EBITDA, we are not able to provide guidance
for projected Net profit (loss), the most directly comparable
GAAP measures. Certain elements of Net profit (loss), including
share-based compensation expenses and warrant valuations, are not
predictable due to
the high variability and difficulty of making accurate forecasts.
As a result, it is impractical for us to provide guidance on Net
profit (loss) or to reconcile
our Adjusted EBITDA guidance without unreasonable efforts.
Consequently, no disclosure of projected Net profit (loss) is
included. For the same reasons,
we are unable to address the probable significance of the
unavailable information.
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
(12,492)
|
|
(5,305)
|
|
(22,451)
|
|
(20,350)
|
|
Adjusted to exclude
the following:
|
|
|
|
|
|
|
|
|
Change in fair value of
Forfeiture Shares
|
(89)
|
|
370
|
|
(1,618)
|
|
(3,772)
|
|
Financial expense
(income), net
|
(368)
|
|
(221)
|
|
(1,160)
|
|
3,454
|
|
Income taxes
|
16
|
|
21
|
|
61
|
|
410
|
|
Equity in earnings of
investee
|
(6)
|
|
(4)
|
|
(13)
|
|
(11)
|
|
Depreciation
|
400
|
|
349
|
|
1,193
|
|
1,016
|
|
Stock-based
compensation expenses
|
3,708
|
|
3,052
|
|
11,517
|
|
8,960
|
|
Adjusted EBITDA
Loss
|
(8,831)
|
|
(1,738)
|
|
(12,471)
|
|
(10,293)
|
|
VALENS
SEMICONDUCTOR LTD.
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(U.S. Dollars in
thousands, except per share amounts)
|
|
|
The following tables
provide a calculation of the GAAP Loss per share and reconciliation
to Non-GAAP Loss per share.
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
GAAP Loss per
Share
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
GAAP Net Loss used
for computing Loss per Share
|
(12,492)
|
|
(5,305)
|
|
(22,451)
|
|
(20,350)
|
|
Earnings Per Share
Data:
|
|
|
|
|
|
|
|
|
GAAP Loss per Share
(in U.S. Dollars)
|
$(0.12)
|
|
$(0.05)
|
|
$(0.22)
|
|
$(0.21)
|
|
Weighted average
number of shares used in calculation of
net loss per
share
|
102,216,654
|
|
98,058,696
|
|
101,659,653
|
|
97,550,370
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
Non-GAAP Loss per
Share[10]
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
(12,492)
|
|
(5,305)
|
|
(22,451)
|
|
(20,350)
|
|
Adjusted to exclude the
following:
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
3,708
|
|
3,052
|
|
11,517
|
|
8,960
|
|
Depreciation
|
400
|
|
349
|
|
1,193
|
|
1,016
|
|
Change in fair value of
Forfeiture Shares
|
(89)
|
|
370
|
|
(1,618)
|
|
(3,772)
|
|
Total Non-GAAP Loss
used for computing Loss per Share
|
(8,473)
|
|
(1,534)
|
|
(11,359)
|
|
(14,146)
|
|
Earnings Per Share
Data:
|
|
|
|
|
|
|
|
|
Non-GAAP Loss per
Share (in U.S. Dollars)
|
$(0.08)
|
|
$(0.02)
|
|
$(0.11)
|
|
$(0.15)
|
|
Weighted average
number of shares used in calculation of
net loss per
share
|
102,216,654
|
|
98,058,696
|
|
101,659,653
|
|
97,550,370
|
|
|
[10] The company calculates its
non-GAAP Loss per Share as GAAP Net Loss adjusted to exclude the
following: Stock-based compensation,
depreciation, and the change in fair value of Forfeiture Share
divided by the weighted average number of shares used in
calculation of net loss
per share.
|
For more information, please contact:
Daphna Golden
VP Investor Relations
Valens Semiconductor Ltd.
investors@valens.com
Margaret Boyce
Financial Profiles, Inc.
Valens@finprofiles.com
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