Spectra7, an analog semiconductor company see a triple digit revenue growth
Date: 02/05/2023
We all know copper has limits in terms of data transmission speeds, however semiconductor chip researchers are using innovative ideas to utilise copper as much as a possible for data communication. Spectra7, an analog semiconductor company which has seen an opportunity to enhance the performance of copper cables by developing its own innovative technology.
Basically Spectra7 has developed a signal processing technology to increase the bandwidth of copper cable, and also make the copper cable longer, thinner, and lighter for high performance interconnects.
By targeting data centre infrastructure companies, Spectra7 could generate significant revenues in the year 2022. Spectra7 has registered triple digit sales revenue growth of 107% in the year 2022.
“We had a strong 2022 despite supply constraints, more than doubling revenue year-over-year to $11.3 million. Volumes ramped in our AR/VR product line with a market leading game console manufacturer and hyperscale data center activity continued to progress with key datacenter partners and customers,” said Raouf Halim, Chief Executive Officer.
“Data center customers are increasingly engaged in test and qualification activities, specifically around AI and infrastructure applications, on the rapidly advancing new switches that require 800G and 1.6TB data rate interconnects. These switches are to support the high data throughput and reduced power consumption requirements for efficient operation. We believe that Active Copper Cable (“ACC”) is the most power and cost-efficient solution to meet these requirements for top-of-the-rack and short-run connectivity, an estimated $1 billion market by 2026.1. We have a growing list of customers seeking to incorporate our ACC solutions for their needs. We expect to receive orders from key datacenter customers in North America and Europe in the second half of 2023.”
“We started 2023 with a strong order backlog and anticipate supply availability to improve steadily throughout 2023, which would enable us to meet our goal of EBITDA.3 profitability by the end of the year,” said Mr. Halim.
Spectra7 reported its fourth quarter 2022 revenue of $3.0 million, up approximately 15% year-over-year, and full-year 2022 revenue was $11.3 million, an increase of approximately 107% compared to $5.5 million in the previous year.
However the company outlook for the next quarter doesn't look to follow the same graph of growth in terms of sequential quarter over quarter growth, where it expects to report revenue of approximately $3.1 million for the first quarter of 2023, compared with $2.1 million in the first quarter of 2022.
