EX-99.2 3 d393451dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Q1 2022 - Key Financial and Business Highlights

 

  •  

Record quarterly revenues of $21.6 million, up 61.8% from Q1 2021 and up 4.3% from Q4 2021

 

  •  

Q1 2022 GAAP gross margin was 71.4% compared to 71.3% in Q1 2021 (non-GAAP gross margin was 72.1% compared to 71.8% in Q1 2021)

 

  •  

Q1 2022 GAAP Net Loss was $(5.1) million, better than the $(6.4) million in Q1 2021, and Adjusted EBITDA loss in the first quarter was $(4.1) million, compared with $(4.3) million in Q1 2021

 

  •  

Automotive:

 

  •  

Increased the number of OEMs, Tier 1s and Tier 2s evaluating the company’s MIPI A-PHY VA7000 chipset to more than 30, doubling OEMs to eight

 

  •  

Announced partnership with OMNIVISION, a leading Tier 2 supplier for in-vehicle camera sensors, for a MIPI A-PHY compliant camera solution for Advanced Driver-Assistance Systems (ADAS) applications

 

  •  

Audio-video:

 

  •  

Joined the Logitech Collaboration Program to develop a solution using Valens technology and products in Logitech’s USB peripheral suite of products for both onsite and remote hybrid settings, e.g., in classrooms and corporate meeting rooms

 

  •  

Increased demand for the Stello VS3000, Valens’ newest audio-video product family, with leading audio-video manufacturers embedding it in additional products, addressing various end-markets

 

  •  

Met all demand from customers, in a severely supply constrained environment

 

  •  

Strong balance sheet with $165.5 million in cash, cash equivalents and short-term deposits as of March 31, 2022

 

1

VALENS SEMICONDUCTOR LTD.

SUMMARY OF FINANCIAL RESULTS

(U.S. Dollars in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended
March 31,		  
     2022     2021  

Revenues

      21,620       13,364  

Gross Profit

      15,440       9,532  

Gross Margin

      71.4 %      71.3 % 

Net loss

      (5,050 )      (6,376 ) 

Cash, cash equivalents and short-term deposits1

      165,522       57,564  

Net cash used in operating activities

      (8,403 )      (3,208 ) 

Non-GAAP Financial Data

     

Non-GAAP Gross Margin2

      72.1 %      71.8 % 

Adjusted EBITDA3

      (4,086 )      (4,303 ) 

Loss per share4 (in U.S. Dollars)

      (0.02 )      (0.42 ) 

 

 

1

As of the last day of the period.

2

GAAP Gross Profit excluding share-based compensation and depreciation expenses, divided by revenue. For the three months ended March 31, 2022, and 2021, share-based compensation and depreciation expenses were $140 thousand and $57 thousand respectively.

3

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, 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.

4

See reconciliation of GAAP to non-GAAP financial measures.

 

2

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. Dollars in thousands, except share and per share amounts)

(Unaudited)

 

     Three Months Ended
March 31,		  
     2022     2021  

REVENUES

      21,620       13,364  

COST OF REVENUES

      (6,180 )      (3,832 ) 
  

 

 

    

 

 

  

GROSS PROFIT

      15,440       9,532  

OPERATING EXPENSES:

     

Research and development expenses

      (14,127 )      (10,398 ) 

Sales and marketing expenses

      (4,209 )      (3,110 ) 

General and administrative expenses

      (4,301 )      (2,178 ) 
  

 

 

    

 

 

  

TOTAL OPERATING EXPENSES

      (22,637 )      (15,686 ) 

OPERATING LOSS

      (7,197 )      (6,154 ) 

Change in fair value of Forfeiture Shares

      2,604       —    

Financial expenses, net

      (115 )      (167 ) 
  

 

 

    

 

 

  

LOSS BEFORE INCOME TAXES

      (4,708 )      (6,321 ) 

INCOME TAXES

      (346 )      (55 ) 
  

 

 

    

 

 

  

LOSS AFTER INCOME TAXES

      (5,054 )      (6,376 ) 

Equity in earnings of investee

      4       —    
  

 

 

    

 

 

  

NET LOSS

      (5,050 )      (6,376 ) 
  

 

 

    

 

 

  

EARNINGS PER SHARE DATA:

     

BASIC AND DILUTED NET LOSS PER ORDINARY SHARE5 (in U.S. Dollars)

      (0.05 )      (0.93 ) 

WEIGHTED AVERAGE NUMBER OF SHARES USED IN CALCULATION OF NET LOSS PER ORDINARY

      97,150,054       10,834,415  
  

 

 

    

 

 

  

 

5

See note 4.

 

3

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

(Unaudited)

 

     March 31,
2022		      December 31,
2021		  

ASSETS

      

CURRENT ASSETS

      

Cash and cash equivalents

      44,994        56,791  

Short-term deposits

      120,528        117,568  

Trade accounts receivable

      10,213        7,095  

Inventories

      12,466        9,322  

Prepaid expenses and other current assets

      7,737        8,255  
  

 

 

     

 

 

  

TOTAL CURRENT ASSETS

      195,938        199,031  

LONG-TERM ASSETS:

      

Property and equipment, net

      2,791        2,741  

Operating lease right-of-use asset6

      4,729        —    

Other assets

      724        828  
  

 

 

     

 

 

  

TOTAL LONG-TERM ASSETS

      8,244        3,569  
  

 

 

     

 

 

  

TOTAL ASSETS

      204,182        202,600  
  

 

 

     

 

 

  

LIABILITIES AND EQUITY

      

CURRENT LIABILITIES7

      19,442        15,699  

LONG-TERM LIABILITIES:

      

Forfeiture shares

      2,054        4,658  

Non-current operating leases8

      2,648        —    

Other long-term liabilities

      46        46  
  

 

 

     

 

 

  

TOTAL LONG-TERM LIABILITIES

      4,748        4,704  

TOTAL LIABILITIES

      24,190        20,403  

SHAREHOLDERS’ EQUITY

      179,992        182,197  
  

 

 

     

 

 

  

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

      204,182        202,600  
  

 

 

     

 

 

  

 

6

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 for both parties to a contract (i.e., lessees and lessors).

7

Includes $2,000 thousand of current maturities of operating leases; see footnote 6.

8

See footnote 6.

 

4

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. Dollars in thousands)

(Unaudited)

 

     Three Months Ended
March 31,		  
     2022     2021  

CASH FLOW FROM OPERATING ACTIVITIES

     

Net loss for the period

      (5,050 )      (6,376 ) 

Adjustments to reconcile net loss to net cash used in operating activities:

     

Income and expense items not involving cash flows:

     

Depreciation

      320       256  

Stock-based compensation

      2,791       1,595  

Exchange rate differences

      471       314  

Interest from short-term deposits

      (163 )      182  

Change in fair value of forfeiture shares

      (2,604 )      —    

Changes in operating assets and liabilities:

     

Operating lease right of use asset

      420       —    

Operating lease liabilities

      (501 )      —    

Trade accounts receivable

      (3,118 )      3,242  

Prepaid expenses and other current assets

      518       (1,130 ) 

Inventories

      (3,144 )      (789 ) 

Long-term assets

      104       (5 ) 

Current liabilities

      1,553       (490 ) 

Other long-term liabilities

      —         (7 ) 
  

 

 

    

 

 

  

Net cash used in operating activities

      (8,403 )      (3,208 ) 

CASH FLOWS FROM INVESTING ACTIVITIES:

     

Investment in short-term deposits

      (18,252 )      —    

Maturities of short-term deposits

      15,500       17,000  

Purchase of property and equipment

      (180 )      (378 ) 
  

 

 

    

 

 

  

Net cash provided by (used in) investing activities

      (2,932 )      16,622  

CASH FLOWS FROM FINANCING ACTIVITIES:

     

Exercise of options

      54       76  
  

 

 

    

 

 

  

Net cash provided by financing activities

      54       76  

Effect of exchange rate changes on cash and cash equivalents

      (516 )      (314 ) 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

      (11,797 )      13,176  

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

      56,791       26,316  
  

 

 

    

 

 

  

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

      44,994       39,492  
  

 

 

    

 

 

  

SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION

     

Cash paid for taxes

      56       77  
  

 

 

    

 

 

  

NON-CASH ACTIVITY

     

Trade accounts payable on account of property and equipment

      190       —    

Operating lease liabilities arising from obtaining operating right-of-use assets

      246       —    

 

5

VALENS SEMICONDUCTOR LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(U.S. Dollars in thousands)

(Unaudited)

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, 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.

 

     Three Months Ended
March 31,		  
     2022     2021  

Net loss

      (5,050 )      (6,376 ) 

Adjusted to exclude the following:

     

Change in fair value of Forfeiture Shares

      (2,604 )      —    

Financial expense, net

      115       167  

Income taxes

      346       55  

Equity in earnings of investee

      (4 )      —    

Depreciation

      320       256  

Share-based compensation expenses

      2,791       1,595  
  

 

 

    

 

 

  

Adjusted EBITDA

      (4,086 )      (4,303 ) 

 

6

VALENS SEMICONDUCTOR LTD.

RECONCILIATION OF GAAP TO NON-GAAP Tables

(U.S. Dollars in thousands)

(Unaudited)

The following tables provide a calculation of the GAAP Loss per share and reconciliation to Non-GAAP Loss per share.

 

     Three Months Ended
March 31,		  

GAAP Loss per Share

    2022     2021  

GAAP Net Loss

      (5,050 )      (6,376 ) 

Adjusted to include the following:

     

Accrued dividend related to Preferred Shares

      —         (3,691 ) 
  

 

 

    

 

 

  

Total Loss used for computing Loss per Share

      (5,050 )      (10,067 ) 

Earnings Per Share Data:

     

GAAP Loss per Share (in U.S. Dollars)

      (0.05 )      (0.93 ) 

Weighted average number of shares used in calculation of net loss per share

      97,150,054       10,834,415  
     Three Months Ended
March 31,		  

Non-GAAP Loss per Share

    2022     2021  

GAAP Net loss

      (5,050 )      (6,376 ) 

Adjusted to exclude the following:

     

Stock based compensation

      2,791       1,595  

Depreciation

      320       256  
  

 

 

    

 

 

  

Total Loss used for computing Loss per Share

      (1,939 )      (4,525 ) 

Earnings Per Share Data:

     

Non-GAAP Loss per Share (in U.S. Dollars)

      (0.02 )      (0.42 ) 

Weighted average number of shares used in calculation of net loss per share

      97,150,054       10,834,415  

 

7