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SPECTRAZ Spectra7 Announces First Quarter Financial Results Company on Track for Profitability in the Second Half of 2021 as Q1 Revenue Rebounds Almost 5x Over Prior Year SAN JOSE , Calif . , May 31 , 2021 / CNW / -- ( TSXV : SEV ) Spectra7 Microsystems Inc. ( " Spectra7 " or the " Company " ) , a leading provider of high - performance analog semiconductor products for broadband connectivity markets , today announced its financial results for the three months ended March 31 , 2021. A copy of the unaudited condensed interim consolidated financial statements for the three months ended March 31 , 2021 prepared in accordance with International Financial Reporting Standards and the corresponding management's discussion and analysis ( " MD & A " ) will be available under the Company's profile on www.sedar.com . All amounts are in US dollars unless otherwise noted . Q1 2021 Financial Summary • Revenue for Q1 2021 was $ 0.56 million , representing an increase of approximately 47 % over the prior quarter and approximately 380 % over the same period in the prior year . Revenue in Q1 remained severely constrained by working capital and product supply . 1 • Gross margin as a percentage of revenue for Q1 2021 was 57 % , representing an increase of approximately 13 % sequentially and a 3 % increase from the same period in the prior year , driven by favorable product mix . • Non - IFRS operating expenses in Q1 2021 was $ 1.03 million , up approximately $ 0.09 million sequentially and down $ 0.30 million from the same period in the prior year , reflecting continued strong spending controls by the Company . ⚫ EBITDA² loss of approximately $ 0.57 million compared to a loss of approximately $ 0.63 million in the prior quarter , and a loss of $ 0.94 million in the same period in the prior year . This narrowed EBITDA loss is now at its lowest point in the Company's history . Capital Raise The Company closed the first tranche of its brokered private placement led by Cormark Securities Inc. on May 14 , 2021. The first tranche of the private placement consisted of the issuance of 170,689,567 units ( the " Units " ) at a price of $ 0.03 per Unit . The Company also completed a concurrent non - brokered offering of 12,700,800 Units . In aggregate , the gross proceeds to the Company from the private placement and the non- brokered offering were approximately CDN $ 5.5 million . The net proceeds from the private placement and the non - brokered offering are intended to be used for working capital to support revenue growth , the payment of interest on its outstanding convertible debentures and for general corporate purposes . For further details on the private placement and the non - brokered offering , see the Company's press release dated May 14 , 2021 . Update on Data Center Market Traction • The Company continues to experience strong market traction with its data center solutions and announced 4 new customer design - ins in the first quarter of 2021 , for a total of 88 to date . • The Company announced a collaboration with Wandtec on 100 , 200 and 400G data center interconnects using Spectra7 56Gbps GaugeChanger ™ ICs . CEO COMMENTARY " We continued our revenue recovery in Q1 from depressed COVID - 19 levels³ , despite working capital