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SPECTRAZ Spectra7 Announces Second Quarter Revenue up 185 % Year - Over - Year Second Half 2021 Revenue Expected to Be in the Range of $ 4 Million - $ 5 Million Supported by Current Second Half Backlog of $ 6 Million SAN JOSE , Calif . , Aug. 30 , 2021 / CNW / -- ( TSXV : SEV ) ( OTCQB : SPVND ) Spectra7 Microsystems Inc. ( " Spectra7 " or the " Company " ) , a leading provider of high - performance analog semiconductor products for broadband connectivity markets , today announced financial results for its second quarter of 2021. A copy of the unaudited interim consolidated financial statements for the three- and six - month periods ended June 30 , 2021 , prepared in accordance with International Financial Reporting Standards ( IFRS ) , and the corresponding management's discussion and analysis ( MD & A ) will be available under the Company's profile on the Canadian Securities Administrator's SEDAR website at www.sedar.com . All amounts reported are in U.S. dollars unless otherwise noted . Q2 2021 Financial Highlights • Revenue for Q2 2021 was $ 0.73 million , representing an increase of approximately 30 % from Q1 2021 , and an increase of approximately 185 % over the second quarter of the prior year . Revenue growth in Q2 2021 remained constrained by working capital and supply issues . • Gross margin¹ as a percentage of revenue for Q2 2021 was 59 % , representing an increase of approximately 2 % over the prior quarter , and an increase of 3 % over the second quarter of the prior year . • Non - IFRS operating expenses² in Q2 2021 were $ 1.80 million , up approximately $ 0.77 million from the prior quarter , and up $ 0.07 million over the same quarter a year ago . The increase in Q2 2021 was due primarily to annual audit fees , costs associated with the Company's annual shareholders meeting and engineering expenses in support of data center production ramp . • EBITDA³ loss was approximately $ 0.93 million , compared with a loss of $ 0.57 million in the prior quarter and $ 1.3 million in the same quarter a year ago . 2H 2021 Financial Outlook4 Led by strong data center order backlog and supply availability , the Company expects continued revenue growth for the second half of 2021. Spectra7 currently estimates total revenue in the second half of 2021 will be between $ 4.0 million and $ 5.0 million , with sequential increases in both Q3 and Q44 . Operating expenses are anticipated to be in the range of $ 1.6 and $ 2.0 million per quarter for the remainder of the year in support of the anticipated rapid revenue growth in the second half of 20214 . With this current outlook , the Company anticipates that it will achieve EBITDA³ profitability in Q4 20214 . CEO Q2 COMMENTARY " We are at the beginning of what I believe will be a sustained revenue growth trajectory in the second half of 2021 , leading to expected EBITDA profitability in Q43 . My confidence in this outlook is supported by record order backlog with our Active Copper Cable technology from major Hyperscaler data center operators , " said Spectra7 CEO Raouf Halim . " In the second quarter , we achieved qualification with a major China - based data center operator and began receiving significant orders for production deployment of our PAM4 data center product this year . These positive developments will serve as the foundation of our revenue growth in the coming quarters . " Business Highlights " 4 • A major China - based Hyperscaler began placing large volume orders in Q2 for Spectra7 - based 200G PAM4 Active Copper Cable ( ACC ) interconnects . • Wandtec , an innovative technology leading interconnect supplier , announced its collaboration with Spectra7 to deliver interconnect solutions for low power , low latency and extended reach , targeted at major datacenter operators and high- performance computing OEMs . • On June 11 , 2021 , the Company announced the closing of its private placement of 4,223 , 1405 units for gross proceeds of approximately $ 5.23 million ( CDN $ 6.33 million ) . • On June 21 , 2021 , the Company commenced trading on the OTCQB® Market in the United States to increase visibility to prospective US investors . • Continued to experience gains with its data center solutions with four new customer design - ins in Q2 2021 , for a total of 92 .