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SPECTRAZ Spectra7 Announces Third Quarter Revenue Up 450 % Year- Over - Year Expects Q4 2021 EBITDA Profitability Based on Revenue Outlook of $ 2.5 Million - $ 3.5 Million SAN JOSE , Calif . , Nov. 29 , 2021 / CNW / -- ( TSXV : SEV ) ( OTCQB : SPVNF ) 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 third quarter of 2021. A copy of the unaudited interim consolidated financial statements for the three and nine month periods ended September 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 . Q3 2021 Financial Highlights • Revenue was $ 1.57 million for Q3 2021 , an increase of approximately 114 % sequentially from Q2 2021 , and an increase of approximately 456 % from the third quarter of 2020 . • Gross margin¹ as a percentage of revenue for Q3 2021 was 57 % , a decrease of approximately 1 % sequentially , and an increase of 2 % over the third quarter of 2020 . • Non - IFRS operating expenses² in Q3 2021 were $ 2.04 million , up approximately $ 0.25 million from the prior quarter , and up $ 0.97 million over the same quarter a year ago . The increase was due primarily to increased costs related to production ramp to meet rapidly growing data center customer demand . • EBITDA³ loss was approximately $ 0.94 million , compared with a loss of $ 1.15 million in the prior quarter and $ 0.72 million in the same quarter a year ago . CEO Q3 COMMENTARY " Our revenue continued its positive momentum in the third quarter , supported by increased customer volumes , record order backlog which has continued to grow and several new design - ins for our Active Copper Cable technology , " said Spectra7 CEO Raouf Halim . " To support the rapid increase in orders , we raised approximately CDN $ 14.8 million in an expanded and oversubscribed private placement transaction during October . A portion of these proceeds have already been deployed for additional foundry allocations and inventory as we scale our business . In Q4 we expect to roughly double our revenue sequentially and forecast reaching EBITDA profitability . Looking further out , I am confident our growth trajectory will continue through fiscal 2022. " 4 BUSINESS HIGHLIGHTS • Began production shipments in Q3 to a major China - based hyperscaler for Spectra7 - based 200G PAM4 Active Copper Cable ( ACC ) interconnects . • Demonstrated Spectra7's new GC1122 product for 112Gbps PAM4 based 800Gbps ACC interconnects at both DesignCon in August and CIOE in September . • Added three new customer design - ins for Spectra7 ACC data center solutions in Q3 2021 , for a total of 95 . Q4 2021 Financial Outlook4 Led by strong data center order backlog and increased supply availability , Spectra7 currently estimates total revenue in the fourth quarter of 2021 will be between $ 2.5 million and $ 3.5 million , a sequential increase of approximately 91 % at the midpoint . Operating expenses are anticipated to be in the range of $ 1.6 to $ 2.0 million in support of the anticipated rapid revenue growth . The Company anticipates that it will achieve EBITDA³ profitability in Q4 20214 . Option and RSU Grants As a part of its annual compensation review , Spectra7's board of directors has approved the grant of an aggregate of 770,000 restricted share units ( " RSUs " ) to the Company's executive officers and 41,826 RSUs to certain directors . In addition , the Company has cancelled 24,000 RSUs previously granted to Darrow Associates Texas , Inc. , a firm which provides investor relations services to the Company and , in its place , granted options to purchase up to 80,000 common shares , exercisable at CDN $ 1.90 . The options vest quarterly over 12 months and are exercisable until November 29 , 2026 . Early Warning5