Release Date: July 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sivers Semiconductors AB (OSTO:SIVE, Financial) reported a 14% growth in Q2 2024, with over EUR 50 million in sales.
- Wireless segment showed significant growth, with a 29% year-over-year increase.
- Adjusted EBITDA improved by 25%, indicating better financial health.
- The company has a strong pipeline in the 5G sector, with three new projects announced.
- Product sales increased from 15% to 39% year-over-year, moving closer to the 8% target for 2026.
Negative Points
- Despite growth, the company still reported a negative EBITDA of EUR 12.4 million.
- There was a pause in growth in the first half of the year, indicating potential volatility.
- The company is not yet in mass production with its customers, leading to potential fluctuations in product sales.
- Revenue from the Fortune 100 customer is lower this year due to a decrease in NRE (Non-Recurring Engineering) income.
- The timeline for achieving volume production with key customers remains uncertain, causing potential delays in revenue realization.
Q & A Highlights
Q: Can you provide an update on the CAD425,000 contract with the top-tier Satcom network?
A: Yes, the project is ongoing but slightly delayed. We have invoiced about 50% of it, and the customer has received it well. This project might lead to future sales opportunities. (Anders Storm, CEO)
Q: Any updates from the Tier 1 customer in India regarding Intel WiFi networks?
A: They are currently in the funding stage for the next phase to move into production volumes. The NXP software is not yet in any solution but is being considered for satellite communication. (Anders Storm, CEO)
Q: What is the status of the Fortune 100 customer's test and qualification process?
A: We have shipped chips to them, and it is now more on their side to finalize their solution. (Anders Storm, CEO)
Q: Will Sivers select potential outsourcing partners before a firm order from SIP volume ramp from IO labs?
A: Yes, we have already selected two partners, one in the US and one in Taiwan. The cost for outsourcing is not very high; it's more about the qualification process. (Anders Storm, CEO)
Q: Why can't you name the companies you are winning agreements with?
A: Customers are very secretive. They don't want to upset previous suppliers or reveal their competitive edge. This makes it challenging for us to disclose names. (Anders Storm, CEO)
Q: Why does it take so long with the Fortune 100 customer?
A: They are trying to achieve something unprecedented, which takes longer than expected. The project is very important and involves high-level executives. (Anders Storm, CEO)
Q: Are you working with any companies in the data center space?
A: Yes, we are working with several companies in the ecosystem and hope to share more news by the end of this year. (Anders Storm, CEO)
Q: What are the greatest obstacles for the shift to optical I/O?
A: The main challenge is the integration between GPUs and CPUs. Companies need to integrate their silicon with Air Labs' silicon, which is complex but progressing. (Anders Storm, CEO)
Q: Any news about the light project customers?
A: We are still working with them, especially one prominent customer in the qualification phase. We are also negotiating the MSA contract. (Anders Storm, CEO)
Q: Could you elaborate on the sensor application for biometric reading?
A: Our sensor can measure a broad range of wavelengths and can be used in various applications. It is possible to release it with one biometric capability and expand later. (Anders Storm, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
