Sivers Semiconductors AB (publ), Interim Report Q1, January – March 2022

First quarter 2022: Net sales amounted to SEK 27.471 M (13.840), an increase of 98%. Net sales increased by 79% at constant currency. Profit before depreciation and amortization (EBITDA) amounted to SEK -11.972 M (-17.771). Adjusted EBITDA totaled SEK –17.351 M (–19.328). Operating profit/loss (EBIT) was SEK -26.985 M (-25.802). Profit/loss after tax amounted to SEK -18.332 M (-26.233). Earnings per share before and after dilution was SEK -0.10 (-0.17). Equity per share amounted to SEK 5.66 (3.29).

Significant events in the first quarter:

• On January 3, Sivers Semiconductors announced that the Lithuanian hi-tech company 8devices placed an order for unlicensed 5G RF modules. The total order value amounts to USD 2.1 M and will be delivered in 2022 starting in the first quarter of 2022. This order is designated for one of 8Device’s customers. The customer has the right, within some limitations and early warnings, to cancel or move parts of the order at no charge. The company estimates that the recognized revenue for 2022 will amount to approximately USD 1.5 M.
• On January 18, Sivers Semiconductors announced that its subsidiary MixComm entered a partnership with Advanced Microsystems Technologies, a division of Sanmina (NASDAQ:SANM), to productize its 5G wireless infrastructure solutions.
• On February 10, Sivers Semiconductors announced that its subsidiary Sivers Wireless and MaxLinear Inc. are collaborating in the joint development of a V-Band RF/ solution that enables disruptive unlicensed point-to-point microwave radios in the 57-71 GHz band.

• On February 22, Sivers Semiconductors announced that they have completed the previously announced acquisition of MixComm Inc. to strengthen its position in 5G, SATCOM and Radar markets for current and future high frequency mmWave products. The acquisition provides a greatly increased customer base, expanded capacity, a broad IP portfolio and a strong presence across the US, Europe and Asia.
• On February 23, Sivers Semiconductors announced a technology development partnership with LitePoint, a leading provider of wireless test solutions, for Sivers’ 5G millimeter wave (mmWave) Antenna in Package (AiP) products. LitePoint’s IQgig-5G non-signaling test solution provides Sivers Semiconductors with a turnkey solution to quickly get RF measurement results.
• On February 24, Sivers Semiconductors announced that a combined development and supply agreement with a Global high-tech company listed on New York Stock Exchange (NYSE), which was communicated on August 5, 2020, will be put on hold.
• On February 28, Sivers Semiconductors announced that KREEMO and Sivers Semiconductors have succeeded in developing the world’s first high performance 5G module with a 360^o coverage for metaverse.

Significant events after the end of the period:

• There were no significant events after the end of the period.

Key Performance Indicators

SEK 000	2022	2021	2021
	Jan-Mar	Jan-Mar	Jan-Dec
Net sales	27,471	13,840	90,652
Net sales growth %	98%	-39%	-6%
Net sales growth at constant currency %	79%	-32%	0%
EBITDA	-11,972	-17,771	-107,185
EBITDA adjusted	-17,351	-19,328	-64,935
EBIT	-26,985	-25,802	-140,941
Profit/loss for the period	-18,332	-26,233	-133,704
Earnings per share before and after dilution, SEK	-0.10	-0.17	-0.83
Equity per share, SEK	5.66	3.29	4.57

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

An online presentation of the Interim Report will be held at 10:00 AM (CEST) Wednesday, May 11, 2022.
Register for the webinar via: https://attendee.gotowebinar.com/register/3107176302165063436

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

CEO’s Statement

The first quarter of 2022 started off positively in many ways with the growth uptake being particularly favorable. Sales grew 98 percent compared to the first quarter of 2021 and totaled SEK 27 million, despite the challenges with component shortages for our customers.

The highlight of operations in the quarter was the completion of the acquisition of MixComm, a US-based 5G mmWave company. By merging our two companies, we obtain a very competitive position in 5G, SATCOM and radar, in addition to our existing strong Photonics portfolio and operations.The acquisition provides a greatly increased customer base, expanded capacity, a broad IP portfolio and an impressive presence across the US, Europe and Asia.

Our strengthened position and offer are recognized in the relationships with our customers. The quotations we now send out are of a different magnitude in both quantity and size than we have ever previously experienced. Specifically, current customers and potential customers showed great interest in SATCOM, in the quarter. Wireless is also experiencing interest from new types of US customers due to the increased presence in the USA.

We see an increased interest in new projects and an increased willingness to dare to invest from customers, which is a significant change compared to a year ago when few customers had confidence in planning ahead. The standstill we experienced during the pandemic is progressively easing, and we expect that signing new NRE (Non Recurrent Engineering) development contracts will be easier in the future. The pandemic does however still have repercussions with the general component shortage which, as previously communicated, is expected to impact us in the first six months of 2022.

At the start of the quarter, we received an order of unlicensed 5G RF modules from the Lithuanian hi-tech company 8devices totaling USD 2.1 million. We initiated our deliveries in the first quarter and intend to deliver the whole volume during 2022. The recognized revenue for 2022 is estimated to be approximately USD 1.5 M.

During the quarter, we attended the Mobile World Congress (MWC) in Barcelona, the Optical Fiber Communication Conference and the Exhibition (OFC) in San Diego. After three years it was extremely rewarding to once again meet customers, partners and potential customers. We have a very exciting pipeline and at the events, showcased among other things, our new 28 Ghz products from MixComm and our existing 60 Ghz solution through the Blu Wireless track-to-train-system.

The acquisition of MixComm has made us one of the strongest suppliers of 5G/ mmWave and we now have 43 design wins in total and 12 customers which have 22 products on the market that uses Sivers’ hardware.

Within Photonics, our Fortune 100 work is progressing positively. We attended the OFC conference in San Diego and saw how important Silicon Photonics is and could ascertain how well positioned and timely our Indium phosphide (InP) platform InP100 is.

To summarize, we are very pleased that the wheels are now spinning with less friction than before and we can look to the future with more confidence. The pandemic and component shortage have led to the whole eco system trailing behind schedule. But the good news is, the underlying demand has not changed. Our competitive products, strong global network and the merger of MixComm ensure that we are well equipped for the future. We are in an excellent position, and I remain optimistic about the future.

Anders Storm, President and CEO

This disclosure contains information that Sivers Semiconductors is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the contact person set out below on 11 May, 2022 at 08:00 CET.