Sivers Semiconductors Reports Record Fourth-Quarter and Fiscal-Year 2023 Results

A record-breaking year and quarter, leads to profitability in Q4, 2023

• Fourth-quarter revenue was SEK 73.882 million, up 48% year-over-year (YoY).

• Full-year revenue was SEK 236.334 million, up 78% year-over-year (YoY). 

• Adjusted EBITDA totaled SEK 21.032 million (–16.943).

• Company is finalizing a SEK 50 million loan facility extension with existing lenders; thus eliminating the need for capital contributions from shareholders.

Kista, Sweden // Feb. 8, 2024 // Sivers  Semiconductors AB (STO: SIVE)

Fourth quarter October-December 2023

• Net sales amounted to SEK 73.882 M (49.771), equivalent to an increase of 48%. Net sales increased by 42% at constant currency.
• Adjusted EBITDA totaled SEK 21.032 M (–16.943).
• Profit/loss before depreciation and amortization (EBITDA) amounted to SEK 13.515 M (-16.112).
• Operating profit/loss (EBIT) was SEK -33.784 M (-41.842).
• Profit/loss after tax amounted to SEK -46.382 M (-38.153).
• Earnings per share before and after dilution was SEK -0.20 (0.18).
• Equity per share amounted to SEK 5.10 (5.80). 

January- December 2023

• Net sales amounted to SEK 236.334 M (132.607), equivalent to an increase of 78%. Net sales increased by 71% at constant currency.

• Adjusted EBITDA totaled SEK –19.827 M (–75.277).

• Profit/loss before depreciation and amortization (EBITDA amounted to SEK -33.654 M (-73.277).

• Operating profit/loss (EBIT) was SEK -158.623 M (-185.096).

• Profit/loss after tax amounted to SEK -157.384 M (-86.384).

• Earnings per share before and after dilution was SEK -0.68 (-0.41).

• Equity per share amounted to SEK 5.10 (5.80).

Key performance indicators

SEK 000	2023 Oct-Dec	2022 Oct-Dec	2023 Jan-Dec	2022 Jan-Dec
Net sales	73,882	49,771	236,334	132,607
Net sales growth, %	48%	113%	78%	46%
Net sales growth, at constant currency, %	42%	80%	71%	30%
Adjusted EBITDA	21,032	-16,943	-19,827	-75,277
EBITDA	13,515	-16,112	-33,654	-73,693
EBIT	-33,784	-41,842	-158,623	-185,096
Profit/loss for the period	-46,382	38,153	-157,384	-86,384
Earnings per share before and after dilution, SEK	-0,20	0,18	-0,68	-0,41
Equity per share, SEK	5.10	5.80	5.10	5.80

Significant events in the fourth quarter
 November 29 -  Sivers Photonics receives USD 1 M (approximately SEK 10 M) orders for advanced optical sensing within LiDAR, medical, and industrial sectors.
 December 6 - Sivers Photonics, LioniX International, and Chilas B.V. partner to develop narrow-linewidth tunable laser technology for optical communications and optical sensing markets.
 December 15 - Sivers Semiconductors was granted EUR 1.2 M (approximately SEK 14 M) EU grant for design of 6G chip

Significant events after the end of the period
 22 January - Sivers Photonics receives follow-up order from US Fortune 100 customer
 30 January - Sivers Semiconductors was granted €0.6 million (approximately SEK 6.7 M) grant from European Space Agency
 1 February - Sivers Semiconductors Expands Partnership with Thorium Space S.A.

An online presentation of the Year-End Report will be held at 10:00 AM (CET) on Thursday February 8, 2024.
Register for the webinar via: https://attendee.gotowebinar.com/register/4798746368595461983

CEO´s Statement

Significantly improved profitability and record year lay the foundation for the future 

2023 was a record year. Sales exceeded SEK 200 million for the first time and amounted to SEK 236 million. This is an increase in net sales of 13 times since 2016, and corresponds to net sales growth of 78 percent year over year. The fourth quarter was also a record quarter for the company with sales of SEK 74 million, corresponding to growth of 48 percent.

For the first time, we also delivered a positive adjusted EBITDA as well as EBITDA result, which for the fourth quarter were SEK 21 million and SEK 13.5 million respectively, which meant a very positive end to the year and by far fulfilled our outlook of positive adjusted EBITDA. This was also a very strong improvement compared to the previous year of the equivalent of SEK 38 million, driven mainly by the good growth but also thanks to measures taken to improve profitability.

The strong sales were a result of strong growth in Wireless, which increased by 110 percent compared to the corresponding quarter last year. 

Photonics' sales cycles in the fourth quarter were temporarily longer than expected, but we are now seeing an increase in order intake and demand for our products from customers who deliver next-generation chips to the AI market, autonomous vehicles and smart sensors. After the end of the quarter, we have received another order from our US Fortune 100 customer, this is very gratifying and this order for new chips means that we feel confident that the project is progressing in a good way. Many of these orders will be delivered in 2024, additionally we see a strong pipeline for 2025. 

Wireless' growth continues on a strong path and consistantly add new projects. During the quarter, we received an EU grant from HORIZON Europe of EUR 1.2 million (approximately SEK 14 million) to design millimeter wave building blocks for next-generation 6G technology. The project is a confirmation that Sivers is at the absolute forefront of technology development in Wireless and gives us a great opportunity to take a leading role in the 6G race within a strong European ecosystem. In January 2024, we also received SEK 6.7 million in grants from the European Space Agency. 

In January, we also received an order of approximately SEK 30 million from Thorium Space, where we continue our excellent collaboration. With approximately SEK 50 million in new business in a short period of time and many interesting projects in the pipeline, primarily in satellite communications, Wireless has a bright future ahead of it.
 
In November, for the fourth year in a row, we held a Capital Markets Day. The aim was to increase the understanding of our business and how Sivers contributes to industry trends of upgraded technology and infrastructure through innovative, competitive products. I am very proud that we have customers who see value in presenting with Sivers. This year we were joined by Pawel Rymaszewski, CEO of Thorium Space and Charlie Wuischpard, CEO of Ayar Labs, as well as our very important partner GlobalFoundries. The day gave a good picture of how our products integrates into several megatrends and how we have strengthened our position in rapidly growing markets such as optical communication and satellite communication. The event is still available to watch on our website. 

2023 was an exceptional year of growth and we foresee continued growth for many years to come. During the last 12 months, we reported new orders of SEK 330 million, which bodes well for the future.

Together with a continued optimization of costs, investments and capital structure, we expect our organic growth to take us to profitability. We are negotiating an extended loan facility of SEK 50 million from existing lenders. The Company anticipates this financing will fully address 2024, without the need for capital contributions from our shareholders.

I look forward to 2024 and especially in the near future when our most important fairs MWC and OFC will take place. I look forward to getting back to you on how these are going and sharing future successes we see coming during the year.

Anders Storm, President and CEO

For more information, please contact:
Anders Storm, President and CEO
Email: [email protected]
Tel: +46 (0)70 262 63 90

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, on 8 February, 2024 at 08:00 CET.

Sivers Semiconductors AB (SIVE.ST) is a leading and internationally recognized technology company that supplies ICs and integrated modules through its two business areas Wireless and Photonics. Wireless develops mmWave products for advanced 5G systems for data and telecommunications networks and satellite communication. The portfolio includes RF transceivers, beamforming front end ICs, integrated mmWave antennas, repeaters, and software algorithms for optimum mmWave RF performance. Photonics develops and manufactures semiconductor based optical products for optical fiber networks, sensors and optical fiber communications (Li-Fi). The company is listed on Nasdaq Stockholm under SIVE. The head office is located in Kista, Sweden. For more information: http://www.sivers-semiconductors.com