Core Viewpoint - Valens Semiconductor will release its fourth quarter and full year 2024 financial results on February 26, 2025, before market opening [1] Financial Results Announcement - The financial results will be discussed in a conference call hosted by CEO Gideon Ben Zvi and CFO Guy Nathanzon on February 26, 2025, at 8:30 a.m. Eastern Time [2] - Access to the conference call will be available via multiple phone numbers for different regions and a live webcast on the company's investor relations website [2] Company Overview - Valens Semiconductor is a leader in high-performance connectivity, providing technology that enhances digital experiences globally [3] - The company's chipsets are utilized in various devices, supporting advanced audio-video installations, next-generation videoconferencing, and the development of ADAS and autonomous driving technologies [3] - Valens is known for setting industry standards, including HDBaseT® and MIPI A-PHY, showcasing its commitment to pushing connectivity boundaries [3]

Core Insights - Sennheiser has launched the TeamConnect Bar Solutions, entering the all-in-one unified communications AV bar market, which has gained popularity in corporate and educational settings and is certified for Microsoft Teams [1] - The TeamConnect Bars can be extended using Valens technology, allowing flexible placement without proximity to power outlets, utilizing the Valens VA6000 chipset for high-speed USB connections up to 100m/328ft and power over a single Category cable [2][3] Company Overview - Sennheiser has over 75 years of experience in audio solutions, focusing on professional audio products like microphones and meeting solutions, while consumer devices are managed by Sonova Holding AG under Sennheiser's license [4] - Valens Semiconductor, listed on NYSE as VLN, specializes in high-performance connectivity, providing chipsets for advanced audio-video installations and next-generation videoconferencing [5]

Financial Performance - Solid order backlog of $298.7 million, up $15.0 million or 5.3% since the beginning of the year [8] - Adjusted net income from continuing operations of $8.5 million, versus an adjusted net loss of $7.0 million in the corresponding quarter [8] - Sales of $73.4 million, up $11.2 million or 18.1% compared to the same quarter last year [8] - Gross profit of $28.3 million or 38.6% of sales, up significantly from $8.2 million, or 13.1% of sales, last year [8] - Net loss from continuing operations of $47.8 million, versus a net loss of $9.5 million last year reflecting restructuring costs of $74.5 million before income taxes [8] - Adjusted EBITDA from continuing operations of $14.3 million, compared to negative $4.1 million last year [8] Strategic Transactions - Agreement with Global Risk Capital to divest asbestos-related liabilities, removing $143 million in liabilities from the balance sheet [2] - Memorandum of understanding with Framatome for the sale of French subsidiaries Segault and Velan France for $198.4 million [3] - The sale of French businesses met the criteria for assets held for sale and discontinued operations, adjusting the consolidated balance sheet [4] Operational Highlights - Bookings of $59.1 million, versus $60.1 million last year, representing a book-to-bill ratio of 0.81 [8] - Cash flows from operating activities was breakeven, versus $0.1 million last year [8] - Net cash of $32.1 million at the end of the quarter, versus $36.4 million at the beginning of the fiscal year [8] Industry and Market Position - The company is well-positioned to benefit from robust momentum in the clean energy sector, particularly in the global nuclear market [9] - Recent alliances with leading players for proprietary products at small modular reactors bode well for the long term [9] - The company expects nuclear activities to generate new orders in the near future [9] Financial Position and Outlook - As at November 30, 2024, orders amounting to $249.1 million, representing 83.4% of a total backlog of $298.7 million, are expected to be delivered in the next 12 months [29] - The company anticipates concluding fiscal 2025 with a growth year over year in sales from continuing operations [29] - The Board of Directors has declared a dividend of CA$0.03 per common share, reinstating the dividend payment given the improved financial performance [30]

Core View - The company announced two major strategic initiatives: the divestiture of asbestos-related liabilities and the sale of French subsidiaries, aimed at reducing operating and financial risks while strengthening its financial position [12][13] - These transactions are expected to unlock the company's inherent value, making it financially and operationally stronger, and allowing it to focus on growth opportunities in the clean energy sector [6][7][13] Divestiture of Asbestos Liabilities - The company entered into an agreement with Global Risk Capital to divest its asbestos-related liabilities through the sale of its US subsidiary, Velan Valve Corp, for US$143 million, which will permanently remove all asbestos-related liabilities from the company's balance sheet [14] - The transaction is expected to result in a one-time non-cash charge to earnings of approximately US$67 million, before tax benefits [1] - The company plans to fund this transaction using available cash and a portion of the proceeds from the sale of its French subsidiaries [14] Sale of French Subsidiaries - The company entered into a memorandum of understanding to sell 100% of its French subsidiaries, Segault SAS and Velan S A S, to Framatome for a purchase price of US$175 2 million (€170 million), with an additional intercompany loan transfer of US$23 2 million (€22 5 million), bringing the total consideration to US$198 4 million (€192 5 million) [8][15] - The completion of this transaction is subject to shareholder approval, and Velan Holding, the controlling shareholder, has entered into a voting and support agreement with the company [9][16] - The company will inform and consult employee representative bodies in accordance with French laws before finalizing the agreement [2] Strategic Positioning and Future Outlook - The company will continue to lead in flow control solutions for clean energy and other industrial sectors, leveraging its strong brand, high-quality products, and expertise in demanding applications [6] - The company is well-positioned in the nuclear energy market with proprietary valve offerings for small modular reactors and a global installed base of products at existing nuclear reactors [6] - The transactions are expected to strengthen the company's balance sheet, making it virtually debt-free and enabling greater investments in growth opportunities [7] Advisors and Legal Counsel - Ducera Partners LLC is acting as the exclusive financial advisor for the asbestos divestiture transaction, with legal counsel provided by Latham & Watkins LLP and Davies Ward Phillips & Vineberg LLP [3] - BMO Capital Markets is acting as the financial advisor for the France transaction, with legal counsel provided by Davies Ward Phillips & Vineberg LLP and Bredin Prat [10] - Jones Day is acting as legal advisor to Global Risk Capital and Framatome [3][10]

Financial Results Announcement - Velan Inc. will release its financial results for the third quarter ended November 30, 2024, on January 14, 2025 [1] - An analyst call is scheduled for January 15, 2025, at 8:00 a.m. (EDT) to discuss the results [2] Conference Call Details - Participants can join the conference call by registering through a provided link or by dialing in directly [2] - The call will also be available via webcast, with a replay accessible within 2 hours after the call [3] Investor Relations - Materials referenced during the conference call will be available on the company's Investor Relations section shortly before the event [4]

Core Insights - Valens Semiconductor focuses on developing advanced products for high-performance wired connectivity across various markets, including automotive, professional audio-video, industrial, and medical sectors [1][6] - The company aims to enhance connected vehicle systems, improving safety, performance, and the overall driving experience [1] - Valens' professional audio-video chips facilitate meeting equity, enabling operations in diverse conditions and locations for corporations and educational institutions [1] ESG Commitment - The 2023 ESG Report highlights Valens Semiconductor's commitment to responsible corporate governance and sustainable business practices [2][4] - The company engages with shareholders, customers, and partners to communicate progress and advancements in connectivity [2] - Valens emphasizes the importance of social and environmental responsibility in its growth strategy [5] Company Overview - Valens Semiconductor is recognized as a leader in high-performance connectivity, transforming digital experiences globally [6] - The company's chipsets are widely integrated into devices, supporting advanced audio-video installations, next-generation videoconferencing, and the development of ADAS and autonomous driving technologies [6] - Valens' technology underpins industry standards such as HDBaseT® and MIPI A-PHY, setting benchmarks in connectivity [6]

Financial Data and Key Metrics Changes - The company reported revenues of $16 million for Q3 2024, exceeding guidance of $14.7 million to $15.4 million, and up from $13.6 million in Q2 2024 and $14.2 million in Q3 2023 [10][33] - GAAP gross margin for Q3 2024 was 56.4%, compared to guidance of 52% to 53%, and down from 61.4% in Q2 2024 and 58.9% in Q3 2023 [11][35] - Adjusted EBITDA loss was $5.1 million, better than the guidance range of $6.3 million to $6.8 million, and improved from a loss of $5.2 million in Q2 2024 and $8.8 million in Q3 2023 [39][40] - The company ended Q3 2024 with $133.1 million in cash and cash equivalents, compared to $130.6 million at the end of Q2 2024 and $142 million at the end of 2023 [41] Business Line Data and Key Metrics Changes - The Audio-Video segment contributed $9.4 million, approximately 60% of total revenue, while the Automotive segment contributed $6.6 million, approximately 40% of total revenue [34] - In Q2 2024, Audio-Video revenue was $8.1 million and Automotive revenue was $5.5 million, while in Q3 2023, Audio-Video revenue was $9.7 million and Automotive revenue was $4.5 million [34] Market Data and Key Metrics Changes - The professional audio-video market is seeing high adoption of the VS6320 chipset, with over 50 customers developing products expected to launch in the next 9 to 12 months [12] - The machine vision market is projected to reach $7.8 billion by 2029, with the segment Valens competes in expected to reach $460 million by 2029 [14] Company Strategy and Development Direction - The company is advancing its long-term growth strategy with new automotive design wins and entry into the industrial machine vision market [7][9] - A strategic organizational change is underway, transitioning the Audio-Video Business to a Cross Industry Business unit to encompass various verticals [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about emerging from the bottom of the cycle and increasing interest in their solutions [9] - The company is focused on leveraging opportunities across verticals, particularly in industrial machine vision [19] Other Important Information - The company announced a leadership transition in the Audio-Video Business unit, with Gabi Shriki stepping down and a new head to be appointed [21][22] - The company is hosting its first Investor Day on November 12, 2024, to discuss its strategic plan and long-term financial objectives [45] Q&A Session Summary Question: Visibility on inventory and demand - Management indicated that visibility is improving, with a shorter sales cycle and a recovery in the market expected [48] Question: Acroname acquisition integration and traction - The integration of Acroname is proceeding well, with sales being ad hoc and transparent [50][51] Question: OEM wins and vehicle types - The design wins are not limited to EVs; ADAS features are applicable across all vehicle types [52][53] Question: Gross margin expectations for 2025 - Management did not provide specific guidance but noted that gross margins are influenced by the revenue mix between audio-video and automotive segments [54] Question: 10% plus customers during the quarter - There were no customers contributing more than 10% of revenue during the quarter [57] Question: Timing and opportunity size with Stoneridge - The pilot with Stoneridge was successful, and the truck industry is expected to reward the company despite the long timeline [62]

Core Insights - 22nd Century Group, Inc. is expanding its VLN® product distribution, targeting over 270,000 retail outlets and enhancing international activities [1][2][3] - The company has sufficient low nicotine tobacco stock to potentially generate up to $85 million in revenue from VLN® products [4] Group 1: Distribution and Market Expansion - The company plans to expand VLN® sales and marketing operations to all available retail outlets in the US and internationally [2][3] - Currently, VLN® is distributed in approximately 5,100 stores across 26 states, with a total market potential of over 270,000 retail outlets nationwide [2] Group 2: Sales Strategy and Consumer Engagement - The CEO emphasized that smokers are increasingly purchasing VLN® cigarettes, indicating a positive market response [3] - A comprehensive revitalization plan has been developed to enhance consumer engagement and expand distribution [3] Group 3: Financial Position and Inventory - The company holds enough low nicotine tobacco stock to manufacture up to 1.4 million cartons of VLN® and flanker brand cigarettes [4] - This existing inventory is prioritized for market release, with the potential to realize significant revenue before future crops are harvested [4] Group 4: Product Innovation and Regulatory Status - VLN® is the first combustible cigarette to receive a Modified Risk Tobacco Product designation from the FDA, promoting it as a product that helps smokers reduce consumption [6] - The proprietary technology used in VLN® allows for a 95% reduction in nicotine content while maintaining flavor and yield [8]

Valens Semiconductor Ltd. (NYSE:VLN) Q2 2024 Earnings Conference Call August 7, 2024 8:30 AM ET Company Participants Lisa Fortuna - IR Gideon Ben-Zvi - CEO Guy Nathanzon - CFO Conference Call Participants Operator Good morning. My name is Maya, and I will be your conference operator today. At this time, I would like to welcome everyone to Valen Semiconductors Second Quarter 2024 earnings conference call on webcast. [Operator Instructions]. I will now turn the call over to Lisa Fortuna, Investor Relations fo ...

Valens Semiconductor, Ltd. (VLN) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced a loss of $0.06, delivering a surprise of -100%. Over the last four quarters, the com ...