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Core Insights - Velan Inc. reported significant improvements in bookings, sales, gross profit, and cash flow generation for fiscal year 2025, achieving a sales growth of 14.1% from continuing operations [2][6][16] - The company declared a dividend of CA$0.33 per share, which includes a special dividend of CA$0.30, reflecting its commitment to return funds to shareholders [1][33] Financial Performance - Sales for fiscal 2025 reached $295.2 million, an increase of $36.5 million or 14.1% compared to the previous year [6][16] - Gross profit improved significantly to $84.9 million, representing 28.8% of sales, up from $54.6 million or 21.1% of sales in the prior year [6][17] - Adjusted net income was $6.6 million, or $0.31 per share, compared to an adjusted net loss of $15.7 million, or a loss of $0.73 per share in fiscal 2024 [22] - Adjusted EBITDA rose to $27.5 million from $2.1 million in the previous year, driven by higher sales and gross profit [20][22] Cash Flow and Financial Position - The company ended fiscal 2025 with a net cash position of $32.4 million and cash and cash equivalents of $34.9 million, which is expected to increase to approximately $55.0 million following significant transactions [2][30] - Operating cash flows from continuing operations were $26.5 million, compared to $12.5 million in the previous year [6][30] Significant Transactions - Velan completed the divestiture of its asbestos-related liabilities and the sale of its French subsidiaries, which are expected to enhance liquidity and de-risk the balance sheet [8][9][10] - The asbestos-related liabilities were permanently removed from the balance sheet, and the sale of the French businesses generated a total consideration of $208.2 million [9][10] Backlog and Bookings - The backlog as of February 28, 2025, was $274.9 million, down 3.1% from $283.6 million a year earlier, with 82.1% of the backlog expected to be deliverable within the next 12 months [11][31] - Bookings for fiscal 2025 reached $292.5 million, an increase of 1.3% compared to the previous year, reflecting higher North American bookings in the nuclear sector [14][15] Outlook - The company anticipates continued strong performance in fiscal 2026, supported by a solid backlog and ongoing demand in clean energy markets, particularly nuclear energy [2][31]

Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (VLN) Q1 25May 08, 2025 8:26 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - May 8, 2025) - Valens Semiconductor Ltd. (NYSE: VLN): Stonegate Capital Partners updates their coverage on Valens Semiconductor Ltd. (NYSE: VLN). Valens Semiconductor achieved robust results in 1Q25, with revenues of $16.8M, surpassing both its prior guidance of $16.3-$16.6M and the previous quarter's revenue of $16.7M. This ma ...

Financial Data and Key Metrics Changes - The company reported revenues of $16.8 million for Q1 2025, exceeding the guidance range of $16.3 million to $16.6 million and compared to $16.7 million in Q4 2024 and $11.6 million in Q1 2024 [5][22] - GAAP gross margin for Q1 2025 was 62.9%, above guidance and compared to 60.4% in Q4 2024 and 59% in Q1 2024 [5][23] - GAAP net loss for Q1 2025 was $8.3 million, compared to a net loss of $7.3 million in Q4 2024 and $10 million in Q1 2024 [26] - Adjusted EBITDA loss was $4.3 million, within guidance, compared to a loss of $3.7 million in Q4 2024 and $7.1 million in Q1 2024 [26] Business Line Data and Key Metrics Changes - The Cross Industry Business (CIB) accounted for $11.7 million or approximately 70% of total revenue in Q1 2025, while automotive contributed $5.1 million or approximately 30% [22] - CIB revenue in Q1 2024 was $7.2 million, and automotive revenue was $4.4 million, representing a significant year-over-year increase [22] - Gross margin from CIB was 69.1% in Q1 2025, while automotive gross margin was 48.4% [23][24] Market Data and Key Metrics Changes - The company highlighted growing interest in its ProAV solutions, particularly after showcasing products at industry events [6][7] - Recognition at Infocom China with a Best of Show Editor's Choice Award for technology application indicates strong market presence [9] - The automotive market is seeing rapid adoption of the MIPI A5 standard in China, with significant interest from local OEMs [18][19] Company Strategy and Development Direction - The company aims to leverage its industry-leading technology and robust balance sheet to drive renewed growth and profitability [30] - Focus on expanding partnerships in the automotive sector, particularly with Mobileye, to enhance market penetration [15][16] - The strategy includes adapting to local market conditions in China to facilitate entry and growth [19][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, citing increasing interest in solutions and upcoming product launches [6][30] - The company is closely monitoring the impact of new tariffs on operations and customer demand, although no direct impacts have been observed yet [29][39] - Future revenue growth is expected from the CIB segment starting in 2025, with automotive revenue ramping up from late 2026 [69] Other Important Information - The company ended Q1 2025 with cash and equivalents totaling $112.5 million and no debt, down from $131 million at the end of Q4 2024 [27] - Inventory levels were slightly up from Q4 2024 but down from Q1 2024, indicating effective inventory management [28] Q&A Session Summary Question: How does the Mobileye partnership change dynamics for future OEM wins? - Management indicated that the collaboration with Mobileye enhances the quality and bandwidth of camera systems, potentially influencing future OEM relationships positively [34][35] Question: Are there any indirect impacts from tariffs? - Management stated that while there are no direct impacts currently, they are monitoring the situation closely and will provide updates as necessary [39] Question: Can you provide details on the improvement in automotive gross margins? - The improvement was attributed to ongoing cost optimization efforts and product mix adjustments, with management indicating that these levels are sustainable [74] Question: How is the company managing working capital amid supply chain volatility? - The company maintains a strong balance sheet and aims to be a reliable supplier, managing inventory efficiently while keeping buffers to meet customer demand [76][78]

Financial Data and Key Metrics Changes - The company reported revenues of $16.8 million for Q1 2025, exceeding guidance and showing an increase from $11.6 million in Q1 2024 [5][21] - GAAP gross margin for Q1 2025 was 62.9%, above guidance and compared to 59% in Q1 2024 [5][22] - GAAP net loss for Q1 2025 was $8.3 million, an improvement from a net loss of $10 million in Q1 2024 [24] - Non-GAAP loss per share was $0.3 in Q1 2025, compared to a loss of $0.7 in Q1 2024 [26] Business Line Data and Key Metrics Changes - The Cross Industry Business (CIB) generated $11.7 million, approximately 70% of total revenue, while the automotive segment contributed $5.1 million, about 30% of total revenue [21] - CIB revenue increased from $7.2 million in Q1 2024, while automotive revenue increased from $4.4 million in the same period [21] - Gross margin for CIB was 69.1% in Q1 2025, while automotive gross margin was 48.4% [22] Market Data and Key Metrics Changes - The company highlighted growing interest in its ProAV solutions, particularly after showcasing products at industry events [7][8] - Recognition at Infocom China with a Best of Show award indicates strong market presence and potential for growth in the Chinese market [8] - The automotive industry is seeing increased adoption of the MIPI A5 standard, particularly in China, with significant interest from local OEMs [17][18] Company Strategy and Development Direction - The company aims to leverage its technology to drive growth in target markets, focusing on the automotive and CIB sectors [29] - Partnerships with key players like Mobileye are expected to enhance the company's position in the automotive market [15][16] - The company is adapting its business model to penetrate the Chinese market effectively, recognizing the need for local partnerships [51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, citing solid performance and strategic partnerships [5][29] - The company is closely monitoring the impact of new tariffs on operations and customer demand, but currently sees no direct effects [28] - Guidance for Q2 2025 revenue is expected to be between $16.5 million and $16.8 million, with gross margins projected at 63% to 64% [27] Other Important Information - The company ended Q1 2025 with cash and equivalents totaling $112.5 million and no debt [26] - Inventory levels were slightly up from the previous quarter but down from the same period last year, indicating effective inventory management [27] Q&A Session Summary Question: How does the Mobileye partnership change future OEM wins? - The Mobileye collaboration focuses on enhancing camera quality and bandwidth, which may influence future OEM relationships positively [32][33] Question: Are there any indirect impacts from tariffs? - The company is monitoring the situation closely but cannot disclose specific impacts at this stage [37] Question: What is the expected camera resolution for MIPI A5 to show benefits? - Bandwidth and resolution are interconnected, and higher bandwidth is crucial for advanced ADAS systems [40][44] Question: How is the company progressing with Chinese auto OEMs? - The company is actively engaging with multiple OEMs in China and adapting its approach to local market dynamics [52] Question: Is there any change in 2025 guidance due to tariff uncertainty? - The company reiterated that there is no change in the 2025 guidance at this stage [54]

Valens Semiconductor (NYSE:VLN) May 2025 1 Forward-Looking Statements Certain statements in this presentation (this "Presentation") are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predi ...

[Condensed Consolidated Financial Statements](index=1&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Condensed Consolidated Balance Sheets](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Valens Semiconductor's total assets were $154.6 million, a decrease from $172.2 million at the end of 2024, primarily due to a reduction in short-term deposits. Total liabilities also decreased to $26.0 million from $29.5 million, while total shareholders' equity declined to $128.6 million from $142.7 million, mainly impacted by share repurchases and the net loss for the period Balance Sheet Summary (in thousands USD) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$136,699** | **$153,903** | | Cash and cash equivalents | $40,997 | $35,423 | | Short-term deposits | $71,543 | $95,532 | | **Total Assets** | **$154,562** | **$172,152** | | **Total Current Liabilities** | **$16,879** | **$20,326** | | **Total Liabilities** | **$25,955** | **$29,464** | | **Total Shareholders' Equity** | **$128,607** | **$142,688** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) For the first quarter of 2025, Valens reported revenues of $16.8 million, a 45.6% increase year-over-year from $11.6 million. Gross profit grew to $10.6 million from $6.8 million. Despite higher operating expenses, the operating loss narrowed to $9.5 million from $11.3 million, and the net loss improved to $8.3 million, or ($0.08) per share, compared to a net loss of $10.0 million, or ($0.10) per share, in the prior-year period Q1 2025 vs. Q1 2024 Performance (in thousands USD, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenues** | **$16,828** | **$11,559** | | **Gross Profit** | **$10,582** | **$6,815** | | Total Operating Expenses | ($20,038) | ($18,104) | | **Operating Loss** | **($9,456)** | **($11,289)** | | **Net Loss** | **($8,308)** | **($10,042)** | | Basic and diluted net loss per share | ($0.08) | ($0.10) | | Total Comprehensive Loss | ($8,850) | ($10,042) | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20SHAREHOLDERS%27%20EQUITY) Shareholders' equity decreased from $142.7 million at the beginning of 2025 to $128.6 million at the end of Q1 2025. The reduction was primarily driven by a net loss of $8.3 million and the repurchase of ordinary shares amounting to $9.6 million. These decreases were partially offset by $4.2 million in stock-based compensation Changes in Shareholders' Equity for Q1 2025 (in thousands USD) | Description | Amount | | :--- | :--- | | **Balance as of January 1, 2025** | **$142,688** | | Net loss for the period | ($8,308) | | Repurchase of ordinary shares | ($9,585) | | Stock based compensation | $4,166 | | Exercise of options and vesting of RSUs | $188 | | Change in unrealized losses on cash flow hedges | ($542) | | **Balance as of March 31, 2025** | **$128,607** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, the company used $7.6 million in cash from operating activities. Investing activities provided $22.7 million, largely from maturities of short-term deposits. Financing activities used $9.4 million, mainly for share repurchases. Overall, cash and cash equivalents increased by $5.6 million, ending the quarter at $41.0 million Cash Flow Summary for Q1 2025 vs Q1 2024 (in thousands USD) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($7,611) | ($1,390) | | Net cash provided by investing activities | $22,651 | $19,109 | | Net cash (used in) provided by financing activities | ($9,397) | $126 | | **Increase in cash and cash equivalents** | **$5,574** | **$17,839** | | **Cash and cash equivalents at end of period** | **$40,997** | **$35,100** | [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20STATEMENTS) The notes provide detailed explanations of the company's accounting policies, the Acroname business combination, inventory levels, commitments and contingencies, derivative instruments, share repurchase programs, stock-based compensation, segment performance, and subsequent events. These notes are integral to understanding the condensed consolidated financial statements [Note 1 - General](index=8&type=section&id=NOTE%201%20-%20GENERAL) Valens Semiconductor, an Israeli company trading on the NYSE under 'VLN', is a leading provider of semiconductor products for the Audio-Video and Automotive industries. The company notes that the ongoing regional conflict in Israel has not materially affected its operations or financial results to date but continues to monitor the situation - The company operates in the Audio-Video and Automotive semiconductor markets, known for its HDBaseT and advanced PHY technologies[15](index=15&type=chunk) - Despite the conflict in Gaza, Lebanon, and the broader region, the company states that its operations and financial results have not been materially affected as of the report date, though it acknowledges the situation is beyond its control[15](index=15&type=chunk) [Note 2 - Summary of Significant Accounting Policies](index=8&type=section&id=NOTE%202%20-%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC regulations for interim reporting. The company confirms no material changes to its significant accounting policies from the year ended December 31, 2024. It is currently evaluating the potential impact of new accounting standards related to income tax and expense disclosures - The financial statements are prepared under U.S. GAAP for interim reporting and should be read with the audited 2024 annual financial statements[16](index=16&type=chunk)[18](index=18&type=chunk) - There have been no material changes in the company's significant accounting policies since the last annual report[19](index=19&type=chunk) [Note 3 - Business Combination](index=10&type=section&id=NOTE%203%20-%20BUSINESS%20COMBINATION) On May 31, 2024, Valens acquired 100% of Acroname Inc. for a total consideration of $11.2 million, including $9.2 million in cash and a $2.0 million fair value earnout liability. The acquisition is aimed at leveraging Acroname's automation and control technologies. For Q1 2025, Acroname contributed $1.43 million in revenue and a net loss of $0.45 million to Valens' consolidated results Acroname Acquisition Consideration (in thousands USD) | Component | Value | | :--- | :--- | | Cash payment | $9,160 | | Fair value of earnout liability | $2,036 | | **Total consideration** | **$11,196** | - The acquisition includes a potential earnout payment of up to **$7.2 million** in cash, contingent on development and financial targets[23](index=23&type=chunk) - In Q1 2025, Acroname contributed **$1,433 thousand** in revenues and a net loss of **$445 thousand** to the consolidated statements[25](index=25&type=chunk) [Note 4 - Inventories](index=12&type=section&id=NOTE%204%20-%20INVENTORIES) Total inventories increased to $10.9 million as of March 31, 2025, from $10.2 million at the end of 2024. The company recorded no inventory write-downs in Q1 2025, compared to $268 thousand in Q1 2024 Inventory Breakdown (in thousands USD) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Work in process | $5,289 | $4,547 | | Finished goods | $5,569 | $5,608 | | **Total** | **$10,858** | **$10,155** | - Inventory write-downs were **$0** in Q1 2025, a significant decrease from **$268 thousand** in Q1 2024[28](index=28&type=chunk) [Note 5 - Commitments and Contingent Liabilities](index=12&type=section&id=NOTE%205%20-%20COMMITMENTS%20AND%20CONTINGENT%20LIABILITIES) As of March 31, 2025, the company had noncancelable purchase obligations of $7.1 million with manufacturing contractors and $1.7 million for IP licenses. A customer has filed a claim for €2.1 million ($2.3 million) related to allegedly damaged chips from a production incident, for which the company has recorded a provision - Total open purchase orders with manufacturing contractors were approximately **$7.1 million**[29](index=29&type=chunk) - A customer submitted a claim for **€2,096 thousand ($2,268 thousand)** for damaged chips. The company has recorded a provision and is in discussions with the customer and insurers[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 6 - Other Current Liabilities](index=13&type=section&id=NOTE%206%20-%20OTHER%20CURRENT%20LIABILITIES) Other current liabilities totaled $8.3 million as of March 31, 2025, slightly down from $8.4 million at year-end 2024. The largest components are accrued vacation at $3.5 million and an estimated accrual of $2.3 million for a batch production incident Breakdown of Other Current Liabilities (in thousands USD) | Liability | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued vacation | $3,503 | $3,166 | | Estimated accrual for production incident | $2,268 | $2,182 | | Accrued expenses | $1,794 | $1,738 | | Other | $792 | $1,598 | | **Total** | **$8,257** | **$8,384** | [Note 7 - Forfeiture Shares](index=13&type=section&id=NOTE%207%20-%20FORFEITURE%20SHARES) This note details ordinary shares subject to forfeiture based on share price targets not being met. On September 30, 2024, 646,875 ordinary shares were forfeited. The fair value of the remaining forfeiture shares was minimal at $1 thousand as of March 31, 2025 - On September 30, 2024, a total of **646,875 Ordinary Shares** were forfeited because specified price targets were not achieved[38](index=38&type=chunk) [Note 8 - Earnout Liability](index=14&type=section&id=NOTE%208%20-%20EARNOUT%20LIABILITY) The company has an earnout liability related to the Acroname acquisition, with potential payments up to $7.2 million. The fair value of this liability was revalued to $2.6 million as of March 31, 2025, resulting in a $174 thousand charge to operating expenses during the quarter - The earnout liability is tied to the Acroname acquisition, with up to **$7.2 million** payable upon achieving development and financial targets through 2026[40](index=40&type=chunk) - The fair value of the earnout liability increased from **$2.41 million** to **$2.59 million** during Q1 2025, resulting in a non-cash expense of **$174 thousand**[45](index=45&type=chunk) [Note 9 - Derivatives and Hedging](index=15&type=section&id=NOTE%209%20-%20DERIVATIVES%20AND%20HEDGING) The company uses foreign currency forward contracts to hedge against fluctuations in the USD/ILS exchange rate, primarily for its ILS-denominated payroll expenses. In Q4 2024, it initiated a cash flow hedging program. For Q1 2025, changes in the value of these derivatives resulted in a $542 thousand loss recorded in other comprehensive income - The company uses foreign currency forward contracts to manage exposure to the Israeli Shekel (ILS) for payroll expenses[46](index=46&type=chunk)[49](index=49&type=chunk) - For designated cash flow hedges, an unrealized loss of **$542 thousand** was recorded in Accumulated Other Comprehensive Income for Q1 2025[50](index=50&type=chunk) [Note 10 - Treasury Shares](index=17&type=section&id=NOTE%2010%20%E2%80%93%20TREASURY%20SHARES) The company has two active share repurchase programs. The first, a $10 million program initiated in December 2024, was completed by March 31, 2025. A second, $15 million program was initiated in February 2025, under which $1.2 million of shares were repurchased during the quarter - A **$10 million** share repurchase program was completed, with **3.3 million shares** repurchased in total[55](index=55&type=chunk) - A second **$15 million** share repurchase program was initiated in February 2025, with **553,747 shares** repurchased for **$1.2 million** as of March 31, 2025[55](index=55&type=chunk) [Note 11 - Stock-Based Compensation](index=17&type=section&id=NOTE%2011%20-%20STOCK-BASED%20COMPENSATION) Total stock-based compensation expense for Q1 2025 was $4.2 million, up from $3.8 million in Q1 2024. This was composed of $3.8 million from RSUs and $0.4 million from stock options. As of March 31, 2025, there was $27.5 million in unrecognized compensation cost related to unvested RSUs and $0.9 million related to unvested stock options Stock-Based Compensation Expense (in thousands USD) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | RSUs Expense | $3,783 | $2,872 | | Stock Options Expense | $383 | $892 | | **Total** | **$4,166** | **$3,764** | - As of March 31, 2025, there were **11.7 million RSUs** and **10.8 million stock options** outstanding[54](index=54&type=chunk)[59](index=59&type=chunk) - Unrecognized compensation cost related to unvested RSUs totaled approximately **$27.5 million**, to be expensed over a weighted-average period of **2.65 years**[59](index=59&type=chunk) [Note 12 - Net Loss Per Ordinary Share](index=19&type=section&id=NOTE%2012%20-%20NET%20LOSS%20PER%20ORDINARY%20SHARE) Basic and diluted net loss per share was calculated based on a net loss of $8.3 million and weighted average shares of 105.3 million for Q1 2025. This resulted in a net loss per share of ($0.08). Potentially dilutive securities like options, warrants, and RSUs were excluded as their effect would have been anti-dilutive Net Loss Per Share Calculation (Q1 2025) | Metric | Value | | :--- | :--- | | Net loss (in thousands USD) | ($8,308) | | Weighted average shares | 105,255,959 | | **Basic and diluted net loss per share** | **($0.08)** | - A significant number of securities, including over **10.6 million options** and **10.2 million RSUs**, were excluded from the diluted EPS calculation because they were anti-dilutive[63](index=63&type=chunk) [Note 13 - Financial Income (Expenses), Net](index=21&type=section&id=NOTE%2013%20-%20FINANCIAL%20INCOME%20%28EXPENSES%29%2C%20NET) The company reported net financial income of $1.24 million for Q1 2025, consistent with the prior-year period. The income was primarily driven by $1.23 million in interest income from short-term deposits, partially offset by foreign currency exchange differences Financial Income (Expenses), Net (in thousands USD) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Interest income on short-term deposits | $1,234 | $1,767 | | Realized/unrealized gains on derivatives | $204 | - | | Foreign currency exchange differences | ($140) | ($526) | | Other | ($60) | ($7) | | **Total financial income, net** | **$1,238** | **$1,234** | [Note 14 - Segment and Revenue by Geography and Major Customer](index=21&type=section&id=NOTE%2014%20-%20SEGMENT%20AND%20REVENUE%20BY%20GEOGRAPHY%20AND%20BY%20MAJOR%20CUSTOMER) Valens operates in two segments: Cross Industry Business (CIB) and Automotive. In Q1 2025, CIB revenues were $11.8 million with an operating loss of $3.5 million, while Automotive revenues were $5.1 million with an operating loss of $5.9 million. Geographically, Hungary, the US, Portugal, and China were the largest markets. The company has significant customer concentration, with its top customer accounting for 13% of revenues Segment Performance Q1 2025 (in thousands USD) | Segment | Revenues | Gross Profit | Operating Loss | | :--- | :--- | :--- | :--- | | CIB | $11,753 | $8,124 | ($3,523) | | Automotive | $5,075 | $2,458 | ($5,933) | | **Consolidated** | **$16,828** | **$10,582** | **($9,456)** | Top 5 Revenue Geographies Q1 2025 (in thousands USD) | Geography | Revenue | | :--- | :--- | | Hungary | $2,880 | | United States | $2,686 | | Portugal | $2,237 | | China | $2,221 | | Hong Kong | $1,815 | - Revenue is concentrated, with Customer A accounting for **13%** of revenues in Q1 2025. Four customers (A, B, C, D) represented **62%** of accounts receivable at quarter-end[73](index=73&type=chunk) [Note 15 - Related Party Transactions](index=25&type=section&id=NOTE%2015%20-%20RELATED%20PARTY%20TRANSACTIONS) During Q1 2025, the company granted 511,925 stock options and 549,654 RSUs to executive officers and board members. The fair value of these grants was $0.5 million for the options and $1.2 million for the RSUs, which will be recognized as compensation expense over their vesting periods - Granted **511,925 stock options** and **549,654 RSUs** to executive officers and Board members in Q1 2025[76](index=76&type=chunk)[77](index=77&type=chunk) - The total fair value of these grants is approximately **$1.7 million**, to be recognized as expense over a **1-4 year** vesting period[77](index=77&type=chunk) [Note 16 - Subsequent Events](index=25&type=section&id=NOTE%2016%20-%20SUBSEQUENT%20EVENTS) After the quarter ended, between April 1 and May 5, 2025, the company continued its second share repurchase program, buying an additional 1,568,611 ordinary shares for a total of $3.7 million - Subsequent to March 31, 2025, the company purchased an additional **1.6 million shares** for **$3.7 million** as part of its ongoing buyback program[78](index=78&type=chunk)

Core Insights - The partnership between Valens Semiconductor and ESWIN Computing aims to leverage their combined expertise to meet the increasing demand for MIPI A-PHY products in China [1][3] - MIPI A-PHY is the first automotive industry standard for high-speed sensor and display connectivity, with rapid adoption in China, where seven silicon vendors have completed interoperability testing [2][3] - Valens Semiconductor is a leader in MIPI A-PHY, offering the first compliant chipsets, the VA7000 Series, and has secured design wins with OEMs [2][4] Company Overview - Valens Semiconductor specializes in high-performance connectivity solutions, enabling advancements in audio-video installations, videoconferencing, and autonomous driving technologies [4] - ESWIN Computing focuses on AI-driven intelligence solutions, utilizing next-generation RISC-V architecture and domain-specific algorithms to provide competitive system-level solutions [5]

Core Viewpoint - Valens Semiconductor is set to release its first quarter 2025 financial results on May 7, 2025, and will host a conference call to discuss these results and the business outlook [1][2]. Company Overview - Valens Semiconductor (NYSE: VLN) 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 recognized for setting industry standards, including HDBaseT® and MIPI A-PHY, showcasing its commitment to pushing connectivity boundaries [3]. Conference Call Details - The conference call will take place on May 7, 2025, at 8:30 a.m. Eastern Time, with access numbers provided for U.S., UK, Israel, and other regions [2]. - A live webcast of the conference call will be available on Valens Semiconductor's investor relations website, with a replay accessible shortly after the call concludes [2].

Company Overview - Mobileye is a leader in autonomous driving and driver-assistance technologies, leveraging expertise in AI, computer vision, and integrated software and hardware [3] - Valens Semiconductor specializes in high-performance connectivity solutions, with its chipsets used in various applications including ADAS and autonomous driving [4] Collaboration Highlights - Mobileye has selected Valens' VA7000 chipsets for their automated and autonomous driving platforms, emphasizing the chipset's superior performance after extensive testing [1][2] - The collaboration is seen as a validation of the MIPI A-PHY standard, which is designed for high-speed sensor and display connectivity in the automotive industry [2] Technology Significance - MIPI A-PHY is the first automotive industry standard for high-speed connectivity, enabling high-bandwidth and low-latency communication essential for next-generation ADAS [2] - The MIPI A-PHY ecosystem is expanding, attracting new companies to design products based on this standard, with Valens being a key contributor [2] Market Impact - The partnership between Mobileye and Valens marks a significant milestone for the automotive industry, indicating the growing importance of high-performance connectivity in enhancing vehicle safety and functionality [2]