HOD HASHARON, Israel, March 18, 2025 /PRNewswire/ -- Valens Semiconductor (NYSE: VLN) today announced that it hosted successful interoperability testing with seven other vendors of MIPI A-PHY silicon: Analogix, ESWIN Technology, Motorcomm, OmniVision Technologies, Silergy, SimChip, and Velink. The testing is a key step towards broad adoption of A-PHY in China, where there is already a particularly robust ecosystem of companies developing products around this technology, and signals significant momentum of t ...

Core Insights - Valens Semiconductor, RGo Robotics, and CHERRY Embedded Solutions have formed a partnership to enhance AI robotic systems design and deployment, integrating advanced technologies for improved performance and cost-efficiency [1][4] Group 1: Partnership Overview - The collaboration combines RGo's Perception Engine, Valens' VA7000 MIPI A-PHY chipsets, and CHERRY's hardware module, aiming to provide mobile machine manufacturers with greater design flexibility [1][4] - This partnership is expected to simplify multi-camera system architecture and reduce system costs and complexity for developers [4][9] Group 2: Technology and Innovation - Valens' MIPI A-PHY solution addresses short-range connectivity issues in robotic systems, allowing for centralized processing units and reducing the need for adjacent processing units [2][3] - MIPI A-PHY is designed for automotive environments, ensuring high signal integrity under demanding conditions, making it suitable for various machine vision applications [3][4] Group 3: Market Impact - The integration of Valens' technology is anticipated to lead to optimized designs and enhanced sensor fusion capabilities in robotics, paving the way for smarter automation solutions [4][6] - RGo Robotics' edge perception software platform is gaining traction in the market, providing high-performance solutions for autonomous navigation and real-time localization [6][7]

Company Overview - Valens Semiconductor (NYSE: VLN) is a leader in high-performance connectivity, enabling transformative digital experiences globally [5] - The company's chipsets are integrated into numerous devices, powering advanced audio-video installations, next-generation videoconferencing, and supporting the evolution of ADAS and autonomous driving [5] Product Innovations - Valens will showcase its innovative connectivity technology for AI applications at Embedded World 2025, collaborating with various companies in the machine vision market [1][4] - Two key connectivity standards, MIPI A-PHY and HDBaseT USB3, will be highlighted, providing significant design flexibility and cost-efficiency for robotics developers [2] Demonstrations and Applications - Demonstrations at Valens' booth will include advanced connectivity infrastructure for NVIDIA AI platforms, showcasing the ability to withstand 20 times more noise compared to legacy solutions [3] - The company will also address USB challenges for embedded systems, focusing on the extension and test automation for the USB 3 protocol [3][4] Market Impact - Valens' entry into the machine vision market is expected to disrupt the industry with its standard-compliant chipsets, allowing customers to explore new applications [4]

Company Overview - Valens Semiconductor (NYSE: VLN) is a leader in high-performance connectivity, enabling customers to transform digital experiences globally [3] - The company's chipsets are integrated into numerous devices, powering advanced audio-video installations, next-generation videoconferencing, and supporting the evolution of ADAS and autonomous driving [3] - Valens sets industry standards with its technology, forming the basis for leading standards such as HDBaseT® and MIPI A-PHY [3] Event Participation - Valens Semiconductor will participate in the 37th Annual ROTH Conference on March 17-18, 2025, in Dana Point, CA [1] - Guy Nathanzon, Chief Financial Officer, will be available for one-on-one investor meetings during the conference [1] - The conference will feature meetings, fireside chats, and panels with executive management from approximately 450 private and public companies across various growth sectors [2]

Core Insights - Valens Semiconductor Ltd. (NYSE: VLN) faced significant challenges in FY24, reflecting broader semiconductor industry struggles due to market slowdowns and inventory corrections [1] - The company is focused on long-term growth and expects a rebound in 2025, supported by key milestones achieved in FY24 [1] Company Developments - Achieved three design wins with leading European automotive OEMs for MIPI A-PHY standard-compliant chipsets [6] - Acquired Acroname to enhance innovation in USB products for industrial and professional AV markets [1] - Expanded into high-growth verticals such as industrial machine vision and successfully commercialized the VS6320 chipset, attracting over 50 customers [1] Financial Performance - Q4 revenues and adjusted EBITDA surpassed guidance, indicating strong operational performance despite industry headwinds [6] - Maintained a strong liquidity position of approximately $131 million as of Q4 [6] Future Outlook - Announced a five-year plan aimed at more than quadrupling revenues, positioning the company for significant expansion as demand for high-speed connectivity solutions rises across multiple industries [1]

Valens Semiconductor Ltd. (NYSE:VLN) Q4 2024 Earnings Conference Call February 26, 2025 8:30 AM ET Company Participants Michal Ben Ari - Investor Relations Gideon Ben-Zvi - Chief Executive Officer Guy Nathanzon - Chief Financial Officer Conference Call Participants Neil Young - Needham & Company Wei Mok - Oppenheimer Suji Desilva - Roth Capital Dave Storms - Stonegate Operator Good morning. My name is Yoni, and I will be your conference operator today. At this time, I would like to welcome everyone to Valen ...

Financial Data and Key Metrics Changes - The company reported revenues of $16.7 million for Q4 2024, exceeding the top end of guidance and marking the fourth consecutive quarter of revenue growth [10][32] - Full-year revenue for 2024 was $57.9 million, down from $84.2 million in 2023, reflecting challenges in customer markets and inventory digestion [38][39] - Q4 2024 gross margin was 60.4%, above guidance, compared to 56.4% in Q3 2024 and 61.7% in Q4 2023 [34][39] - GAAP net loss for Q4 was $7.3 million, an improvement from a loss of $10.4 million in Q3 2024, but a decline from a profit of $2.8 million in Q4 2023 [37][39] - The company ended 2024 with $131 million in cash and cash equivalents, maintaining a strong balance sheet [43][44] Business Line Data and Key Metrics Changes - The cross-industry business (CIB) generated $11.7 million in Q4 2024, accounting for approximately 70% of total revenue, while automotive contributed $5 million, approximately 30% [33] - CIB revenue decreased from $57.4 million in 2023 to $36.3 million in 2024, primarily due to inventory issues [39] - Automotive revenue was $21.6 million in 2024, down 19.4% from $26.8 million in 2023, attributed to price erosion and reduced unit sales [39] Market Data and Key Metrics Changes - The company is targeting high-growth markets such as industrial machine vision and medical endoscopes, with potential revenue of $460 million by 2029 for industrial machine vision [22][24] - The automotive industry is projected to have a total addressable market (TAM) of $4.5 billion per year by 2029, with significant growth expected as data systems become more sophisticated [27] Company Strategy and Development Direction - The company has announced a five-year plan aiming to quadruple top-line revenue, with a focus on high-growth markets and a reorganization of corporate structure [9][44] - The acquisition of AkerLane is expected to enhance the company's position in the professional audio-video and industrial markets [23][44] - The company is actively seeking further acquisition opportunities, particularly in the ProAV and industrial machine vision sectors [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about emerging from the bottom of the cycle, citing improved customer demand and healthier inventory levels entering 2025 [6][17] - The company anticipates a return to growth in 2025, driven by new design wins and increased activity in customer markets [17][45] - Management highlighted the importance of the automotive sector, with expectations for new design wins and commercialization of the VA7000 chipset [30][68] Other Important Information - The company has initiated a new share repurchase program of up to $15 million, reflecting confidence in long-term growth [44] - The guidance for 2025 anticipates annual revenue between $71 million and $76 million, representing a year-over-year growth of 23% to 31% [45] Q&A Session Summary Question: Key drivers behind the gross margin guide for Q1 - Management indicated that gross margin sustainability will depend on product mix and optimization efforts in automotive [50][51] Question: Insights on customer demand compared to three months ago - Management noted improved customer sentiment and optimism about market recovery based on discussions with customers [53][55] Question: Thoughts on competitor M&A in the automotive market - Management expressed confidence in the superiority of their A-PHY technology despite competitor acquisitions, emphasizing their competitive edge [57][60] Question: Update on design wins with European OEMs - Management expects chips to be shipped and embedded in cars by 2026, acknowledging potential delays typical in the automotive industry [66][68] Question: Timing of opportunities in medical imaging - Management is optimistic about earlier-than-expected opportunities in medical imaging, driven by unique market needs [72][74] Question: Environment for acquisition targets - Management discussed various acquisition opportunities, including family-owned businesses and companies with high debt levels [76][78] Question: Cadence of guidance for 2025 - Management expects a gradual ramp in the second half of 2025, particularly with the commercialization of the VS6320 chipset [79][84]

Exhibit 99.1 Valens Semiconductor Reports Fourth Quarter and Full Year 2024 Results Key Financial Highlights: HOD HASHARON, Israel, February 26, 2025 /PRNewswire/ -- Valens Semiconductor Ltd. (NYSE: VLN), a leader in high- performance connectivity, today reported financial results for the fourth quarter and full year ended December 31, 2024. "2024 was a challenging year for many companies around the world, including semiconductor companies in many markets, and these challenges affected Valens as well. Howev ...

Industry Dynamics - The semiconductor industry is highly cyclical, with significant downturns impacting demand, as seen in 2023 following a recovery in 2022[36]. - The semiconductor industry is characterized by rapid technological changes and short product life cycles, necessitating timely introduction of new technologies[53]. - The semiconductor industry is facing significant price erosion, with rapid declines in average selling prices impacting gross margins and overall financial health[56]. - The automotive market's downturn, influenced by inflation and rising interest rates, could negatively affect demand for the company's products and growth strategy[6]. - Any prolonged downturn in the semiconductor industry could materially affect the company's financial condition and results of operations[37]. Revenue Sources - Approximately 63% of total net sales in fiscal year 2024 were generated by cross-industry products, while 37% came from automotive products[52]. - The company derives about 16% of its total revenues from China, which may be affected by U.S. export restrictions on advanced computing integrated circuits[46]. - Approximately 38% of the company's revenues in 2024 and 36% in 2023 were generated by the top three customers, indicating a significant reliance on a few key clients[67]. Supply Chain and Production Risks - Disruptions in supply chains due to geopolitical tensions or natural disasters could adversely affect the company's ability to meet production demands[48]. - The company is dependent on key suppliers, such as TSMC, for silicon wafers, and any disruption in their operations could significantly impact production[40]. - The company does not operate its own manufacturing facilities, which may hinder its ability to reduce costs as quickly as competitors, impacting gross margins[57]. - The company faces challenges in maintaining manufacturing yields, which could lead to lower margins and affect customer relationships[91]. Financial Performance and Inventory Management - Rising inflation and interest rates in 2024 have led customers to adopt a cautious approach to inventory building, resulting in high inventory levels[36]. - The company experienced high inventory levels among customers in 2023-2024, leading to decreased demand for products due to inflation and high-interest rates[6]. - Failure to accurately estimate customer demand may lead to excess inventories or lost revenue opportunities, adversely affecting financial results[61]. - The company relies heavily on obtaining orders during each quarter to meet net sales objectives, with open backlogs typically lower than expected[76]. Competitive Landscape - The company must navigate challenges related to pricing pressures and competition in the semiconductor market, which could impact profitability[53]. - Winning competitive technology selection processes is crucial for the company, as failure to do so may adversely affect revenues and market position[78]. - The company anticipates that it will need to continue reducing prices of existing products to remain competitive, which could further pressure gross margins[60]. Geopolitical and Economic Risks - The company faces risks from global political and economic uncertainties, particularly related to U.S.-China relations and Taiwan[40]. - The geopolitical situation in Israel has caused temporary shifts to remote work and military reserve duty among employees, potentially delaying the introduction of new technologies[6]. - The ongoing geopolitical instability in Israel, including recent conflicts, may disrupt operations and impact revenues[169]. - Geopolitical events, such as the Russia-Ukraine conflict, may increase cybersecurity risks and associated costs for the company[115]. Intellectual Property and Compliance - The company may face challenges in adequately protecting its intellectual property rights, which could harm its competitive position[100]. - Patent prosecution is complex and costly, with no assurance that necessary patents will be issued or maintained[103]. - The company may be subject to litigation regarding intellectual property rights, which could result in significant liabilities and divert management attention[107]. - The company must comply with transfer pricing rules, which require documentation to establish arm's length pricing for transactions with non-resident related parties, or face potential additional corporate income tax liabilities[149]. Cybersecurity and Data Protection - Cybersecurity risks are heightened due to increasing sophistication of attacks, which could irreparably damage the company's reputation and business[111]. - The company may incur significant expenses related to cybersecurity breaches, which could materially affect its financial results[116]. - Evolving privacy and data protection regulations across different jurisdictions may complicate compliance efforts and impact revenue[125]. - The company is subject to strict obligations under the EU General Data Protection Regulation (GDPR), which can impose fines of up to 4% of global annual revenue or €20 million, whichever is greater[128]. Financial Health and Capital Management - Future capital raising may be limited, impacting the ability to execute growth strategies and respond to business opportunities[93]. - Insufficient capital resources may lead to the need for additional equity or debt financing, resulting in shareholder dilution or increased expenses[94]. - The company is exposed to various financial risks, including currency fluctuations and credit risk, which could adversely affect financial results[95]. - Valens' financial results may be adversely affected by fluctuations in foreign exchange rates, particularly with the NIS[152]. Corporate Governance and Shareholder Relations - The company has a duty to act in good faith towards shareholders, which may impose additional obligations not typically found in U.S. corporations[175]. - The company’s articles of association require a 65% shareholder vote for certain amendments, which may limit shareholder influence[176]. - Valens' board of directors has sole discretion over dividend payments, which depend on future operations, earnings, and financial conditions[189]. - The company has not declared or paid any cash dividends and does not intend to do so in the foreseeable future[188]. Market Position and Growth Opportunities - Valens aims to transform digital connectivity across industries, focusing on reliable and optimized solutions for long-distance connectivity[216]. - The company is positioned to capture growing business opportunities arising from the evolution of AI-based applications in remote communication platforms[222]. - Valens operates in a fabless model with two main business units: Cross-Industry and Automotive, targeting diverse verticals[219]. - The company is leveraging its core technology to expand into new markets, including industrial machine vision and medical endoscopies[220].

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]