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]

Core Insights - Valens Semiconductor successfully hosted interoperability testing with seven vendors of MIPI A-PHY silicon, indicating strong momentum for A-PHY technology in the global automotive industry, particularly in China [1][4][5] - MIPI A-PHY is the first standard for in-vehicle asymmetric high-speed connectivity in the automotive sector, with Valens being a leading supplier of compliant chipsets [2][3] - The interoperability testing is a significant milestone for establishing an industry standard, enhancing supply chain security, and reducing vendor pricing dependency [3][4] Company Insights - Valens Semiconductor is positioned as a leader in high-performance connectivity, with its chipsets integrated into various devices, supporting advancements in ADAS and autonomous driving [8] - The company has achieved design wins with OEMs, showcasing its competitive edge in the MIPI A-PHY market [2][4] - Valens is well-positioned to capture a significant market share in the A-PHY ecosystem, especially in China, where there is a robust demand for innovative technologies [4][5] Industry Insights - The A-PHY ecosystem in China is rapidly developing, driven by market demand from local OEMs for high-speed connectivity solutions [4][5] - The successful interoperability testing among multiple vendors signifies a maturing A-PHY ecosystem, which is crucial for OEMs looking to adopt standardized solutions [3][4] - The integration of A-PHY technology into automotive imaging sensors is expected to lead to smaller form factors, lower power consumption, and reduced costs, enhancing overall system performance [5][6]

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]

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 2024 revenue totaled $57.9 million, down from $84.2 million in 2023, primarily due to inventory digestion and market weakness [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][10] - 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][10] - Full-year 2024 GAAP net loss increased to $36.6 million from $19.7 million in 2023 [42] 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, about 30% [33] - For the full year, CIB revenue was $36.3 million, down from $57.4 million in 2023, while automotive revenue was $21.6 million, down 19.4% from $26.8 million in 2023 [39] - Q4 gross margin for CIB was 64.7%, while automotive gross margin was 50.5% [34] Market Data and Key Metrics Changes - 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] - The industrial machine vision vertical is anticipated to reach $460 million by 2029, with the company actively promoting its chipsets in this space [22] 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 such as industrial machine vision and medical imaging [9][22] - The acquisition of AkerLane is expected to enhance the company's position in the professional audio-video and industrial markets [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 believes the company is emerging from the bottom of the cycle, with expectations for a turnaround in 2025 [6][7] - There is optimism regarding customer demand recovery, supported by positive feedback from customers and new product opportunities [54][55] - The company anticipates a gradual ramp in revenue throughout 2025, particularly in the second half of the year as new designs mature [84] Other Important Information - The company ended 2024 with a strong balance sheet, holding $131 million in cash and cash equivalents, with no debt [43] - A new share repurchase program of up to $15 million has been announced, reflecting confidence in long-term growth [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 that customer feedback indicates a recovery in demand, supported by new market opportunities [53][54] Question: Thoughts on recent M&A in the in-vehicle connectivity market - Management expressed confidence in their A-PHY technology's competitive edge despite industry M&A activity [57][59] Question: Update on design wins with European OEMs - Management expects chips to be shipped and embedded in vehicles by 2026, acknowledging potential delays typical in the automotive industry [66][67] Question: Timing of opportunities in medical imaging - Management is optimistic about earlier-than-expected market entry, driven by unique needs in the medical sector [73][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 revenue, particularly in the second half of the year as new designs are commercialized [84][85]

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 ...