Connect with us

Technology

Valens Semiconductor Reports Second Quarter 2024 Results

Published

on

Exceeds second quarter revenue guidance due to improved customer demand for high-performance connectivity solutions

Acquires Acroname, bolstering innovative USB offering for the industrial market

Strong balance sheet supports highly selective acquisition strategy to complement organic growth

HOD HASHARON, Israel, Aug. 7, 2024 /PRNewswire/ — Valens Semiconductor Ltd. (NYSE: VLN), a leader in high-performance connectivity, today reported financial results for the second quarter ended June 30, 2024.

 

“Our team made solid progress executing against our long-term strategy and capitalizing on growing market demand for our chipsets,” said Gideon Ben-Zvi, CEO of Valens Semiconductor. “As a result, our second quarter revenue exceeded our guidance, increasing our confidence in the positive trends we are seeing across the diverse verticals we serve. Our mid- and long-term opportunities remain promising despite short-term industry challenges, including slow inventory digestion in the Audio-Video sector.”

“On May 31, 2024, we completed the acquisition of Acroname, our first M&A transaction, expanding our position in the industrial and Audio-Video markets. Importantly, our strong balance sheet provides us with the flexibility to move quickly when opportunities arise. Going forward, we expect this highly selective acquisition strategy to complement our organic growth initiatives.

“We continued to see growing interest in the adoption of our latest USB3 extension technology, the VS6320 chipset. Since its introduction late last year, we have engaged with over 50 customers, that are integrating the chipset into a wide variety of products, as announced at InfoComm International in June. This momentum validates the VS6320’s groundbreaking technology and high demand for reliable, streamlined, and affordable connectivity. We expect to start generating revenue from this chipset in the second half of 2024, before ramping up further in 2025.

“The Pro AV market presents a significant growth opportunity for Valens Semiconductor, driven by the latest additions to the portfolio, as well as our legacy products. Our chipset family offers industry-leading and standard-setting solutions to customers in the professional Audio-Video market, as well as in the industrial, machine vision and medical end markets. We believe these combined verticals represent a total addressable market of approximately $1 billion per annum.

“Additionally, we are confident that our innovative technology will position us to take advantage of the large opportunity within the automotive segment, which we estimate will have a total addressable market of $4.5 billion per annum by 2029.

“As we look to the second half of 2024 and beyond, Valens Semiconductor remains committed to capitalizing on the promising opportunities within our target markets. Our innovative, standard-setting, and high-speed connectivity solutions and highly sophisticated chipsets position us to achieve our goals and deliver value for our stakeholders,” concluded Ben-Zvi.

Key Business Highlights

Acquired Acroname Inc., a pioneer in advanced automation and control technologies for applications in industrial, Audio-Video, video conferencing rooms, and embedded robotic control systems, for $7.8 million in cash. An additional $1.3 million was transferred to Acroname in consideration for the amount Acroname held in cash at closing. Further, Valens will be obligated to pay the sellers earn out payments of up to $7.2 million, depending on the achievement of certain revenue, EBITDA and cashflow targets in 2024 and 2025, and development of a certain product by June 2026. The acquisition enables Valens to expand its position in the industrial market with a holistic USB-focused offering.Engaged with over 50 customers for the VS6320, with a wide variety of product launches announced at InfoComm International – the largest professional Audio-Video trade show in North America, including USB extenders, PTZ cameras, video bars, wall plates, docking stations, room appliance controllers, and USB hub switches.Announced a new suite of products by Good Way Technology, one of the world’s leading PC peripheral design and manufacturing companies, based on Valens Semiconductor’s VS6320 chipset, compliant with the HDBaseT-USB3 standard.Progressed on several evaluation processes with global automotive OEMs for the VA7000 MIPI A-PHY compliant chipset and are continuing to work with the long list of companies joining the A-PHY ecosystem by designing and developing products based around this technology.

Key Financial Highlights

Second quarter 2024 revenues reached $13.6 million, of which Acroname contributed $0.4 million, compared to $24.2 million in the second quarter of 2023.
–  Audio-video revenues accounted for approximately 60% of total revenues at $8.1 million, of which Acroname contributed $0.4 million, compared to $15.5 million in the second quarter of 2023, due to ongoing inventory digestion.
–  Automotive revenues accounted for approximately 40% of total revenues at $5.5 million, compared to $8.7 million in the second quarter of 2023, due to lower demand from Mercedes-Benz.GAAP gross margin was 61.4% for the second quarter of 2024 (non-GAAP gross margin was 64.5%). This compared to GAAP gross margin of 61.8% for the second quarter of 2023 (non-GAAP gross margin of 63.1%). GAAP Net Loss was $(8.9) million in the second quarter of 2024, compared to a GAAP Net Loss of $(4.6) million in the second quarter of 2023. On a segment basis, Audio-Video gross margin was 75.4% and automotive gross margin was 40.9% compared to 75.3% and 37.8%, respectively in the second quarter of 2023.Adjusted EBITDA Loss in the second quarter of 2024 was $(5.2) million, compared to Adjusted EBITDA loss of $(0.8) million in the second quarter of 2023.Strong balance sheet of $130.6 million in cash, cash equivalents and short-term deposits, and no debt, as of June 30, 2024, compared to $139.8 million on March 31, 2024, with the reduction in cash due to ongoing operational expenses and $7.8 million associated with the acquisition.Inventory balance of $14.1 million on June 30, 2024, of which $2.5 million was from Acroname. Excluding this amount, inventories were $11.6 million, down compared to $12.5 million on March 31, 2024.

Financial Outlook

Disclaimer: Valens Semiconductor does not provide GAAP net profit (loss) guidance as certain elements of net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. Adjusted EBITDA is a non-GAAP measure. See the tables below for additional information regarding this and other non-GAAP metrics used in this release.

“Looking ahead, we are confident in our growth potential for the medium and long term. As the industry recovers, we are prepared to implement our growth strategy with an even more comprehensive portfolio of solutions, designed to penetrate new markets and sectors,” said Guy Nathanzon, CFO of Valens Semiconductor.

“Our third quarter revenues are expected to range between $14.7 million to $15.4 million, of which $1.2 million to $1.4 million is expected to be attributed to Acroname. Gross margin is expected to range between 52.0% and 53.0%, and adjusted EBITDA loss is expected to range between $(6.8) million and $(6.3) million. We have a strong cash position, and in the future, we expect additional, highly selective synergistic M&A deals that align with our long-term growth strategy,” concluded Nathanzon.

Conference Call Information

Valens Semiconductor will host a conference call today, Wednesday, August 7, 2024, at 8:30 a.m. Eastern Time (ET) to discuss its second quarter 2024 financial results and business outlook. To access this call, dial (at least 10 minutes before the scheduled time) +1 (888) 281-1167 (U.S.), 0 (808) 101-2717 (UK), 03 918 0610 (Israel) or +972 3 918 0610 (all other locations). A live webcast of the conference call will be available via the investor relations section of Valens Semiconductor’s website at Valens – Financials – Quarterly Results. The live webcast can also be accessed by clicking here. A replay of the conference call will be available on Valens Semiconductor’s website shortly after the call concludes.

Forward-Looking Statements

This press release includes “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 predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our anticipated future results, including financial results, currency exchange rates, and contract wins, and future economic and market conditions. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Valens Semiconductor’s (“Valens”) management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Valens Semiconductor. These forward-looking statements are subject to a number of risks and uncertainties, including the cyclicality of the semiconductor industry; the effect of inflation and a rising interest rate environment on our customers and industry; the ability of our customers to absorb inventory; the impact of the global pandemic caused by COVID-19 on our customers’ budgets and on economic conditions generally, as well as the length, severity of and pace of recovery following the pandemic; competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; if Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers’ demand; disruptions in relationships with any one of Valens’ key customers; any difficulty selling Valens’ products if customers do not design its products into their product offerings; Valens’ dependence on winning selection processes; even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; sustained yield problems or other delays or quality events in the manufacturing process of products; our ability to effectively manage, invest in, grow, and retain our sales force, research and development capabilities, marketing team and other key personnel; our ability to timely adjust product prices to customers following price increase by the supply chain; our ability to adjust our inventory level due to reduction in demand due to inventory buffers accrued by customers; our expectations regarding the outcome of any future litigation in which we are named as a party; our ability to adequately protect and defend our intellectual property and other proprietary rights; our ability to successfully integrate or otherwise achieve anticipated benefits from acquired businesses; the market price and trading volume of the Valens ordinary shares may be volatile and could decline significantly; political, economic, governmental and tax consequences associated with our incorporation and location in Israel; and those factors discussed in Valens’ Form 20-F filed with the SEC on February 28, 2024 under the heading “Risk Factors,” and other documents of Valens filed, or to be filed, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Valens does not presently know or that Valens currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Valens’ expectations, plans or forecasts of future events and views as of the date of this press release. Valens anticipates that subsequent events and developments may cause Valens’ assessments to change. However, while Valens may elect to update these forward-looking statements at some point in the future, Valens specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Valens’ assessment as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

About Valens Semiconductor

Valens Semiconductor is a leader in high-performance connectivity, enabling customers to transform the digital experiences of people worldwide. Valens’ chipsets are integrated into countless devices from leading customers, powering state-of-the-art audio-video installations, next-generation videoconferencing, and enabling the evolution of ADAS and autonomous driving. Pushing the boundaries of connectivity, Valens sets the standard everywhere it operates, and its technology forms the basis for the leading industry standards such as HDBaseT® and MIPI A-PHY. For more information, visit https://www.valens.com/.

 

VALENS SEMICONDUCTOR LTD.

SUMMARY OF FINANCIAL RESULTS

(U.S. Dollars in thousands, except per share amounts)

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

2024

2023

2024

2023

Revenues

13,597

24,175

25,156

48,055

Gross Profit

8,344

14,934

15,159

30,727

Gross Margin

61.4 %

61.8 %

60.3 %

63.9 %

Net loss

(8,869)

(4,582)

(18,911)

(9,959)

Working Capital[1]

142,349

160,766

142,349

160,766

Cash, cash equivalents and short-term deposits[2]

130,630

138,042

130,630

138,042

Net cash provided by (used in) operating activities

(225)

358

(1,615)

(8,311)

Non-GAAP Financial Data

Non-GAAP Gross Margin[3]

64.5 %

63.1 %

63.3 %

65.1 %

Adjusted EBITDA Loss[4]

(5,168)

(782)

(12,237)

(3,640)

 

Non-GAAP Earnings Loss per share

(in U.S. Dollars)[5] 

$(0.04)

$(0.00)

$(0.10)

$(0.03)

1. Working Capital is calculated as Total Current Assets, less Total Current Liabilities, as of the last day of the period.

2. As of the last day of the period.

3. GAAP Gross Profit excluding share-based compensation and depreciation expenses, divided by revenue. For the three months ended June 30, 2024, and 2023,
share-based compensation and depreciation & amortization expenses were $423 thousand and $315 thousand, respectively. For the six months ended June 30, 2024,
and 2023, share-based compensation and depreciation expenses were $770 thousand and $560 thousand, respectively.

4. Adjusted EBITDA is defined as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee and depreciation and amortization,
further adjusted to exclude share-based compensation and change in fair value of Forfeiture Shares, which may vary from period-to-period. We caution investors that amounts
presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate
Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to Net loss or any other performance measures derived in accordance
with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Please refer to the appendix at the end of this press release for a reconciliation
to the most directly comparable measure in accordance with GAAP.

5. See reconciliation of GAAP to non-GAAP financial measures.

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. Dollars in thousands, except share and per share amounts)

Three Months Ended
June 30,

Six Months Ended
June 30,

2024

2023

2024

2023

REVENUES

13,597

24,175

25,156

48,055

COST OF REVENUES

(5,253)

(9,241)

(9,997)

(17,328)

GROSS PROFIT

 

8,344

 

14,934

 

15,159

 

30,727

OPERATING EXPENSES:

Research and development expenses

(9,961)

(12,161)

(20,106)

(26,121)

 Sales and marketing expenses 

(4,368)

(4,255)

(8,756)

(9,315)

 

General and administrative expenses

 

(3,397)

 

(3,701)

 

(6,968)

 

(7,533)

 

Change in earnout liability

 

(28)

 

 

(28)

TOTAL OPERATING EXPENSES

 

(17,754)

 

(20,117)

 

(35,858)

 

(42,969)

OPERATING LOSS

(9,410)

(5,183)

(20,699)

(12,242)

Change in fair value of Forfeiture Shares

10

22

35

1,529

Financial income, net

540

601

1,774

792

LOSS BEFORE INCOME TAXES

(8,860)

(4,560)

(18,890)

(9,921)

INCOME TAXES

(21)

(26)

(38)

(45)

LOSS AFTER INCOME TAXES

(8,881)

(4,586)

(18,928)

(9,966)

Equity in earnings of investee

12

4

17

7

NET LOSS

(8,869)

(4,582)

(18,911)

(9,959)

 

EARNINGS PER SHARE DATA:

 

BASIC AND DILUTED NET LOSS PER ORDINARY SHARE[6] (in U.S. Dollars)

$(0.08)

$(0.05)

$(0.18)

$(0.10)

WEIGHTED AVERAGE NUMBER OF SHARES AND VESTED RSUS USED

IN COMPUTING NET LOSS PER ORDINARY SHARE

105,079,508

101,685,915

104,563,467

101,381,153

6. See note 5. 

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

 

ASSETS

June 30, 2024

December 31, 2023

 

CURRENT ASSETS

Cash and cash equivalents

24,706

17,261

    Short-term deposits

105,924

124,759

    Trade accounts receivable

10,021

14,642

    Inventories

14,070

13,836

    Prepaid expenses and other current assets

3,972

4,196

TOTAL CURRENT ASSETS

158,693

174,694

 

LONG-TERM ASSETS

    Property and equipment, net

2,666

2,954

    Operating lease right-of-use assets

6,777

2,202

    Intangible assets

5,172

    Goodwill

1,847

    Other assets

633

708

TOTAL LONG-TERM ASSETS

17,095

5,864

 

TOTAL ASSETS

175,788

180,558

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

CURRENT LIABILITIES[7]

16,344

15,931

 

LONG-TERM LIABILITIES

     Forfeiture Shares

3

38

     Non-current operating leases liabilities

3,774

190

     Earnout liability

2,064

    Other long-term liabilities

75

95

TOTAL LONG-TERM LIABILITIES

5,916

323

 

TOTAL LIABILITIES

22,260

16,254

TOTAL SHAREHOLDERS’ EQUITY

153,528

164,304

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

175,788

180,558

7. As of June 30, 2024, and December 31, 2023, include $2,852 thousand and $1,766 thousand, respectively, of current maturities of operating leases liabilities

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. Dollars in thousands)

Three Months Ended

June 30,

Six Months Ended

June 30,

2024

2023

2024

2023

CASH FLOW FROM OPERATING ACTIVITIES:

    Net loss for the period

(8,869)

(4,582)

(18,911)

(9,959)

    Adjustments to reconcile net loss to net cash used in operating activities:

    Income and expense items not involving cash flows:

Depreciation and amortization

479

414

935

793

Stock-based compensation 

3,735

3,987

7,499

7,809

Exchange rate differences

741

1,021

1,266

2,273

Interest on short-term deposits

642

177

917

(389)

Change in fair value of forfeiture shares

(10)

(22)

(35)

(1,529)

Change in earnout liability

28

28

Reduction in the carrying amount of ROU assets

239

522

723

986

Equity in earnings of investee, net of dividend received

12

4

17

7

    Changes in operating assets and liabilities, net of effects of businesses acquired: 

Trade accounts receivable 

180

(3,176)

4,915

(4,575)

Prepaid expenses and other current assets

101

1,042

308

403

Inventories

1,054

4,549

2,401

4,799

Other assets 

(8)

(8)

66

34

Current Liabilities

1,659

(3,114)

(1,102)

(8,172)

Change in operating lease liabilities

(204)

(457)

(622)

(859)

Other long-term liabilities

(4)

1

(20)

68

    Net cash provided by (used in) operating activities 

(225)

358

(1,615)

(8,311)

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    Investment in short-term deposits

(49,379)

(68,428)

(87,219)

(109,153)

    Maturities of short-term deposits 

47,059

74,810

104,038

118,954

    Purchase of property and equipment

(235)

(777)

(265)

(919)

    Cash paid for business combination, net of cash acquired

(7,800)

(7,800)

    Net cash provided by (used in) investing activities

(10,355)

5,605

8,754

8,882

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    Exercise of stock options

510

58

636

986

    Net cash provided by financing activities

510

58

636

986

    Effect of exchange rate changes on cash and cash equivalents

(324)

(100)

(330)

(171)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(10,394)

5,921

7,445

1,386

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD

35,100

15,489

17,261

20,024

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

24,706

21,410

24,706

21,410

SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION

    Cash paid for taxes

28

213

63

252

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:

Trade accounts payable on account of property and equipment

279

35

279

160

Fair value of earnout liability assumed in business combination

2,036

2,036

Operating lease liabilities arising from obtaining operating right-of-use assets

4,802

152

4,833

436

 

 

VALENS SEMICONDUCTOR LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(U.S. Dollars in thousands)

The following table provides a reconciliation of Net loss to Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA is defined
as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee and depreciation and amortization,
further adjusted to exclude share-based compensation and change in fair value of Forfeiture Shares, which may vary from period-to-period. 
We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar
measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should
not be considered as an alternative to Net loss or any other performance measures derived in accordance with GAAP or as an alternative
to cash flows from operating activities as a measure of our liquidity.

Although we provide guidance for Adjusted EBITDA, we are not able to provide guidance for projected Net profit (loss), the most directly
comparable GAAP measures. Certain elements of Net profit (loss), including share-based compensation expenses and warrant valuations,
are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide
guidance on Net profit (loss) or to reconcile our Adjusted EBITDA guidance without unreasonable efforts. Consequently, no disclosure
of projected Net profit (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.

Three Months Ended

June 30,

Six Months Ended

June 30,

2024

2023

2024

2023

Net Loss

(8,869)

(4,582)

 

(18,911)

 

(9,959)

Adjusted to exclude the following:

Change in fair value of Forfeiture Shares

(10)

(22)

 

(35)

 

(1,529)

Change in earnout liability

28

 

28

 

Financial income, net

(540)

(601)

 

(1,774)

 

(792)

Income taxes

21

26

 

38

 

45

Equity in earnings of investee

(12)

(4)

 

(17)

 

(7)

Depreciation and amortization

479

414

 

935

 

793

Stock-based compensation expenses

3,735

3,987

 

7,499

 

7,809

Adjusted EBITDA Loss

(5,168)

(782)

 

(12,237)

 

(3,640)

 

 

VALENS SEMICONDUCTOR LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(U.S. Dollars in thousands, except per share amounts)

The following tables provide a calculation of the GAAP Loss per share and reconciliation to Non-GAAP Loss per share.

Three Months Ended

June 30,

Six Months Ended

June 30,

 GAAP Loss per Share

2024

2023

2024

2023

GAAP Net Loss used for computing Loss per Share

(8,869)

(4,582)

 

(18,911)

 

(9,959)

 

Earnings Per Share Data:

GAAP Loss per Share (in U.S. Dollars)

$(0.08)

$(0.05)

 

$(0.18)

 

$(0.10)

 

Weighted average number of shares used in calculation of

net loss per share

105,079,508

101,685,915

 

 

 

104,563,467

 

 

 

101,381,153

 

 

Three Months Ended

June 30,

 

Six Months Ended

 June 30,

Non-GAAP Loss per Share[8]

2024

2023

2024

2023

GAAP Net Loss

(8,869)

(4,582)

 

(18,911)

 

(9,959)

Adjusted to exclude the following:

 

Stock based compensation

3,735

3,987

 

7,499

 

7,809

Depreciation and amortization

479

414

 

935

 

793

Change in earnout liability

28

 

28

 

Change in fair value of Forfeiture Shares

(10)

(22)

 

(35)

 

(1,529)

Total Non-GAAP Loss used for computing Loss per Share

(4,637)

(203)

 

(10,484)

 

(2,886)

 

Earnings Per Share Data:

Non-GAAP Earnings (Loss) per Share (in U.S. Dollars)

$(0.04)

$(0.00)

 

$(0.10)

 

$(0.03)

Weighted average number of shares used in calculation of 
net loss per share

105,079,508

101,685,915

104,563,467

101,381,153

8.The company calculates its non-GAAP Loss per Share as GAAP Net Loss adjusted to exclude the following: Stock based compensation, depreciation, 
and the change in fair value of Forfeiture Share divided by the weighted average number of shares used in calculation of net loss per share.

 

 

For more information, please contact:

Investor Contacts:

Michal Ben Ari
Investor Relations Manager
Valens Semiconductor
michal.benari@valens.com

Lisa Fortuna
Financial Profiles, Inc.
Valens@finprofiles.com

Media Contact:

Yoni Dayan
Head of Communications
Valens Semiconductor Ltd.
yoni.dayan@valens.com

Logo: https://mma.prnewswire.com/media/2309625/Valens_Semiconductor_Logo.jpg

View original content:https://www.prnewswire.com/news-releases/valens-semiconductor-reports-second-quarter-2024-results-302216474.html

SOURCE Valens Semiconductor

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

American Binary Sets New Standard in Post-Quantum Cryptographic VPNs with Symbolic Proof and Attestation

Published

on

By

WASHINGTON, July 21, 2026 /PRNewswire/ — American Binary, a leader in deep-tech cybersecurity, today announced an independent attestation regarding the validity of all 120 security properties of MaxKyber, their network protocol at the heart of their Ambit Client enterprise VPN, now third-party verified to comply with all Commercial National Security Algorithm Suite 2.0 (CNSA 2.0) requirements. This landmark verification is the result of an exhaustive private peer-review of their symbolic proof (Tamarin + ProVerif) and engineering documentation conducted by industry luminaries Dr. Joe Kiniry, PhD and Dr. Tom Shrimpton, PhD, both with long careers in academia and industry, including time at Galois as Principal Scientists.

“No known VPN — post-quantum or classical, deployed or research — has been subjected to specification and formal verification of comparable depth.” – Dr. Joe Kiniry, PhD and Dr. Tom Shrimpton, PhD

In a landscape defined by emerging quantum threats and unproven solutions, this formal third-party verification differentiates MaxKyber from traditional or hybrid solutions by providing certainty in engineering and compliance with National Security requirements. MaxKyber provides the world with long-term full post-quantum security unlike shorter-term temporary solutions such as hybrids (which mix classical and post-quantum encryption). This breakthrough marks a transition from speculative security to a foundation of verified, provable resilience, establishing a new global benchmark for secure communications.

“While organizations today are increasingly recognizing the significance of PQC, American Binary has been preparing for a post-quantum world for seven years. The result is a resilient foundation for secure operations, today and in the post‑quantum future” – Oracle

Additionally, American Binary signed ACM Turing Award winner Whitfield Diffie, cryptographic pioneer and co-inventor of the Diffie-Hellman key exchange, as a key advisor. Whitfield joins the ranks of existing cryptographic advisors Bruce Schneier and Brian LaMacchia.

“Buy American Binary and you’ll be safe”

– Whitfield Diffie at Quantum.Tech World 2026

Key security pillars of the MaxKyber attestation include:

Protection against “Harvest Now, Decrypt Later” (HNDL): By utilizing purely CNSA 2.0 algorithms, including ML-KEM-1024 without any classical key exchange variants, MaxKyber secures today’s data against decryption by quantum adversaries.Comprehensive Symbolic Verification: The attestation covers 120 security properties across 11 critical categories, including secrecy, authentication, forward secrecy, identity hiding, and resistance to Replay, Denial of Service, Resource Exhaustion, and Key Compromise Impersonation.Architectural Stability: Beyond its post-quantum cryptographic core, MaxKyber’s protocol architecture is rooted in well-established, operationally proven design patterns, retaining their performance and simplicity.

This foundational security architecture provides the necessary reliability to enable significant performance breakthroughs in the field and the following four key impacts.

Impact I: Unambiguous Security and Mitigation of “Harvest Now, Decrypt Later”

MaxKyber achieves the end-state of post-quantum cryptographic purity by utilizing a pure CNSA 2.0 post-quantum key exchange, without using any classical cryptography, hybrid cryptography, or legacy key exchange variants. Instead, American Binary’s more modern key exchange utilizes ML-KEM-1024 operations to replace the Diffie-Hellman Key Exchange. This approach ensures that modern enterprises are not tethered to the vulnerabilities of legacy components or negative market reactions to hybrid solutions being partially broken. If the classical encryption in hybrid solutions is verifiably broken, markets likely will not wait for forensics to determine whether the rest of the solution remains intact; reputation damage and capital flight will occur immediately.

MaxKyber exclusively employs CNSA 2.0 approved algorithms, specifically ML-KEM-1024 (FIPS 203), AES-256-GCM, and SHA-512/256. This construction provides the highest level of security available today without any loss of existing security properties.

Impact II: Optimal Performance from Mobile and Lossy Environments to High-Performance Scenarios

Historically, high-security protocols have suffered from significant system latency, creating a bottleneck for edge computing and mobile workforces. MaxKyber eliminates these traditional performance trade-offs, enabling high-performance security at the network’s most vulnerable points. One partner benchmarked Ambit Client, powered by MaxKyber, to have 70% faster download speeds than a comparable classically encrypted enterprise VPN.

The MaxKyber protocol optimizes efficiency through an “Authenticated Key Exchange” (AKE) which achieves mutual authentication in a single round trip, dramatically reducing the data burden on the network.

Quantifiably, the AKE saves approximately 4,600 bytes per handshake compared to the next best option. This ultra-low overhead ensures that robust post-quantum security functions reliably on mobile devices and in lossy environments where traditional, bulkier PQC handshakes consistently fail. Reliability in the field is a prerequisite for everything from remote work to warfighting environments, and MaxKyber’s AKE directly facilitates such operational readiness.

Additionally, MaxKyber is well suited for high-performance scenarios such as AI workloads, work with 3D models, and more thanks to Vector Packet Processing and Data Plane Development Kit further reducing overheads to the technical minimums and enabling line-rate speeds for server-to-server use cases.

Impact III: Compliance Savings

As the cost of compliance and diligence cycles for critical infrastructure continues to escalate, proofs can be a shortcut for approval. For CISO and Legal departments, formal verification provides a transparent, “glass-box” view of security that goes beyond traditional testing.

For integration partners, this symbolic proof significantly reduces diligence cycles. By providing an exhaustively checked security profile, American Binary allows partners to shorten the lengthy, costly investigative phases usually required for new cryptographic implementations. Verified compliance is transformed from a hurdle into a catalyst for product development.

Impact IV: R&D Acceleration

For engineering teams looking to integrate this technology and/or customize it, American Binary’s documentation serves as a powerful force multiplier. By providing pre-verified, exhaustive, and high-quality documentation, American Binary provides an extraordinary shortcut to rapid integration.

The scale of the documentation and formal models provided to partners is unprecedented in the VPN industry. This rigorous approach allows integration partners to save months, if not years, of R&D effort.

MaxKyber provides more than just a secure tunnel; it delivers a fully documented, mathematically proven blueprint that accelerates the transition to a quantum-safe future. With MaxKyber, American Binary has rewritten the industry standard for post-quantum network security.

About American Binary

American Binary is a leader in deep-tech cybersecurity, specializing in the development of CNSA 2.0 post-quantum cryptographic solutions. Through advanced rigor and high-performance engineering, American Binary provides the provable foundations for secure, resilient communication in the quantum era.

Learn more at www.ambit.inc

CONTACT: sales@ambit.inc 

View original content to download multimedia:https://www.prnewswire.com/news-releases/american-binary-sets-new-standard-in-post-quantum-cryptographic-vpns-with-symbolic-proof-and-attestation-302831415.html

SOURCE American Binary

Continue Reading

Technology

MetaOptics to Deploy its Direct Laser Writer at the University of Arizona’s Center of Semiconductor Manufacturing to Advance its U.S. Expansion

Published

on

By

SINGAPORE, July 21, 2026 /PRNewswire/ — MetaOptics Ltd (Catalist: 9MT) (“MetaOptics” or the “Company,” and together with its subsidiaries, the “Group”), announced that it has entered into an agreement to deploy its key metalens Direct Laser Writer (“DLW”) system at the University of Arizona’s Center of Semiconductor Manufacturing (the “University”). The agreement marks a critical step in advancing its U.S. expansion strategy and its collaborative research with world-class semiconductor stakeholders in Arizona. Installation of the DLW is expected to commence in 2027.

The DLW is designed for a 4-inch wafer to enable quick prototyping and fabrication of metalens samples within weeks. It also supports small-volume production for pilot builds and customer demand evaluation, enabling partners to iterate faster and move from concept to product more efficiently. The deployment of the Company’s DLW will allow prospective customers in the U.S. to physically witness the system in action for their metalens prototyping needs. It will also support collaborative research and evaluation by the University’s researchers under the guidance of Dr. Krishna Muralidharan of the University of Arizona’s Department of Materials Science and Engineering. MetaOptics expects the deployment to generate user feedback and user demonstration opportunities, providing further technical validation of its metalens equipment and products, and serve as a launchpad to scale commercial production and collaboration in the U.S. market.

The deployment of its DLW serves as a key milestone for MetaOptics’ U.S. expansion strategy, prospective U.S. customer engagement, and commercialization roadmap. It also positions the Group to support emerging U.S. initiatives in silicon photonics, co-packaged optics, and integrated photonics, where its metalens technology is directly applicable. The DLW will anchor a “mini foundry” at the University for small-volume, quick turnaround prototyping. Beyond research, the installation serves a commercial purpose: a U.S. demonstration site where potential distributors, universities, and research institutions can physically witness the DLW in operation. It will also produce metalens samples for prospective customers’ evaluation. With Arizona’s fast-growing semiconductor ecosystem home to world-class manufacturers and suppliers, the Company aims to leverage its presence at the University and the wider ecosystem to deepen engagement with prospective industry partners and end customers.

MetaOptics Executive Chairman Thng Chong Kim commented: “By placing our Direct Laser Writer within a world-class semiconductor research environment in Arizona, we will be able to strengthen technical validation and gather valuable user feedback. It also supports our ongoing engagements with potential industry partners and end-customers while showcasing our metalens manufacturing equipment to prospective distributors and institutions across the United States. We believe this deployment reinforces our broader U.S. expansion efforts and deepens our engagement in Arizona’s world-class semiconductor ecosystem.”

About MetaOptics Ltd

MetaOptics Ltd (Catalist: 9MT) is a semiconductor optics company pioneering glass-based metalens solutions enhanced by AI-driven image processing. Using advanced optical design and a scalable 12-inch DUV lithography process, it powers next-generation applications in CPO, mobile, AR VR, automotive, and other emerging markets. Find out more at www.metaoptics.sg.

Forward-Looking Statement

This press release contains forward-looking statements which can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to,” “potential,” “continue” or other similar expressions. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies, its future business development, results of operations and financial condition, its research and development efforts, its ability to attract and retain customers, and its ability to establish and maintain relationships with suppliers and business partners; and assumptions underlying or related to any of the foregoing. All information provided in this press release is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Singapore (HQ)
Metaoptics Technologies Pte Ltd. 81 Ayer Rajah Crescent, #01-45 Singapore 139967

United States
Metaoptics Inc. (USA) 1 Ferry Building, Suite 201 San Francisco, CA 9411

View original content:https://www.prnewswire.com/news-releases/metaoptics-to-deploy-its-direct-laser-writer-at-the-university-of-arizonas-center-of-semiconductor-manufacturing-to-advance-its-us-expansion-302830614.html

SOURCE METAOPTICS LTD

Continue Reading

Technology

11:11 Systems Announces Strategic Partnership with Cato Networks to Deliver SASE Solution for Distributed Enterprises

Published

on

By

New Managed Secure Access Service Edge (SASE) solution combines SD-WAN, cloud-native networking and security capabilities with 11:11’s connectivity, cyber resilience and cloud expertise

SYDNEY, July 22, 2026 /PRNewswire/ — 11:11 Systems, a leading managed infrastructure solutions provider, today announced the global availability of its 11:11 Managed Secure Access Service Edge (SASE) solution and a new strategic partnership with Cato Networks.

11:11 Managed SASE is a fully managed secure connectivity solution leveraging Cato Networks AI-native network security platform. This solution brings together intelligent SD-WAN, cloud-delivered security and global connectivity into a single offering. It enables organisations to simplify and secure access across branch offices, data centres, users and cloud environments, reducing complexity without sacrificing performance or control.

Built on the Cato Networks cloud-native SASE platform, 11:11 Managed SASE combines zero trust network access (ZTNA), firewall as a service (FWaaS), secure web gateway (SWG), cloud access security broker (CASB), advanced threat protection and centralised visibility into a unified managed experience. 11:11 also delivers 24x7x365 monitoring and support, incident management integration and operational accountability to help customers limit vendor sprawl, increase agility and free internal teams to focus on higher-value priorities.

The offering is backed by 11:11’s broader networking, cloud and cyber resilience capabilities. Through its global backbone, carrier-agnostic connectivity options and integrated portfolio spanning cloud, backup, disaster recovery and security services, 11:11 gives customers a practical path to modernise network and security architecture while strengthening resilience across the business.

“Enterprises are under pressure to support users, applications and locations that are more distributed than ever, while limiting complexity and improving security,” said Justin Giardina, CTO, 11:11 Systems. “Our Managed SASE solution provides customers with a unified approach to modernising networking and security, along with the visibility, support and flexibility they need to thrive in a rapidly changing environment.”

According to Karl Soderlund, global channel chief, Cato Networks, “As enterprises move beyond fragmented legacy networking and security stacks, they need a simpler way to gain visibility, context and control across hybrid work environments and reduce the operational burden on IT. Through our partnership, we can address these challenges head on and deliver end-to-end visibility and protection in a single service built for the reality of modern work.”

The joint offering is well suited for distributed enterprises, multi-site organisations, hybrid workforce initiatives, SD-WAN refreshes, security modernisation efforts and businesses with limited IT resources. 11:11 meets customers where they are by supporting existing environments, simplifying multi-vendor operations and serving as a single provider accountable for network, security, cloud and data integration.

This partnership expands 11:11’s Network as a Service portfolio and follows Forrester’s inclusion of 11:11 Systems in its report, “The Secure Access Service Edge Services Landscape, Q1 2026.”

About 11:11 Systems

11:11 Systems is a managed infrastructure solutions provider that empowers customers to modernise, protect and manage mission-critical applications and data, leveraging 11:11’s resilient cloud platform. Learn more at www.1111Systems.com and follow 11:11 on LinkedIn.

View original content:https://www.prnewswire.com/apac/news-releases/1111-systems-announces-strategic-partnership-with-cato-networks-to-deliver-sase-solution-for-distributed-enterprises-302830322.html

SOURCE 11:11 Systems

Continue Reading

Trending