Q2 2024 Valens Semiconductor Ltd Earnings Call
Speaker Change: All participant lines have been placed in a listen-only mode. Opening remarks by Valens Semiconductor Management will be followed by a question-and-answer session.
Unknown Executive: Opening remarks by Valens Semiconductor management will be followed by a question-and-answer session.
Lisa Fortuna: I will now turn the call over to Lisa Fortuna, Investor Relations for Valens Semiconductor. Please go ahead.
Lisa Fortuna: Thank you and welcome everyone to the Valens Semiconductor's second quarter, 2024 earnings call. With me today are Gideon Benzi, Chief Executive Officer, and Guy Nathanzon, Chief Financial Officer.
Lisa Fortuna: Earlier today, we issued a press release that is available on the Investor Relations section of our website under investors.goldens.com. As a reminder, today's earnings call may include forward-looking statements and projections, which do not guarantee future events or performance. These statements are subject to the safe harbor language in today's press release.
Operator: Earlier today, we issued a press release that is available on the investor relations section of our website under investors.valens.com. As a reminder, today's earnings call may include forward-looking statements and projections, which do not guarantee future events or performance. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events, or changes in strategy. We will be discussing certain non-GAAP measures on this call, which we believe are relevant in assessing the financial performance of the business. And you can find reconciliations of these metrics in our earnings release.
Lisa Fortuna: Please refer to our annual report on Form 20-F, filed with the SEC on February 28, 2024, for a discussion of the factors that could cause actual results to differ materially from those expressed or implied. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events, or changes in strategy.
Speaker Change: Please refer to our annual report on form 20-F filed with the SEC on February 28, 2024 for a discussion of the factors that could cause actual results to differ materially from those expressed or implied we.
Speaker Change: We do not undertake any duty to revise or update such statements to reflect new information subsequent events or changes in strategy.
Lisa Fortuna: We will be discussing certain non-get measures on this call, which we believe are relevant in assessing the financial performance of the business. And you can find reconciliation that these metrics within our earnings release.
Speaker Change: We will be discussing certain non-GAAP measures on this call, which we believe are relevant in assessing the financial performance of the business and you can find reconciliations of these metrics within our earnings release.
Gideon Ben: With that, I will now turn the call over to Gideon. Hello everyone, and thank you for joining Valens Semiconductor's second quarter 2024 earnings call. This quarter, our team made solid progress executing against our long-term strategy and capitalizing on growing market demand for our high-performance connectivity solutions. This resulted in revenue exceeding our guidance, increasing our confidence in the positive trends we are seeing across the diverse sectors we sell. In the audio video market, we continue to see growing interest in the adopting of our latest USB-3 extension technology, the DS-6320 chipset. Reflecting this momentum, we enter exciting new partnerships and collaborations in recent months, strengthening our go-to-market strategy.
Speaker Change: With that I'll now turn the call over to Gideon.
Operator: Hello everyone, and thank you for joining Valens Semiconductor's 2nd Quarter 2024 Earning Goals. Reflecting this momentum, we have entered into exciting new partnerships and collaborations in recent months, strengthening our go-to-market strategy. We believe we are going to capitalize on the $1 billion annual total addressable market in audio-video connectivity for video conferencing, machine vision, industrial, medical, and other verticals. An acronym was consolidated from May 31, so its contribution this quarter represents just one month of revenue. Moving on to the acronym inquisition.
Gideon: Hello, everyone and thank you for joining Willis silicone.
Speaker Change: Cyclical industrials second quarter 2020 for earning calls.
Gideon: This quarter, our teammates toward his progress executing against our long term strategy and capitalizing on growing market demand for our high performance connectivity solutions.
Gideon: This resulted in revenue exceeding our guidance increase and go with confidence in the positive trends, we are seeing across the rest.
Gideon: Both because we serve.
Gideon: In the audio video market will continue to see growing interest in adopting of a religious USB three expression technology.
Speaker Change: Since we do have to keep this.
Gideon Ben: We believe we are going to capitalize on the $1 billion annual total addressable market in audio video connectivity for video conferencing, machine vision, industrial medical, and other verticals. In addition, a recent acquisition of Acronym, the first M&A transaction of Valens Semiconductor, elevates our presence in these verticals. All of these developments occur despite continuous challenges, including close inventory digestion in the audio video segment. Despite its short-term challenges, our meet and long-term opportunities remain promising. Moving on to a quick overview to our second quarter financial performance, we are pleased to report its organic revenues exceeding the top end of our guidance, accessing $0.2 million.
Gideon Ben: acronym contributed the additional $0.4 million, which increased total revenues to 13.6 million dollars. And acronym was consolidated from May 31; its contribution, this course will represent just one month of revenues. Get cross-margin of the second quarter came in at 61.4%, and adjusted every dollar was $5.2 million, both beating or regretted ranges. We have a very strong balance sheet with $130.6 million of cash and cash equivalents that allows us to continue investing in innovations and pursuing long-term growth opportunities.
Gideon Ben: Moving to our economic position, I would like to give you more detail about why we are excited about the recent acquisitions of Acronym which we closed on May 31, 2024. Based in Boulder, Colorado, Acronym has around 20 employees, most of whom are talented engineers. acronym is Pioneer and Advanced Automation and Control Technologies for applications in industrial, robotic control systems and audio video conference rooms. acronym's products and solutions will enable us to expand our position in the industrial and audio video market if they are a leading supplier of high programmable USB apps, switches and test automation systems for industrial applications.
Speaker Change: Despite them, even advance of automation and control technologies for applications and industrial robotic control system and audio video conference rooms.
Speaker Change: Our performance products and solutions will enable us to expand our position in the industrial and audio video market and they are a leading supplier of highly programmable USB hubs switches and tape automation systems for industrial applications.
Gideon Ben: This M&H transaction, although modest in size, marks a significant milestone in our strategy to support non-organic growth through synergetic acquisitions that will enhance value for our customers and shareholders. Importantly, our strong balance sheet provides us with the flexibility to move quickly when opportunities arise. Going forward, we expect its highly selective acquisition strategy to complement our valid growth initiatives.
Speaker Change: This M&A transaction, although modest in size marks a significant milestone in our strategy to support nonorganic growth through synergistic acquisitions that will enhance value for our customers and shareholders.
Speaker Change: 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 now.
Gideon Ben: Now, let me tell you our performance and the trends we are seeing in the markets we serve. Starting with professional audio video, which includes applications such as entertainment, video conferencing, education, and digital silence. Statistics introduction late last year, we are proud to have over 50 customers developing products based on the VS6320 with the wide variety of products already launched. The public excitement for this chipset validates the VS6320's groundbreaking technology and demonstrates the high demand for reliable, streamlined, and affordable connectivity. The industry's eagerness for the chipset was most apparent at the InfoComm International, the largest professional audio video feature show in North America, which took place in mid-June.
Now, let me turn our performance and the trends we're seeing in the markets we serve.
Speaker Change: <unk> with professional audio video, which includes applications such as entertainment video conferencing education and digital signage.
Operator: The industry's eagerness for this chipset was most apparent at Infocom International, the largest professional audio-video trade show in North America, which took place in mid-June. We are pleased to report that we reached mass production of the VS6320 chips in July and expect to start generating revenue in the second half of 2024 before ramping up further in 2025. There is growing adoption of video conferencing systems driven by hybrid work and educational environments as well as necessary improvements to the user experience despite current market conditions.
Gideon Ben: At the show, many leading manufacturers announced launching products, while others demonstrated the VS6320 embedded into the product, which includes USB accelerators, PCZ cameras, video bars, wall plates, dosing stations, room and blind control, and USB half switches. All across the show floor, people were praising the new capabilities of the VS6320 chipset. We are ready to report that we reached mass production of the VS6320 chipset in July and expect to start generating revenues in the second half of 2024 before wrapping up further in 2025. There is growing adoption of video conferencing systems, driven by hybrid work and education environments, as well as necessary improvements to view your experience despite current market conditions.
Gideon Ben: These positive trends are expected to support mid- and long-term demand for our chipsets. In addition, during the second quarter, we continue to expand our partnerships with leading providers to accelerate new products and productions. One example is the partnership with the one-based Google technology, one of the world's leading PC peripheral design and manufacturing companies. Google technology has leveraged our VFXs 320 in combination with synastics, displaying technology to offer the video conferencing market a simplified, flexible, and cost-effective solution, opening the door for the integration of documentation into reasonably priced making rooms. As you can see, video conferencing continues to be a major focus for us, and we expect it would be driving factors in the recovery of the entire 3D market.
Operator: Goodwin Technology has leveraged our VIA6320 in combination with Synaptics Display Link technology to offer the video conferencing market a simplified, flexible, and cost-effective solution, opening the door for the integration of documentation into reasonably-priced meeting rooms. Moving to the automotive market, a big part of our focus remains on our second-generation chipsets, the VA7000, which complies with the MIPI A5 standard. We are progressing through several evaluation processes with global automotive OEMs on these chipsets, and customer feedback has been encouraging.
Gideon Ben: We are encouraged by investments that leading tech companies like Microsoft and Zoom are making. These innovative solutions will improve the user experience through certification processes for video conferencing systems and for the seamless and unified experience in hybrid meetings. We expect that these certifications will drive adoptions of better technologies, which is where we have a significant advantage.
Speaker Change: Companies like Microsoft Zoom, or making these innovative solutions will improve the user experience through certification processes for video conferencing systems and for the seamless and unified experience in hybrid meetings.
Speaker Change: We expect that these certifications will drive adoptions of better technology, which is where we have a significant advantage.
Gideon Ben: Moving on to the machine vision and industrial design trends. To date, Valenz has engaged the industrial market and application, collecting industrial PCs and remote touch displays, extending the HDMI and USB enabled remote operation of industrial machines, which is the launch of our VFXs 320. In the V8 7000 chipsets, we are now entering a much larger market: machine vision. These new chipsets are targeting two main segments in the machine vision world: the IPC base and the embedded vision segments, respectively. The IPC base segment is dominated by two stormless technologies, Geek Vision and USB 3 Vision. Until recently, USB 3 Vision offers significantly higher bandwidth but a limited cable length.
Speaker Change: Moving onto machine vision and industrial verticals.
Speaker Change: To date, <unk> engaged the industrial market and application connecting industrial Pcs and remote touch displays extending the HDMI and USB enabled remote operation of industrial machines with the long term for VX 620, <unk> 7000 keeps it we are now entering a much.
Speaker Change: Larger market machine vision.
Speaker Change: These new chipsets are targeting two main segments in the machine vision world, the ICT based and the embedded vision segments respectively.
Speaker Change: The IPC based segment is dominated by two startup technologies geeky vision and USB three vision until recently USB three region offers significantly higher bandwidth, but had limited cable lengths now with the <unk> III extension solution USB three vision can support the same Harvard MIT.
Gideon Ben: Now, with the Valenz USB 3 extension solution, USB 3 Vision can support the same 100 meter distance as GIG-E, alongside the much needed higher bandwidths. Our new solution enables higher resolution machine vision systems, such as vision inspection and automated warehouse operations. The embedded vision segment typically leverages for proprietary camera extension technologies. Valenz USB 7000 CSI-2 extension solution brings significant benefits. It is based on an API line startup; it enables higher bandwidths of extension over longer, simpler cables and, most importantly, it is 20 times more robust to electromagnetic interference than competing technologies. Valenz is increasing its investment in the industrial machine vision vertical, expanding our partnerships across the ecosystem to enable faster introduction to our technology.
Speaker Change: Distances gig E alongside the market to the higher bandwidth.
Gideon Ben: We believe that the proofs of this effort would be on this day during the vision show, protocol of Germany on October the 8th.
Gideon Ben: Before I discuss automotive, I would like to briefly address the current challenges in the audio video markets. We are experiencing a significant reduction in our audio video revenue compared to last year. We believe this is related to general weakness in the macro economy and to customers continuing to hold high levels of inventory, which doubt a new order replacement and upward activity. We remain bullish on the audio video market in the medium and longer term. We believe we are in a cycle and that our legacy products will get back to the levels of revenue we used to see in the past.
Gideon Ben: In addition, the V6320 base products are said to become significant new revenue growth drivers, as well as in the new industry machine vision vertical.
Gideon Ben: Moving to automotive. Overall, our automotive business is stable. As a reminder, our first generation, V66000 chipsets are used in Mercedes-Benz infotainment and telematics systems. A big part of our focus remains on our second generation chipsets, the V7000, which complies with the MEP API standards. We are progressing in several evaluation processes with global automotive OEMs on these chipsets, and customer feedback has been encouraging. And of course, we continue to work with companies across the ecosystem to design a little bit of products based around this technology. One example of the growth in the API ecosystem came last months when Continental, one of the largest tier one of the automotive suppliers in the world, introduced the API standards into their AIDA's camera page.
Operator: And, of course, we continue to work with companies across the ecosystem to design and develop products based around this technology. For example, their SSC300 cameras, which now feature a link speed of up to 8 gigabits, enabling resolution beyond 8 megapixels.
Gideon Ben: They announced that they have upgraded their S6300 cameras, which now feature a link speed of up to 8GB, enabling resolution beyond 8 megapixels. They said, and I quote, the MEP API standards ensure the lowest error rates and enhanced EMC robustness, making our cameras resistant to external interference and reliable environmental conditions. Confidential is the latest in the low release of companies joining the API ecosystem and recognizing the many technological benefits this standard offers the automotive industry. We are confident that our innovative technology will position us to take advantage of an enormous opportunity in this automotive segment, which may estimate the latest in the world at a reasonable market, by $4.5 million per annum by $2.29, $2.29.
Speaker Change: They meet the 85 tons of ensuring the lowest error rate and enhanced EMC robustness, making our covenant of resistance to external interference and reliable and virus conditions Continental is the latest in a long list of companies from joining the <unk> ecosystem.
Speaker Change: And recognizing that many technological benefits this startup offering built on motive industry. We are confident that our innovative technology will position us to take advantage of an enormous opportunity in this automotive segment automotive which may estimate.
Speaker Change: The addressable market was split about $1 $5 billion per annum by 229 29, we are optimistic about our historical confidential.
Gideon Ben: We are optimistic about our historical potential to meet the way the automotive industry is developing.
Speaker Change: GDP in productivity solutions.
Gideon Ben: Before I tell the quote, I would like to briefly discuss a trend that crosses the visual and biodiversity in the field: everything is the growth of AI. Much of the AI system architecture we know and used today is cloud-based, including popular large language models like CHGPT. However, there is another kind of AI system architecture called HAI, and it's finding new avenues for deployment and implications that require real-time operations where the AI processor is separated from the data sensor input. The AI processor must leverage a higher performance connectivity solution specifically, one that is uncompressed and L-free in order to make accurate decisions.
Speaker Change: Before I turn the call over to Brian I'd like to briefly discuss it trended crossover and traditional unbounded.
Speaker Change: The growth of AI.
Speaker Change: Much of the similar.
Speaker Change: Picture, we note and used to date is cloud based including popular large language models like GPT.
Speaker Change: However, there is another kind of AI system architecture called edge AI.
Gideon Ben: Valera's cost-effective and high-performance distribution technology is paying an instrumental role in enabling this breakthrough technology in the automotive machine vision and video conferencing industry. Who is that?
Guy Nathanzon: I will turn the contour guide to discuss our financial performance in more detail. Thank you, Gideon. A start with our second quarter, 2024 results, and then provide our outlook for the third quarter. We achieved quarterly revenues of $13.6 million, exceeding our guidance of between $12.5 million to $13 million. Our revenue, excluding acronym, was $13.2 million at value high range of the guidance. This compares to revenues of $24.2 million in the second quarter of 2023. The reduction is related to the inventory digested cycle of our customers, as explained by Gideon earlier. Our video contributed $8.1 million, or approximately 60% of total revenues.
Operator: Audio-video contributed $8.1 million, or approximately 60% of total revenues, and automotive contributed $5.5 million, or approximately 40% of total revenues this quarter. This compares to audio-video revenues of $15.5 million and automotive revenues of $8.7 million, representing 64% and 36% of total revenues, respectively, in the second quarter of 2020. Research and development expenses accounted for approximately 56% of the second quarter of 2024 operating expenses, coming in at 10 million dollars compared to approximately 61 percent of the second quarter of 2023 operating expenses, or 12.2 million dollars in the second quarter of 2023.
Guy Nathanzon: An automotive contributed $5.5 million, or approximately 40% of total revenues this quarter. This compares to our video revenues of $16.5 million and automotive revenues of $8.7 million, representing 64% and 36% of total revenues, respectively, in the second quarter of 2023. The second quarter of 2024 growth profit was $8.3 million compared to $14.9 million in the second quarter of 2023. The second quarter of 2024 growth margin was $61.4 million compared to $61.8 million in the second quarter of 2023. On a segment basis, our audio video growth margin was $75.4 million and the automotive growth margin was $40.9 million compared to $75.3 million and $37.8 million, respectively.
Guy Nathanzon: In the second quarter of 2023, the increase in automotive growth margin was related to cheap costs improvements. Non-gross growth margin was 64.4% compared to 63.1% in the second quarter of 2023. Operating expenses in the second quarter of 2024, 2017.8 million dollars compared to $20.1 million in the second quarter of 2023, mainly due to a reduced headcount. The start of the efficiency plan was implemented in the second half of 2023. With certain development expenses accounted for approximately 56% of the second quarter of 2024 operating expenses, coming in at $10 million, compared to approximately 61% of the second quarter of 2023 operating expenses or $12.2 million in the second quarter of 2023.
Guy Nathanzon: FGN Accenture was $7.8 million compared to $8 million in the second quarter of 2020. 23.
Guy Nathanzon: The second quarter of 2024 get net loss worth $8.9 million versus a net loss of $4.6 million recorded in the second quarter of 2023. And adjusted to be that in the second quarter of 2024 was a loss of $5.2 million compared to a loss of $0.8 million in the second quarter of 2023. Get loss per share for the second quarter of 2024 was $8.2 million compared to get loss per share of $5.3 million for the second quarter of 2023. Non-get loss per share in the second quarter of 2024 was $4.2 million compared to $0.2 million in the second quarter of 2023.
Operator: The second quarter of 2024 GAP net loss was $8.9 million versus a net loss of $4.6 million recorded in the second quarter of 2023. And adjusted EBITDA in the second quarter of 2024 was a loss of $5.2 million compared to a loss of $0.8 million in the second quarter of 2023. The main difference between gap and non-gap loss per share was due to stock-based compensation, depreciation, and amortization. Our inventory as of June 30, 2024 was $14.1 million, of which $2.5 million was from Aquanet.
Speaker Change: $4 6 million.
Speaker Change: Recorded in the second quarter of 2023, and adjusted EBITDA in the second quarter of 2004 was a loss of $5 2 million compared to a loss of <unk> 8 million in the second quarter of 2023.
Speaker Change: GAAP loss per share for the second quarter of 2024 was eight <unk> compared to GAAP loss per share of <unk> for the second quarter of 2023.
Speaker Change: non-GAAP loss per share in the second quarter of 2024 was <unk> <unk>.
Speaker Change: <unk> two zero expense in the second quarter of 2023.
Guy Nathanzon: The net difference between get and non-get loss per share was due to a stock-based compensation, depreciation, and amountization. We ended with the second quarter of 2024 in the strong balance sheet with cash, cash equivalent, and short of the 40 totaling $130.6 million and no-get. This compares to $139.8 million at the end of the first quarter of 2024. The reduction is related to ongoing operational expenses and one-time expenses of $7.8 million associated with the conditions. Our working capital at the end of the quarter was $142.3 million compared to $153.3 million at the end of the first quarter of 2024.
Speaker Change: The main difference between GAAP and non-GAAP loss per share was due to our stock based compensation depreciation and amortization.
Speaker Change: We ended the second quarter of 2024, and a strong balance sheet with cash cash equivalents and short term deposits totaling $136 million and no debt. This compares to $139 8 million at the end of the first quarter of 2020 for the reduction.
Guy Nathanzon: Our inventory as of June 30, 2024, was $14.1 million, of which $2.5 million was from acronym. Excluding this amount, inventories were $11.6 million, down versus $12.5 million at the end of the first quarter of 2024. We continued to carefully manage our inventory and as effectively reduced them over the last five quarters.
Guy Nathanzon: Now, I would like to provide our guidance for the third quarter. We expect a third quarter revenue to be in the range of $14.7 to $15.4 million, of which $1.2 to $1.4 million are expected to come from acronym. We expect growth margin to be in the range of 52% to 53%, and we expect adjusted the value in the third quarter to be in the range of negative $6.8 to $6.3 million.
Guy Nathanzon: Turning to the acquisition of acronym. As given mentioned, this was our first acquisition. The purchase price was $7.8 million in cash, and an additional $1.3 million was transferred to acronym in consideration for the amount acronym held in cash at clothing. Further, the company will be obligated to pay the seller's annual payment of up to $7.2 million, depending on the achievement of certain revenues. EBDA and cash flow targets in 2024 and 2025 and the development of a certain product by June 2020. Based on financials provided to the company, Acron and revenue for the first six months of 2024 was $3.3 million.
Operator: As Gideon mentioned, this was our first acquisition. Furthermore, the company will be obligated to pay the seller's earn-out payments of up to $7.2 million, depending on the achievement of certain revenue, EBITDA, and cash flow targets in 2024 and 2025 and the development of a certain product by June 2026. The synergies of our solutions across the various markets we serve continue to prove their value. Valens Semiconductor remains committed to executing our long-term growth strategy and capitalizing on the promising opportunities within our target market.
Guy Nathanzon: However, since the clothing was on May 31st, 2024, we consolidated revenue of $0.4 million in our financial results during the second quarter.
Gideon Ben: I now turn the call back to Bidon for its clothing remarks before opening the call for Q&A. Thank you, Brian. Today, we demonstrated how Valens' new offerings not only expand our presence in existing markets, but also enable us to enter AI-driven markets addressing the critical connectivity needs in machine vision. The synergy of the first solution across the various markets will still continue to prove their value. As we look to the second half of 2024, Valens Semiconductor remains committed to executing our long-term growth strategy and capitalizing on the promising opportunities within our target markets. Our innovative startup setting, high-speed connectivity solution, and high-speed connectivity chipset positionals to achieve our goals and deliver value for stakeholders.
Gideon Ben: Our strong partnerships provide us with flexibility to continue to invest, acquire, and innovate, and importantly, to mitigate the economic market conditions.
Gideon Ben: We are also excited to announce that we are planning towards an investor day in New York this November. Space June for details.
Gideon Ben: Before opening the call for questions, I want to express my gratitude for exceptional teams whose hard work, talented education, are the driving force behind Valens Semiconductor.
Unknown Executive: We set our now open to call for your questions, operator. Thank you. Ladies and gentlemen, at this time, we'll begin the question-and-answer session. If you have a question, please press star one in front of you. If you wish to cancel your request, please press star two.
Unknown Executive: If you are using secret equipment, kindly lift the handsets before closing the numbers. Please ask your question in a loud and clear voice. Your questions will be told in the order they receive. Please stand by when we call for your questions.
Operator: Please ask your questions in a loud and clear voice. Your questions will be answered in the order they are received.
Rich Shaper: The first question is from Rich Shaper of Oppenheimer. Please go ahead.
Wei Mok: Hi, this is Waymock on the line for Rick. Congrats on the results. It looks like you guys delivered outside the results to two, and from the guide, it looks like 11% for the third quarter. You mentioned that you guys started clearing inventory for the last five quarters. How far are you guys seeing inventory bottoming, and considering the macro, what are you considering in terms of the shape of the recovery for the second half of the year?
Gideon Ben: Are you going to use floor two? Hi, and thank you very much for the question. Before I answer, I want to apologize for the technical problem we all experienced today with the provider of the conference call. I apologize sincerely, and just wanted to mention it, and the guy will take the answer for this question. So, where please, guys.
Guy Nathanzon: So, in terms of the inventory, we definitely are in the inventory now, in our financial agency on the trend of reducing the inventory, and in construction in line, we are in a long-term goal, which is in the inventory now, in a number of inventory days. Okay, great. Thank you.
Wei Mok: As for my second question, it's on acronym. It looks like part of the deal requires reaching certain team milestones and metrics and also the development of a new product. How confident are you on reaching those milestones and to the expected you can, any coverage to provide on this new development product?
Speaker Change: You development product.
Operator: Well, you know, in our world, being confident is not an easy thing to do. We live in a world of a lot of uncertainty. But it seems that a lot of the good signs are here. And you know that we're not providing a very long-term forecast. But it seems like we have positive signs. But, you know, other than that, I feel responsible for predicting the future.
Gideon Ben: Well, in our world, being confident is not an easy thing to do. We live in a world of a lot of uncertainty, but it seems that a lot of the good signs are here, and you know that we are not providing a very long-term focus. But it seems like that we have the positive signs, but you know, other than that, I feel it is possible to predict the projections.
Speaker Change: Well I know in our wells have been confident is not.
Speaker Change: Not an easy thing to do we are living in a world of a lot of.
Speaker Change: Uncertainty, but it seems that a lot of the good signs are here and you'll notice we're not provide the very long term.
Speaker Change: Our forecast but.
Speaker Change: It seems like that.
Speaker Change: We have the positive signs, but other than that.
Speaker Change: Irresponsible to web two.
Speaker Change: The projections.
Gideon Ben: Okay, maybe if I could squeeze in one last one, it's on the UBS 6320 audio video product. It seems like, you know, there's a lot of engagement, a lot of partnerships; you guys mentioned 50 or so products. What types of applications do you see first adoption? Are they in traditional conference rooms? How do we are seeing more interesting industrial applications? And when do you start to see the revenues starting to be, are we being ranked in the second half of this year, is that correct? Yeah, well, thank you for the question.
Speaker Change: Thank you.
Speaker Change: If I could sneak in one last one on that.
Speaker Change: <unk> three <unk> audio video product.
It seems like you know.
Speaker Change: A lot of engagement a lot of partnerships you guys mentioned 50, or so caught up.
Speaker Change: What type of applications you see first adoption are they in traditional conference room Hotel room or are you seeing more interest in industrial applications and when do you start to see revenues starting to be I believe they ramp in the second half of this year is that correct yes.
Speaker Change: Thank you for the question and exit that I have.
Gideon Ben: And actually, I have a bit longer answer to this, and I'm happy you asked it because I think it is my answer can put light on this product. You know, it is an overland for a long time, and we were playing in the pro-IB world, and the 6320 open for us sets in the world of audio video more markets, which are more lower end markets, such as the hardware room and smaller medium size conference rooms, where people simply want to have a camera that covers more people, and they want it to use the full USB-3 extension, and not to compromise a USB-2 extension, which will reduce the resolution, reduce the bandwidth and the frame rate, or any other thing.
And with longer answer to this and I'm happy you asked it because I think it.
Speaker Change: My answer can put light on this product.
Gideon Ben: So this is the first application, it's the hardware room, and my quote, the logistic, you know, we said there are 100 million rooms in the world that it's clear that in 10 years, all of them will have a solution, and the question is what to speak together. So this is when looking about the same vertical where we are in, which is the audio video, moving from the very high end to medium end, not to the low end. We are not a consumer company, but definitely for the medium and the less the high end. And then we are, which is far far lower market.
Gideon Ben: The second market, which you asked about the industrial, it's a very, very big market, that today we are aware of quite many million, that there is just a little bit below 7 million camera produced every year, in this world, and a lot of the mid extension. And the reason they are very sensitive to high resolution, it's a world where you need the bandwidth, because of several reasons. You need the resolution to inspect, you need the frame rate in order to stop the machine or to act when something happens, and you need the high depths of the, or many bits per pixel, because you need the sensitivity, because sometimes you need to inspect the color or the changing color. All these on the three components that create the bandwidth.
Gideon Ben: And this is why the industrial market is very demanding for a high bandwidth, and this is where we are, and the USB-3 extension is a solution for that.
Gideon Ben: And if I may even speak a little bit more, I would say that the same is about a medical market, which we are now looking at. I can't elaborate too much, but also in medical, you can imagine that those three parameters are very sensitive: the bandwidth, which comes from frame rate, from resolution, and from the number of bits per pixel. And the last question you asked was about when we already had orders and deliveries in this second half. It looks ramped up nicely. Yet, we are in the same medical doctor market, which we are always the same balance as compared to software; the speed is geological, but this is...
Gideon Ben: Yet we see the run-top, and we are very happy about it, and it reminds us the run-top when the company stops, and we never had such a fast run-top in the product before, as one of the sections we have now is the BS63020.
Operator: Rick, this answers the question.
Unknown Executive: If there are any additional questions, please press star one. If you wish to cancel your request, please press star two. Please stand by while we pull for more questions.
Operator: Please stand by while we pull for more questions.
Unknown Executive: There are no further questions at this time.
Gideon Ben: Mr. Benzvi, would you like to make your concluding statement? Sure.
Gideon Ben: First, I want to thank everyone for the time and for being with us. I want to thank our devoted employees, the talent and the contribution to be where we are, and we see you next time in our next annual call. Thank you very much for your attention, for your support, and we should continue, and that's it.
Unknown Executive: All the best, and have a good day. Thank you.
Unknown Executive: This concludes the Valens Semiconductor's 2nd quarter 2024 results conference call. Thank you for your participation. You may go ahead and disconnect.
Operator: This concludes the Valens Semiconductor second quarter 2024 results conference call. Thank you for your participation. You may go ahead and...
Operator: Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music
Operator: Thank you.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Got it.
Operator: Vice-President Tiptoe had previously informed a group of telecom companies of technological problems with their mise-en-scenes.
Speaker Change: Okay.
Speaker Change: [noise] [music].
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
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Operator: Go to Beadaholique.com for all of your beading supplies needs!
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Sure.
Speaker Change: So people can be different.
Speaker Change: Sure.
Speaker Change: We will be prudent.
Operator: Speakers
Unknown Executive: I'm not going to let you go. I'm not going to let you go. I'm not going to let you go. I'm not going to let you go. I'm not going to let you go.
Operator: Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music
Operator: WHAT THE HELL!? Thanks for watching!
Operator: Please support our program.
Operator: Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music Music
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Hello.
Speaker Change: [music].
Unknown Executive: I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to say that I have to ...
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: You may begin.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: [noise] [music].
Speaker Change: [music].
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: You may begin.
Speaker Change: Okay.
Speaker Change: Good evening.
Speaker Change: Yeah.
Speaker Change: Okay.
[music].
Speaker Change: Sure.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: In the meantime.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Anyway.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: [noise] [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
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Speaker Change: Okay.
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Operator: For more, go see their other videos made by Gideon Ben and Lisa Fortuna. VISIT www.gideonben.mit, faeIT.ca GIDEON.COM
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: Okay.
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...
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: You may begin.
Speaker Change: Yeah.
Speaker Change: It will be.
Speaker Change: Thank you.
Speaker Change: We will be.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: [music].
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change:
Speaker Change: Okay.
Speaker Change: [music] BBB to BBB.
Speaker Change: [noise] BBB BBB to BBB.
Speaker Change: It will be.
Speaker Change: [noise] [music].
Operator: Thanks for watching!
Speaker Change: Right.
Speaker Change: [music].
Speaker Change: Mhm.
Speaker Change: Sure.
Speaker Change: We will be there.
Speaker Change: We will do that.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Okay.