Valens Semiconductor Ltd.

Hello all and a warm welcome to the LEN's third quarter 2021 earnings call. My name is Lydia and I'm your operator today. If you'd like to ask a question at the end of the presentation, you may do so by pressing star followed by one on your telephone keypad. It's my pleasure to now hand you over to our host, Daphna Golden, Vice President of Investor Relations. Please go ahead when you're ready.

Thank you and welcome everyone to the LEN's third quarter 2021 earnings call. With me today are Gideon Bensvi, Chief Executive Officer, and Vor Heldenberg, Chief Financial Officer. On a personal note, I am excited to have joined Valence earlier this week, and I'm looking forward to working with the team and communicating with the investment community, investors, and analysts. Earlier today, we issued a press release that is available on the investor relations section of our website under investors.valence.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. Please refer to our registration statement on Form S-1 filed on October 20th with the SEC 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. We will be discussing such 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. With that, I will now turn the call over to Gideon.

Thanks, Daphna. and welcome to Valence, you definitely came to the right place. Thank you everyone for joining our first conference course as a public company. I would like to welcome our new shareholders and research analysts. Becoming a public company, following the completion of our business combination with PTK Equalization Corporation and DeFi Investment and listing on the New York Stock Exchange on September 30th, is an exciting milestone in our corporate journey that will help us continue to push the boundaries of connectivity. Our team remains focused on execution to address the unfolding near and long-term opportunities in the large and growing automotive and audiovisual markets that we serve. To that end, we deliver strong results in the third quarter that demonstrate solid execution and the continued momentum we are seeing across our business. We reported record revenues of more than $19 million, record bookings, and ended the quarter with record backlogs and with the portrait balance sheet that will support our continued growth. For those who may be new to Venance, I would like to take a few minutes to provide a brief overview of our company and the main reasons why we believe we are well positioned to create value for our shareholders. and to put it in the simplest possible, Valance is a company that sets industry standards for high speed connectivity. We did it in the audio-video market and we are doing it again in the automotive market. Second, we operate in large and fast-growing addressable markets. And third, our business model offers a compelling financial model. I'd like to address these three in greater detail, starting with our company's ability to set standards. In our audio-video business, we invented HDBC technology, which quickly became the leading industry standard for long-range high-speed digital connectivity. We are the leader in this market today and enjoy a profitable business with significant growth opportunities across a variety of verticals. Our chipsets are deployed in products manufactured by technology leaders Crestron, Exxon, Extron, Logitech, LG, Samsung, Panasonic, and many other regulatory brands. Our audio-video chipsets are embedded in a variety of end products from video conference to home entertainment, outdoor TVs, projectiles, and cameras. We benefited from the video conferencing trend and started way before COVID-19 and significantly accelerated during the pandemic. Video conferencing and peripheral audio-video equipment is now expanding way beyond traditional business applications and is moving rapidly into the education, medical, and entertainment industries. I am sure you would all agree that video conferencing is now touching many more aspects of our daily lives. Valence's ability to extend high-quality audio, video, and USB with zero latency makes it a key neighbor of what we call the new hybrid normal, a trend we believe is here to stay. In our automotive business, we have developed superior solutions for in-vehicle high-speed connectivity. Valence technology addresses critical needs for the advanced cars of tomorrow that will demand seamless connectivity for a growing number of sensors, cameras, and displays. We are proud that our chipsets are already on the road in Daniel Mercedes-Benz COV, providing best-in-class connectivity for infotainment applications. In what we consider to be one of our automotive business' most significant achievements to date, Valence Technology was selected by the well-known standout organization NIPI Alliance as the base for its new high-speed in-car video connectivity standout, A5. This standout was released by NIPI in September 2020 and shortly after was fully adopted by the prestigious IEEE organization as one of their automotive standouts. Obviously, Valence enjoys a first-mover advantage with MP85. We will begin shipping engineering samples of our standard-compliant VA7000 chipset to select prospective customers and partners next month. And we are working closely with leading OEMs, Tier 1 and Tier 2 on deploying our technology into the next-generation car models in the coming years. To address our second value proposition, I'd like to turn to a large and growing market opportunity. We estimate that our serviceable available markets will grow to more than $9 billion in 2026 across our automotive and audio-video markets. This provides us the potential to drive our revenue growth over the coming years as our next-generation connectivity solutions are widely adopted. Valencia has established a track record of market leadership, with exceptionally set industry standards in both of our businesses, and then successfully frustrated our innovation into remarkable customer wins. Our digital signal processing-based connectivity technology is unmatched in speed, performance, distance, and resilience. This uniquely positions us to capture a substantial share of the rapidly growing automotive market as well as to increase our foothold in our audio-video business. Third, we have a compelling financial model. In automotive, considering the nature of the business, new design wins will ensure additional long-term contracts and secured revenues. In audio-video, Customers tend to use our solutions for a long period. They like our products because we offer an unmatched combination of best-of-breeds of feature-set and cost performance. Our business model is supported by high gross margins, near-term and longer-term revenue visibility. With that, I now turn the call over to Dora Heldenberg, our CFO, to review our key business milestones, third-party financial results, and outlook.