Sivers Semiconductors AB

During the Questions and Answers session, participants are able to ask questions by writing in the chat in the webcast. Now I will hand the conference over to CEO Vikram Vachulya and CFO Lottie Sachs. Please go ahead.

Thanks, Siri. And welcome, everybody. This is Vikram, CEO at Seaver Semiconductors. Welcome to our second quarter 2025 webcast. Last quarter, we had some glitches in our video system. We've moved over to a new provider, and hopefully everybody has a seamless experience this time. So the agenda for today, there will be an executive summary that I'll provide. Then our CFO, Lottie Sachs, will go into the financial results and come back, pick back up on market and business updates and key takeaways. Then we'll have time for Q&A. Let's get into the executive summary for Q2. On the financial side, we came in with a solid quarter, 72.4 million SIEC. That is in line with the new baseline we established, if you remember last time, Q4 2024. That's a 38% increase year on year for Q2. It's also the highest ever Q2 in the history of the company. And as we have now crossed the midpoint of the year, we are Up from last year at this point, 39% year-to-date. Just at EBITDA, we continue to walk on the line to profitability. We have improved by 32% year-on-year compared to Q2 last year. And year-to-date, it's an improvement of 44% from last year. Our wireless business continues to show strong growth, and Q2 was a 71% increase year-on-year as well. For some notable highlights, very exciting to see that we won a new development contract with a new photonics customer, and also won a contract with AI Radar for defense radar applications. The Diffie technology is redefining SATCOM terminals, and we were invited to join the Diffie consortium. or next generation SATCOM terminals that provides validity to the types of technology we are bringing to this focus market. Q1 is our important quarter for critical trade shows that we go to and talk to customers for both our technologies. And since then, we have seen our opportunity pipeline expand with more branded logos. And this is a significant notable news because when we see our technology start getting engagement and traction with branded logos that means we are now moving from lead adopter customers into the realm of mainstream customers we successfully refinanced our debt with significantly better terms and as you've seen in q1 we picked up institutional coverage from notland which is a very top-shelf US analyst and investment bank. And in Q2, coverage has been initiated by Carnegie, which is a top-shelf Swedish investment bank and analyst firm. In May, we shared our strategy and outlook at our Capital Markets Day, where you got a lot of insight into our technology, our markets, and our pipeline. Lastly, in June, I attended the Roth investor conference in London, and it was exciting to see a lot of interest in our company and our technologies from European investors as well as U.S. investors. With that, I will move it over to Lottie Sachs, our CFO, to go over the financials in more detail, and then I'll come back for markets and customers update. Lottie, please go ahead.

Thank you, Vikram. Following up prior two quarters record sales, we're delivering yet a strong quarter. Q2 sales reached 72.4 million, reflecting a 38% increase year over year. And this is the strongest second quarter to date in the company. And this is achieved despite significant headwinds in FX, where US dollar weakened against SEAC during the quarter. So growth in constant FX was 49%. During Q2, wireless business unit grew by 71% year over year, continuing its growth trajectory over multiple quarters. Sales reached 58.2 million, and the increase of 20.8 million came from increase in NRE projects. Although we have multiple projects ongoing in parallel, Like in Q1, delivering on our US ChipX projects was a large focus area for our development team. Wireless NRE products increased 22.8 million year over year to a total of 41.3 million. Product sales decreased slightly by 1.7 million to 8.6 million. Photonics business unit sales was 22.4 million, which was a decrease of 3% or 0.7 million. Photonics decrease in NRE sales was largely offset by increased product sales by 2.3 million. Total NRE sales amounted to 10.1 million and product sales 12.3 million. This was the highest product sales noted for photonics in a quarter. Sequential growth for photonics compared to previous quarter was 10.1%, and the business unit is growing sequentially for the third quarter in a row. Adjusted EBITDA continued to improve year over year. In Q2, improvement was 32%, or 4 million. And we stay committed to drive company profitability while investing in strategic initiatives for long-term success. We are strengthening Sivers' ability to expand and scale up, making selective investments in sales, mark-on and operations. Year-to-date, Sivers grew 39% or 49% in constant FX. An adjusted EBITDA improved 44% year-over-year for the first six months. Product sales in Q2 reached 21 million, which was a growth of 3% year-over-year. So we're maintaining good levels for both business units in the quarter. And although growth is not a straight line, we continue to grow year-over-year, and we're confident with a gradual shift in business model towards our goal of 80% product sale. As communicated during our capital markets day, To further underpin the strategic shift, we're putting more emphasis on own development of broad market products in our targeted strategic verticals in AI data centers and SATCOM. This can also be seen in the investment in capitalized R&D that amounted to 12 million in the quarter, an increase of 6.8 million year over year. The conscious decision to increase pace in product development is a response to market demand following global congresses attended in the beginning of the year. And as mentioned before, business unit Wireless is preparing for sampling of broad market Satcom chips already during the fall. Total share of product sales in the quarter was 29%, which was well in line with prior quarters. Photonics share of product sales was 55% and wireless was 17%. Our sales mix implies continued large share of wireless sales and strong presence in North America. Worth mentioning is that billing and cash flow from these larger projects is very lumpy, which impacts our working capital and timing of cash flows in and out. And this is normal for a project-based business model. However, as it's an important area for us, we continue work to improve our terms where possible. And by that, I hand over back to Vikram.