Spectra7 Microsys (TSX: SEV), the Consumer Goods sector company, was revisited by a Wall Street analyst today. Canaccord Genuity’s analyst Robert Young reiterates their Sell rating on the shares, with a C$0.15 price target.
Young noted:
“Spectra7 reported soft Q2/18 results heading into the seasonally stronger back half of the year. Prior to a private financing for gross C$3.0M that closed in July, Spectra7 closed Q2 with lackluster revenue driven by weak VR/MR sales and only C$0.2M in cash on the balance sheet. Concurrent with the quarterly print, the company announced a second private placement for gross proceeds of C$5.0M. While we believe a string of smaller raises extends the liquidity risk, we acknowledge management has been successful bringing funds in to date. If the raise announced today is fully funded, we see sufficient liquidity through to the new year. Against an estimated cash burn of C$(2.0)M per quarter, we expect we will see a further raise in Q4/18. Management touted progress in the DCI segment, particularly in APAC and believes it will be in production before the end of 2018.”
According to TipRanks.com, Young is ranked #416 out of 4857 analysts.
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The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Spectra7 Microsys with a C$0.15 average price target.
Based on Spectra7 Microsys’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of C$5.72 million. In comparison, last year the company had a GAAP net loss of C$2.36 million.
Spectra7 Microsystems Inc. operates as an analog semiconductor company, which provides bandwidth, speed, and resolution for electronics manufacturers. It focuses on patented signal processing technology used in the design of active cables and specialty interconnects which enable longer, thinner, and lighter interconnects.
The company’s shares closed on Tuesday at C$0.21.
