Kalray (ALKAL) H2 2023 earnings summary

Executive summary

• FY2023 net sales rose 57% to €25.829m; EBITDA loss narrowed to €1.074m, while net loss was €11.694m.

• Growth reflected demand for data-intensive solutions and continued product development; 2024 priorities include scaling the Jumbo Contract and investing in Dolomites.

Financial highlights

• Total operating income reached €40.045m, including net sales of €25.829m, subsidies of €1.916m, and capitalized R&D of €12.177m.

• Gross margin on net sales rose to 67% from 56%; EBITDA loss narrowed to €1.074m from €2.678m.

• Operating result was -€16.264m; adjusted operating loss after research tax credit was €11.808m, and net loss was €11.694m.

• Operating expenses rose 25% to €32.774m, including personnel expenses of €21.373m, up 31%; depreciation and provisions totaled €15.190m.

Outlook and guidance

• FY2024 objective is strong annual revenue growth, with a stronger increase expected in H2 than H1; longer customer decision cycles may defer revenue.

• Jumbo Contract production is ramping in 2024, with a more significant volume scale-up anticipated in 2025; additional orders were under discussion.

• Dolomites development and investment continue in 2024; tape-out is targeted for Q4 2025 and production for 2026.

• First 5G product sales were expected in H2 2024, supported by a developing strategic partnership.