Kalray (ALKAL) Trading Update summary

2024 financial performance

• Reported 2024 revenue of €24.8M, nearly matching 2023's €25.8M, with a stronger second half.

• 85% of revenue came from the Enterprise segment (Ngenea), 15% from Acceleration Card sales.

• Geographic revenue split: 49% US, 42% Europe (including UK), 9% rest of world.

• EBITDA expected at approximately -€8M, impacted by lower margins and investments in the Dolomites processor.

• Cost reduction plan initiated in September 2024 partially offset negative impacts.

Strategic asset disposal

• Completed sale of the Data Acceleration Platform (Ngenea) business unit to DataCore Software.

• Transaction value up to $20M: $12.5M upfront, $2.5M service contract, up to $5M earn-out based on 2025 performance.

• Sale included all related assets and about 80 employees.

• Proceeds to repay €3M BNP Paribas credit line and cover €1.5M in restructuring and transaction costs.

Financial outlook and liquidity

• Cash horizon remains unchanged, with funding visibility until March 1, 2025.

• Ongoing discussions with partners and suppliers to extend financial visibility.

• Update on liquidity extension efforts expected by end of February 2025.