Valens Semiconductor Clocks 49% Sales Growth In Q3, Lifts FY21 Revenue Outlook

Valens Semiconductor Ltd VLN reported third-quarter FY21 revenue growth of 48.8% at $19.07 million, marginally beating the consensus of $19 million.
Audio-video revenues reached $17.1 million, up 38.5% Y/Y. Automotive revenues reached $2.0 million, an increase of over 300% Y/Y.
Margin: Gross margin compression of 200 bps to 72.4% was mainly due to higher automotive revenues that incur lower gross margin than audio-video products.
Valens recorded quarterly bookings of $36.0 million, up over 200% Y/Y.
Valens recorded a backlog of $73.4 million as of September 30.
EPS loss was $(0.19) versus $(1.17) last year.
Valens held $205.6 million in cash and equivalents.
Outlook: Valens sees Q4 revenue of $19.4 million - $20.6 million, versus a consensus of $20.1 million. It expects Q4 gross margins of 70%-72%.
Valens raised the FY21 revenue outlook from $69 million to $69.4 million - $70.6 million versus a consensus of $69.6 million.
Price Action: VLN shares traded higher by 1.77% at $10.94 in the premarket session on the last check Thursday.