Spectra7 Achieves Industry-Leading Speed, Density, Power and Reach with new 112G SFP-DD Solution

Low-Power Analog GaugeChangerTM Chips Enable 4X Increase in Bandwidth over Currently Deployed SFP28 Interconnects in Cloud and Hyperscale Data Centers

SAN JOSE, Calif. — (BUSINESS WIRE) — May 8, 2018 — (TSX: SEV) Spectra7 Microsystems Inc. (“Spectra7” or the “Company”), a leading provider of high-performance analog semiconductor products for broadband connectivity markets, announced today a breakthrough solution for hyperscale and cloud providers that want to increase speed and density without the cost and power penalty of optical solutions. Spectra7’s GaugeChangerTM SFP-DD solution enables copper lengths up to 7m (over 3 times longer than passive copper) and at up to 90% lower power and half the cost of optical solutions.

“With virtualization, artificial intelligence and machine learning driving up server workloads, the network connection is becoming a bandwidth bottleneck,” said Alan Weckel, Founder and Technology Analyst with 650Group. “We forecast significant adoption of higher density ports like SFP-DD, and Spectra7’s unique solution can dramatically improve efficiency, CAPEX and OPEX for the explosively growing hyperscale providers.”

New interface standards such as SFP-DD and others are significantly increasing port density in data center switching systems but are also limiting the interconnect length that can be served by low-cost direct-attach copper (DAC) cables. Spectra7's GaugeChanger™ silicon allows copper cables up to three times the reach of passive copper cables.

Currently deployed SFP interconnects operate at 25-28 Gbps but will soon move to 56 Gbps PAM4 signaling. The new SFP-DD electrical interfaces are designed to support 2 lanes that operate up to 25 Gbps NRZ or 56 Gbps PAM4 per lane, providing solutions up to 50 Gbps or 112 Gbps PAM4 aggregate. By doubling the lane density and data speed of SFP transceivers, the SFP-DD specification addresses increased port density and scalability in next-generation applications.

“We are experiencing increased interest overall in our data center products from cable suppliers, network equipment suppliers, as well as data center operators,” said Spectra7 CEO Raouf Halim. “With our GaugeChangerTM solution, the Company is well-positioned to benefit from the increased interest in and adoption of higher speed and higher density standards like SFP-DD.”

GaugeChangerTM is an innovative and disruptive technology that allows copper to extend much longer lengths without the cost and power penalty of optics. It works equally well at 25Gbps NRZ and 50Gbps PAM4 enabling new connector standards of 100/200/400 Gbps.

ABOUT SFP-DD Multi-Source Agreement (MSA)

The SFP-DD Multi-Source Agreement (MSA) Group has released the specification for a high-speed, double-density small form-factor pluggable (SFP-DD) interface. Under the MSA, participating companies will address the technical challenges of achieving a double-density SFP interface and ensuring mechanical interoperability for module components produced by different manufacturers. New SFP-DD based networking equipment will support legacy SFP modules and cables, as well as new double-density products. SFP-DD MSA founding members include Alibaba, Cisco, Dell EMC, Hewlett Packard Enterprise, Intel, Mellanox Technologies, and others.

For more information, please visit www.sfp-dd.com

ABOUT 650Group

650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets. Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.

For more information, please visit www.650group.com

ABOUT SPECTRA7 MICROSYSTEMS INC.

Spectra7 Microsystems Inc. is a high-performance analog semiconductor company delivering unprecedented bandwidth, speed and resolution to enable disruptive industrial design for leading electronics manufacturers in virtual reality, augmented reality, mixed reality, data centers and other connectivity markets. Spectra7 is based in San Jose, California with design centers in Markham, Ontario, Cork, Ireland, and Little Rock, Arkansas. For more information, please visit  www.spectra7.com.

CAUTIONARY NOTES

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company’s future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company’s annual MD&A for the year ended December 31, 2016. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

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