Market Overview

Spectra7 Achieves Low Power Benchmark of 6mW/Gbps for New Data Center Interconnects


Cloud Operators can Save up to 28W per Interconnect with 400G OSFP
Form-Factor for Server-to-Switch and Switch-to-Switch Links

Spectra7 Microsystems Inc. (TSX:SEV) ("Spectra7" or the "Company"), a
leading provider of high-performance analog semiconductor products for
broadband connectivity markets, today announced it has achieved a new
low power benchmark of 6mW/Gbps for 400G OSFP Ethernet interconnects,
12x lower than competing optical solutions that are as much as 75mW/Gbps.

"U.S. data centers use more than 90 billion kilowatt-hours of
electricity a year, requiring roughly 34 giant (500-megawatt)
coal-powered plants. Global data centers used roughly 416 terawatts
(4.16 x 1014 watts) (or about 3% of the total electricity)
last year, nearly 40% more than the entire United Kingdom. And this
consumption will double every four years. This is a big problem, and
it's getting bigger," reports Radoslav Danilak for Forbes Technology

Spectra7 GaugeChangerTM enabled Active Copper Cables (ACCs)
can replace Active Optical Cables (AOCs) for lengths up to 7m, which
account for over 90% of the links in a typical data center. At a savings
of up to 28 watts per interconnect, this adds up to almost 800 watts per
32-port top-of-rack switch. A large data center using Spectra7
technology could save several megawatts by incorporating ACCs over AOCs.

The OSFP is a new pluggable form factor with eight high-speed electrical
lanes that will initially support 400 Gbps (8x50G). It is slightly wider
and deeper than the QSFP but it still supports 36 OSFP ports per 1U
front panel, enabling 14.4 Tbps per 1U.

Spectra7's GaugeChanger is an innovative and disruptive technology that
enables copper cables to extend to much longer lengths without the cost
and power penalty of optical cables. It works equally well at 25Gbps NRZ
and 50Gbps PAM4 enabling new connector standards of 100/200/400 Gbps.

"We are extremely pleased to offer such significant power and cost
savings to the data center market," said Spectra7 CEO Raouf Halim. "We
believe our power advantage over existing technologies will make our
cables an attractive alternative to data center operators as increased
demand for higher bandwidth puts an increasing premium on low-power

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

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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