Kalray continues to deploy its offer for the data center and 5G markets:

• Commercial launch of the brand new Kalray K200-LP™ accelerator card targeting volume production second half of the year and manufactured by global leader WISTRON
• Preparing to launch an NVMe storage appliance based on the K200-LP™ accelerator cards, commercially available by September
• Collaboration with VATES and SCALEWAY to deploy an acceleration offer using K200-LP™ cards for virtualized environments, a major data center market
• Collaboration with ORANGE and BULL/ATOS for the development of 5G optimized servers

Stable revenue in the context of a pre-volume phase and a still solid cash position of €18.8 million

Confirmation of the 2021 and 2023 ambitions

Grenoble - France, July 12, 2021 - Kalray (Euronext Growth Paris : ALKAL), a pioneer in processors dedicated to new intelligent systems, publishes a status on first half 2021(1) activity (from January 1 to June 30, 2021) and on this occasion, looks back on the highlights of the period.

Éric Baissus, President of Kalray's Executive Board, commented as follows:

“The first half of 2021 has seen Kalray continue its roadmap in its target markets through the deployment of its accelerator cards in both the data center and automotive markets. This semester, two products have already been announced with Kalray processors: the Bluebox 3.0 platform for the automotive market by NXP and the FURIO1200™ storage appliance by WISTRON. At the same time, we continue our efforts to meet the needs of our customers and deploy our products in the market.  We are pleased to announce that in addition to our acceleration cards, we are developing an integrated offering for the storage market, the Kalray FLASHBOX™.

With the FLASHBOX™, Kalray will be able to offer its customers and partners, enterprises and cloud service providers a complete NVMe storage appliance based on the NVMe standard and Kalray's acceleration cards, starting in September. This integrated offering, co-developed with a major server player and complementary to Kalray's acceleration cards, is aimed at the fast-growing NVMe storage market for AI and high-speed data processing applications. This is the result of several factors: a need from end customers, particularly in Europe, for a turnkey solution that is very easy to integrate; a need from our partners, server manufacturers and resellers, to be able to offer a complete solution that is easy to deploy on the market; and finally, an opportunity for Kalray to deploy its storage offering more quickly, and to enhance with our customers and strategic partners the functions that only our technology is capable of offering. The Kalray FLASHBOX™ will be distributed by our partners, OEMs and integrators.

This half-year has also enabled us to make progress on two applications targeted by our acceleration cards, which have very promising potential and which we are developing with renowned partners: a first application aimed at accelerating virtualized environments in the Cloud, in collaboration with our partners VATES and SCALEWAY with first products expected by the end of the year, and the development of more economical and sovereign servers for 5G, in particular with ORANGE and BULL/ATOS.

This allows us to be confident about our revenue targets for this year, particularly with the sale of the K200-LP™ cards and the first FLASHBOX™, and about our longer-term goals in the context of an accelerator card and Edge Computing market, which is confirmed as one of the key markets in our industry for the next decade."

KALRAY CONTINUES TO DEPLOY ITS ACCELERATION CARDS FOR THE DATA CENTER MARKET WITH ITS K200-LP™ CARD:

FOR STORAGE …

KALRAY has announced in the first half of 2021 the K200-LP™, a brand-new accelerator card. This card has been designed with a small form factor ("low profile"), very low power consumption (30 watts) and for high-volume production. It targets the storage market but also the data center and cloud market in general. Indeed, in addition to being at the heart of Kalray's storage offering and of the upcoming FLASHBOX™ solution, the K200-LP™ aims to reduce appliance power consumption very significantly in next-generation data centers and Edge data centers.

The first sales volumes are confirmed for the second half of the year in the storage market.

TO OPTIMIZE VIRTUALIZED ENVIRONMENTS WITH VATES AND SCALEWAY ...

In addition to storage applications, Kalray announced the development, with its partner VATES and in collaboration with SCALEWAY, of a new secure, performance-optimized virtualization stack targeting data-intensive applications. This offering will combine Kalray's new K200-LP™ accelerator card, featuring the latest generation MPPA® Coolidge™ processor, with VATES optimized XCP-ng open-source virtualization solution. The goal is to offload a significant amount of data to Kalray's processors, leveraging the high performance and low power of Kalray's processors to provide a much more efficient overall solution to end customers. This offering will be available end of 2021.

... AND TO BE AT THE HEART OF 5G AND EDGE COMPUTING WITH ORANGE AND ATOS

Kalray is also accelerating the deployment of its offering in the broader 5G and Edge Computing markets. Kalray announced the development of a power-optimized 5G offering with ORANGE and ATOS, using Kalray's accelerator cards. This development is part of the PIRANA (Platform Inline for Radio, Application and Network Accelerations) project, which was awarded the "Sovereign Solutions for Telecommunication Networks" project of the French government “Invest for the Future” plan. The objective of this project is to build a sovereign French and European offer in 5G, while main market players are currently American or Chinese.

KALRAY PREPARES TO LAUNCH ITS NEXT GENERATION STORAGE APPLIANCE: THE FLASHBOX™

The AI and data-intensive processing market is booming, especially in the fields of data analytics, finance, genomics. To meet these needs, Kalray has been developing for several months with a partner and major player a next-generation NVMe storage array leveraging Kalray's acceleration cards: the FLASHBOX™. The FLASHBOX™ aims to greatly facilitate the adoption of NVMe technology by offering end customers, enterprises or Cloud Service Providers ("CSPs"), a storage array, with all the necessary software layer, ready to be integrated very easily into customers' infrastructures. It is based on our partner redundant chassis and one or more Kalray intelligent storage accelerator cards.  With its unique performance and ease of integration, Kalray believes this revolutionary NVMe storage appliance will enable the storage of very large data streams, while offering the same ease of use and adoption as solutions using traditional technologies. This new offering will complement Kalray's partner WISTRON's FURIO 1200™ storage appliances.

KALRAY plans to unveil the features of this new product at a partner and customer event in late September. The FLASHBOX™ will be available for resale through OEMs (Original Equipment Manufacturers) and ODMs (Original Design Manufacturers) partners and can also be used as a reference design for server manufacturers to develop their own NVMe storage appliance using Kalray's cards.

KALRAY TECHNOLOGY'S APPEAL CONFIRMED IN THE AUTOMOTIVE MARKET

At the beginning of the semester, NXP, the world leader in automotive semiconductors, announced the availability of the BlueBox 3.0, its development platform integrating Kalray's solution, which aims at the next generation of vehicles. BlueBox 3.0 is now available to NXP customers and is targeted at the L2 to L4 segments requiring compute-intensive applications and artificial intelligence algorithms, particularly for autonomy and driver assistance functions.

At the same time, Kalray has been selected by a leading automotive integrator to evaluate its technology in the context of new Central Computing architectures, which aim to integrate on a single chip the numerous functionalities currently scattered throughout a vehicle, regardless of segment. This project opens new perspectives for Kalray's technology, which could address not only vehicles in the L3/L4 segments, but also entry-level L1/L2 vehicles, which will still represent the bulk of the automotive market for many years.

STABLE NET SALES AND STRONG CASH POSITION

In the first half of 2021, sales of cards and development stations, as well as related licenses and services, generated sales of € 415k almost stable compared to the first half of 2020 (€ 489k as of 30 June 2020). This is revenue from the pre-volume phase, with increased revenue expected for the second half of the year with the sale of accelerator cards and the first sales of the next-generation storage appliance, the Flashbox™.

Cash at June 30, 2021 amounted to € 18.8 million, a very limited decrease of € 1.4 million compared to December 31, 2020, thanks to good control of cash consumption while investments are continuing and to the activation of the equity financing line (2) set up with Kepler Cheuvreux for an amount of € 7.0 million as of June 30, 2021 (out of a total of € 12 million, issue premium included, over a maximum period 24 months).

AMBITIONS CONFIRMED FOR 2021 AND 2023

Finally, Kalray confirms its ambition to generate revenues in the order of several million euros in 2021. This ambition will be refined on the occasion of the publication of the half-yearly results. The gradual ramp-up of volumes will support net sales in the coming years and the company confirms its ambition to reach € 100 million in annual net sales in 2023.

Next meeting :

Tuesday October 5, 2021 (after closing): Half-year results 2021

RISK FACTORS

The public's attention is drawn to the risk factors relating to the Company and its activity appearing in the 2021 annual financial report which is available free of charge on its website (www.kalray-bourse.com). The realization of all or part of these risks or deterioration of all or part of the assumptions made by the Company is likely to have an unfavorable effect on its activity, its financial situation, its results, its development, or its prospects.

ABOUT KALRAY

Kalray (Euronext Growth Paris -FR0010722819 -ALKAL) is a fabless semiconductor company, leading provider in a new generation  of  processors  specialized  in  Intelligent  Data  Processing  from  Cloud  to  Edge.  Kalray  MPPA®  Intelligent Processors are able to capture and analyze on the fly massive data flows, and interact in real time with the outside world. These processors are capable of running demanding AI algorithms and simultaneously a wide set of different processing and  control  tasks  such  as  intensive  mathematical  algorithms,  signal  processing,  network  or  storage  software  stacks. Kalray's Intelligent Processors can be deployed in fast-growing  sectors  from  Cloud  to  Edge:  modern  data  centers,  5G telecom  networks,  autonomous  vehicles,  healthcare  equipment,  industry 4.0, drones and robots... Kalray's offering includes processors, acceleration cards and a software suite, for a broad spectrum of customers such as next generation data center equipment manufacturers and service providers, system integrators and consumer product manufacturers such as car makers. Founded in 2008 as a spin-off of CEA French lab, Kalray counts among its investors: Alliance Venture (Renault-Nissan-Mitsubishi), Safran, NXP Semiconductors, CEA and Bpifrance. Read more at: www.kalrayinc.com