Sivers Semiconductors Faces Dual Test: Short Seller Allegations and Shareholder Vote on Capital Raise

Sivers stock plunges 12% after Ningi Research alleges revenue recognition issues; board seeks 15% dilution ahead of AGM as cash burn accelerates.

The Swedish photonics and wireless-chip specialist Sivers Semiconductors is navigating a perfect storm of investor scrutiny. Just two weeks before its annual general meeting on June 15, a short-seller report from Ningi Research sent shares into a tailspin, while the board simultaneously seeks authority to issue up to 53.8 million new shares — a potential dilution of roughly 15%. Shareholders are being asked to hand management significant strategic latitude even as questions swirl around revenue quality and a 22% first-quarter sales decline.

The trading session on June 1 was brutal. Sivers stock opened roughly 8% lower after Ningi disclosed a short position, then recovered partially before closing down 12%. The volume was extraordinary by Swedish standards: over 560 million Swedish kronor changed hands, dwarfing the day's second-most-active stock, Saab, at around 350 million kronor. The wild intraday swings reflected deep market uncertainty about the company's financial disclosures.

Ningi's allegations cut to the heart of Sivers' credibility. The research firm claims aggressive revenue recognition and possible IFRS violations, asserting that at least 97 million kronor — approximately 31% of the revenue reported for 2025 — is questionable. Some of that sum, Ningi argues, relates to products not yet manufactured or to government research subsidies. These are allegations, not regulatory findings, but they land at a vulnerable moment. Sivers posted Q1 net sales of 61.9 million kronor, down from 78.9 million a year earlier. Adjusted EBITDA was negative 13.8 million kronor, operating loss 41.5 million kronor, and operating cash flow negative 49.2 million kronor.

Management attributes the revenue drop to delayed U.S. defense budget decisions that pushed some sales into the second half. The company also noted the U.S. government shutdown in late 2025 and an unfavorable exchange rate as headwinds. CEO Vickram Vathulya has stressed the longer-term picture: the opportunity pipeline has grown 77% since year-end to $799 million, and the Northeast Microelectronics Coalition Hub extended the EW-STAR project by a year, unlocking $6.6 million from the U.S. Chips Act. Partners include BAE Systems, MIT Lincoln Laboratory, and Columbia University.

Yet the cash burn is accelerating, and profitability remains distant. The board expects to turn profitable no earlier than 2028, with a long-term growth target of 25-30% annually. Meanwhile, the AGM will vote on a proposal to carry forward all 2025 earnings — meaning no dividend — and adopt a long-term incentive plan granting up to 7 million new stock options. The capital raise itself is intended to fund organic growth, potential acquisitions, and a secondary listing on the Nasdaq in New York. Sivers has already converted its 2024 and 2025 annual accounts to PCAOB audit standards, but the timing of a U.S. listing depends on market conditions.

Board composition is also changing. Vice Chairman Tomas Duffy, founding investor Erik Fallström, and Keith Halsey are stepping down, clearing out the Scandinavian founding core. Joakim Nideborn, a former CFO of listed technology companies, is proposed as the new vice chairman, and Helena Svancar, with over two decades of international leadership experience, is slated to join the board. The reconstitution signals a shift toward more commercially oriented governance.

Operationally, milestones are piling up. Automotive LiDAR production is scheduled to start in the fourth quarter of 2026 with a major automaker. After the quarter ended, Sivers announced a collaboration with Jabil to develop a 1.6-terabit optical transceiver for AI data centers. The product portfolio spans AI data-center photonics, optical interconnects, SATCOM beamforming, and automotive LiDAR. But as the short seller's report has made clear, the market now wants to see booked revenue, not just pipeline promises.

The next quarterly report is due August 6. Between now and then, the June 15 AGM will provide the first clear signal of how much strategic rope shareholders are willing to give management — and whether the dilution and board overhaul can revive confidence after the short-seller shock.