TIDMAWE
RNS Number : 6039M
Alphawave IP Group PLC
13 January 2023
ALPHAWAVE IP GROUP PLC
Q4 2022 Trading and Business Update
-- Expanded customer base with 8 new design wins, including two
new top-tier semiconductor companies
-- Strong Q4 design wins in the quarter reflect our hybrid
business model, combining IP and silicon
-- Second design win with opto-electronics products
-- Tapeouts of several leading next generation products for
solutions in 224G, PCI-Express Gen6, CXL3.0, HBM 3.0, and UCIE
-- First full quarter consolidation of OpenFive into the Group
-- Management remains confident in the outlook for the business
-- Company rebrands to Alphawave Semi, reflecting the expanded business model
LONDON, United Kingdom and TORONTO, Ontario, Canada 13 January
2023 - Alphawave IP Group plc (LN:AWE, "Alphawave Semi",
"Alphawave", the "Company"), a global leader in high-speed
connectivity for the world's technology infrastructure, is pleased
to publish its trading and business update for the three months
ended 31 December 2022.
US$m Q4 2022 Q4 2021 Change
-------- -------- -------
Licence and NRE 35.1 18.5 90%
------------------------------------------- -------- -------- -------
Royalties and Silicon Orders 59.7 7.0 nm
------------------------------------------- -------- -------- -------
New Bookings (excluding VeriSilicon
and WiseWave multi-year subscription
licences) 94.8 25.5 272%
Additional design win activity - FSA - - nm
drawdowns and China re-sale licences
[1]
WiseWave multi-year subscription licences - - nm
Number of end-customers (as at end
of period) [2] 69 20 nm
------------------------------------------- -------- -------- -------
Due to rounding, numbers presented in the table may not add up
to the totals provided and percentages may not precisely reflect
the absolute figures.
Tony Pialis, President and Chief Executive Officer of Alphawave
IP said: "We ended FY 2022 with strong design win momentum and a
rapidly expanded customer base. Building on a broader product
portfolio, our design win pipeline remains strong as we can now
address more of our customers' connectivity needs, via both silicon
IP and custom silicon. In Q4 2022, we saw the benefits of our
hybrid business model and the potential to further monetise our
high-performance IP through silicon. We also recently completed
several major tapeouts for new next generation products in the
224G, HBM, and UCIE based chiplets. All of this makes us very
excited about the year ahead and we remain confident in the
long-term growth potential of our business".
John Lofton Holt, Executive Chairman of Alphawave IP said: "The
level of bookings in the final quarter of the year reflects the
growth potential of our connectivity technology and the ongoing
strong execution of our team. Our talented team and leadership in
the most advanced technologies support our long-term ambition and
the creation of value for shareholders and other stakeholders."
Key Highlights
Licence and Non-recurring Engineering ("NRE") bookings in Q4
2022 were up 90% year-on-year. Including estimates of potential
future royalties [3] and silicon orders, new bookings excluding the
WiseWave multi-year subscription licence were up 272% year-on-year.
License & NRE bookings in the fourth quarter were driven
primarily by North American and APAC customers, with less than 10%
coming from China [4] .
In Q4 2022 we also secured our second design win for our
opto-electronics products targeting next generation 800G ethernet
applications. This design win leverages our strong electro-optic IP
portfolio and shows the potential to create value by meeting more
of our customers' connectivity needs.
Cumulative bookings over the life of the Company [5] exceeded
US$580 million.
Expanding Technology Leadership and Strong Customer Traction
Since 2017, the Company has demonstrated connectivity technology
leadership at leading edge technology, now at 3nm. Licence and NRE
bookings in Q4 2022 were mostly at 7nm, 5nm and 4nm. The Company
expects further design wins in 3nm and continues to work with its
foundry partners in 3nm and beyond.
Furthermore, in Q4, the Company delivered silicon tapeouts for
its next generation 224G, PCI-Express Gen6, HBM3 and UCIe interface
IP in both 5nm and 4nm processes. 224G, PCI-Express Gen6, CXL3.0,
HBM3 and UCIe and next generation networking, memory and chiplet
interfaces that are critical for AI, server, storage and networking
devices deployed heavily by hyperscalers. With our expanded IP
portfolio, we are strongly positioned to deliver complete
connectivity solutions for our IP and custom silicon customers.
In Q4 2022, Alphawave joined TSMC's Open Innovation Platform
(OIP) 3DFabric Alliance. As a founding member, Alphawave will
support TSMC's OIP in order to drive a new chiplet based ecosystem
to accelerate next generation semiconductor developments.
In line with the prior year, in Q4 2022 there were no Flexible
Spending Accounts ([6]) ("FSA") drawdowns or China (VeriSilicon)
reseller deals ([7]) . Both FSA and reseller deals represent the
conversion of customer commitments to design wins.
Design win activity in the quarter was strong with 8 new design
wins, including 4 from new customers and 4 from repeat customers.
In the quarter we built on the advantages of the hybrid business
model with four new custom silicon wins in September. Our hybrid
model enables the business to generate larger revenue streams by
capturing the full value embedded in our custom silicon
offering.
Alphawave has now seven of the top ten semiconductor device
companies as customers [8] , a reflection of its continued strength
in the data infrastructure markets that require the world's most
advanced connectivity technology.
Outlook
Alphawave expects 2023 revenue of US$340m to US$360m and
adjusted EBITDA of approximately US$87m at the mid-point of the
revenue guidance range.
Despite the uncertain macroeconomic environment, our growing
pipeline reflects positive secular growth trends in data
infrastructure markets and the continued investment in next
generation connectivity solutions. This combined with our talented
team and strong balance sheet give us confidence in our future.
Alphawave IP Rebrands to Alphawave Semi
Alphawave IP has rebranded to Alphawave Semi to reflect its
expansion into a vertically integrated semiconductor company.
Bringing IP and silicon capabilities together adds enhanced value
to customers and services more of their high-speed connectivity
needs. The new identity preserves the Alphawave brand that
customers have come to depend upon and trust. Alphawave Semi
continues to expand the technology leadership it has built on
high-speed connectivity IP, with a mission to accelerate the
critical data infrastructure at the heart of a digital world.
About Alphawave Semi
Alphawave Semi is a global leader in high-speed connectivity for
the world's technology infrastructure. Faced with the exponential
growth of data, Alphawave Semi's technology services a critical
need: enabling data to travel faster, more reliably and with higher
performance at lower power. We are a vertically integrated
semiconductor company, and our IP, custom silicon, and connectivity
products are deployed by global tier-one customers in data centers,
compute, networking, AI, 5G, autonomous vehicles, and storage.
Founded in 2017 by an expert technical team with a proven track
record in licensing semiconductor IP, our mission is to accelerate
the critical data infrastructure at the heart of our digital world.
To find out more about Alphawave Semi, visit: awavesemi.com
Related Party Disclosures
There are no new related parties disclosed in this release.
###
Trademarks
Alphawave Semi and the Alphawave Semi logo are trademarks of
Alphawave IP Group plc. All rights reserved. All registered
trademarks and other trademarks belong to their respective
owners.
Contact Information:
Alphawave IP Group John Lofton Holt, Executive ir@awaveip.com
plc Chairman +44 (0) 20 7717 5877
Jose Cano, Head of IR
--------------------- ------------------------------- ---------------------------
Brunswick Group Simone Selzer alphawave@brunswickgroup.com
Sarah West +44 (0) 20 7404 5959
------------------- ----------------------------- -------------------------------
Gravitate PR Lisette Paras alphawave@gravitatepr.com
Wynton Yu +1 415 420 8420
===================== =============================== ===========================
[1] Both FSA (Flexible Spending Account) drawdowns and China
re-sale licences convert previously announced contractual
commitments included within bookings reported in prior periods to
new product design wins which will be recognised as revenue over
time.
[2] Includes customers from OpenFive who were not already
customers of Alphawave and who signed contracts over from 1(st)
September 2022.
[3] Our bookings comprise in some instances, our estimate of
potential future royalties. Our royalties are estimated based on
contractually committed royalty prepayments or, in limited
instances, on sensitised volume estimates provided by
customers.
[4] These Chinese customers are out of scope from the WiseWave
and VeriSilicon agreements.
[5] Since its inception in 2017.
[6] FSAs or Flexible Spending Accounts represent contracts with
customers who have committed to regular periodic payments. These
payments are not in respect of specific licences but can be used as
credit against future deliverables. FSA drawdowns represent the
design win value of transactions signed during the period, against
which FSA payments will be credited and will convert to revenue
over time.
[7] In February 2021, Alphawave IP signed a three-year exclusive
subscription reseller agreement with VeriSilicon with a minimum
value of US$54 million. Reseller deals represent the subsequent
licensing of IP by VeriSilicon to third parties in China and do not
constitute additional bookings for the Company as they are part of
the US$54 million minimum commitment.
[8] Semiconductor device companies ranked on market
capitalisation.
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END
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January 13, 2023 02:00 ET (07:00 GMT)
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