TIDMAWE
RNS Number : 7908X
Alphawave IP Group PLC
28 April 2023
Q1 2023 Trading and Business Update
-- Record quarterly bookings, exceeding US$100m for the first time
-- First 3nm design win with a top North American hyperscaler
-- Design win with a leading APAC customer for our leading Gen6 PCIe SerDes and Controller IP
-- Strong rate of quarterly design wins reflects the scalability of our technology
-- Expanded customer base with 8 new design wins, including 1
new custom silicon design win and 7 IP licence design wins
-- Management remains confident in the outlook for the business
LONDON, United Kingdom and TORONTO, Ontario, Canada 28 April
2023 - Alphawave IP Group plc (LN: AWE, the "Company" or "Alphawave
Semi"), a global leader in high-speed connectivity for the World's
technology infrastructure, is pleased to publish its trading and
business update for the three months ended 31 March 2023.
US$m Q1 2023 Q1 2022 Change
-------- -------- -------
Licence and NRE 67.3 19.4 246%
------------------------------------------- -------- -------- -------
Royalties and Silicon Orders 35.8 5.6 541%
------------------------------------------- -------- -------- -------
New Bookings (excluding VeriSilicon
and WiseWave multi-year subscription
licences) 103.1 25.0 312%
Additional design win activity - FSA - 5.2 nm
drawdowns and China re-sale licences
[1]
WiseWave multi-year subscription licences - - 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
Semi said: "We started the year with record quarterly bookings,
breaking through US$100m for the first time. We also achieved
several exciting new wins during the quarter, such as a 3nm IP
licence with a top North American hyperscaler and a PCI-Express
Gen6 interface-based IP licence for a storage product. Customers'
demand for our high-performance IP and products remains robust and
our pipeline is as strong as it has ever been. We are excited about
the year ahead and the long-term growth potential of our
business."
John Lofton Holt, Executive Chairman of Alphawave Semi said:
"The level of bookings in the first quarter of the year reflects
the scalability of our business and our technology leadership in
the most advanced technologies. Our talented team and its continued
strong execution support our ambition and the creation of long-term
value for all our stakeholders."
Key Highlights
New bookings quadrupled year-on-year from US$25.0m to
US$103.1m.
Licence and Non-recurring Engineering ("NRE") bookings in Q1
2023 were up 246% year-on-year to US$67.3m. Licence and NRE
bookings in the first quarter were primarily driven by EMEA and
APAC customers, including a chiplet design win with a leading APAC
customer. Chinese customers [2] represented less than 10%.
Royalties and Silicon orders were US$35.8m, significantly above
Q1 2022. The level of silicon orders was driven by pre-existing
custom silicon designs for Chinese and North American customers
still in production.
The level of bookings in the quarter reflects the scalability of
our technology through IP licensing and custom silicon. Our
vertically integrated business model enables the business to
generate larger revenue streams and capture the full value embedded
in our custom silicon offering. Additionally, in Q1 2023, we
received the first samples orders for our Connectivity
Products.
Expanding Technology Leadership and Strong Customer Traction
Since 2017, the Company has demonstrated connectivity technology
leadership in leading-edge technologies, including 3nm process. In
Q1 2023, we achieved another design win in 3nm with our ZeusCORE
IP. Our IP was licenced by a top North American hyperscaler for its
next-generation data centre products. Additionally, we had secured
a design with our KappaCORE IP, our leading Gen6 PCIe/CXL
Controller IP, with a leading APAC customer. These two design wins
reflect the strength of our leading technology and the opportunity
to further increase our market share. The Company expects further
design wins in 3nm and continues to work with its foundry partners
in 3nm and beyond.
With our expanded IP portfolio, we are strongly positioned to
deliver complete connectivity solutions for our IP and custom
silicon customers. In Q1 2023, through our UCIe-based interconnect
IP, we won a custom silicon (chiplet) opportunity with a leading
APAC customer. This design win is an indication of the increased
market momentum of chiplet architectures.
In Q1 2023, there were no Flexible Spending Accounts ([3])
("FSA") drawdowns or China (VeriSilicon) reseller deals ([4]) .
Both FSA and reseller deals represent the conversion of customer
commitments to design wins.
Overall, design win activity in the quarter was strong with 8
new design wins, including 1 from a new customer and 7 from repeat
customers.
Alphawave Semi now has more than half of the top twenty
semiconductor device companies as customers [5] , a reflection of
its continued strength in the data infrastructure markets that
require the World's most advanced connectivity technology.
Outlook
The outlook for 2023 remains unchanged. Alphawave Semi expects
2023 revenue of US$340m to US$360m and adjusted EBITDA of
approximately US$87m (or approximately 25% of revenue), which is 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.
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 centres,
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 press
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 Semi John Lofton Holt, Executive ir@awaveip.com
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
Siddarth Nigam +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] These Chinese customers are out of scope from the WiseWave
and VeriSilicon agreements.
[3] FSAs 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.
[4] 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.
[5] Semiconductor device companies ranked on market
capitalisation as of 19.04.23.
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