TIDMAWE
RNS Number : 3722A
Alphawave IP Group PLC
22 January 2024
Q4 2023 Trading and Business Update
-- Record quarterly bookings of US$128.7m
-- Record quarterly licence and NRE bookings of US$121.1m up 245% over Q4 2022
-- Approximately 90% of licence & NRE bookings in advanced nodes, 7nm and below
-- Major extension of IP development and licencing deal with
leading APAC customer including UCIe, PCIeGen7, 224G and 2nm
technology
-- 3nm HPC[1] chiplet-based custom silicon design win for a leading European HPC supplier
-- 7 new design wins, mainly in APAC, Europe and North America
-- Partnership with ARM expands addressable market
-- Strong pipeline of opportunities in Q1 2024 and FY 2024
-- Management remains confident in the outlook for the business
LONDON, United Kingdom and TORONTO, Ontario, Canada 22 January
2024 - Alphawave IP Group plc (LN: AWE, the "Company" or "Alphawave
Semi"), a global leader in high-speed connectivity for the world's
technology infrastructure, is pleased to publish its trading and
business update for the three months ended 31 December 2023.
US$m Q4 2023 Q4 2022 Change
-------- -------- -------
Licence and NRE 121.1 35.1 245%
------------------------------------------ -------- -------- -------
Royalties and Silicon Orders 7.6 59.7 (87)%
------------------------------------------ -------- -------- -------
New Bookings 128.7 94.8 36%
Additional design win activity - FSA 0.4 - nm
drawdowns and China re-sale licences[2]
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: "In the past quarter we achieved record quarterly
bookings of US$128.7m, predominantly in our high margin IP and
custom silicon NRE business. We continued to increase our market
share in advanced nodes with a major IP extension with a leading
APAC customer and our second 3nm custom silicon design win. Our Q1
2024 pipeline remains strong with continued high demand from
customers for our high-performance IP and products. We are excited
about the long-term growth potential of our business."
John Lofton Holt, Executive Chairman of Alphawave Semi said:
"Our technology leadership in the most advanced technologies is
driving the ongoing momentum of design wins and record quarterly
bookings. This momentum is driven by the leading hyperscalers and
AI companies in North America. We enter 2024 with strong business
momentum and remain focused on execution and long-term value
creation."
Key Highlights
New bookings in Q4 2023 were 36% above the prior period at
US$128.7m (Q4 2022: US$94.8m).
Licence and Non-recurring Engineering ("NRE") bookings in Q4
2023 were 245% above Q4 2022 at a quarterly record of US$121.1m.
EMEA, APAC (excluding China) and North American customers
represented 99% of these bookings and approximately 90% of the
licence & NRE bookings were in advanced nodes, 7nm and
below.
As anticipated, Royalties and Silicon orders were down
significantly over Q4 2022 at US$7.6m, as we actively
de-prioritised the legacy lower margin silicon business from
Chinese customers. Silicon orders in the quarter were from EMEA and
North American customers. We expect further silicon orders from
Chinese customers in 2024, albeit at a lower level than in
2023.
Our pipeline of opportunities in Q1 2024 remains strong. The
level of bookings in the quarter and our growing pipeline reflects
the scalability of our technology through IP licensing and custom
silicon.
Our Connectivity Products Group continues to make made good
progress toward our plan to start generating revenue in 2024.
The combined custom silicon design wins in 2023 will support our
mid- and long-term revenue targets as we start to generate revenue
from the production phase. These wins currently have a potential
lifetime revenue from silicon production of approximately US$500m
which is not yet reflected in our bookings or backlog. The first
silicon production orders are expected in 2025 which is when they
will start contributing to revenue[3].
Expanding Technology Leadership and Strong Customer Traction
Alphawave Semi's customers include leading semiconductor device
companies, as well as data center module makers and
hyperscalers.
Overall, design win activity in the quarter was strong with 7
new design wins, mainly from existing end-customers. These wins
reflect Alphawave Semi's continued strength in AI and the data
infrastructure markets that require the world's most advanced
connectivity technology.
Since 2017, Alphawave Semi has demonstrated connectivity
technology leadership in leading-edge technologies. In Q4 2023 we
signed a major IP licence deal extension with a leading APAC
customer, including UCIe, PCIeGen7, 224G and 2nm technology and a
5nm IP Licence deal with a leading North American customer. These
design wins reflect the ongoing market momentum of leading-edge
connectivity. The Company expects further design wins in 3nm and
continues to work with its foundry partners in 3nm, 2nm and
beyond.
With our expanded IP portfolio and silicon expertise, we are
strongly positioned to deliver the most advanced connectivity
solutions for our custom silicon customers. In Q4 2023, we won
further 3nm custom silicon business. We signed an HPC[4]
chiplet-based custom silicon design win with a leading European HPC
company driving an EU-wide HPC initiative driven by Alphawave
Semi's next generation 32G UCIe and HBM3 technologies. Furthermore,
during the quarter we won additional 3nm business with a leading
North American module maker.
In Q4 2023, there were US$nil Flexible Spending Accounts ([5])
("FSA") drawdowns (Q4 2022: US$nil) and US$0.4m China (VeriSilicon)
reseller deals ([6]) (Q4 2022: US$nil). Both FSA and reseller deals
represent the conversion of customer commitments to design
wins.
During the quarter Alphawave Semi announced that it had joined
Arm Total Design , an ecosystem to make specialised solutions based
on Arm(R) Neoverse(TM) Compute Subsystems (CSS) widely available
across the infrastructure. Generative AI has fundamentally
transformed data center compute and connectivity by creating a
surge in demand for compute, memory bandwidth, I/O speeds, and
energy efficiency. Customers gain a significant time to market
advantage by integrating Alphawave Semi's Universal Chiplet Express
(UCIe(TM) ) enabled custom silicon and pre-built connectivity
chiplets with Arm Neoverse CSS compute.
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 AI- centric connectivity solutions. This, combined
with our talented team and strong balance sheet, give us confidence
in our future.
The Company will report audited results for the year ended 31
December 2023, in April 2024. Further details will be provided near
the time.
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 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@awavesemi.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
Michael Terry Caraher +1 415 420 8420
================== ============================== ==========================
LEI: 213800ZXTO21EU4VMH37
[1] High Performance Computing
[2] 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.
[3] Silicon orders typically convert to revenue in 3-6
months
[4] High Performance Computing
[5] 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.
[6] 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTSEIFAFELSEEF
(END) Dow Jones Newswires
January 22, 2024 02:00 ET (07:00 GMT)
Alphawave Ip (LSE:AWE)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Alphawave Ip (LSE:AWE)
Historical Stock Chart
Von Mai 2023 bis Mai 2024