Achronix Semiconductor Corporation, a leader in high-performance
field-programmable gate arrays (FPGAs) and embedded FPGA (eFPGA) IP
today announced financial results for the year ended December 31,
2020, reporting revenue of $104.9 million and GAAP net income of
$30.4 million and adjusted EBIT (non-GAAP) of $37.4 million.
2020 Highlights:
- Revenue increased to $105 million in line with prior
expectations, driven by mainstream Speedster®22i products.
- Released the first device in the Speedster7t 7nm
high-performance data acceleration FPGA family for
manufacturing.
- Completed 7nm silicon validation of its 1-112G high-performance
SerDes supporting 400G Ethernet and PCI Express Gen 5.
- Added 12 new sales representative teams in key geographies to
accelerate the adoption of Speedster7t FPGAs and Speedcore™
products worldwide.
- Released new versions of Achronix design tools supporting the
Speedster7t and Speedcore product offerings. New performance
features include a simplified I/O designer toolkit and
two-dimensional network on chip (2D NoC) analysis tools.
- Speedster7t FPGAs received the Frost and Sullivan New Product
Innovation Award for 2020 North American FPGAs for Data
Centers.
Robert Blake, Achronix’s Chief Executive Officer stated, “2020
was a strong growth year for Achronix. Our new and highly
differentiated Speedster7t FPGAs together with our innovative
Speedcore eFPGA IP solutions for data acceleration have seen
significant levels of new design activity across all of our target
end-market applications.”
Mr. Blake further commented, “We look forward to closing our
merger with ACE Convergence Acquisition Corp. (ACE) in the second
quarter of 2021 and completing our listing on Nasdaq under the new
Achronix Semiconductor Corporation ticker symbol ACHX. Through this
business combination, we intend to use the additional capital
generated to help further accelerate the adoption of data
acceleration solutions and strategic product development
initiatives to drive long-term growth.”
About Achronix Semiconductor Corporation
Achronix Semiconductor Corporation is a fabless semiconductor
corporation based in Santa Clara, California, offering high-end
FPGA-based data acceleration solutions, designed to address
high-performance, compute-intensive and real-time processing
applications. Achronix is the only supplier to have both
high-performance and high-density standalone FPGAs and licensed
eFPGA solutions. Achronix FPGA and eFPGA IP offerings are further
enhanced by ready-to-use accelerator cards targeting artificial
intelligence (AI), machine learning, networking and data center
applications. All Achronix products are fully supported by a
complete and optimized range of Achronix design tools, which
enables customers to quickly develop their own custom
applications.
Achronix has a global footprint, with sales and design teams
across the U.S., Europe and Asia. For more information, please
visit www.achronix.com.
About ACE Convergence Acquisition Corp.
ACE Convergence Acquisition Corp. is a $230 million special
purpose acquisition company whose business mandate is to identify
and acquire an emerging leader in the IT infrastructure
software/systems and system-on-a-chip markets that is
well-positioned to capitalize on the changing landscape of data
acceleration being driven by developments in AI, Cloud, and 5G
technologies. ACE is comprised of a team of sector specialists with
a solid track record of scaling complex technology organizations
and making transformative value-creation decisions. For more
information, please visit http://acev.io/home/default.aspx.
About ACE Equity Partners
ACE Equity Partners is an Asian-nexus mid-market cross-border
private equity firm with a single-minded focus on the convergence
of digital and industrial technologies. For more information,
please visit: http://acelp.co.kr.
Adjusted EBIT (non-GAAP) Metric
We present adjusted EBIT (non-GAAP) in this press release, which
is defined as our net income excluding stock-based compensation
expense, total other income (expense), net, and provision for
income taxes. We have presented adjusted EBIT because we believe it
is an important measure used by industry analysts and investors to
compare our performance against that of our peer group and they
provide a useful measure for period-to-period comparisons of our
core operating performance.
We use non-GAAP financial measures to help us make strategic
decisions, establish budgets and operational goals for managing our
business, analyze our financial results, and evaluate our
performance. We also believe that the presentation of non-GAAP
financial measures provides an additional tool for investors to use
in comparing our core business and results of operations over
multiple periods with other companies in our industry, many of
which present similar non-GAAP financial measures to investors.
However, adjusted EBIT may not be comparable to similarly titled
measures reported by other companies due to differences in the way
that these measures are calculated. Adjusted EBIT should not be
considered as the sole measure of our performance and should not be
considered in isolation from, or as a substitute for, comparable
financial measures calculated in accordance with GAAP.
A reconciliation from our net income to adjusted EBIT for the
year ended December 31, 2020 is as follows:
Net income
$30,425
Stock-based compensation
1,466
Total other income (expense), net
5,418
Provision for income taxes
113
Adjusted EBIT
$37,422
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. These
forward-looking statements generally are identified by the words
“intend,” “future,” “may,” “will,” “would,” “will be,” and similar
expressions. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. All statements, other than
statements of present or historical fact included in this press
release, regarding ACE’s proposed acquisition of Achronix, ACE’s
ability to consummate the proposed transaction, the benefits of the
proposed transaction and the combined company’s future financial
performance, as well as the combined company’s strategy, future
operations, prospects and pipeline expectations, shipping
expectations for new products, and plans and objectives of
management are forward-looking statements. Many factors could cause
actual future events to differ materially from the forward-looking
statements in this press release, including but not limited to: the
risk that the proposed transaction may not be completed in a timely
manner or at all, which may adversely affect the price of ACE’s
securities; the risk that the proposed transaction may not be
completed by ACE’s business combination deadline and the potential
failure to obtain an extension of the business combination deadline
if sought by ACE; the failure to satisfy the conditions to the
consummation of the proposed transaction, including the adoption of
the Merger Agreement by the shareholders of ACE or the stockholders
of Achronix and the receipt of certain governmental and regulatory
approvals; the lack of a third party valuation in determining
whether or not to pursue the proposed transaction; the inability to
complete the concurrent PIPE financing; the occurrence of any
event, change or other circumstance that could give rise to the
termination of the Merger Agreement; the effect of the announcement
or pendency of the transaction on Achronix’s business
relationships, operating results, and business generally; risks
that the proposed transaction disrupts current plans and operations
of Achronix; the outcome of any legal proceedings that may be
instituted against Achronix or against ACE related to the Merger
Agreement or the proposed transaction; the ability to maintain the
listing of ACE’s securities on a national securities exchange;
changes in domestic and foreign business, market, financial,
political, and legal conditions and changes in the combined capital
structure; the ability to implement business plans, forecasts, and
other expectations after the completion of the proposed
transaction, and identify and realize additional opportunities;
failure to realize the anticipated benefits of the proposed
transaction; risks related to the continued impact of the COVID-19
pandemic; related to the rollout of Achronix’s business and the
timing of expected business milestones; the effects of competition
on Achronix’s business; the effects of the cyclical nature of the
semiconductor industry on Achronix’s business; risks related to
Achronix’s customer concentration; the risks to Achronix’s business
if internal processes and information technology systems are not
properly maintained; risks associated with Achronix’s operational
dependence on independent contractors and third parties; risks
associated with Achronix’s reliance on certain suppliers for, among
other things, silicon wafers; risks and uncertainties related to
Achronix’s international operations, including possible
restrictions on cross-border investments which could harm
Achronix’s financial position; and risks associated with Achronix’s
ability to develop new products and adapt to new markets. The
foregoing list of factors is not exhaustive. You should carefully
consider the foregoing factors and the other risks and
uncertainties described in the “Risk Factors” section of ACE’s
registration statement on Form S-4 discussed above and other
documents filed, filed with the SEC on February 10, 2021, as may be
amended from time to time with the SEC and available on EDGAR at
www.sec.gov. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. There may be additional risks that Achronix does not
presently know, or that Achronix currently believe are immaterial,
that could also cause actual results to differ from those contained
in the forward-looking statements. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements as predictions of
future events, and Achronix assumes no obligation and do not intend
to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise, except as
may be required by applicable law.
Important Information for Investors and Stockholders
In connection with the proposed transaction, ACE has filed a
registration statement on Form S-4 (the “Registration Statement”)
with the SEC, which includes a preliminary proxy statement to be
distributed to holders of Ace’s common stock in connection with
ACE’s solicitation of proxies for the vote by ACE’s stockholders
with respect to the proposed transaction and other matters as
described in the Registration Statement, as well as the prospectus
relating to the offer of securities to be issued to Achronix’s
stockholders in connection with the proposed transaction. After the
Registration Statement has been declared effective, ACE will mail a
definitive proxy statement, when available, to its stockholders.
Investors and security holders and other interested parties are
urged to read the proxy statement/prospectus, any amendments
thereto and any other documents filed with the SEC carefully and in
their entirety when they become available because they will contain
important information about ACE, Achronix and the proposed
transaction. Investors and security holders may obtain free copies
of the preliminary proxy statement/prospectus and definitive proxy
statement/prospectus (when available) and other documents filed
with the SEC by ACE through the website maintained by the SEC at
http://www.sec.gov, or by directing a request to: ACE Corporation,
1013 Centre Road, Suite 403S, Wilmington, DE. The information
contained on, or that may be accessed through, the websites
referenced in this press release is not incorporated by reference
into, and is not a part of, this press release.
Participants in the Solicitation
ACE and its directors and officers may be deemed participants in
the solicitation of proxies of ACE’s shareholders in connection
with the proposed business combination. Security holders may obtain
more detailed information regarding the names, affiliations and
interests of certain of ACE’s executive officers and directors in
the solicitation by reading ACE’s final prospectus filed with the
SEC on July 28, 2020, the registration statement on Form S-4, proxy
statement/prospectus and other relevant materials filed with the
SEC in connection with the business combination when they become
available. Information concerning the interests of ACE’s
participants in the solicitation, which may, in some cases, be
different than those of their stockholders generally, will be set
forth in the registration statement, proxy statement relating to
the business combination when it becomes available.
Non-Solicitation
This press release is not a proxy statement or solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the potential transaction and shall not constitute an
offer to sell or a solicitation of an offer to buy the securities
of ACE, the combined company or Achronix, nor shall there be any
sale of any such securities in any state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
state or jurisdiction. No offer of securities shall be made except
by means of a prospectus meeting the requirements of the Securities
Act of 1933, as amended.
Trademarks
Achronix and Speedster are registered trademarks, and Speedcore
and Speedchip are trademarks of Achronix Semiconductor Corporation.
All other brands, product names and marks are the property of their
respective owners.
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For Achronix: IR@Achronix.com Media@Achronix.com
ACE Convergence Acquisition Corp.: info@acev.io
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