- Technology leadership and product portfolio underpin broader
customer base of 85 (H1 2022: 28)
- 16 design wins; 91% of Licence and NRE bookings from North
American, EMEA and APAC (exc. China) customers
- Bookings up 251% year-on-year to US$187m. Backlog excluding
royalties of US$365m (FY 2022: US$365m)
- Revenue up 228% year-on-year to US$187m including contribution
from the acquisition of OpenFive
- Adjusted EBITDA 1 of US$32m and adjusted EBITDA margin of 17%
(H1 2022: US$23m and 41%) reflect R&D investment and change in
business mix including silicon
- H1 2023 operating loss of US$3m compared to H1 2022 operating
profit of US$30m
- Cash outflow from operating activities of US$31m (H1 2022:
US$32m cash inflow)
- Net debt1 of US$100m (H1 2022: net cash US$452m)
- FY 2023 outlook unchanged with increased profitability expected
in H2 2023. Medium-term outlook unchanged and continued confidence
in growth prospects
Alphawave IP Group plc (LSE: AWE, “Alphawave Semi”, the
“Company”), a global leader in high-speed connectivity for the
world’s technology infrastructure, has published its interim
results for the six months ended 30 June 2023.
Financial Summary and APMs1 –
US$m
H1 2023
H1 2022
Change
Licence and NRE
73.6
57.1
29%
Royalties and silicon
113.6
-
nm
Revenue
187.2
57.1
228%
Operating (loss)/profit
(2.6)
29.9
(109%)
Operating margin
(1%)
52%
EBITDA1
10.7
32.7
(67%)
EBITDA margin
6%
57%
Adjusted EBITDA1
32.4
23.2
40%
Adjusted EBITDA margin
17%
41%
(Loss)/profit after tax
(13.4)
16.3
(182%)
(Loss)/profit after tax margin
(7%)
28%
Adjusted Profit after tax1
15.4
6.7
130%
Adjusted PAT margin
8%
12%
Pre-tax operating cash flow
(31.3)
32.2
(197%)
Cash and cash equivalents
122.8
451.8
(73%)
Net (debt)1/cash
(100.0)
451.8
(122%)
Bookings2 and Design Win Activity –
US$m
H1 2023
H1 2022
Change
Licence and NRE
114.9
38.5
199%
Royalties and silicon3
72.2
14.9
384%
New Bookings
187.2
53.4
251%
Additional design win activity – FSA
drawdowns and China re-sale licences4
3.4
14.7
(77%)
Number of revenue generating end-customers
(end of period)
85
28
204%
Due to rounding, numbers
presented in the table may not add up to the totals provided and
percentages may not precisely reflect the absolutely figures. ‘nm’,
where referenced, means ‘not meaningful’.
Tony Pialis, President and Chief Executive Officer of
Alphawave Semi said: “We are successfully executing on our
strategy, with the business offering a growing range of advanced
connectivity solutions that enable the next generation of AI and
cloud infrastructure. In H1 2023 we delivered a good set of
results, scaling our business and investing organically to support
our pipeline and future revenue growth. Our leading connectivity
technology and strong execution give us confidence in the prospects
for our business.”
John Lofton Holt, Executive Chairman of Alphawave Semi,
added: “Through an uncertain economic environment we remain
focused on delivering on our vision for the business. We are
serving an increasing number of customers with our next-generation
connectivity technology. This fuels our optimism for the long-term
potential of the business.”
Interim Results Highlights
- H1 2023 revenues of US$187.2m, representing 228% growth
year-on-year including the contribution from the acquisition of
OpenFive and organic growth.
- WiseWave revenues of US$26.4m (excluding re-seller revenue5),
relate to the multi-year subscription licence
- Adjusted EBITDA of US$32.4m and margin of 17% (H1 2022 US$23.2m
and 41%), reflecting change in business mix including revenue from
IP licences and silicon, as well as R&D investment in our new
connectivity products going into production in 2024
- Share-based payment of US$18.5m and deferred compensation
payments6 related to acquisitions of US$4.1m
- Cash outflow from operating activities before tax in H1 2023
was US$31.3m (H1 2022 cash inflow: US$32.2m) including US$42.7m
decrease in deferred revenue and flexible spending accounts
- During the second quarter of 2023, the Group’s fixed charges
coverage ratio (FCCR) was below the minimum allowed ratio of 1.25x,
which represented a breach of the covenant. Long-term waiver
obtained from lenders covering the period to 30 June 2024
- Cash and cash equivalents of US$122.8m. Net debt of
US$100.0m
Business and Technology Highlights
- IP & NRE bookings in H1 2023 up 199% year-on-year. 77% of
these bookings in advanced nodes, i.e. 7nm and below
- Alphawave Semi maintained its technology leadership with new
design wins in 3nm, 224G ser-des IP and PCI-Express Gen6 interface
IP
- The Company expanded its technology collaboration with the
leading foundries on 3nm process
- During H1 2023, the Company broadened its customer base to 85
(FY 2022: 80 customers; H1 2022: 28 customers), including more than
half of the top 20 semiconductor device companies
- Continued to reinforce sales and R&D capabilities with new
premises in Ottawa, Canada and Pune, India
- In H1 2023, the Company headcount increased by 49 people
globally, from 695 (as of 31 December 2022) to 744 (251 as of 30
June 2022)
Outlook
- Alphawave Semi reiterates its FY 2023, mid-term and long-term
outlook communicated at the Capital Markets Day on 13 January
2023
- 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
Results Presentation and webcast A presentation for
investors and analysts will be held at 8.30am BST, on 25 September
2023. To register for the webcast:
https://awavesemi.zoom.us/webinar/register/WN_F9JqILaXQVG_3Gzb1F02Nw
After registering, you will receive a confirmation email with
information about joining the webcast.
Or by phone:
US: +1 669 900 9128 / +1 719 359 4580 / +1 253 215 8782 United
Kingdom: +44 203 901 7895 / +44 208 080 6591 / +44 330 088 5830
Webinar ID: 894 8611 9992 Full list of dial-in numbers available
https://awavesemi.zoom.us/u/kxW5Y5UU
The Company's H1 2023 Report is also available to view in the
Investor Relations section of the Company’s website (Results,
Reports & Presentations (awaveip.com)).
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
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.
Cautionary statement regarding forward-looking statements
This document may contain forward-looking statements which are made
in good faith and are based on current expectations or beliefs, as
well as assumptions about future events. You can sometimes, but not
always, identify these statements by the use of a date in the
future or such words as "will", "anticipate", "estimate", "expect",
"project", "intend", "plan", "should", "may", "assume" and other
similar words. By their nature, forward-looking statements are
inherently predictive and speculative and involve risk and
uncertainty because they relate to events and depend on
circumstances that will occur in the future. You should not place
undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that
could cause our actual results to differ materially from those
expressed or implied by these statements. The Company undertakes no
obligation to update any forward-looking statements contained in
this document, whether as a result of new information, future
events or otherwise.
______________________________ 1 See note 4 Alternative
Performance Measures (APMs). Adjusted EBITDA and Adjusted Profit
after Tax exclude foreign exchange adjustments, share-based
payments, deferred compensation payments, and M&A transaction
costs. 2 Bookings are a non-IFRS measure representing legally
binding and largely non-cancellable commitments by customers to
license our technology. Bookings comprise licence fees,
non-recurring engineering, support, silicon orders, and, in some
instances, our estimates of potential future royalties. 3 In H1
2022 there were no silicon bookings. The amount reflects only those
instances where potential future royalties could be estimated based
on committed prepayments or customer volume estimates. 4 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. 5 For further
details see note 21. 6 Deferred compensation payments related to
acquisitions which are expected to be settled over time until
August 2026.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230924476662/en/
Alphawave IP Group plc John Lofton Holt, Executive
Chairman Jose Cano, Head of IR ir@awavesemi.com +44 (0) 20 7717
5877
Brunswick Group Simone Selzer Sarah West
alphawave@brunswickgroup.com +44 (0) 20 7404 5959
Gravitate PR Lisette Paras Michael Terry Caraher
alphawave@gravitatepr.com +1 415 420 8420
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