TIDMSND
RNS Number : 3410Z
Sondrel (Holdings) plc
15 May 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK Market Abuse Regulation
15 May 2023
Sondrel (Holdings) plc
("Sondrel", the "Company" and together with its subsidiaries the
"Group")
Key Milestone Update and Notice of Results
Update on material contract with Tier 1 automotive customer
Sondrel (AIM: SND), the fabless semiconductor business providing
turnkey services in the design and delivery of 'application
specific integrated circuits' ("ASICs") and 'system on chips'
("SoCs") for leading global technology brands, provides a further
update on its Tier 1 automotive customer contract and notice of its
final results for the year ended 31 December 2022 ("FY22").
Further to the announcement on 15 February 2023, significant
progress and investment has continued in respect of the material
turnkey ASIC engagement for a Tier 1 OEM Automotive customer and
remains on schedule for the release to silicon manufacture later
this year. Following mutual agreement of the reorganisation of
certain project workstreams in order to prioritise and enable
enhanced performance in the design, along with ensuring the optimal
time to tapeout (and ultimately production), in line with industry
practice, key milestones have been redefined and the payment
receipt connected to the second project milestone, previously
anticipated to occur in Q1 2023, is now expected to occur in the
next few months.
As stated at the time of the Company's IPO, Sondrel expects
typical production volumes for each contract to deliver revenue of
GBP10m to GBP100m per annum and the contract with the Tier 1 OEM
Automotive customer could deliver production revenue at the upper
end of this range.
The Group also continues to deliver other live ASIC projects in
line with its expectations, as demonstrated by the January 2023
design tapeout for a leading provider of Edge AI Hardware
Accelerator solutions and the March 2023 tapeout of an ASIC design
for a leading provider of home network devices, both of which were
fully funded by the customer.
Based on production volumes and lifetime currently projected by
the customers, revenues for Sondrel associated with the production
and supply of these two projects would be worth in excess of US$20
million to the Company over three years and US$25 million over five
years, respectively.
Notice of Results
The Company will announce its full year results for the year
ended 31 December 2022 ("FY22") on Wednesday, 24 May 2023 when, as
announced by the Company on 15 February 2023, the Company expects
to report FY22 revenues of GBP17.5 million, reflecting 116% year on
year growth (FY21: GBP8.5 million). In addition, the Company
announces that, excluding both the non-cash impact of a GBP1.1m
write off of a capitalised asset and now confirmed treatment of
FY22 amortisation charges, the Company expects to report Adjusted
EBITDA* in line with market expectations** (FY22 Adjusted EBITDA
loss of GBP1.1m including the effects of these two accounting
provisions).
There will be an in-person presentation for analysts at 9:30
a.m. (BST) on the day of the announcement, hosted by Graham Curren
(CEO) and Joe Lopez (CFO), at Buchanan's offices at 107, Cheapside,
London EC2V 6DN.
Please contact Buchanan for further details.
*Adjusted EBITDA is defined as earnings before interest, tax,
depreciation, amortisation and IPO costs.
**Current market expectations of FY22 Adjusted EBITDA as at the
date of this announcement of GBP1.0 million.
Graham Curren, Chief Executive Officer of Sondrel,
commented:
"We continue to work closely with our Tier 1 automotive customer
as we progress towards the next project milestone. This project,
together with the other tapeouts we have announced in recent
months, provides the Group with significant momentum and
considerable traction in building a solid base of production
revenues in the years ahead."
"Our focus on end markets that are aligned with strong and
enduring global technology megatrends means that we have a good
pipeline of design opportunities for 2023 and I look forward to
updating the market on these as the year progresses."
Sondrel (Holdings) plc Via Buchanan
Graham Curren, CEO Tel: +44 (0) 20 7466
5000
Joe Lopez, CFO
Cenkos Securities plc Tel: +44 (0)20 7397
8900
Ben Jeynes / Katy Birkin / George Lawson
- Corporate Finance
Alex Pollen / Michael Johnson - Sales
Buchanan Communications Tel: +44 (0) 20 7466
5000
Chris Lane sondrel@buchanan.uk.com
Stephanie Whitmore
Jack Devoy
Abby Gilchrist
About Sondrel
Sondrel is a UK-based fabless semiconductor company specialising
in high end, complex digital Application Specific Integrated
Circuits (ASICs) and System on Chips (SOCs). It provides a full
turnkey service in the design, prototyping, testing, packaging and
production of ASICs and SoCs.
The Company is one of only a few companies capable of designing
and supplying the higher-spec chips built on the most advanced
semiconductor technologies, selling into a range of hyper growth
end markets such as high-performance computing, automotive,
artificial intelligence, VR/AR, video analytics, image processing,
mobile networking and data centres. Sondrel designs have enabled
products by leading technology brands including Apple (iPhone),
Sony (PlayStation), Meta's (Oculus), Samsung, Google and Sony
smartphones, JVC (prosumer camcorders), Tesla and Mercedes-Benz
cars.
Sondrel is well-established, with a 20-year track record of
successful delivery, supported by long standing ecosystem
partnerships including Arm, TSMC and Samsung. Headquartered in the
UK, Sondrel has a global presence with offices in UK, USA, China,
India and Morocco.
For more information please visit: www.ir.sondrel.com .
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END
MSCAIMBTMTBBTRJ
(END) Dow Jones Newswires
May 15, 2023 02:00 ET (06:00 GMT)
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