Q1 2024 Trading and Business
Update
· Second
consecutive quarter of bookings above $100m at US$117.9m
· Licence and NRE bookings of US$108.9m up 75% over Q1
2023
· Lower
silicon orders reflect accelerated transition away from
China
· Approximately 95% of licence & NRE bookings in advanced
nodes, 5nm and below
· 9 new
design wins, mainly in APAC and North America
· Strong
pipeline of opportunities in FY 2024
· Management remains confident in the outlook for the
business
LONDON, United Kingdom and
TORONTO, Ontario, Canada 23 April 2024 - Alphawave IP
Group plc (LN: AWE, the "Company" or "Alphawave Semi"),
a global leader in high-speed connectivity for the
world's technology infrastructure, is pleased to publish its
trading and business update for the three months ended 31 March
2024.
US$m
|
Q1 2024
|
Q1 2023[1]
|
Change
|
Licence and
NRE
|
108.9
|
62.3
|
75%
|
Royalties and Silicon
Orders
|
9.0
|
35.8
|
(75)%
|
New Bookings
|
117.9
|
98.1
|
20%
|
|
|
|
|
Additional design win activity - FSA
drawdowns and China re-sale licences[2]
|
-
|
-
|
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 another strong quarter of bookings in excess of US$110m.
We achieved several exciting new wins during the quarter, including
two 5nm AI custom silicon designs, for a Korean and a North
American customer. We also signed a 4nm IP licencing deal for
a leading North American automotive company. Customers' demand for
our high-performance custom silicon and IP remains strong and the
level of Q1 bookings underpins our confidence for the year. 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: "Our technology leadership in
the most advanced technologies is driving the ongoing momentum of
design wins and strong quarterly bookings. Following our updated
revenue outlook guidance last week that reflects our transition
away from China and changes in expected revenue recognition of
long-term contracts in advanced nodes, we are entering 2024 with
strong business momentum and remain focused on execution and
long-term value creation."
Key
Highlights
New bookings in Q1 2024 were 20%
above the prior period at US$117.9m (Q1 2023: US$98.1m).
Licence and Non-recurring
Engineering ("NRE") bookings in Q1 2024 were 75% above Q1 2023 at
US$108.9m. APAC (excluding China) and North American customers
represented 93% of these bookings and approximately 95% of the
licence & NRE bookings were in advanced nodes, 5nm and
below.
Royalties and Silicon orders were
down significantly compared to Q1 2023 at US$9.0m, as we actively
de-prioritised the legacy lower margin silicon business from
Chinese customers and accelerate our transition away from China.
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.
The level of bookings in the quarter
and our growing pipeline reflects the scalability of our technology
through IP licensing and custom silicon.
The Company has also received its
first orders for silicon products from a top networking equipment
OEM in North America. Our Connectivity Products Group continues to
make made good progress toward our plan to start generating revenue
in 2024.
Expanding Technology Leadership and Strong Customer
Traction
Alphawave Semi's customers include
leading semiconductor device companies, as well as data centre
module makers and hyperscalers.
Overall, design win activity in the
quarter was strong with 9 new design wins, from new and 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 Q1 2024 we signed various licencing deals in 5nm
and below. During the quarter we signed our first licensing deal
with a leading North American automotive business and a licencing
deal with a leading North American compute silicon company. These
design wins reflect the ongoing market
momentum of leading-edge connectivity. The Company expects further
design wins in advanced nodes and continues to work with its
foundry partners in 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 Q1 2024 we won an AI custom silicon design with a leading APAC
customer. This is a chiplet design win that leverages the Company's
full range of capabilities including IP, custom silicon, and
advanced packaging solutions. Furthermore, during the quarter we
won additional 5nm business with an AI North American business
building next generation AI solutions.
In Q1 2024, there were US$nil
Flexible Spending Accounts[3] ("FSA") drawdowns (Q1 2023: US$nil).
Both FSA and reseller deals represent the conversion of customer
commitments to design wins.
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 plc
|
John Lofton Holt, Executive
Chairman
Jose Cano, Head of IR
|
ir@awavesemi.com
+44 (0) 20
7717 5877
|
Brunswick Group
|
Caroline Daniel
|
alphawave@brunswickgroup.com+44 (0) 20 7404 5959
|
Gravitate PR
|
Lisette Paras
Michael Terry Caraher
|
alphawave@gravitatepr.com
+1 415 420
8420
|
|
|
| |
LEI: 213800ZXTO21EU4VMH37