REG - Alphawave IP Group - Q4 2024 Trading and Business Update

Alphawave IPAnnouncement

21/01/2025 07:00

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RNS Number : 0252U  Alphawave IP Group PLC  21 January 2025

Q4 2024 Trading and Business Update

 

 ·         Most successful bookings quarter in the Company's history with US$185.7m in
           bookings(1).
 o         includes US$99.9m in new intellectual property ("IP") and custom silicon
           non-recurring engineering ("NRE") along with US$85.8m in new silicon
           orders(1).
 ·         Annual bookings(1) exceed US$515m, underpinning long-term growth targets.
 ·         Based on preliminary, unaudited figures, 2024 Adjusted EBITDA(1) now expected
           to exceed US$50m with revenue(1) for 2024 expected at the lower end of the
           guidance(1) range of US$310m to US$330m.
 ·         Secured first silicon products revenue from the Company's Connectivity
           Products Group focused on enabling optical interconnect needs within
           hyperscale data centers.
 ·         Successful execution of US$150m convertible notes offering strengthens balance
           sheet and supports the Company's ability to achieve its strategic objectives.

LONDON, United Kingdom and TORONTO, Ontario, Canada 21 January 2025
- Alphawave IP Group plc (LN: AWE, the "Company" or "Alphawave Semi"), a
global leader in ultra-high-speed data connectivity for AI, compute and
network architectures, is pleased to publish its trading and business update
for the three months ended 31 December 2024.

 

 Bookings(1); US$m             Q4 2024  Q4 2023  Y-O-Y Change
 Licence and NRE               $99.9    $121.1   (18%)
 Royalties and Silicon Orders  $85.8    $7.6     1029%
 New Bookings                  $185.7   $128.7   44%

 

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. There
were no new design wins in Q4 2024 from FSA (Flexible Spending Account)
drawdowns and re-sale licences. Q4 2023: US$0.4m. In prior periods, previously
announced FSA drawdowns and China re-sale licences represent contractual
commitments which are expected to be recognised as revenue over time and have
been included within reported bookings.

 

Tony Pialis, President and Chief Executive Officer of Alphawave Semi said: "We
are delighted to report a record performance in Q4 2024, with US$185.7 million
in bookings(1). Key drivers include strong growth in silicon orders from North
American AI customers. This achievement underscores the strength of our
pipeline and supports our long term outlook(1) for the business.

 

"2025 is the year we will complete our transition to a semiconductor product
company and start generating significant silicon revenue, which we expect to
significantly grow in the following years. Additionally, the convertible note
offering successfully executed at the end of Q4 strengthens the balance sheet
and ensures the business is well-funded to execute its strategic initiatives."

 

Strategic Growth and Strong Design Wins Position Alphawave Semi for Continued
Leadership in Connectivity

 

Alphawave Semi continued to see increased scale and diversification with 10
new design wins in the quarter from new and existing customers who are leaders
in connectivity and compute. We continue to demonstrate technology leadership
in the connectivity IP market with 224G and UCIe design wins and we secured
another UCIe-based IO chiplet design win at 3nm. UALink, UEC and UCIe Gen3 at
64G continue to drive new design engagements for AI/HPC markets, and we also
recorded wins at major hyperscalers.

 

Furthermore, we secured the first silicon products revenue from our
Connectivity Products Group to support upcoming qualifications at our
customers, with subsequent orders anticipated in the second half of 2025. This
marks a milestone for Alphawave Semi, as we shipped our first
Alphawave-branded silicon products that are purpose-built for highspeed
optical interconnect needs within hyperscale data centers.

 

In December 2024, the Company successfully executed an offering of US$150m of
senior unsecured convertible bonds in order to finance its ongoing growth
plans, in particular investment in research and
development, capital expenditures and other general corporate purposes. This
financing has strengthened the balance sheet and positioned the business well
to execute its strategy.

 

Continued Technology Leadership

 

As highlighted at our Capital Markets Day in early June 2024, continued
technology leadership in connectivity and compute solutions remains an
important area of focus for Alphawave Semi. During Q4 2024 Alphawave Semi
joined the newly formed Ultra Accelerator Link Consortium™ (UALink™) and
announced that Rebellions Inc., a South Korean AI chip company, selected
Alphawave Semi's multiprotocol I/O connectivity chiplets for its
next-generation product, REBEL. This collaboration will enable Rebellions to
deliver unprecedented bandwidth for its chiplet-based compute accelerator SoC.

 

Outlook

 

Adjusted EBITDA(1) for 2024 is currently expected to exceed US$50m with
revenue(1) for 2024 expected at the lower end of the guidance range of US$310m
to US$330m based on expected progress on engineering projects, execution of
licensing arrangements and product qualification schedules.

 

1.   Please see Disclaimers & Cautionary Notes

 

 

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,
connectivity products, and chiplets are deployed by global tier-one customers
in data centres, 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 (http://www.awaveip.com/)

 

Disclaimers & Cautionary Notes

 

Unaudited, preliminary results subject to change

 

The financial information and data contained in this trading update is
unaudited. The preparation and audit of the Company's Annual Report &
Accounts for the year ended December 31, 2024 ("2024 AR") is ongoing. As a
result, all financial results described in this update should be considered
preliminary, and are subject to change to reflect any necessary updates,
adjustments in estimates or corrections as may be identified during the course
of preparing and finalising the 2024 AR.

 

Use of non-IFRS measures

 

We use certain alternative performance measures such as Adjusted EBITDA,
bookings, backlog etc. to make financial, operating, and planning decisions
and to evaluate and report performance. We believe these measures provide
useful information to investors and as such, where clearly identified, we have
included certain alternative performance measures in this document to assist
investors in analysing our business performance and enable greater
comparability. To do so, we have excluded items affecting the comparability of
period-over-period financial performance. Adjusted results and other non-IFRS
measures may be considered in addition to, but not as a substitute for or
superior to, information presented in accordance with IFRS. The Company
incudes an explanation on these alternative performance measures in its Annual
Reports.

 

Forward looking statements

 

This document contains certain statements that are, or may be deemed to be,
"forward-looking statements." Forward-looking statements give the Company's
current expectations and projections about future events, including strategic
initiatives and future financial condition and performance. Any
forward-looking statements made by or on behalf of the Company speak only as
of the date they are made and are based upon the knowledge and information
available to the Company on the date of this document. These forward-looking
statements and views may be based on a number of assumptions and, by their
nature, involve known and unknown risks, uncertainties and other factors
because they relate to events and depend on circumstances that may or may not
occur in the future and/or are beyond the Company's control or precise
estimate. Such risks, uncertainties and other factors could cause the
Company's actual results, performance or achievements to differ materially
from those in the forward-looking statements.

 

Subject to our obligations under English law in relation to disclosure and
reporting of information (including under the Market Abuse Regulation and the
UK Listing Rules), we undertake no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. You should, however, consult any additional disclosures
that the Company may make in any documents which it publishes and/or files
with Companies House or on its website and take note of these disclosures,
wherever you are located.

 

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                    Tony Pialis, CEO          ir@awavesemi.com

                                   Rahul Mathur, CFO         +44 (0) 20 7717 5877
 IFC / Grand Bridges  Graham Herring            press@awavesemi.com

 Marketing Limited    Flo Chandler              +44 (0) 75 6218 2327

                      Claudia Cano-Manuel

 

 

LEI: 213800ZXTO21EU4VMH37

 

 

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