REG - EnSilica PLC - AGM Statement & Trading Update for the Half Year

EnSilicaAnnouncement

28/11/2023 07:00

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RNS Number : 8242U  EnSilica PLC  28 November 2023

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation

 

28 November 2023

EnSilica plc

("EnSilica", "Company", or the "Group")

 

AGM Statement and Trading Update for the Half Year

 

The Board of EnSilica, a leading chip maker of mixed signal ASICs (Application
Specific Integrated Circuits), is pleased to provide a trading update for the
first half of its current financial year ending 30 November 2023 ("HY24")
ahead of its Annual General Meeting being held at 10.00 a.m. today.

 

The Company has delivered a resilient performance in the first half of the
year, buoyed by continued new business momentum, and the execution of a number
of significant contracts with several key customers. As a result, management
remains confident in the near-to-medium term prospects of the Group and
expects the Company to continue to trade in line with market expectations for
the 2024 financial year(1).

 

The Board is pleased to note that EnSilica has maintained activity levels
across HY24 and new business generation remains strong. The team continues to
build the recurring revenue pipeline, with EnSilica's sales pipeline of
opportunities and potential contracts standing at an estimated US$360.0
million of lifetime revenues. This includes several design and supply
contracts in final negotiations which are expected to generate significant
revenues for the Company and would further demonstrate the increasing demand
for EnSilica's services. In addition, customer funded studies and scoping
projects have already commenced for two industrial ASICs.

 

More broadly, management has been able to seize opportunities to improve
margins as a consequence of enhanced relationships with key suppliers, and the
Company is currently working on a number of contracts which will build further
resilience into the business in future years. EnSilica has seen a particular
increase in activity in the USA in this regard, leading to the establishment
of the EnSilica USA Inc. subsidiary, which has already built a strong
relationship with relevant critical suppliers and a highly promising pipeline
of additional business opportunities.

 

The Company has also negotiated and secured improved relationships with key
suppliers in Europe, further consolidating EnSilica's position as a go-to ASIC
partner.

 

Looking ahead, the Board believes that EnSilica is well placed to continue to
capitalise on the significant growth opportunity that exists within the
international semiconductor industry.

 

(1)Analyst consensus forecast for the year ending 31 May 2024 prior to release
of this announcement were revenues of £22.9 million and EBITDA of £2.5
million.

 

For further information please contact:

 

 EnSilica plc                                                        Via Vigo Consulting

 Ian Lankshear, Chief Executive Officer                              +44 (0)20 7390 0233

 www.ensilica.com (http://www.ensilica.com/)

 Allenby Capital Limited, Nominated Adviser & Broker                  +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)                  info@allenbycapital.com

 Joscelin Pinnington / Tony Quirke (Sales & Corporate Broking)

 Vigo Consulting (Investor & Financial Public Relations)             +44 (0)20 7390 0233 ensilica@vigoconsulting.com

                                                                   (mailto:visum@vigoconsulting.com)
 Jeremy Garcia / Kendall Hill

 

About EnSilica

 

EnSilica is a leading fabless design house focused on custom ASIC design and
supply for OEMs and system houses, as well as IC design services for companies
with their own design teams. The company has world-class expertise in
supplying custom RF, mmWave, mixed signal and digital ICs to its international
customers in the automotive, industrial, healthcare and communications
markets. The company also offers a broad portfolio of core IP covering
cryptography, radar, and communications systems. EnSilica has a track record
in delivering high quality solutions to demanding industry standards. The
company is headquartered near Oxford, UK and has design centres across the UK
and in Bangalore, India and Porto Alegre, Brazil.

 

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