Telecomunicazioni
Q3 2022 Trading and Business Update
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.
"During the third quarter, we continued to see strong design win momentum, particularly in North America . Alongside this, we extended our technology leadership with a second 3nm design win and are already seeing the benefits of the greater scale of the hybrid business model in which we can further monetise our differentiated IP through custom silicon. With an enhanced product portfolio of high-speed connectivity and increasingly broader customer base, we are confident in the long-term growth potential of our business".
"The level of bookings in the quarter reflects the strength of our technology combined with the ongoing strong execution of the team. Our continued leadership in the most advanced technologies and our talented team underpin the long-term growth potential of our business. We are working hard to deliver on our plans and create long-term value for our shareholders."
We have consolidated the acquired OpenFive business from 1 September 2022. As a combined business we bring a broader IP portfolio and engineering expertise in high-speed connectivity to customers in digital infrastructure markets. This, combined with a growing customer base and the greater scale of the hybrid business model will help us drive sustainable long-term revenue growth and create value for shareholders.
The following table summarises how each type of booking has been mapped into the new bookings classifications:
Not volume dependent
- Other custom silicon (not volume dependent)
- Other custom silicon
Licence and Non-recurring Engineering ("NRE") bookings in Q3 2022 were up 169% year-on-year. Including estimates of potential future royalties and silicon orders, new bookings excluding the WiseWave multi-year subscription licence were up 245% year-on-year. Bookings in the third quarter were driven by North American and Chinese customers .
Within the first month after closing the acquisition of OpenFive we secured a leading storage design win that leveraged both Alphawave's IP as well as the custom silicon capabilities acquired with OpenFive.
Cumulative bookings over the life of the Company exceeded
US$480 million .
Since 2017, the Company has demonstrated connectivity technology leadership in 7nm, 6nm, 5nm, and 4nm technology. In Q3 2022, Alphawave IP extended its leadership with a second design win in 3nm technology. The Company expects further design wins in 3nm and is working with its foundry partners in 3nm and beyond.
Alongside the year-on-year growth in new bookings (excluding multi-year subscription licences) and a growing customer base, two additional data points underline the strong level of customer activity during the third quarter: Flexible Spending Accounts ("FSA") drawdowns of US$3.0 million , and China (VeriSilicon) reseller deals of US$5.5 million . Both FSA and reseller deals represent the conversion of customer commitments to design wins.
Design win activity in the quarter was strong with seven new design wins, including five from new customers and two from repeat customers. In the quarter we built on the advantages of the hybrid business model with four new custom silicon wins in September. Our hybrid model enables the business to generate larger revenue streams by capturing the full value embedded in our custom silicon offering.
Alphawave has six of the top ten semiconductor device companies as customers , a reflection of its continued strength in the data infrastructure markets that require the world's most advanced connectivity technology.
Based on current visibility, the Company expects continued customer traction during the last quarter of the year.
Alphawave IP reiterates its stand-alone mid-term and long-term outlook communicated on 21 September 2022 in its interim results for H1 2022 . Despite the uncertain macroeconomic environment, our growing pipeline reflects positive secular growth trends in data infrastructure markets and the continued investment in next generation connectivity solutions. This combined with our talented team and strong balance sheet give us confidence in our future.
Further details on the pro forma 2023 outlook and long-term financial model, including the acquisition of Banias Labs and the multi-year agreement with a leading North American hyperscaler , will be communicated at our Capital Markets Day on 13 January 2023 .
Faced with the exponential growth of data, Alphawave IP's technology services a critical need: enabling data to travel faster, more reliably and with higher performance at lower power. Alphawave IP is a global leader in high-speed connectivity for the world's technology infrastructure. Our IP and custom silicon solutions meet the needs of global tier-one customers in data centers, compute, networking, AI, 5G, autonomous vehicles, and storage. Founded in Toronto, Canada in 2017, by an expert technical team with a proven track record in licensing semiconductor IP, our mission is to focus on the hardest-to-solve connectivity challenges. To find out more about Alphawave IP, visit: awaveip.com
There are no new related parties disclosed in this press release.
All registered trademarks and other trademarks belong to their respective owners.
Contact Information: Alphawave IP Group plc, John Lofton Holt , Executive Chairman, Jose Cano, Head of IR, ir@awaveip.com, +44 (0) 20 7717 5877; Brunswick Group, Simone Selzer, Sarah West, alphawave@brunswickgroup.com, +44 (0) 20 7404 5959; Gravitate PR, Lisette Paras, Wynton Yu, alphawave@gravitatepr.com, +1 415 420 8420
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