(Alliance News) - Alphawave IP Group PLC on Tuesday gave bullish guidance after a surge in first-half revenue and bookings, in the company's first set of results since going public in May.
Shares were up 18% to 403.80 pence in London on Tuesday morning. They're down 1.5% from the initial public offering price of 410p.
London and Toronto-based Alphawave IP designs and licences chip technology for customers in industries such as data centres, telecommunications and artificial intelligence.
Revenue in the first half of 2021 more than doubled year-on-year to USD27.6 million from USD11.5 million. But pretax profit fell 33% to USD3.9 million from USD5.9 million, because of initial public offering costs and ramped-up research and development spending.
Bookings, referring to contracted orders and potential royalties, multiplied to USD196.1 million from USD33.1 million.
The company expects 2021 bookings of over USD230 million, reflecting large, multi-year deals signed in the first half and expected strong momentum in the second half. Revenue is expected to exceed USD75 million and the earnings before interest, tax, depreciation and amortisation margin will increase to over 55% - from 19% in the first half of 2021 and 54% in the first half of 2020.
The results are "a visible justification of the company's premium rating," Edison analyst Dan Risdale said. While the forecasts are positive, "it is the bookings momentum...which provides the leading indicator for further strong growth to come."
Chief Executive Tony Pialis said: "The strength of demand for our market-leading [intellectual property], combined with the platform provided by our successful IPO, will enable us to continue to expand our leadership position in the connectivity space and sustain our long-term growth trajectory."
"We are excited about the next phase of our growth as we transition more customers into production in 2021 and beyond," he added.
By Ivan Edwards; ivanedwards@alliancenews.com
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