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(Alliance News) - Alphawave IP Group PLC on Monday said it saw a surge in new orders and revenue in the final quarter of the year and reiterated that it expects full-year revenue and earnings growth in 2023.
The London-based designer of high-speed connectivity solutions said in the fourth quarter of 2023, new bookings were USD128.7 million, up 36% from USD94.8 million a year ago.
Licence and non-recurring engineering bookings in the quarter more than tripled year-on-year to USD121.1 million from USD35.1 million in 2022.
Europe, Middle East and Africa, Asia Pacific (excluding China) and North American customers represented 99% of these bookings and approximately 90% of the licence and NRE bookings were in advanced nodes, Alphawave said.
Royalties and Silicon orders fell 87% to USD7.6 million, from USD59.7 million in 2022, "as we actively de-prioritised the legacy lower margin silicon business from Chinese customers," the firm said.
Silicon orders in the quarter were from EMEA and North American customers. Alpawave added that it expects further silicon orders from Chinese customers in 2024, but at a lower level than in 2023.
Looking ahead, Alphawave said its 2023 guidance remains unchanged, and expects revenue of USD340 million to USD360 million, and adjusted earnings before interest, tax, depreciation and amortisation of approximately USD87 million.
This compares to revenue of USD185.4 million and adjusted Ebitda of USD46.8 million in 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 AI- centric connectivity solutions. This, combined with our talented team and strong balance sheet, give us confidence in our future," it said.
Chair John Lofton Holt said: "Our technology leadership in the most advanced technologies is driving the ongoing momentum of design wins and record quarterly bookings. This momentum is driven by the leading hyperscalers and AI companies in North America. We enter 2024 with strong business momentum and remain focused on execution and long-term value creation."
The company will publish its full-year results in April.
Shares in Alphawave were up 11% at 128.30 pence each in London on Monday morning.
By Sabrina Penty, Alliance News reporter
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