Allenby Capital: EnSilica plc - Contact win

EnSilica has secured a manufacturing and supply contract with total revenues of $75m. With the design stage already completed, EnSilica will be responsible for manufacturing and supplying the chip to the end customer. Margins are expected to be at the lower end of the typical range, reflecting the considerably reduced execution risk relative to a full design-to-production programme. The contract win was undoubtedly supported by EnSilica's established automotive credentials and its relationships with tier-one foundry partners. Strategically, the contract is significant beyond its revenue contribution: by increasing the volumes EnSilica puts through its foundry partners, it reinforces the company's standing as a key customer that should su...