Last checked at 17 Oct 2022 07:00
RNS Number : 0146D Alphawave IP Group PLC 17 October 2022 160Q3 2022 Traing an Business Upate
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183160160160160160 Extening technology leaership with a secon 3nm esign win
183160160160160160 Strong Q3 traing an esign wins in the quarter reflect our hybri business moel, combining IP an custom silicon
183160160160160160 First time consoliation of OpenFive into the Group, from 1 September 2022
183160160160160160 Management remains confient in the outlook for the business an reiterates stan-alone[1] mi-term an long-term guiance, espite ifficult macro environment
LONDON, Unite Kingom an TORONTO, Ontario, Canaa 17 October 2022 -160Alphawave IP Group plc (LN:AWE, "Alphawave", the "Company"), a global leaer in high-spee connectivity for the worl's technology infrastructure, is please to publish its traing an business upate for the three months ene 30 September 2022.
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Due to rouning, numbers presente in the table may not a up to the totals provie an percentages may not precisely reflect the absolute figures.
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Tony Pialis, Presient an Chief Executive Officer of Alphawave IP sai: "During the thir quarter, we continue to see strong esign win momentum, particularly in North America. Alongsie this, we extene our technology leaership with a secon 3nm esign win an are alreay seeing the benefits of the greater scale of the hybri business moel in which we can further monetise our ifferentiate IP through custom silicon. With an enhance prouct portfolio of high-spee connectivity an increasingly broaer customer base, we are confient in the long-term growth potential of our business".
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John Lofton Holt, Executive Chairman of Alphawave IP sai: "The level of bookings in the quarter reflects the strength of our technology combine with the ongoing strong execution of the team. Our continue leaership in the most avance technologies an our talente team unerpin the long-term growth potential of our business. We are working har to eliver on our plans an create long-term value for our shareholers."
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Changes to Reporting of Bookings Incluing OpenFive
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We have consoliate the acquire OpenFive business from 1 September 2022. As a combine business we bring a broaer IP portfolio an engineering expertise in high-spee connectivity to customers in igital infrastructure markets. This, combine with a growing customer base an the greater scale of the hybri business moel will help us rive sustainable long-term revenue growth an create value for shareholers.
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The following table summarises how each type of booking has been mappe into the new bookings classifications:
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Key Highlights
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Licence an Non-recurring Engineering ("NRE") bookings in Q3 2022 were up 169% year-on-year. Incluing estimates of potential future royalties[4] an silicon orers, new bookings excluing the WiseWave multi-year subscription licence were up 24% year-on-year. Bookings in the thir quarter were riven by North American an Chinese customers[].
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Within the first month after closing the acquisition of OpenFive we secure a leaing storage esign win that leverage both Alphawave's IP as well as the custom silicon capabilities acquire with OpenFive.
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Cumulative bookings over the life of the Company[6] exceee US480 million.
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Expaning Technology Leaership an Strong Customer Traction
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Since 2017, the Company has emonstrate connectivity technology leaership in 7nm, 6nm, nm, an 4nm technology. In Q3 2022, Alphawave IP extene its leaership with a secon esign win in 3nm technology. The Company expects further esign wins in 3nm an is working with its founry partners in 3nm an beyon.
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Alongsie the year-on-year growth in new bookings (excluing multi-year subscription licences) an a growing customer base, two aitional ata points unerline the strong level of customer activity uring the thir quarter: Flexible Spening Accounts[7] ("FSA") rawowns of US3.0 million, an China (VeriSilicon) reseller eals[8] of US. million. Both FSA an reseller eals represent the conversion of customer commitments to esign wins.
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Design win activity in the quarter was strong with seven new esign wins, incluing five from new customers an two from repeat customers. In the quarter we built on the avantages of the hybri business moel with four new custom silicon wins in September. Our hybri moel enables the business to generate larger revenue streams by capturing the full value embee in our custom silicon offering.
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Alphawave has six of the top ten semiconuctor evice companies as customers[9], a reflection of its continue strength in the ata infrastructure markets that require the worl's most avance connectivity technology.
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Outlook
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Base on current visibility, the Company expects continue customer traction uring the last quarter of the year.
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Alphawave IP reiterates its stan-alone mi-term an long-term outlook communicate on 21 September 2022 in its interim results for H1 2022[10]. Despite the uncertain macroeconomic environment, our growing pipeline reflects positive secular growth trens in ata infrastructure markets an the continue investment in next generation connectivity solutions. This combine with our talente team an strong balance sheet give us confience in our future.
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Further etails on the pro forma 2023 outlook an long-term financial moel, incluing the acquisition of Banias Labs an the multi-year agreement with a leaing North American hyperscaler[11], will be communicate at our Capital Markets Day on 13 January 2023.
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About Alphawave IP Group plc (LN:AWE)
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Face with the exponential growth of ata, Alphawave IP's technology services a critical nee: enabling ata to travel faster, more reliably an with higher performance at lower power. Alphawave IP is a global leaer in high-spee connectivity for the worl's technology infrastructure.160Our IP an custom silicon solutions meet the nees of global tier-one customers in ata centers, compute, networking, AI, G, autonomous vehicles, an storage. Foune in Toronto, Canaa in 2017, by an expert technical team with a proven track recor in licensing semiconuctor IP, our mission is to focus on the harest-to-solve connectivity challenges. To fin out more about Alphawave IP, visit: awaveip.com
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Relate Party Disclosures
There are no new relate parties isclose in this press release.
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Traemarks
All registere traemarks an other traemarks belong to their respective owners.
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Contact Information:
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[1] Stan-alone outlook exclues the acquisition of Banias Labs an the multi-year agreement with a leaing North American hyperscaler announce on 13 October 2022.
[2] Both FSA (Flexible Spening Account) rawowns an China re-sale licences convert previously announce contractual commitments inclue within bookings reporte in prior perios to new prouct esign wins which will be recognise as revenue over time.
[3] Inclues customers from OpenFive who were not alreay customers of Alphawave an who signe contracts from 1 September 2022.
[4] Our bookings comprise in some instances, our estimate of potential future royalties. Our royalties are estimate base on contractually committe royalty prepayments or, in limite instances, on sensitise volume estimates provie by customers.
[] These Chinese customers are out of scope from the WiseWave an VeriSilicon agreements.
[6] Since its inception in 2017.
[7] FSAs or Flexible Spening Accounts represent contracts with customers who have committe to regular perioic payments. These payments are not in respect of specific licences but can be use as creit against future eliverables. FSA rawowns represent the esign win value of transactions signe uring the perio, against which FSA payments will be creite an will convert to revenue over time.
[8] In February 2021, Alphawave IP signe a three-year exclusive subscription reseller agreement with VeriSilicon with a minimum value of US4 million. Reseller eals represent the subsequent licensing of IP by VeriSilicon to thir parties in China an o not constitute aitional bookings for the Company as they are part of the US4 million minimum commitment.
[9] Semiconuctor evice companies ranke on market capitalisation.
[10] Incluing the financial contribution from OpenFive, the Company expects to reach revenues of between US32m an US360m in 2023. Longer-term, we expect to achieve annual revenue run rates in excess of US00m in 2024 an in excess of US1bn by 2027. Near-term margins will be impacte by OpenFive as we integrate an scale that business, an we anticipate a 2023 ajuste EBITDA margin of 32% to 36% with a steay increase thereafter as we focus an integrate the business an realise the anticipate synergies. Excluing OpenFive, stanalone revenues are expecte to be in line with the guiance provie at IPO, namely 210m to 240m by 2023, with an ajuste EBITDA margin of 0% to 60%.
[11] Communicate on 13 October 2022
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