Last checked at 25 Mar 2024 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation
25 March 2024
Sondrel (Holdings) plc
("Sondrel", the "Company" and together with its subsidiaries the "Group")
Further re Material Video Processing ASIC design and supply contract
Sondrel (AIM: SND), a leading provider of ultra-complex chips for leading global technology brands, is pleased to announce that, further to the Company's announcement of 27 February 2024, Sondrel has concluded the negotiations of the exhibits to the material design and supply contract for a next generation, video processing chip with a total estimated value of US$23 million across the design, qualification and projected production life of the product.
The complex chip is to be used for high performance, professional video streaming solutions. With the Company having previously entered into the master agreement with the customer and design work having already commenced, the finalisation of the exhibits to agreement are the final step in concluding agreement between the parties.
The initial contract value is for over US$9 million for the duration of the design and qualification phases and the work will be fully funded by the customer.
Chip production and supply are anticipated to start in 2026. Subject to successful tape out and qualification of prototypes, the contract is expected to generate production revenues of US$14 million over the 10 to 15 year production lifetime of the product, based on current customer forecasts.
Graham Curren, Chief Executive Officer of Sondrel, commented:
"This is a substantial design and supply contract for Sondrel and a demonstration of the Group's ability to provide the most complex engineering expertise required for these next generation technologies. We're delighted to partner with one of the leading manufacturers in the high growth video streaming market, where the constant innovation and focus on efficiency is driving demand for the ultra-complex chips that we specialise in. We look forward to providing further updates in due course."
For further information:
Sondrel (Holdings) plc | Via Buchanan |
Graham Curren, CEO | Tel: +44 (0) 20 7466 5000 |
Nick Stone, Interim CFO | |
Cavendish Capital Markets Limited | Tel: +44 (0) 20 7220 0500 |
Ben Jeynes / Katy Birkin / George Lawson - Corporate Finance | |
Michael Johnson / Charlie Combe - Sales and ECM | |
Buchanan Communications | Tel: +44 (0) 20 7466 5000 |
Chris Lane Stephanie Whitmore | sondrel@buchanan.uk.com
|
Abby Gilchrist |
About Sondrel
Sondrel is a UK-based fabless semiconductor company specialising in high end, complex digital Application Specific Integrated Circuits (ASICs) and System on Chips (SOCs). It provides a full turnkey service in the design, prototyping, testing, packaging and production of ASICs and SoCs.
The Company is one of only a few companies capable of designing and supplying the higher-spec chips built on the most advanced semiconductor technologies, selling into a range of hyper growth end markets such as high-performance computing, automotive, artificial intelligence, VR/AR, video analytics, image processing, mobile networking and data centres. Sondrel designs have enabled products by leading technology brands including Apple (iPhone), Sony (PlayStation), Meta's (Oculus), Samsung, Google and Sony smartphones, JVC (prosumer camcorders), Tesla and Mercedes-Benz cars.
Sondrel is well-established, with a 20-year track record of successful delivery, supported by long standing ecosystem partnerships including Arm, TSMC and Samsung. Headquartered in the UK, Sondrel has a global presence with offices in UK, USA, China, India and Morocco.
For more information please visit: ir.sondrel.com.