Last checked at 27 Mar 2024 16:55
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) 596 / 2014 which forms part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
27 March 2024
Sondrel (Holdings) plc
("Sondrel", the "Company" and together with its subsidiaries the "Group")
Updated Supply Arrangements
Sondrel (AIM: SND), a leading provider of ultra-complex chips for leading global technology brands, announces further to its announcement of 27 February 2024 that it has now concluded negotiations with a supplier (the "Supplier") in respect of existing and future supply arrangements under an addendum to an existing supply contract ("Addendum").
Under the Addendum, contract minimum utilisation levels have been reduced to bring them in line with the Company's current license usage rates until 2025 and are expected to increase thereafter in line with usage over the life of the contract as Sondrel scales. Payments will be made quarterly according to utilisation and licence bundles drawn down. Historical license fee liabilities currently owed by the Company to the Supplier are to be paid in equal monthly instalments of US$0.2m up to April 2027 and total cash payments to the Supplier are expected to not exceed US$1.9 million in 2024.
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 - Sales | |
Buchanan Communications | Tel: +44 (0) 20 7466 5000 |
Chris Lane / Stephanie Whitmore / Abby Gilchrist | sondrel@buchanan.uk.com
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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.