LONDON and TORONTO, Oct. 17, 2022 /PRNewswire/ — Alphawave IP Group plc (LN: AWE) (“Alphawave”, the “Company”), a global leader in high-speed connectivity for the world’s technology infrastructure, is pleased to publish your commercial and business information for the three months ended September 30, 2022.
Due to rounding, figures presented in the table may not add to totals provided and percentages may not accurately reflect absolute figures.
Tony Pialis, President and CEO of Alphawave IP, said, “During the third quarter, we continued to see strong momentum in design wins, especially in North America. In addition, we extended our technology leadership with a second design win for 3nm and we are already seeing the benefits of the increased scale of the hybrid business model where we can further monetize our differentiated IP through custom silicon, with an enhanced high-speed connectivity product portfolio and growing customer base. ever more broadly, we are confident in the long-term growth potential of our business.
John Lofton Holt, Executive Chairman of Alphawave IP, said: “The level of bookings for the quarter reflects the strength of our technology combined with the continued strong execution of the team. Our continued leadership in the latest technologies and our talented team underpin the potential long-term growth of our business. We are working hard to deliver on our plans and create long-term value for our shareholders.”
Changes in reservation notification, including OpenFive
We have consolidated the business acquired from OpenFive as of September 1, 2022. As a combined business, we bring a broader IP portfolio and engineering expertise in high-speed connectivity to customers in digital infrastructure markets. This, combined with a growing customer base and the increased scale of the hybrid business model, will help us drive sustainable long-term revenue growth and create shareholder value.
The following table summarizes how each reservation type has been assigned to the new reservation classifications:
The most outstanding
Non-recurring licensing and engineering (“NRE”) reserves in the third quarter of 2022 increased 169% year over year. Including estimates of potential future royalties4 and silicon orders, new bookings, excluding WiseWave’s multi-year subscription license, were up 245% year-on-year. Third quarter bookings were driven by North American and Chinese customers5.
Within the first month after closing the OpenFive acquisition, we delivered a leading storage design that leverages both Alphawave IP and the custom silicon capabilities acquired with OpenFive.
The accumulated turnover during the life of the company6 exceeded 480 million dollars.
Extend technology leadership and strong customer traction
Since 2017, the company has demonstrated connectivity technology leadership across 7nm, 6nm, 5nm and 4nm technologies. In Q3 2022, Alphawave IP extended its lead with a second design win in 3nm technology. The company expects more design wins at 3nm and is working with its foundry partners at 3nm and beyond.
Along with year-over-year growth in new bookings (excluding multi-year subscription licenses) and a growing customer base, two additional pieces of information underscore the strong level of customer activity during the third quarter: Flexible Spending Account drawdowns7 ( “FSA”) of $3.0 million, and reseller agreements in China (VeriSilicon) of $5.5 million. Both FSAs and resale agreements represent the conversion of customer commitments into design profits.
Design activity in the quarter was strong, with seven new designs won, including five from new clients and two from long-standing clients. In the quarter we have taken advantage of the hybrid business model with four new custom silicon awards in September. Our hybrid model enables the business to generate higher revenue streams by capturing the full value of our custom silicon offering.
Alphawave has six of the top ten semiconductor device companies as customers9, reflecting its continued strength in data infrastructure markets that require the world’s most advanced connectivity technology.
perspectives
Based on current visibility, the company expects continued customer traction during the last quarter of the year.
Alphawave IP reiterates its stand-alone medium- and long-term outlook reported on September 21, 2022 in its interim results for the first half of 202210. Despite the uncertain macroeconomic environment, our growing pipeline of projects reflects positive secular growth trends in the data infrastructure markets and continued investment in next-generation connectivity solutions. This, combined with our talented team and strong balance sheet, makes us confident in our future.”
More details on the 2023 pro forma outlook and long-term financial model, including the Banias Labs acquisition and multi-year deal with a leading North American hyperscaler, will be announced at our Capital Markets Day on January 13.
Acerca de Alphawave IP Group plc (LN: AWE)
In the face of exponential data growth, Alphawave IP technology serves a critical need: enabling data to travel faster, more reliably, and with higher performance at lower power. Alphawave IP is a global leader in high-speed connectivity for the world’s technology infrastructure. Our custom silicon and IP solutions meet the needs of top-tier global customers in data center, compute, networking, AI, 5G, autonomous vehicles, and storage. Founded in Toronto, Canada in 2017 by a knowledgeable technical team with a proven track record in semiconductor IP licensing, our mission is to focus on your toughest connectivity challenges. For more information on Alphawave IP, visit: awaveip.com
Related Party Disclosure
There are no new related parties disclosed in this press release.
Trademarks
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Contact: Alphawave IP Group plc, John Lofton Holt, Executive Chairman, Jose Cano, responsible for RI, ir@awaveip.com, 44(0)20 7717 5877; Brunswick Group, Simone Selzer, Sarah West, alphawave@brunswickgroup.com, 44(0)20 74045959; Gravitate PR, Lisette Paras, Wynton Yu, alphawave@gravitatepr.com, 14154208420
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