TIDMAWE
RNS Number : 5831P
Alphawave IP Group PLC
20 October 2021
Alphawave IP Group plc Q3 Trading Statement
Strong Q3 bookings with total YTD bookings of US$219.3m
Growth driven by North American end customers with 137% increase
in bookings in North America for first 9 months of FY2021 compared
to same period in FY2020
Four new end customers won in Q3 2021 including a new
hyperscaler [1] 4nm design win
bringing total end customers to 21
Strong Q4 outlook based on demand in North America and South
Korea
LONDON, United Kingdom and TORONTO, Ontario, Canada October 20,
2021 - Alphawave IP (LSE: AWE, "Alphawave IP", the "Company"), a
global leader in high-speed connectivity for the world's technology
infrastructure, is pleased to announce a strong Q3 performance.
Total annual bookings to date now exceed US$219m, with a robust
pipeline for further bookings in Q4.
Bookings in Q3 were driven by 4 new customer wins, including one
of the first ever design wins in 4nm with a new hyperscaler(1) end
customer.
The Company's Q3 bookings were US$23.2m, of which US$21.5m were
license and related, and US$1.8m are estimates of potential future
royalties. This brings FY2021 bookings to date to US$219.3m, of
which US$202.3m are license and related, and US$17.0m are estimates
of potential future royalties. Of the US$219.3m bookings, US$147.8m
relate to the previously announced multi-year subscription
licensing deals with VeriSilicon and the Company's China Product
Partnership.
VeriSilicon licensing update
The Company achieved an acceleration of end customer wins in
China through its reseller agreement with VeriSilicon. In Q3 two
end customers in China licensed Alphawave IP technology through
this agreement, with a total transaction value of US$3.9m,
excluding potential future royalties. The revenues from these China
customer wins are not included within the total bookings figure of
US$219.3m as they are part of the Company's previously announced
US$54m VeriSilicon subscription multi-year reseller
transaction.
Strong Q4 Outlook
The Company expects to maintain the strong momentum into Q4 with
design wins and bookings primarily from North America and South
Korea. With the continued technology leadership that the Company
has established with TSMC, which was announced last week, design
wins at TSMC are expected to continue in leading edge technology.
This, coupled with the announcement of one of the first design wins
in 4nm, continues to demonstrate Alphawave IP's strong competitive
position and provides a platform to drive growth in 2022 and
beyond.
Tony Pialis, President and Chief Executive Officer of Alphawave
IP stated : "As we outlined at our half year results in September,
we have seen strong growth in our pipeline particularly in North
America and South Korea. We are converting this pipeline into
bookings and continue to broaden and deepen relationships with our
growing customer base. Historically, the fourth quarter is usually
a very strong quarter for Alphawave, and this year looks to be no
different than previous years. "
John Lofton Holt, Executive Chairman of Alphawave IP added: "We
are pleased to continue to deliver for our customers, shareholders,
and partners. We are driving greater diversification across
customers and geographies, while demonstrating our continued
technology leadership in the most advanced process
technologies."
Related Party Disclosures
Total new related party bookings in Q3 2021 were zero.
Conference call
A conference call for investors and analysts will be held at 1pm
BST on Wednesday 20(th) October. The dial-in details are as
follows:
Standard International
Access: +44 (0) 207 192 8000
UK Toll Free: 0800 376 7922
US Toll Free: +1 866 966 1396
New York, US Local
Number: +1 631 510 7495
Please quote 'Alphawave' to gain access. Please connect to the
call at least 10 minutes prior to the start time. A replay of the
call will be made available later in the day on the Company's
website. ( www.awaveip.com ).
Glossary
IP / Silicon IP Intellectual property core, IP core or IP block is a reusable building block of a
semiconductor
chip that can be licensed or purchased from a third-party provider. Some examples
of third-party
providers are Alphawave IP, ARM and Imagination Technologies.
================================= ===================================================================================
Bookings Is the total value of licence fees, non-recurring engineering fees (NRE) and
support and maintenance
contractually committed by customers together with an estimate of expected
royalties from
those contracts (unless stated otherwise). Bookings are stated since Alphawave IP's
founding
(referred to as cumulative or lifetime bookings) or in a given period.
================================= ===================================================================================
Hyperscaler Hyperscalers are technology companies that provide cloud, networking and internet
services
at scale. Some examples of hyperscalers include Google, Facebook, Baidu, Alibaba,
Microsoft,
and Amazon.
================================= ===================================================================================
Foundry Also commonly known as a 'fab' or wafer fabrication facility, a semiconductor
foundry is a
manufacturer of semiconductors for other companies. The two largest foundries in
the world
are TSMC and Samsung.
================================= ===================================================================================
End customer Alphawave IP's end customers include semiconductor OEMs, ASIC providers, and
hyperscalers.
These are companies that provide and build technology infrastructure, from data
centres, networking,
and storage to AI, autonomous vehicles and 5G wireless.
================================= ===================================================================================
OEM Original equipment manufacturer that produces systems, parts or equipment utilised
in the
production of another device or product.
================================= ===================================================================================
ASIC Application-specific integrated circuit (or system on chip ("SOC")) is an
integrated circuit
which has been custom designed for a specific task or application.
================================= ===================================================================================
Reseller A company that acts as an indirect sales channel for Alphawave IP's technology and
is authorised
to sell licences to Alphawave IP's solutions on behalf of Alphawave IP.
================================= ===================================================================================
Subscription agreement Is a contract between the licensor of the IP, e.g. Alphawave IP, and the company
that is licensing
the technology, for a determined amount of time and for access to multiple
solutions in the
Alphawave IP portfolio, rather than a single solution.
================================= ===================================================================================
China Product Partnership ("CPP") A semiconductor company to which Alphawave IP licenses its technology to for the
express intention
of building communications products exclusively for the Chinese market. Alphawave
IP holds
a minority stake in the CPP.
================================= ===================================================================================
About Alphawave IP Group plc (LSE:AWE)
Faced with the exponential growth of data, Alphawave IP's
technology services a critical need: enabling data to travel
faster, more reliably and with higher performance at lower power.
Alphawave is a global leader in high-speed connectivity for the
world's technology infrastructure. Our IP solutions therefore meet
the needs of global tier-one customers in data centers, compute,
networking, AI, 5G, autonomous vehicles, and storage. Founded in
Toronto, Canada in 2017, by an expert technical team with a proven
track record in licensing semiconductor IP, our mission is to focus
on the hardest-to-solve connectivity challenges. To find out more
about Alphawave IP, visit: awaveip.com
Alphawave IP's LEI Number: 213800ZXTO21EU4VMH37.
[1] Hyperscalers are technology companies that provide cloud,
networking and internet services at scale. Examples of hyperscalers
include Google, Facebook, Alibaba, Microsoft, and Amazon
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END
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