Alphawave IP swings to loss as first-half sales drop 51%
Connectivity solutions group swung to a loss in the first half while revenues halved which it blamed on the timing of specific customer programmes, though a big improvement is expected in the latter part of the year.
The company, which provides semiconductor IP solutions targeting the datacentre and internet of things devices markets, reported an adjusted EBITDA loss of $11.8m for the six months to 30 June.
Revenues dropped to $91 from $187.2m a year earlier, with licence and NRE revenues falling 11% to $64.8m and royalties and silicon revenues sinking 77% to $26.2m.
Alphawave said the decline reflected an "expected strategic change in business mix" including revenue from IP licences and silicon, and a significant reduction of the legacy business in China.
Meanwhile, the bottom line was also held back by continued research and development investment in chiplets and new silicon connectivity products, with the latter expected to begin shipping this year and ramp into production in 2025.
Looking ahead, the company said that anticipated "tape outs" - the final design stage before manufacturing - of certain application-specific integrated circuits and the timing of conversion of IP and NRE bookings into revenue is expected to help drive "significant revenue growth in H2 2024 compared to H1 2024".
Also adding to its optimism was a 20% increase in total bookings in the first half to $225.3m, due to "increased design win momentum across the vertically integrated semiconductor business".
"In the first half of the year, we have continued investing organically to support our pipeline and future revenue growth. Our leading connectivity technology and strong execution give us confidence in the prospects for our business in the second half of 2024 and beyond," said chief executive and president Tony Pialis.
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