Chip tech firm Alphawave raises guidance after strong first half – Reuters

LONDON, Sept 21 (Reuters) – Canadian semiconductor technology company Alphawave (AWE.L) raised its 2021 guidance on Tuesday after reporting strong demand for its connectivity solutions in its maiden results since it listed in London in May.
Shares in the company, which were priced at 410 pence in the public offer, rose 10% to 377 pence in early deals, giving it a market value of 2.5 billion pounds ($3.42 billion). read more
Executive Chairman John Lofton Holt said the share performance since listing reflected "pretty rough" markets for tech companies, but the company was confident the successful execution of its strategy would be reflected in the stock price.
Alphawave, which licenses its high-speed data transmission technology to five out of eight of the world's largest chipmakers, reported revenue of $27.6 million for the six months to end-June, up 140% year-on-year. Adjusted core earnings more than doubled to $13.9 million, with a margin of 50%.
It said it expected full-year revenue to exceed $75 million, representing over 125% growth and ahead of 100% guidance at the IPO, with its margin expected to increase to more than 55%.
Lofton Holt said Alphawave was the first to deploy its technology at seven, six and five nanometers, and last quarter was the first at four nanometers.
"Now we are looking at three nanometer and beyond with our semiconductor manufacturing partners TSMC and Samsung," he told reporters.
He said shortages in the semiconductor sector was more of an opportunity than a headwind, largely because the licences Alphawave were selling were for technology that would not go into production for several years.
"As a result of chip shortages, more countries and more companies are investing in new foundries," he said. "This investment in new foundry capacity is an opportunity for us."
($1 = 0.7310 pounds)
Our Standards: The Thomson Reuters Trust Principles.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Robin Geoulla had doubts about the automated driving technology equipped on his Tesla Model S when he bought the electric car in 2017.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Information, analytics and exclusive news on financial markets – delivered in an intuitive desktop and mobile interface.
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved