Alphawave IP Group plc (LON: AWE), Alphawave Semi, a global leader in ultra-high-speed data connectivity for AI, compute and network architectures, has published its trading and business update for the three months ended 31 December 2024.
· Most successful bookings quarter in the Company’s history with US$185.7m in bookings1.
– includes US$99.9m in new intellectual property (“IP”) and custom silicon non-recurring engineering (“NRE”) along with US$85.8m in new silicon orders1.
· Annual bookings1 exceed US$515m, underpinning long-term growth targets.
· Based on preliminary, unaudited figures, 2024 Adjusted EBITDA1 now expected to exceed US$50m with revenue1 for 2024 expected at the lower end of the guidance1 range of US$310m to US$330m.
· Secured first silicon products revenue from the Company’s Connectivity Products Group focused on enabling optical interconnect needs within hyperscale data centers.
· Successful execution of US$150m convertible notes offering strengthens balance sheet and supports the Company’s ability to achieve its strategic objectives.
| Bookings1; US$m | Q4 2024 | Q4 2023 | Y-O-Y Change |
| Licence and NRE | $99.9 | $121.1 | (18%) |
| Royalties and Silicon Orders | $85.8 | $7.6 | 1029% |
| New Bookings | $185.7 | $128.7 | 44% |
Due to rounding, numbers presented in the table may not add up to the totals provided and percentages may not precisely reflect the absolute figures. There were no new design wins in Q4 2024 from FSA (Flexible Spending Account) drawdowns and re-sale licences. Q4 2023: US$0.4m. In prior periods, previously announced FSA drawdowns and China re-sale licences represent contractual commitments which are expected to be recognised as revenue over time and have been included within reported bookings.
Tony Pialis, President and Chief Executive Officer of Alphawave Semi said: “We are delighted to report a record performance in Q4 2024, with US$185.7 million in bookings1. Key drivers include strong growth in silicon orders from North American AI customers. This achievement underscores the strength of our pipeline and supports our long term outlook1 for the business.
“2025 is the year we will complete our transition to a semiconductor product company and start generating significant silicon revenue, which we expect to significantly grow in the following years. Additionally, the convertible note offering successfully executed at the end of Q4 strengthens the balance sheet and ensures the business is well-funded to execute its strategic initiatives.”
Strategic Growth and Strong Design Wins Position Alphawave Semi for Continued Leadership in Connectivity
Alphawave Semi continued to see increased scale and diversification with 10 new design wins in the quarter from new and existing customers who are leaders in connectivity and compute. We continue to demonstrate technology leadership in the connectivity IP market with 224G and UCIe design wins and we secured another UCIe-based IO chiplet design win at 3nm. UALink, UEC and UCIe Gen3 at 64G continue to drive new design engagements for AI/HPC markets, and we also recorded wins at major hyperscalers.
Furthermore, we secured the first silicon products revenue from our Connectivity Products Group to support upcoming qualifications at our customers, with subsequent orders anticipated in the second half of 2025. This marks a milestone for Alphawave Semi, as we shipped our first Alphawave-branded silicon products that are purpose-built for highspeed optical interconnect needs within hyperscale data centers.
In December 2024, the Company successfully executed an offering of US$150m of senior unsecured convertible bonds in order to finance its ongoing growth plans, in particular investment in research and development, capital expenditures and other general corporate purposes. This financing has strengthened the balance sheet and positioned the business well to execute its strategy.
Continued Technology Leadership
As highlighted at our Capital Markets Day in early June 2024, continued technology leadership in connectivity and compute solutions remains an important area of focus for Alphawave Semi. During Q4 2024 Alphawave Semi joined the newly formed Ultra Accelerator Link Consortium™ (UALink™) and announced that Rebellions Inc., a South Korean AI chip company, selected Alphawave Semi’s multiprotocol I/O connectivity chiplets for its next-generation product, REBEL. This collaboration will enable Rebellions to deliver unprecedented bandwidth for its chiplet-based compute accelerator SoC.
Outlook
Adjusted EBITDA1 for 2024 is currently expected to exceed US$50m with revenue1 for 2024 expected at the lower end of the guidance range of US$310m to US$330m based on expected progress on engineering projects, execution of licensing arrangements and product qualification schedules.
1. Please see Disclaimers & Cautionary Notes
