Alphawave reports record bookings, withholds guidance amid trade uncertainty

(Sharecast News) - Alphawave IP Group reported record annual bookings for 2024 on Thursday, reflecting strong demand for its high-speed connectivity IP, despite a drop in total revenue and a wider operating loss, although it withheld guidance for the current financial year amid global trade uncertainty. The London-listed company, which trades as Alphawave Semi, said total bookings rose 34% year-on-year to a record $515.5m, driven by a 45% increase in licence and non-recurring engineering (NRE) bookings.

However, full-year revenue fell 4% to $307.6m, with a sharp 68% decline in royalties and silicon sales more than offsetting the 54% growth in licence and NRE revenue.

Adjusted EBITDA came in at $51.1m, down 18%, in line with guidance.

The firm's statutory operating loss widened to $32.8m from $19.4m in the prior year, and net losses narrowed modestly to $42.5m from $51m.

Cash generation from operations declined 16% to $13.5m, while cash and equivalents increased 78% to $180.2m.

Net debt rose to $171.9m from $119.1m a year earlier, reflecting ongoing investment across the business.

Alphawave maintained 103 revenue-generating end-customers, in line with the prior year, and expanded its IP portfolio to over 240 silicon IPs.

The company launched a dedicated chiplet group in 2024 and achieved industry-first products, including a multi-protocol I/O chiplet, while securing design wins for AI accelerators and high-speed data centre applications.

Notable customer wins included 3nm high-speed IP licensing deals in 800G and 1.6T applications for AI and HPC workloads.

The company also started recognising revenue in its connectivity products unit, and introduced next-generation digital signal processors supporting long-range data transmission.

Alphawave said it also deepened its ecosystem relationships through continued partnerships with TSMC, Samsung and Arm, and joined the UALink and OIF consortiums.

In December, it signed a strategic partnership with Siemens EDA to expand global sales reach.

Looking ahead, the company said it expected to complete business integration in 2025 and begin delivering silicon products for AI and data centres.

However, Alphawave withheld formal guidance for 2025 citing economic uncertainty and the impact of new global tariff regimes.

Despite the near-term uncertainties, its management said it remained confident in the company's long-term growth trajectory.

"In 2024, we signed a record $515.5m in bookings reflecting the strong demand for our technology and the deep trust our customers place in us," said president and chief executive officer Tony Pialis.

"Throughout the year, we strengthened key partnerships, expanded our global reach, and continued to lead in next-generation connectivity and chiplet innovation."

Pialis said the company's position "at the forefront of the industry", working with "some of the world's most respected" data centre and AI partners, underscored its leadership and growing influence.

"With a leading connectivity portfolio, a talented team, and a significant market opportunity ahead, we are confident in the long-term potential of our business."

At 0907 BST, shares in Alphawave IP Group were down 0.27% at 120.47p.

Reporting by Josh White for Sharecast.com.