Alphawave IP Group PLC on Tuesday said it expects to report a lower than anticipated revenue for 2023 but said it started the new financial year on a positive note and anticipates future growth.

Shares in Alphawave were down 27% at 121.40 pence each in London on Tuesday midday.

The London-based designer of high-speed connectivity solutions said it expects revenue for the year ended December 31 of approximately $318 million to $323 million, which is below the original outlook for the year of $340 million to $360 million.

‘This is mainly due to the accelerated transition away from China, and changes in expected revenue recognition of long-term contracts in advanced nodes,’ Alphawave explained.

Revenue in 2022 was $192.4 million.

As a result of the lower revenue as well as continuing investment in advanced research & development, the firm said it expects adjusted earnings before interest, tax, depreciation and amortisation to be lower than $46.8 million a year ago.

As for the beginning of 2024, Alphawave said it has seen a ‘stronger-than-expected start’ with over 10 new design wins, and over $110 million in bookings in the first quarter.

This brings the cumulative lifetime bookings for the company to over $1 billion.

Looking ahead, Alphawave said it expects 2024 revenue of $345 million to $365 million and adjusted Ebitda of approximately $70 million or approximately 20% of revenue, which is at the mid-point of the revenue guidance range, it noted.

It also said 2025 revenue is forecasted to be approximately $450 million, and the adjusted Ebitda margin to be between 20% to 25%.

‘The new 2024 and 2025 guidance has been prepared on a bottom-up basis with projects that are currently being delivered across IP licensing, custom silicon and silicon products. The new guidance also reflects the new revenue recognition profile of the combined solution portfolio of IP, custom Silicon, and Silicon products, ’ it said.

Alphawave is set to release its full-year results on April 23.

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