Strong Q3 bookings with total YTD bookings of US$219.3m
Growth driven by North American end customers with 137% increase in bookings in North America for first 9 months of FY2021 compared to same period in FY2020
Four new end customers won in Q3 2021 including a new hyperscaler 4nm design win bringing total end customers to 21
Strong Q4 outlook based on demand in North America and South Korea
LONDON, United Kingdom and TORONTO, Ontario, Canada October 20, 2021 – Alphawave IP (LSE: AWE, “Alphawave IP”, the “Company”), a global leader in high-speed connectivity for the world’s technology infrastructure, is pleased to announce a strong Q3 performance. Total annual bookings to date now exceed US$219m, with a robust pipeline for further bookings in Q4.
Bookings in Q3 were driven by 4 new customer wins, including one of the first ever design wins in 4nm with a new hyperscaler1 end customer.
The Company’s Q3 bookings were US$23.2m, of which US$21.5m were license and related, and US$1.8m are estimates of potential future royalties. This brings FY2021 bookings to date to US$219.3m, of which US$202.3m are license and related, and US$17.0m are estimates of potential future royalties. Of the US$219.3m bookings, US$147.8m relate to the previously announced multi-year subscription licensing deals with VeriSilicon and the Company’s China Product Partnership.
VeriSilicon licensing update
The Company achieved an acceleration of end customer wins in China through its reseller agreement with VeriSilicon. In Q3 two end customers in China licensed Alphawave IP technology through this agreement, with a total transaction value of US$3.9m, excluding potential future royalties. The revenues from these China customer wins are not included within the total bookings figure of US$219.3m as they are part of the Company’s previously announced US$54m VeriSilicon subscription multi-year reseller transaction.
Strong Q4 Outlook
The Company expects to maintain the strong momentum into Q4 with design wins and bookings primarily from North America and South Korea. With the continued technology leadership that the Company has established with TSMC, which was announced last week, design wins at TSMC are expected to continue in leading edge technology. This, coupled with the announcement of one of the first design wins in 4nm, continues to demonstrate Alphawave IP’s strong competitive position and provides a platform to drive growth in 2022 and beyond.
Tony Pialis, President and Chief Executive Officer of Alphawave IP stated: “As we outlined at our half year results in September, we have seen strong growth in our pipeline particularly in North America and South Korea. We are converting this pipeline into bookings and continue to broaden and deepen relationships with our growing customer base. Historically, the fourth quarter is usually a very strong quarter for Alphawave and this year looks to be no different than previous years.”
John Lofton Holt, Executive Chairman of Alphawave IP added: “We are pleased to continue to deliver for our customers, shareholders, and partners. We are driving greater diversification across customers and geographies, while demonstrating our continued technology leadership in the most advanced process technologies.”
Related Party Disclosures
Total new related party bookings in Q3 2021 were zero.
1Hyperscalers are technology companies that provide cloud, networking and internet services at scale. Examples of hyperscalers include Google, Facebook, Alibaba, Microsoft, and Amazon
A conference call for investors and analysts will be held at 1pm BST on Wednesday 20th October. The dial-in details are as follows:
Standard International Access: +44 (0) 207 192 8000
UK Toll Free: 0800 376 7922
US Toll Free: +1 866 966 1396
New York, US Local Number: +1 631 510 7495
Please quote ‘Alphawave’ to gain access. Please connect to the call at least 10 minutes prior to the start time. A replay of the call will be made available later in the day on the Company’s website. (www.awaveip.com).