19th May 2023 08:54
(Alliance News) - Alphawave IP Group PLC on Friday said its profit declined last year despite increased revenue and earnings, but reiterated its 2023, mid-term and long-term outlook including its target of USD500 million in revenue over the next two years.
Aphawave, a London-based provider of connectivity technology for data centres, autonomous vehicles and other uses, said pretax profit for 2022 was USD17.2 million, down 26% from USD23.1 million in 2021. After taxation, it swung to a USD1.1 million loss from a USD9.4 million profit the year before.
The annual results had been delayed twice, to provide its external auditor with more time.
The company's adjusted earnings before interest, tax, depreciation and amortisation increased 26% to USD49.3 million from USD39.2 million the prior year. Revenue more than doubled to USD185.4 million from USD89.9 million.
However Alphawave's expenses also substantially increased. In particular cost of sales ballooned to USD60.8 million from USD5.2 million, dragging gross margin to 67% from 94%.
This "primarily reflect[ed] silicon manufacturing costs and custom silicon development costs, as well as sales and reseller commissions on IP sales," the company explained.
Meanwhile research and development expenses more than doubled to USD69.4 million from USD29.4 million. General and administration expenses more than tripled to USD17.2 million from USD5.4 million, while sales and marketing expenses increased to USD4.6 million from USD1.3 million.
Alphawave declared no dividend for 2022, unchanged from the prior year. It does not intend to pay dividends in the short or medium term.
Alphawave reaffirmed its outlook for this year, first reported in mid-January. It expects between USD340 million and USD360 million in revenue with adjusted Ebitda of approximately USD87 million.
Alphawave's mid-term and long-term outlook also remains unchanged. This includes targets of USD500 million in revenue and an adjusted Ebitda margin of around 30% in 2025.
"Against the backdrop of an uncertain economic environment, digital infrastructure markets remained strong. Our core markets continued to provide compelling opportunities for growth," Chief Executive Officer Tony Pialis commented.
"Despite an uncertain macro environment and challenging financial markets, our customers continue to invest in leading technology. This investment provides a solid foundation from which we seek to create long-term value for our shareholders and other stakeholders. I look forward to the future with confidence."
Shares in Alphawave IP remain suspended, last traded at 101.40 pence two weeks ago on May 2.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
Alphawave Ip