7th Apr 2025 10:43
(Alliance News) - EnSilica PLC shares fell in London on Monday morning after its said two customer contracts have been delayed, causing the company to lower its revenue guidance for the current financial year.
EnSilica shares were trading at 31.00 pence in London on Monday morning, down 21%. The stock is down 45% over the past 12 months.
The Oxford, England-based computer chip maker specialises in mixed signal application specific integrated circuits. It said the total revenue expected from the two delayed contracts is unchanged, just pushed back.
EnSilica lowered its revenue guidance for financial year 2025, which ends on May 31, to between GBP19 million and GBP20 million as a result of these two delayed contracts. At the time of EnSilica's annual results release back in November, the company had guided financial 2025 revenue of around GBP30 million. Revenue in financial 2024 was GBP25.3 million, so revenue had been expected to rise in the current financial year and now will be lower instead.
In financial 2026, revenue is expected to recover to between GBP33 million and GBP35 million, EnSilica said.
One of the delayed contracts is an ASIC design and supply agreement with SIAE Microelecttronica Spa, a wireless communication technology company based in Milan.
EnSilica was expecting to deliver significant non-recurring engineering revenue and earnings before interest, tax, depreciation and amortisation in financial 2025; however "due to customer delays beyond EnSilica's control", it said, this is now is expected over financial 2026 and 2027.
The other delayed contract with an unnamed customer is for the tape-out of an Edge AI chip, which EnSilica now is expecting to start in the first half of financial 2026. The expected revenue from that contract for financial 2025 has been reduced by about GBP4 million and its contribution to earnings before interest, tax, depreciation and amortisation by about GBP3 million as a result, EnSilica said.
The company lowered its overall financial 2025 Ebitda guidance to between GBP100,000 and GBP500,000. This compares to previous guidance from November of GBP5 million. In financial 2024, Ebitda was GBP1.7 million.
More positively, EnSilica on Monday said it has won six new design and supply contracts with revenue of over USD40 million to be generated across the next two financial years according to the company. As a result of these wins, the company is expecting to generate USD250 million in lifetime revenue from chip supply contracts.
Revenues generated from the supply of chips is expected to double to approximately GBP6 million in financial 2025 from financial 2024.
Chief Executive Officer Ian Lankshear said: "The delays to the two contracts are obviously disappointing, particularly as these are both material projects reducing our reported results for this year but importantly not the performance of the business over the medium term."
By Olivia Mason-Myhill, Alliance News reporter
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