17th Feb 2023 09:57
(Alliance News) - EnSilica PLC on Friday reported a narrowed interim loss as revenue rose, and announced a contract win with the UK Space Agency.
Shares were up 9.5% at 102.38 pence each on Friday morning in London.
EnSilica is an Oxfordshire, England-based semiconductor designer and supplier with design centres in India and Brazil.
For the six months ended on November 30, revenue increased by 24% to GBP8.6 million from GBP7.0 million the year before. This was mainly due to increases in design and supply activities, EnSilica said.
Pretax loss narrowed to GBP202,000 from GBP465,000, as gross profit surged to GBP3.7 million from GBP1.9 million the year before. Adjusted operating profit amounted to GBP149,000, swung from a loss of GBP165,000.
Chief Executive Officer Ian Lankshear said: "Today's results are further evidence of our strong operational capabilities and sound strategic vision, which together have laid the ground for a series of sizable new business wins, including our recently announced EUR5 million satellite user terminal chip contract."
Adjusted earnings before interest, tax, depreciation and amortisation amounted to GBP655,000, compared from a loss of GBP79,000 the year before.
Looking ahead, EnSilica said it made a solid start to the current financial year, buoyed by existing contracts that underpin market expectations.
Additionally, EnSilica said it won a EUR5 million contract to develop a new chip to address the next generation of mass market satellite broadband user terminals.
The company said the contract has been awarded in the framework of the European Space Agency's Advanced Research in Telecommunications Systems Core Competitiveness programme, through the support of the UK Space Agency.
EnSilica added that it will produce its own satellite broadband chip to "enable the next generation of low-cost, low-power satellite broadband user terminals".
Lankshear said: "Given the high number of chips per antenna, and the millions of users that could adopt these services, the potential growth within this market could be significant for our business in the medium term."
By Xindi Wei, Alliance News reporter
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