31st Aug 2023 16:41
(Alliance News) - Shares in Sondrel (Holdings) PLC on Thursday plunged after it disclosed a trio of project delays for its bespoke application-specific integrated circuit designs.
Three of Sondrel's ASICs customers have pushed their deliveries back between six to 12 months, citing increasing inflation and decreasing end-market demand for Sondrel's technology.
As a result of these project delays, Sondrel conceded that full-year revenue will be "substantially below current market expectations", although not less than GBP13 million, with a corresponding impact on full-year losses.
The Reading, England-based semiconductor company stressed the customers remain fully committed to working with Sondrel to advance their chip designs into production and remain confident that they will be very successful in their respective end markets.
Chief Executive Graham Curren commented: "Whilst it is disappointing that the scheduled production dates for three of our upcoming ASIC projects have moved out, the increased aggregate production volumes for live ASIC projects are clearly positive for Sondrel and we are confident about our revenue and profitability in 2024 and beyond."
Sondrel said during the first half of 2023 and immediately post period end, the company continued to deliver live ASIC projects in line with its expectations.
First half revenue of GBP9.3 million, a 17% increase over the previous year, is expected alongside adjusted earnings before interest, tax, depreciation and amortisation of GBP0.4 million, up from GBP0.1 million before.
Despite the project delays, the group said it continues to manage cash effectively and is confident that it has sufficient access to finance for the foreseeable future following its October 2022 initial public offering.
Shares in Sondrel fell 61% to 21.64 pence in London on Thursday.
By Jeremy Cutler, Alliance News reporter
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