Alphawave IP Group PLC said Chief Financial Officer Daniel Aharoni has stepped down immediately, following the release of its annual results on Friday.

The London-based provider of connectivity technology for data centres, autonomous vehicles and other uses noted that earlier in May it had announced Aharoni’s resignation as CFO and executive director once the company released its annual results.

Alphawave is currently searching for Aharoni’s successor. In the interim, Christian Bowsher, senior director of Finance at Alphawave Semi, will be acting CFO.

The company on Friday said profit declined last year despite increased revenue and earnings, but it reiterated its 2023, mid-term and long-term outlook including its target of $500 million in revenue over the next two years.

Alphawave said pretax profit for 2022 was $17.2 million, down 26% from $23.1 million in 2021. After taxation, it swung to a $1.1 million loss from a $9.4 million profit the year before.

The annual results had been delayed twice, to provide its external auditor with more time.

Adjusted earnings before interest, tax, depreciation and amortisation increased 26% to $49.3 million from $39.2 million the prior year. Revenue more than doubled to $185.4 million from $89.9 million.

However Alphawave’s expenses also substantially increased. In particular cost of sales ballooned to $60.8 million from $5.2 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 $69.4 million from $29.4 million. General and administration expenses more than tripled to $17.2 million from $5.4 million, while sales and marketing expenses increased to $4.6 million from $1.3 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 2023, first provided in mid-January. It expects between $340 million and $360 million in revenue with adjusted Ebitda of approximately $87 million.

Alphawave’s mid-term and long-term outlook also remains unchanged. This includes targets of $500 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 had 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 trading at 101.40 pence on May 2.

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