Alphawave IP Group PLC on Tuesday said financial performance in 2023 fell short of guidance.

The London-based designer of high-speed connectivity solutions swung to a pretax loss of $39.5 million in 2023, from a $17.2 million profit last year.

Revenue however increased by 74% to $321.7 million from $185.4 million.

Despite this considerable growth the company missed its guidance for the year with revenue was originally forecasted to fall between $340 million to $360 million.

Alphawave said the decision to accelerate its transition away from China and its legacy silicon business was the primary reason for this.

Unchanged from last year, the company continues to pay no dividend to shareholders.

President and Chief Executive Officer Tony Pialis said: ‘In 2023 we delivered another year of strong revenue growth...while investing to support our growing pipeline and future revenue growth.’

‘Our pipeline reflects the strong momentum in the roll out of next generation AI and data centre infrastructure, and our quarter 1 bookings reflect that momentum.’

Alphawave started 2024 with first quarter new bookings up 20% to $117.9 million from $98.1 million.

Over the same period, licence and non-recurring engineering bookings increased by 75% to $108.9 million from $62.3 million.

Whilst royalties and silicon orders fell 75% to $9.0 million from $35.8 million, this is due to the company’s shift away from China.

Based on these results management remains confident in the company’s long term growth potential.

Alphawave shares were up 2.8% to 115.12 pence each in London on Tuesday morning.

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