Shares in Alphawave IP Group PLC plummeted on Monday after the firm warned full-year revenue and earnings will fall short of expectations.
The London-based designer of high-speed connectivity solutions now expects 2024 revenue of between $310 million and $330 million compared with guidance of $345 million to $365 million given in March.
Earnings before interest, tax, depreciation and amortisation are seen of $50 million, down from $70 million previously guided.
For 2023, Alphawave reported revenue of $321.7 million and adjusted Ebitda of $62.6 million.
In response, shares in Alphawave plunged 32% to 85.60 pence in London on Monday, hitting an intraday - and new 52-week - low of 70.60p. They are down 79% from the 410p initial public offering price when the firm listed back in 2021.
Alphawave said the changes to guidance reflect the impact on first half results of the merger of two large artificial intelligence customers in Korea that resulted in the consolidation of development programmes already in progress, as well as the timing of tape outs in the second half.
The outlook for 2025 remains unchanged, reflecting sustained bookings growth and increased backlog conversion to revenue expected in the second half of this year and beyond, the firm said.
In the first six months of 2024, pretax loss ballooned to $49.9 million from $6.6 million a year prior. Revenue more than halved to $91.0 million from $187.2 million.
Basic and diluted losses per share were 5.48 pence, widened from with 1.27p.
Revenue was hit by an ‘expected strategic change in business mix including revenue from IP licences and silicon, and a significant reduction of legacy China business,’ the firm said in a statement.
But the company predicts an upturn in fortunes in the second half.
Executive Chair John Lofton said: ‘We expect revenue and adjusted Ebitda in the second half to increase significantly over the first half as our high-quality design wins from last year tape out and convert into revenue. Bookings, which is a leading indicator of demand for our technology solutions in all forms - IP, Custom Silicon, Silicon Products and Chiplets, continues to demonstrate strong growth in our target markets.’
Alphawave said new bookings rose 20% in the period to $225.3 million versus $187.2 million at the same time last year.
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