Semiconductor company Alphawave Semi has reported a drop in revenue and profit for the six months to 30 June amid higher spending.
The London-listed company said revenue plunged 51 per cent to $91m (£68.3m) in the first half of the year, which it blamed on a change in its business mix and a “significant reduction” of its legacy China business.
Adjusted earnings before tax, interest, depreciation and amortisation (EBITDA) fell to a loss of $11.8 (£8.9m) from a profit of $32.4m (£24.3m) in the same period last year/
Alphawave also reported a higher operating loss, from $2.6m (£2m) in the first half of 2023 to $48.3m (£36.3m) this year. It blamed continued research and development investment in its ‘chiplets’ and new silicon connectivity products, set for production in 2025 for the increased loss.
“The first half of 2024 revenue and adjusted EBITDA were impacted by the timing of specific customer programmes,” said John Lofton Holt, executive chairman of Alphawave, which counts a number of Silicon Valley giants among its customers.
“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,” he added.
More positively, bookings grew 20 per cent year on year to $225m (£169m), with a record 23 design wins across its range of silicon products.
Alphawave chief executive Tony Pialis said: “We are successfully executing on our strategy, with a significantly expanded range of advanced connectivity solutions, including chiplets, that will enable the next generation of AI and cloud infrastructure.
“In the first half of the year, we have continued investing organically to support our pipeline and future revenue growth. Our leading connectivity technology and strong execution give us confidence in the prospects for our business in the second half of 2024 and beyond.”
Alphawave Semi is expecting full year revenue of $310m (£233m) to $330m (£248m) and adjusted EBITDA of approximately $50m (£38m).