EnSilica plc - Audited Full Year Results for the Year Ended 31 May 2024

November 5, 2024 -- EnSilica (AIM: ENSI), a leading chip maker of mixed signal ASICs (Application Specific Integrated Circuits), announces its audited full year results for the year ended 31 May 2024 ("FY 2024").

Financial Highlights

• Revenues increased by 23% to £25.3 million (FY 2023: £20.5 million)
• EBITDA increased by £0.1 million to £1.7 million (FY 2023: £1.6 million)
• Gross margin of 36% (FY 2023: 40%) distorted by large tape-out contract
• Operating profit of £0.9 million generated, an increase of £0.1 million versus the prior year
• Cash and cash equivalents increased by £2.1 million to £5.2 million (FY 2023: £3.1 million)
• Successful completion of equity fundraisings totalling £6.5 million (net of expenses) during the year
• Further organic investment of £6.4 million in Intellectual Property (“IP”) assets

External loans refinanced with a £6 million facility with Lloyds unlocking £2.1 million of additional working capital, with an additional £3 million available subject to credit approval

Operational Highlights

• New lead customer contract for its proprietary satellite broadband chip, valued at £2.5 million
• €3.8 million contract with a prominent European automotive and industrial semiconductor supplier for the development of a chip incorporating Arm-based technology
• First IP licence granted to a major semiconductor company of EnSilica PQC and classical Cryptography accelerator
• ASIC supply contract worth over $7 million in the e-mobility market

Post Year-End Highlights

• Significant supply-only contract for an Edge AI processing chip, valued at $7 million, with potential supply revenue exceeding $50 million over the first five years of production
• Second ASIC design and supply win with Siemens for market-leading factory automation products , valued at approximately $2.4 million

• Contract signed for the development and supply of a high-end ASIC for telecommunications infrastructure with Siae Microelettronica. The contract is expected to be worth in excess of $30 million over a ten-year period
• Five million automotive ASICs shipped delivering key differentiating features in the chassis control unit of a premium vehicle
• Fourth ASIC moves into production phase, with the first orders received for industrial ASIC. The total supply value is expected to be worth more than $30 million over seven years
• Strengthened partnership with TSMC with announcement of EnSilica joining the TSMC Design Centre Alliance partnership programme
• Contract signed for the development and supply of a controller ASIC for automotive and industrial applications, the contract is expected to be worth in excess of $31 million over a seven-year period
• Awarded a £2m ASIC design services contract with a prestigious supplier of power and propulsion systems used in the air, at sea, and on land

Outlook

• The Company has started FY 2025 strongly, with key milestones achieved and new business momentum across target sectors including automotive and industrial. Revenues are expected to be second half weighted as in FY2024.
• The business has built a strong pipeline with a sizeable order book that continues to underpin management's confidence in the business
• Whilst the Board is confident of the short-term revenue pipeline, additional external financing may be required should the Company experience further delays in contracted customer receipts
• Looking ahead, the Board believes the Company is well placed to continue to capitalise on the significant growth opportunity that exists within the semiconductor industry

Ian Lankshear, Chief Executive Officer of EnSilica plc, commented:

“EnSilica performed strongly across the full year period and I am particularly pleased with our continued new supply contract momentum alongside our solid progress developing our IP portfolio.

From both a financial and operational perspective, EnSilica remains well positioned to continue to explore commercial opportunities across the semiconductor supply chain, and, supported by our talented global team, we are focused on increasing our market share in sectors such as healthcare and satellite communications where ASICs are integral components of innovations.”

Investor presentation

An online presentation of the annual results will be held today at 2.00 p.m. GMT. The presentation will be hosted on the Investor Meet Company (“IMC”) platform.

Investors can sign up to IMC for free and add to meet EnSilica via:

https://www.investormeetcompany.com/ensilica-plc/register-investor

Annual Report and AGM

The Company’s annual report and accounts together with notice of the annual general meeting (“AGM”) will be posted to shareholders this week and will be made available on the Company's website.

The Annual General Meeting will be held on 28 November 2024 at 10.00 a.m. at the Company's office at Milton Park Innovation Centre, 99 Park Drive, Milton Park, Abingdon OX14 4RY.

About EnSilica

EnSilica is a leading fabless design house focused on custom ASIC design and supply for OEMs and system houses, as well as IC design services for companies with their own design teams. The company has world-class expertise in supplying custom RF, mmWave, mixed signal and digital ICs to its international customers in the automotive, industrial, healthcare and communications markets. The company also offers a broad portfolio of core IP covering cryptography, radar, and communications systems. EnSilica has a track record in delivering high quality solutions to demanding industry standards. The company is headquartered near Oxford, UK and has design centres across the UK and in Bangalore, India and Porto Alegre, Brazil.