Trading Update

EnSilica PLC

27 April 2023

 

Prior to publication, the information contained within this announcement was deemed by the Group to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

27 April 2023

EnSilica plc

("EnSilica", the "Company", or the "Group")

Trading Update

EnSilica (AIM: ENSI), a leading mixed signal chip maker, announces a trading update for the financial year ending 31 May 2023 ("FY23").

The Group has continued to trade strongly across the second half of FY23, delivering excellent new contract momentum, alongside completing a number of pre-existing projects in the period. As a result, the Board of Ensilica now expects the results for FY23 to significantly exceed current market expectations¹ for EBITDA by approximately 30%, with revenue expected to remain in line with market expectations¹.

This strong performance is primarily a result of improved margin, underpinned by a combination of effective deployment of EnSilica's highly skilled engineering resource and leveraging the Group's established IP chip library to support existing design projects.

Key projects and contracts in the period include:

·    a mixed signal automotive ASIC brought to commercial production following the launch of a new flagship vehicle by a premium automotive company;

·    a significant 7-year industrial ASIC supply project secured, worth in excess of US$30 million;

·    two new contracts commenced with existing European customers, including a major automotive Tier 1 company, with a combined value of US$3.6 million;

·    a €5 million contract win for the development of a satellite user terminal broadband chip;

·    a $1.3 million ASIC contract extension and estimated royalty payment increase from $5 million to $15 million over a five-year period; and

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·    a contract secured with an existing Europe-based customer for approximately $2.4 million.

Looking ahead, the Board believes that the Group is well placed to continue to capitalise on the significant growth opportunity that exists within the semiconductor industry.

¹Analyst consensus forecast for the year ending 31 May 2023 prior to release of this announcement were revenues of £19.8 million and EBITDA of £1.18 million.

For further information please contact:

EnSilica plc Ian Lankshear, Chief Executive Officer www.ensilica.com	Via Vigo Consulting [phone]
Allenby Capital Limited, Nominated Adviser & Broker Jeremy Porter / Vivek Bhardwaj (Corporate Finance) Joscelin Pinnington/Tony Quirke (Sales & Corporate Broking)	[phone] [e-mail]
Vigo Consulting (Investor & Financial Public Relations) Jeremy Garcia / Kate Kilgallen	[phone] [e-mail]

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 India and Brazil.

 

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