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Alphawave IP Group PLC on Monday reported growing sales in its third quarter as licensing and royalties surged.
Alphawave is a London-based connectivity technology provider.
In the three months that ended September 30, licence & non-recurring engineering revenue surged to $57.8 million from $21.5 million a year prior. Royalties & silicon orders grew to $22.2 million from $1.8 million.
Non-recurring engineering encompasses one-time research cost, design, development and testing a new product or product change.
Alphawave said it is confident in the mid-term and long-term guidance, despite the difficult macro environment.
‘Based on current visibility, the company expects continued customer traction during the last quarter of the year,’ it said.
It reiterated guidance excluding an acquisition it announced last Thursday. In April, the firm said it expects financial year 2023 revenue of $325 million to $360 million, a steep rise from $89.9 million in financial year 2021.
In the first half of 2022, Alphawave reported a revenue of $57.1 million, up from $27.6 million a year ago.
Last Thursday, the company said it had bought Banias Labs for $240 million, strengthening its potential $300 million roadmap. Banias Labs is an Israel-based optical digital signal processing chip, or DSP, developer for data centres. Alphawave said the acquisition strengthens its roadmap of optical DSP silicon products for data centres, which is one of its core high growth markets.
Alongside the acquisition, Alphawave said it has negotiated a non-binding, multi-year purchasing framework with a ‘North American hyperscaler’.
The agreement proposes a multi-year roadmap for Alphawave to develop and sell a portfolio of optical products and DSPs, including coherent DSP technology from Banias Labs.
Alphawave shares were 0.5% higher at 111.20 pence each in London on Monday morning.
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