TIDMSND
RNS Number : 1640Z
Sondrel (Holdings) plc
10 January 2024
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK Market Abuse Regulation
10 January 2024
Sondrel (Holdings) plc
("Sondrel", the "Company" and together with its subsidiaries the
"Group")
FY23 Update
Sondrel (AIM: SND), the fabless semiconductor business providing
turnkey services in the design and delivery of 'application
specific integrated circuits' ("ASICs") and 'system on chips'
("SoCs") for leading global technology brands, provides a further
update in respect of the financial year ended 31 December 2023
("FY23").
As announced by the Company on 28 December 2023, Sondrel
previously reported that its ASIC project with a Tier 1 automotive
OEM will not now achieve tape out until the end of Q1 2024 and
involve additional resource and cost to complete.
Discussions are ongoing with the customer over resolution of the
funding for the project extension, but the Company now announces
that this will not be resolved in time to be reflected in the
Company's FY23 results.
It is therefore expected that revenue associated with the
automotive project of approximately GBP2.7m will instead now be
recognised in the year ending 31 December 2024 ("FY24"). This
revenue includes the GBP1.7m that is now expected to be received in
January and February 2024, as per the announcement on 28 December
2023.
As a result, reported FY23 revenue is now expected to be
materially lower than previous expectations* at approximately
GBP10m. There will also be a corresponding impact on reported FY23
loss before tax due to the delay and also the additional resources
and cost in advancing the project.
Notwithstanding the delay in the automotive ASIC project,
significant new ASIC business opportunities are in final
negotiations for project starts in early 2024 and indications
remain encouraging that European and US market demand for Sondrel's
turnkey ASIC services is strong.
As previously announced, and with a view to managing Group
liquidity, negotiations are underway with suppliers to improve the
terms of existing supply arrangements, and these are ongoing. The
Group also announced that it will need to secure additional capital
prior to the end of March 2024 to provide a more permanent solution
to meet the Company's short-term working capital requirements, and
that, if the payments associated with the automotive project are
not received in January and February 2024, this will need to be
secured in shorter order. This position remains unchanged.
* Current consensus analyst forecasts are for FY23 revenues of
GBP13.0 million and an adjusted loss before tax of GBP6.0
million.
Graham Curren, Chief Executive Officer of Sondrel,
commented:
"The end of FY23 was clearly a challenging period. Importantly,
our operating model and our growth ambitions remain the same and we
are now focused on delivering for all of our stakeholders: our
shareholders, our customers and our employees. Whilst it is
disappointing to see the FY23 financial results impacted by the
previously announced delays in this project, the expectation
remains that the project will be completed in Q1 2024 and the
Company remains encouraged by significant new ASIC business
opportunities in the final stages of negotiation."
For further information:
Sondrel (Holdings) plc Via Buchanan
Graham Curren, CEO Tel: +44 (0) 20 7466
5000
Nick Stone, Interim CFO
Cavendish C apital Markets Limited Tel: +44 (0) 20 7220
0500
Ben Jeynes / Katy Birkin / George Lawson
- Corporate Finance
Michael Johnson / Charlie Combe - Sales
& ECM
Buchanan Communications Tel: +44 (0) 20 7466
5000
Chris Lane sondrel@buchanan.uk.com
Stephanie Whitmore
Jack Devoy
Abby Gilchrist
About Sondrel
Sondrel is a UK-based fabless semiconductor company specialising
in high end, complex digital Application Specific Integrated
Circuits (ASICs) and System on Chips (SOCs). It provides a full
turnkey service in the design, prototyping, testing, packaging and
production of ASICs and SoCs.
The Company is one of only a few companies capable of designing
and supplying the higher-spec chips built on the most advanced
semiconductor technologies, selling into a range of hyper growth
end markets such as high-performance computing, automotive,
artificial intelligence, VR/AR, video analytics, image processing,
mobile networking and data centres. Sondrel designs have enabled
products by leading technology brands including Apple (iPhone),
Sony (PlayStation), Meta's (Oculus), Samsung, Google and Sony
smartphones, JVC (prosumer camcorders), Tesla and Mercedes-Benz
cars.
Sondrel is well-established, with a 20-year track record of
successful delivery, supported by long standing ecosystem
partnerships including Arm, TSMC and Samsung. Headquartered in the
UK, Sondrel has a global presence with offices in UK, USA, China,
India and Morocco.
For more information please visit: ir.sondrel.com .
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END
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