#VELA TECHNOLOGIES PLC – INVESTEE CO. ENSILICA #ENSI – TRADING UPDATE April 27, 2023 – Posted in: Blog, Vela Technologies Plc (VELA) – Tags: ensilica, Trading Update, vela technologies

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

·    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.

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