Business
AGM Statement & Trading Update for the Half Year
AGM Statement & Trading Update for the Half Year.
About this update from Ensilica Plc
[{"type":"text","content":"\n\nThe information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation\n \n28 November 2023\nEnSilica plc\n(\"EnSilica\", \"Company\", or the \"Group\")\n \nAGM Statement and Trading Update for the Half Year\n \nThe Board of EnSilica, a leading chip maker of mixed signal ASICs (Application Specific Integrated Circuits), is pleased to provide a trading update for the first half of its current financial year ending 30 November 2023 (\"HY24\") ahead of its Annual General Meeting being held at 10.00 a.m. today.\n \nThe Company has delivered a resilient performance in the first half of the year, buoyed by continued new business momentum, and the execution of a number of significant contracts with several key customers. As a result, management remains confident in the near-to-medium term prospects of the Group and expects the Company to continue to trade in line with market expectations for the 2024 financial year1.\n \nThe Board is pleased to note that EnSilica has maintained activity levels across HY24 and new business generation remains strong. The team continues to build the recurring revenue pipeline, with EnSilica's sales pipeline of opportunities and potential contracts standing at an estimated US$360.0 million of lifetime revenues. This includes several design and supply contracts in final negotiations which are expected to generate significant revenues for the Company and would further demonstrate the increasing demand for EnSilica's services. In addition, customer funded studies and scoping projects have already commenced for two industrial ASICs.\n \nMore broadly, management has been able to seize opportunities to improve margins as a consequence of enhanced relationships with key suppliers, and the Company is currently working on a number of contracts which will build further resilience into the business in future years. EnSilica has seen a particular increase in activity in the USA in this regard, leading to the establishment of the EnSilica USA Inc. subsidiary, which has already built a strong relationship with relevant critical suppliers and a highly promising pipeline of additional business opportunities. \n \nThe Company has also negotiated and secured improved relationships with key su...