Alphawave Ip Share Discussion Threads

[boozey] 04/5/2023 11:51

divi i hope you are right, but i fear there is a lot more to today's announcement than meets the eye. As has previously been noted a cfo leaving, especially suddenly, is never good news. And why this announcement now and not last Friday with results? something has happened between Friday and now. And whatever that something is will not be good news.

[dividevil] 04/5/2023 10:58

If the share tanks when trading reopens it will be a great opportunity to pick up some more at these prices. The company said in Friday's call that the board's decision to go ahead with issuing the full version of the results as preliminary had the full support of the external auditor. On that basis I think it practically impossible for there to be any serious misinformation or fraudulent data in the results. I strongly recommend any serious investor to listen to the preliminary results presentation call if they are in need of any reassurance. There had to be consequences on the board so Daniel had to go unfortunately. This is a genuinely good company with an extremely bright outlook in my opinion but nevertheless a young company so stumbles of this kind are to be expected from time to time. Hopefully though they will learn from these. They have probably done the right thing dismissing Daniel.

[taras73] 04/5/2023 07:58

High risk indeed I’ve been out and in and out again in this company over the last 18 months with overall small loss fortunately.. once read the shares were going to be suspended got out again very speedily…

[trader465] 04/5/2023 07:50

Looks like he was fired. How many skeletons was he hiding in the closet? Will it come out in the audit?

Always high risk holding suspended shares.

[taras73] 04/5/2023 07:50

Many thanks for explaining I guess if you are right then once the shares are back on the market tanking is one strong possibility…

[mortal1ty] 04/5/2023 07:44

1) CFOs don't want to be at the helm when things unravel due to fraud or accounting misstatement. When they can hide things no longer they leave with immediate effect. I've seen this occur numerous times.

2) Any new CFO will uncover any wrong doings. They will have a clean slate to bring any errors to the table.

[taras73] 04/5/2023 07:13

Why red flag? The guy was clearly incompetent in dealing with the audits being delivered on time and properly communicating.. I do hope that’s all))

[mortal1ty] 04/5/2023 07:08

CFO leaving with immediate effect. You don't get bigger red flags than that.

[dividevil] 02/5/2023 10:26

The Company has clearly stated the principal reason for the external auditor's request for more time to complete the audit as follows:

There are additional procedures required in connection with the first-time audit of the Company as an enlarged group following three transformational acquisitions over the past year. These transactions included both whole business acquisitions, carve-outs, debt financing, and a 366% increase in headcount.

One should also be aware that the three acquisitions are of private companies whose previous auditing procedures are different and less stringent to the procedures of publicly main-listed companies and hence the additional procedures for due-diligence.


There is no doubt that KPMG are being extra diligent but that is as it should be for all auditors. Reviews of auditing standards such as IFRS-13 are part of the evolution and on-going improvements to standards.

In this instance I think suggestions of KPMG having any difficulty with the fair-value assessment, or its internal financial controls, or going concern status are extremely unlikely especially given that the Company has gone ahead in issuing results as preliminary on the basis that the audit is substantially complete and changes are not expected (other than typographical errors).

[kennyp52] 01/5/2023 22:04

“ However KPMG who have a costly recent FCA fine history, are now terrified of being sued”

Totally agree .

[casholaa] 01/5/2023 18:56

Yeah, I'd imagine that a fine of 1.2m on every piece of work, somewhat, defeats the purpose of being in business.

[tomtrudgian] 01/5/2023 12:09

As a retired auditor may I mention that Shareholders can be reassured that the ‘semi’ figures, having been announced, will not be changed. However KPMG’s difficulty is likely to be about:

1/ The ‘fair value’ of assets. As you may know both the us SEC and the uk ICA are currently deciding on revising the current practice directions. No formal decisions have yet been made.
2/ Slightly less likely the effectiveness of Alphawave’s internal financial controls.
3/ And conceivably whether Alphawave can still demonstrate it is a ‘going concern’ to auditing standards.
So it may be that the audit report will be mildly qualified with a caveat about one of these.

Remember auditors are always particularly busy at this time of year for obvious seasonal reasons connected to December year ends. Is this the reason? Probably not in my view. However KPMG who have a costly recent FCA fine history, are now terrified of being sued.

[kennyp52] 30/4/2023 22:27

Will not be an audit deadline … it will be a disagreement with the auditors .. probably fair value of investments or similar.

[the lockkeeper] 30/4/2023 15:41

What I struggle to understand is that the auditors must have known (and told the Co??) A faair time in advance that they were not going to meet the deadline to complete the audit. This begs the question why did Alphawave leave it until the very last minute to tell the market. Guaranteed way to shake investor confidence in the board!!

[harkes15] 30/4/2023 09:46

If you want some reassurance regarding the audit, CARD have also had to delay their results due the same requesting more time.

[casholaa] 29/4/2023 09:02

I'm not sure they were all negatives. In my imagination, are we now a parent company or some sort of conglomerate?

[boozey] 29/4/2023 09:01

This company is a case study in poor governance. It is the second year running accounts have been audited late and then there have been accusations highlighted in the FT a year ago that their sales were to related parties. Given this history you would have expected Alphawave to have been all over KPMG like a rash to get the accounts audited on time. But this hasn't happened. If the delay published yesterday was an isolated incident then investors may have been able to deal with it. But it is a continuation of a wider story and confidence in the business ebbs away. A right mess.

[dividevil] 28/4/2023 16:37

Yes but the total backlog is a mega positive and I was listing the 'apparent' negatives. I think Tony mentioned in the call that most of that backlog will translate to revenue in the next 12 months which is why he is confident of meeting the guidance of 350m usd revenue for this year.

[the lockkeeper] 28/4/2023 16:20

If anyone wishes to know just how much of a moron this guy is look at the TUI thread, the rights issue was explained to him multiple times and he still persisted in his totally wrong assumptions. No surprise that he did a 360 later on>>>>>

[casholaa] 28/4/2023 16:15

You left the backlog out.

[dividevil] 28/4/2023 16:12

Markets see numbers in black & white and tend to focus on the apparent negatives.


For example:


Reduced YOY total bookings (-7% from 244.7m to 228.1m USD).
Reduced Pre-tax operating cash flow (-71% from 26.5m to 7.8m USD).
Reduced profit after tax (-31% from 9.4m to 6.5m USD) – which would have been an appreciable loss were it not for the 37m USD exchange gain.
Reduced EBITDA margin (from 58% to 28%)
Reduced diluted EPS from 3.14 to 1.21 USD
Reduced net cash (from 501m USD to a net debt of 24m USD)
Increased share dilution (from 626m to 680m) and presently 700m.


Now I know perfectly well that there are justifiable explanations for the above as part of positioning the company to take advantage of the expected growth in the semiconductor connectivity space. The market however tends not to be in the habit of pricing on positive forward-looking outlooks especially for a relatively small and young company, no matter how convincing the outlook maybe.

I do think it would have been sensible however to suspend immediately rather than permit a day’s trading before suspension though it may yet prove a small blessing in disguise for some. Looking into the FCA handbook there appears to be no mention of a requirement for a period of trading prior to an actual suspension. I’ve unfortunately not been able to take advantage of today’s volatility but maybe I’ll get a chance after the short-term suspension.


Based on the positively stated growth numbers mentioned in their report I’m confident that their growth predictions for 2023 to 2027 will not only be comfortably achieved but that they are in a very good position to significantly increase their market share of the addressable market beyond their stated targets. It is certainly their ambition and you cannot doubt Tony Pialis' conviction. Their silicon IP, custom silicon and connectivity products really do seem to be among the best in the market and are clearly what their high-profile customers want. This time next year this stock will have a very different feel, you’ll see, I’m sure of it!

[dividevil] 28/4/2023 15:50

Vikram Kuvari has a 0.71% short. Well done that man! No one else above 0.5% as far as we know.