Alphawave Ip Share Discussion Threads

[casholaa] 26/5/2023 14:48

Quite possibly. Those poor hedge funds and pension funds and trusts will be missing out if they don't have a punt here.

[stallone10] 26/5/2023 14:28

I think this could be ARM in 1998 but AWE have more scandal , still 5 years time could be a 10 billion stock

[casholaa] 26/5/2023 13:46

Time to wake up. Make mine a lobster & chips, fish is just soooooooooooooo out of fashion these days.

[stallone10] 25/5/2023 15:17

They are linked to AI in servers this needs a rerating

[casholaa] 25/5/2023 13:08

Lobster and Chips

hxxps://www.pcmag.com/news/crustacean-cargo-hong-kong-drivers-smuggle-nvidia-gpus-with-live-lobsters

[indiestu] 25/5/2023 12:27

May follow Nvidia........

[trader465] 24/5/2023 17:01

It’s not just here, the whole market is falling.

I sold out on the suspension notice. I’ll look to accumulate these a few weeks ahead the Q2 trading update hopefully they’ll put more effort in to that, in the meantime I think it will follow the market lower

[fellasc] 23/5/2023 15:05

We are prob 15%-20% down on what the price would be if no fkup on the audit and results. I bought more just before suspension at late 90s but not sure how long i will keep if we dont see better management.

[trader465] 23/5/2023 10:14

Nasdaq Up 22% year to date, if these drop back to the 90’s it’ll be time to load up again

[dividevil] 23/5/2023 09:13

f56,

Yes, where they currently have more than half their revenue and bearing in mind adjustments after losses by the WiseWave joint venture / Verisilicon agreement, and not withstanding Alphawave’s contractual commitment to invest up to $170million, then also yes, an amortization of sorts. There will however always be some revenue from China. With the strong growth expected in data centres, cloud computing, AI and 5G etc., they’ll do just fine. Otherwise, they wouldn’t have reiterated revenue outlooks of $340 to $360m for 2023, $500m for 2025 and long term $1billion by 2027.

From the Chairman’s Statement:

Since the Group launched its China go-to-market strategy in 2017, the geopolitical and macroeconomic situation has also had an impact on our industry. This has resulted in significant changes to the semiconductor industry. In 2022, in recognition of these external changes, the Group announced two major simplifications to its China strategy. First, Wise Road Capital significantly reduced its ownership of Alphawave Semi shares and sold its investment to large western institutional funds. This means that the Company no longer has significant investments from any Chinese institutional investors. Second, we announced that we would make very little, if any, investment in WiseWave (formerly called the China Product Partnership) and that the Company would seek to sell its equity stake in WiseWave over the next two years. With these changes to the Group’s goto-market strategy in China, we will continue to execute against the market opportunities in China in a simplified way that respects the evolving geopolitical and macroeconomic environment.

From the CEO’s Q&A section of the report:

Q. How do you see business in China evolving over time?
In 2022, revenue from China was US$105m or 57% of the total. The increase in revenue from China was mainly driven by the multi-year contracts with WiseWave and VeriSilicon and the custom silicon revenue contribution from the acquisition of OpenFive. We expect a decline in revenue from China over the longer term, which will be mainly offset by revenue from North American customers. China is an important market for the semiconductor industry and, like many other companies, we seek to establish long term commercial relationships with Chinese customers. The Group will continue to comply with all applicable rules and regulations to ensure we can create sustainable customer relationships in all geographies.

In the CEO’s section on Revenues, he writes:

– In addition to WiseWave and VeriSilicon, the contribution in 2022 from China (57%) was driven by significant outperformance of custom silicon products in the region. Absent this, our regional mix was comparable to 2021. Over the long term, as the silicon product revenues ramp with hyperscalers and other large, predominantly North American customers, we expect the mix of China revenues to gradually decrease to 10% of sales or lower. North American revenues grew 36% from US$37.6m in 2021 to US$51.4m in 2022, and APAC (excluding China) revenues grew 84% from US$9.2m in 2021 to US$17.0m in 2022. We also saw our first revenues from EMEA of US$12.3m in 2022, largely driven by our IP licensing business.

And later on:

In 2022, we also made further equity investments into WiseWave totalling US$9.1m, with Wise Road Capital contributing US$12.3m. As disclosed in our IPO Prospectus, Alphawave IP has committed to invest up to US$170m in total into WiseWave, although our expectation is that any future investment will be limited and we will seek to realise our equity stake in the medium term.

In Section 32 on Capital commitments:

The Group has contractually committed to investing up to US$170 million in WiseWave and as at 31 December 2022 has invested US$31.42 million (2021: US$22.4 million). WiseWave does not currently anticipate requiring the maximum committed amount and is likely to undertake an external financing round in the medium term. Beyond a potential small internal financing round ahead of any external capital raise, the Group does not intend to make significant further capital contributions to WiseWave. The amount of US$170 million remains a contractually committed amount, but it is unlikely that the maximum amount of investment will be required.

[casholaa] 22/5/2023 21:00

There's a lot of trade between the US and China, if there wasn't there'd not be anything to propagate dissatisfaction and a desire to cut links in both directions.

[cordwainer] 22/5/2023 20:01

@casholaa, unless they're counterfeit Chinese Texas Instruments chips.

[f56] 22/5/2023 19:20

Fair enough! So they are pulling out of China where half their current sales are. So it’s like some sort of amortization.

[casholaa] 22/5/2023 19:16

I have Chinese electronics with US chips in them. Texas Instruments is huge.

[valhamos] 22/5/2023 19:00

Because China is not really leading edge (and where it's close to it then it is liable to US led restriction) in terms of custom silicon.

Sorry to be pedantic, but it's "its" not "it's" (twice) in your last post.

[f56] 22/5/2023 18:17

Why would they want to do that?

[dividevil] 22/5/2023 18:04

No, of course not. 10% of future revenues.

[f56] 22/5/2023 17:52

Eventually AWE wants it’s revenues to drop to 10% of it’s previous levels???

[dividevil] 22/5/2023 16:52

I did a War & Peace write up on the revenues on another forum.

Why is anyone even concerned about the revenue from China when they have already said that eventually it will only be about 10% of the their total revenue.

The focus is on North America, Europe and the rest of Asia excluding China.

What was their 2022 non-China growth? 72%.

How cheap are they on forward revenue compared to revenue of their Nasdaq peers forward revenue. More than two thirds cheaper.

[f56] 22/5/2023 16:48

Looks like a rather large headwind!

[f56] 22/5/2023 16:41

I’m not convinced by the size of the revenues coming out of China.

[trader465] 22/5/2023 16:36

Let it settle for a few days. No news due for a while, so the way the market is at the moment we may get these cheaper

[susiebe] 22/5/2023 16:00

Mid afternoon resumption of trading will catch a few out