Simon, The 10 weeks haven't expired yet so cannot be "completely contradictory" - maybe something is still being worked on but until they can announce they cannot move forward? Maybe since the presentation in September the situation has changed - more funding required for the development of previously announced contracts to the exclusion of healthcare chip? I still think there's been an element of the potential customers for this chip dragging their feet and it is good that Ensilca is taking a prudent view to concentrate on areas that maximise short-term gain. |
This is what Mark Hodgkins said at the ShareSoc presentation:
"The one area where we're not delivering enough is in healthcare, and that's quite simply because we didn't have enough capital to do our own tape-out. So, we just put it on hold. But, you can expect that in the next few weeks—well, maybe around ten weeks or so—we will ignite that and get it taped out, and we will go to market with a healthcare product." |
Val,
His recent statement about the healthcare chip is completely contradictory to what the CEO announced today. There has been no tape-out, and they currently lack the infrastructure to move forward, given their cash constraints.
On September 18th, Mark had indicated that a tape-out was expected within the next few weeks, likely around ten, and that they were gearing up to bring it to market, stating they were no longer financially constrained for this investment.
This is quite a drastic reversal in just seven weeks. |
Based on Mark Hodgkins' recent statements at several investor presentations, his messaging is undermining ENSI's credibility. Rather than promoting the stock, which risks reputational harm, it would be more prudent to focus on delivering updates through IMC and broker notes.
If the company chooses to promote, it should prioritize transparency and focus on hard facts rather than speculative promises.
Has the CEO got a grip on this?
This was stated in today's RNS and is incorrect:
"Second ASIC design and supply win with Siemens for market-leading factory automation products , valued at approximately $2.4 million" |
Mister MD - 17 Oct 2024 - 07:42:21 - 560 of 728 EnSilica: ASICs (Application Specific Integrated Circuits) Design & Supply - ENSI
Briefly held this at around the 50p mark, but then sold them again. Making good progress on Revenue/Ebitda, but the only thing giving me doubts was the fact it's Aim-listed (less regulation and frequently negative surprises on this market) and low cash levels could mean further fundraises. But will keep an eye on it and hope it does well.
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Glad I went with my gut-feel on this one. Quite a brutal market these days. |
“Trust takes years to build, seconds to break, and forever to repair”
-Dhar Mann |
Hello yump. I've been having a look at these. looked at results this morning and thought I had missed a good entry point.
blood on the streets?
must be worth a punt here surely?
So many small caps being run by idiots. Not saying that's the case here but its rife. |
You just can’t know whether imminent results are factored in or not. Trying to micro-manage investments is stressful!
The only known is that the current market for small stocks is terrible, almost regardless of the stock and the market for loss-making stocks is worse.
Thats either an opportunity or armageddon approaching. |
Only myself to blame for not taking profits and buying back lower. Predicted the outcome weeks ago. But no real risk compared to the usual AIM stock so I don't mind averaging down as it will come back. |
Clearly needs this years jump in revenue to get a decent ebitda figure. Fortunately exceptionals not likely to increase that much. Hopefully a tipping point year. |
4*
Ensilica plc, a leading chip maker of mixed signal ASICs (Application Specific Integrated Circuits), posted FY results for the year ended 31st May this morning and the reporting was a little mixed. Revenues were strong increasing by 23% to £25.3 million (FY 2023: £20.5 million). Demand for the Group’s products is plainly booming which is obviously the main positive for a small and growing business. But the impressive topline performance was not matched at the bottom line. EBITDA increased by just £0.1 million to £1.7 million...from WealthOracle
wealthoracle.co.uk/detailed-result-full/ENSI/947 |
Looks like short of development cash - Could this imply a fund raise in the way? If so increased debt or a discounted equity rise or partnering with a Major? |
Is this a typo?
"Second ASIC design and supply win with Siemens for market-leading factory automation products, valued at approximately $2.4 million."
It doesn't look like a tape-out is happening:
"EnSilica has developed key IPR for healthcare wearable devices, including a vital sign sensors IC offering accurate sensor interfaces with very low power consumption. This IC is being evaluated by a number of customers and the Directors believe that this will lead to either a standard part sold to many customers as an ASSP or various customised versions of the IC optimised for specific customers. However, a restriction on the current availability of capital to invest has slowed down the pace at which EnSilica can market and hence commercially exploit this technology." |
I’m going to have to see what EV really measures and whether its just kings mew clothes. Been brought up on p/e ratios and cash generation.
If you change the measure enough, everything may as well be subjective, as you can’t compare businesses, norms, anything much.
EV, EPS, EBITDA, NAV, Revenue multiples, dividend cover(easily faked) ad infinitum. |
It ain't going up to 15x on that update. 10x seems fair until they prove up 25 and have more visibility on 26.
Singer - 5/11/24:
EnSilica is in the early inning of realising this opportunity, given that its highly scalable supply revenues have yet to materially ‘come on stream’. And yet, we have strong visibility of this prospect given how four ‘live’ ASICs are expected to ramp. Meanwhile EnSilica also has a further 10 in the design phase (and a strong pipeline in addition). As such, we see a clear pathway by which revenues should grow rapidly, meanwhile earnings quality should also improve, as the company builds out a portfolio of ‘annuity type’ revenues (as each ASIC typically stays in production for 5-10 years). Despite this, the company trades on just 1.5x EV/FY25 sales, which in our view, undervalues this potential. Our maiden target price of 100p/share equates to 3.0x EV/FY25 sales, dropping to 2.4x for FY26. |
Might be worth a question somewhere.
Fortunately they’re in the right market to get equity support and there are medium/long term contracts, so its not got the contracting “lumpy risk”.
Not a new fangled product trying to get traction - a growing market - not medical! - not doing ground breaking research on an imaginary product etc. |
I may be wrong but I think that refers to the receipt of revenues - the customer delays the project for which the ASIC is being supplied - rather than customer delay in paying for services ENSI has provided. |
Yes that bit. I can’t work out if its related to deliveries or actual payments overdue. These are big customers so it wouldn’t surprise me if they screw suppliers as the project people never have control over the finance department - don’t get me started on that one…! |
Inferred from the Outlook statement I guess:
"· Whilst the Board is confident of the short-term revenue pipeline, additional external financing may be required should the Company experience further delays in contracted customer receipts" |
yump - where do you get that customers might not be paying as promptly as expected? |
I'm a bit surprised by the drop this morning - I guess sell the news rules in these markets at the moment. Added at under 47p. Let's see what the presentation brings later. |
The UK market never fails to disappoint these days. |
So are some customers not paying as promptly as expected ? Seems a little vague about the receipt of some payments. Either they’re overdue and part of contracts, or they are…what…;? |
Very impressed with the level of communication at Ensilica. This is continued with these results which have a tremendous amount of detail about the business.
In terms of the numbers themselves, pretty much as expected with the exception that I thought there would be another tax credit similar to last year rather than a tax charge. |
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