paraone3 - Key red flag word is "Expect" Usually need to take with a very large sack of salt.
Going concern warning, after UK unfriendly Budget for business and investors, very valid (imo) Plus of course the very valid points raised above by yump and DG. |
Another interesting comment from the CFO was they expect 75% of revenue to come from chip supply by 2026 on 40% margins this will generate major cash revenues. |
I think the auditors went overboard on the going concern issue because of what happened to Sondrel. But Ensilica has got a wider spread of customers and more sizeable contracts and provided that they continue as they have been in the past then there shouldn't be a problem. Considering until recently everyone was expecting a fundraise it surely can't be that much of an issue. |
O/t uktn also had an article about a silicon valley property firm funding an expansion in Cambridge life sciences park. So thats another % of money that will leave the UK annually because we don’t fund it ourselves.
Its boasted about as “inward foreign investment” when its actually just ownership. |
Have just listened to the Meet the Investor Podcast , so I am wondering where UKTN are getting their Info regarding Ensilica going bust unless they get more Funding . The CFO Christoff clearly state they did not envisage raising more funds in the near future they have suffient funds available for future operations. He did say that they might need extra funds if they secure a major contact running into 100s of million dollars , but this would be a nice position to be in. So I can only think that UK TN is holding a large short position and are trying to talk down the share price . Only Postive from IanAnd Christoff. |
Val,
I didn't mean to tie the media report to Mark's comments on the Healthcare chip.
I apologise if you read it that way, it was not meant that way. |
Simon, I don't get your attack on Mark at all. I'd rather have open communication than months of silence between interims and finals. Something has changed since Mark made his comments in September and I'm prepared to accept that because no contract had been announced.
And then you've done it again - you finished your post with a comment about a media outlet that has misunderstood today's RNS - as if that had anything to do with Mark's presentations. |
I hate having to re-read statements that aren’t absolutely clear when they should be.
This bit is like reading title deeds - I don’t know where the commas should be or what refers to what:
“ if the Company could not secure external financing and continue to execute and recover known and expected revenues from existing customers under long-term contracts which are ongoing but still to be delivered, or win new customer contracts for NRE and consultancy revenues.”
“Recover”; is an odd word.
The bit about the contracts still to be delivered is also odd. Thats a bit like Cadburys saying “we can’t keep going and supplying the supermarkets if our factory shuts down” - which is stating the obvious. |
Val,
As you say it's unimportant but a stock is a story and the narrative has to be clear, concise, factual and trustworthy.
I want to believe in this story but I want a clear narrative and when it changes I want to clearly understand why.
Mark had put into the market that the Healthcare chip was going to tape-out. Today the CEO didn't even entertain the idea.
This is how one media outfit reported today's RNS:
EnSilica shares sink as chipmaker warns on survival without more funding.
The Oxford-based business has said that it would not be able to continue trading for another twelve months unless it continued to receive funds from existing customers as well as seek external funding from shareholders or lenders.
-UKTN
-----
I see on LinkedIn that they've hired three new engineers in Brazil in the last week.
It's all hands on deck! |
Revenue is great but what’s the margin? |
Simon, I think the problem has been that Ensilica for more than 2 years has been mentioning Healthcare - even today the CEO was promoting it even though they haven't got the capital to move it further. In some ways, it would be better if nobody mentioned it until there's something to announce. I'm all for "under promise and over deliver" - however the underlying message is the forecast for this year is not affected by the healthcare chip and on that basis I think it is unimportant to the investment case. |
Val,
Maybe I am being harsh in my criticism. But if ain't rock solid don't mention it. If you watch the CEO today the Healthcare division is furthest from his mind.
Under promise and over deliver!! |
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.
---
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? |
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