Alphawave ups guidance after strong maiden results

Alphawave increased its full-year guidance as the semiconductor technology posted a doubling of first-half profit and a surge in new business.

In its first results since listing on the London Stock Exchange, Alphawave reported adjusted earnings before interest, tax, depreciation and amortisation of $13.9m for the six months to the end of June - up from $6.3m a year earlier.

Revenue jumped by 140% to $27.6m and bookings soared by almost 500% to $196.1m. Full-year bookings will be more than $230m based on big deals signed with CPP and Verisilicon in the first half and expected strong growth in the second half, especially in North America, Alphawave said.

Annual revenue is expected to rise by more than 125% to exceed $75m - outstripping guidance for a 100% increase published at the time of Alphawave's initial public offering in May. Alphawave shares rose 7.6% to 367.2p at 08:31 BST but were still below their IPO price.

Alphawave uses digital processing to speed up connectivity as the growth of devices and digital integration puts pressure on existing connections. It raised £347m in the IPO but the shares fell from their 410p offer price on the first day of trading and have spent most of the time below that value since.

"Following a strong first half in 2021, we are increasing our FY2021 guidance based on our order book and visibility on new opportunities," the company said.