EnSilica swings to first-half operating profit

The AIM-traded company said its adjusted operating profit for the six months ended 30 November totalled £0.15m, swinging from a loss of £0.17m a year earlier, while its adjusted EBITDA totalled £0.66m, compared to a loss of £0.08m in the comparative period.

During the half-year, EnSilica launched a mixed signal automotive ASIC, which was now in commercial production following the release of a new flagship vehicle by a premium automotive company.

The company also secured an industrial ASIC supply project, worth more than $30m over seven years.

EnSilica noted that it invested heavily in sales and marketing activities during the period, appointing a vice-president of worldwide sales, and working with new sales partners in Europe and the US.

Since the period ended, EnSilica secured two new contracts with existing European customers for a combined total of $3.6m, including a major automotive tier-one company.

At the end of January, EnSilica had cash at bank of £2.2m.

Looking ahead, the firm said it was well-placed to continue to capitalise on the growth opportunity within the semiconductor industry, supported by a sizable order book and new business pipeline.

“Today's results are further evidence of our strong operational capabilities and sound strategic vision, which together have laid the ground for a series of sizable new business wins, including our recently announced €5m satellite user terminal chip contract,” said chief executive officer Ian Lankshear.

“The EnSilica team, which remains the bedrock of our business, works tirelessly to deliver best-in-class products and services to our global customer base, and our recent success at the TechWorks Awards is a true testament to this. “

Looking to the rest of the 2023 financial year and 2024, Lankshear said the company expected to continue the “solid performance” delivered so far, spurred on by further contract momentum and a healthy pipeline of new business opportunities.

“Whilst we remain mindful of the ongoing turbulence of the broader macro climate, the sustained demand for chips across our key growth markets underscores our confidence in our medium-term business prospects.”

At 1546 GMT, shares in EnSilica were up 12.19% at 104.9p.

Reporting by Josh White for Sharecast.com.