EnSilica reports robust contract momentum

(Sharecast News) - EnSilica, a designer of mixed-signal application-specific integrated circuits (ASICs), announced robust contract momentum and a significant pipeline of opportunities in an update on Thursday.

The AIM-traded company, which was holding its annual general meeting, said it expected to trade in line with market expectations for the financial year ending 30 May.

It said its sales pipeline was now valued at about $450m in lifetime revenues, complemented by an estimated $224m in recurring supply revenue from previously-closed design contracts.

EnSilica said it had secured a high volume of contracts in the first half of the financial year, reflecting strong demand from industrial and automotive sectors and a diverse range of domestic and international corporations.

The group was continuing to expand its ASIC supply capabilities, diversifying revenue streams and strengthening its recurring revenues pipeline.

To further enhance competitiveness and gross margins, EnSilica added that it was investing in its intellectual property platforms while actively pursuing new opportunities in supply, non-recurring engineering, and consultancy.

"Supported by EnSilica's sizable order book and current new business pipeline, management's near-to-medium term outlook on the company's growth potential remains positive," said chair Mark Hodgkins.

"As demand for trusted and resilient semiconductor supply chains increases worldwide, EnSilica is well-placed to enhance its reputation as a premier European chipmaker with a global reach."

At 1153 GMT, shares in EnSilica were up 1.22% at 44.03p.

Reporting by Josh White for Sharecast.com.