Mixed-signal semiconductor design company EnSilica PLC has reported robust strategic progress in the first half of fiscal year 2025, highlighting significant contract wins and technological advancements despite a marginal decrease in overall revenues.
The company reported revenues of £9.3 million, a 3% decrease from the previous year, primarily attributed to slower progression of new contract negotiations. However, EnSilica demonstrated substantial growth in product supply revenues, which increased by 170.3% to £2.9 million, signaling a promising trajectory towards more stable income streams.
EnSilica's strategic positioning in automotive, industrial, healthcare, and satellite connectivity applications for mixed-signal ASICs continues to provide a competitive advantage. The global ASIC market is projected to reach $25 billion by 2030, presenting substantial opportunities for the company's expansion.
During the reporting period, EnSilica secured multiple high-value contracts that underscore its market potential. These include £10.4 million in match funding from the UK Space Agency, a partnership with Oriole Networks Ltd as an ASIC provider, a follow-on contract with Siemens, and a significant telecommunications ASIC design and supply contract valued at over $30 million across a ten-year period.
The company currently has four ASICs in production and eight additional designs in development, demonstrating a robust innovation pipeline. Strategic investments in research and development, coupled with partnerships with industry leaders like TSMC, are expected to enhance EnSilica's competitive positioning.
Management remains optimistic, projecting £6.0 million in supply revenue and maintaining expectations of positive EBITDA for the fiscal year. Despite experiencing a decrease in EBITDA from £0.5 million to £(0.2) million, the company views its ongoing operational investments as critical for long-term growth.
The diverse contract portfolio across various end markets suggests EnSilica's ability to generate sustainable and diversified revenue. This versatility, combined with recent equity fundraising and loan refinancing, provides a strong financial foundation for future expansion.
Financial analysts from Stonegate Capital Partners have valued the company between £0.86 and £0.99 per share, with a midpoint of £0.92, reflecting confidence in EnSilica's strategic direction and market potential.
