EnSilica signs $2.4m contract with existing customer

1st Sep 2023 12:51

(Sharecast News) - Application-specific integrated circuit (ASIC) producer EnSilica confirmed a new contract worth around $2.4m on Friday, with a Europe-based existing customer.

The AIM-traded firm said the contract would be focussed on the development of a next-generation advanced networking ASIC, and was expected to significantly contribute to EnSilica's financial performance for the year ending 31 May.

It said the contract represented a continuation of the relationship between the chip maker and its long-standing customer, whose identity was not disclosed.

In terms of financial impact, the majority of the contract's revenue is projected to be realised within EnSilica's current financial year, ending in May.

According to the company, the new contract aligned well with its revenue and EBITDA expectations for the 2024 financial year, reinforcing its confidence in meeting market projections.

"We are delighted to have been awarded this further contract with a valued and longstanding EnSilica customer, strengthening our ongoing association with them and demonstrating their continuing confidence in our design and delivery capabilities," said chief executive officer Ian Lankshear.

"The award also reinforces our ongoing confidence in both the business and our capabilities, ensuring EnSilica continues to trade comfortably in line with market consensus for the current financial year."

EnSilica said it expected to announce its audited results for the financial year ended 31 May in early October, in line with market expectations.

At 1145 BST, shares in EnSilica were up 7.12% at 70.7p.

Reporting by Josh White for Sharecast.com.