Alphawave: omegawhoops

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Alphawave IP Group plc (LSE: AWE, the “Company“ or “Alphawave Semi“) has published today its audited results for the year ended 31 December 2022. The Company notes the following changes to its FY 2022 preliminary results published on 28 April 2023:

So . . . that’s $7mn lopped off sales. Reported operating profit had been overstated by $7.4mn, meaning the operating margin was 3 percentage points too high. The income tax bill was wrong by around $200k, and nearly $400,000 is added onto R&D expenses because the amortisation period’s gone from five years to four.

Heading into the balance sheet, there’s an $8.2mn reclassification of payables between non-current and current liabilities, another $4.4mn reclassification of payables related to deferred comp from its acquisition of Israeli-based Banias Labs in October 2022, and a comprehensive rejig of tax stuff. The company says by way of explanation:

The revenue adjustment, and associated balance sheet entries, reflect the reversal of 86% of the adjustment to the fair value of the deferred revenue acquired with OpenFive [in September 2022].

Oh, and also:

Alphawave IP Group plc (LSE: AWE, the “Company” or “Alphawave Semi”) today announces that its Chief Financial Officer (CFO), Daniel Aharoni is stepping down with immediate effect.

JPMorgan, which along with Barclays is Alphawave’s house broker having organised the £750mn float in 2021, says:

The new audited revenue is 11.4% ahead of what consensus was expecting when the results were due. The new audited Adj. EBITDA is 19.9% below what the consensus was expecting, with the audited margin of 25.3% below the expected 35.1% margin. The fact that the company had spent more was known at the last report; that the miss was much more is not positive, although the fact that the cash flow did not change in the audit is a positive. . . . [On the balance sheet] all the changes are non-cash so there is no change in the reported cash flow of the company, which we view as a key positive.

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Further reading:

— Alphawave: the Arm wannabe’s curiously close contacts (FTAV)
— ”For the avoidance of doubt, these are typographical errors only” (FTAV)
— London Stock Exchange welcomes Alphawave IP to the main market (LSEG, May 2021)
— Suspension: Alphawave IP Group (LSEG, May 2023)