Sondrel, a fabless semiconductor business, has experienced a decline in share prices following the announcement of a chip development-and-production delay for three major customers in Europe. As of 0701 GMT, shares have fallen by 40%, or 22.5 pence, reaching 33.5 pence.
The company revealed on Thursday that it anticipates full-year revenue to be no less than £13 million ($16.5 million), a significant decrease compared to current market expectations. The delay, ranging from six to 12 months, is attributed to rising inflation and weakening demand.
Chief Executive Graham Curren expressed disappointment regarding the rescheduling of production dates for three upcoming application-specific integrated circuit (ASIC) projects. However, he highlighted that the increased aggregate production volumes for live ASIC projects are a positive development for Sondrel. Curren remains confident in the company’s revenue and profitability for 2024 and beyond.
During the first half of this year, Sondrel expects to report a 17% increase in revenue, amounting to £9.3 million. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (excluding exceptional and other one-off items) are projected to rise from £100,000 to £400,000 compared to the same period last year.
The company credits this growth to a significant milestone achieved with a tier one original equipment manufacturer in the automotive sector.
