Shares in EnSilica tumbled as much as 25% on Monday after the firm reported delays to multiple contracts.
The Oxford-based semiconductor business said its design and supply agreement with Siae Microelectronica, which had been expected to deliver “significant” revenues as soon as this year, is now expected to be delivered over 2026 and 2027 due to “customer delays beyond EnSilica’s control.”
Meanwhile, the high-value tape-out of an Edge AI chip, announced in July 2024, is now expected to commence in the first half of FY 2026, reducing 2025 revenues by as much as £4m.
The firm has slashed its expected revenues for its current financial year to between £19m and £20m and forecast revenues next year of between £33m and £35m, which it said came as a result of having “adopted a more conservative view on future guidance to allow greater flexibility for project completions.” It added that the total expected revenues from both the two contracts would be unchanged.
“Predicting the timing of contract completions that include customer dependencies has proved difficult as evidenced by the delays in the current financial year,” the company said.
CEO Ian Lankshear said: “The delays to the two contracts are obviously disappointing, particularly as these are both material projects reducing our reported results for this year but importantly not the performance of the business over the medium term.
“We have revised our future guidance to reflect a more conservative outlook of the timing of our growth trajectory and I would emphasise that we remain fully confident that EnSilica is still strongly positioned to deliver significant returns to our shareholders.”
EnSilica shares have now halved over the past twelve months.
In February, EnSilica said it will receive £10m from the UK Space Agency to develop OneWeb-compatible chips as part of a wider funding scheme to bolster Britain’s satellite market.
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