Alphawave: omegawhoops | Financial Times

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Alphawave IP Group plc (LSE: AWE, the “Agency” OR “Alphawave Seeds“) posted today audited results for the year ended 31 December 2022. The Company acknowledges the following changes to its FY 2022 preliminary results released on April 28, 2023:

AS . . . that’s $7 million cut from sales. Reported operating profit had been overstated by $7.4 million, meaning the operating margin was 3 percentage points too high. The income tax bill was wrong by about $200,000, and nearly $400,000 is added to research and development expenses because the payback period went from five to four years.

Going into the balance sheet, there is a reclassification of $8.2 million of debt between non-current and current liabilities, another reclassification of $4.4 million of debt related to deferred comps from its acquisition of Israel-based Banias Labs in October 2022and a complete rejig of tax stuff. The company says by way of explanation:

The revenue adjustment, and the related balance sheet items, reflect the reversal of 86% of the fair value adjustment of deferred income acquired with Open Five [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, effective immediately.

JPMorgan, which together with Barclays is Alphawave’s internal intermediary who arranged the £750m float in 2021, says:

Audited new revenue is 11.4% higher than the consensus predicted when the results were due. The new Adjusted EBITDA is 19.9% ​​below consensus expectations, with a certified margin of 25.3% below the forecasted margin of 35.1%. That the company had spent more was known in the latest report; that the shortfall was much greater is not good, although the fact that the cash flow did not change during the audit is good. . . . [On the balance sheet] all changes are non-cash, so there is no change in the company’s reported cash flow, which we view as a key positive.

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Further reading:

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