Financial Highlights:
- Revenue increased to $34.7 million from $13.9 million in the second quarter of 2020.
- Gross margin expanded to 82%, compared to 80% in the prior year's quarter.
- GAAP operating expenses were $17.3 million, which included $4.1 million in deferred offering costs.
- GAAP net income improved to $12.2 million, or $0.26 per diluted share, compared to a net loss of $0.3 million, or ($0.05) per share, in the second quarter of 2020.
- Non-GAAP net income was $12.0 million, or $0.25 per diluted share, compared to a net income of $0.3 million, or $0.04 per diluted share, in the year-ago quarter.
- Cash, cash equivalents and restricted cash increased to $45.8 million.
Business Highlights:
- Continued customer sample shipments of latest Speedster®7t high-performance data acceleration FPGAs.
- Began shipping VectorPath™ PCIe form factor acceleration cards that include new 7nm Speedster 7t1500 FPGA devices.
- Announced a partnership with Napatech to create solutions that combine Speedster7t FPGAs with Napatech's software to deliver the optimal mix of price, performance, power and feature set for SmartNIC designs.
- Closed new Speedcore™ eFPGA contract in the Fintech market segment and shipped Speedcore IP for first automotive application.
Robert Blake, Achronix's President and Chief Executive Officer, commented, "We continued to build on our strong first quarter results by posting 16% sequential revenue growth in the second quarter, driven by increased customer demand for our Speedster FPGAs. We are seeing strong design activity for our latest Speedster and Speedcore IP products across multiple market segments, including data center networking, high-performance cloud computing and automotive to name a few. Also during the quarter, we continue to rollout shipments of customer samples on our Speedster7t FPGAs and VectorPath acceleration cards. Testing of these new devices is going well as we work to bring multiple variants of the family to market and advance toward production shipments by year-end."
Blake concluded by stating, "With the strong momentum we have generated across our business and the significant growth opportunities that lie ahead, we believe Achronix is well positioned for a public market debut and remain focused on driving growth and profitability in the quarters and years ahead."
About Achronix Semiconductor Corporation
Achronix Semiconductor Corporation is a fabless semiconductor corporation based in Santa Clara, California, offering high-end FPGA-based data acceleration solutions, designed to address high-performance, compute-intensive and real-time processing applications. Achronix is the only supplier to have both high-performance and high-density standalone FPGAs and licensed eFPGA solutions. Achronix FPGA and eFPGA IP offerings are further enhanced by ready-to-use accelerator cards targeting AI, machine learning, networking and data center applications. All Achronix products are fully supported by a complete and optimized range of Achronix software tools called ACE, which enables customers to quickly develop their own custom applications. Achronix has a global footprint, with sales and design teams across the U.S., Europe and Asia. For more information, please visit
www.achronix.com.
Non-GAAP Results
We present non-GAAP supplemental performance measures in this press release. We have presented this financial information because we believe the exclusion of non-cash charges allows for a more relevant comparison of our results of operations to other companies used by industry analysts and investors to compare our performance against that of our peer group and they provide a useful measure for period-to-period comparisons of our core operating performance.
We use non-GAAP financial measures to help us make strategic decisions, establish budgets and operational goals for managing our business, analyze our financial results, and evaluate our performance. We also believe that the presentation of non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors. However, non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. Non-GAAP financial measures should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP.
A reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.
In the second quarter of 2021, non-GAAP gross profit was $28.3 million, or 82% of revenue, non-GAAP operating expenses were $16.2 million, or 47% of revenue, non-GAAP income from operations was $12.0 million, or 35% of revenue and non-GAAP net income was $12.0 million, or $0.25 per diluted share.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words "intend," "expect," "estimate," "project," "potential," "future," "may," "will," "would," "will be," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. All statements, other than statements of present or historical fact included in this press release, such as its strategy, future operations, estimated financial position, estimated revenue growth, prospects and pipeline expectations, estimated market growth, estimated backlog, plans and objectives of management and plans to become a public company are forward-looking statements. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to, risks related to new accounting pronouncements or changes in accounting guidance; changes in domestic and foreign business, market, financial, political, and legal conditions; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; risks related to the rollout of Achronix's business and the timing of expected business milestones; the effects of competition on Achronix's business; the effects of the cyclical nature of the semiconductor industry on Achronix's business; risks related to Achronix's customer concentration; the risks to Achronix's business if internal processes and information technology systems are not properly maintained; risks associated with Achronix's operational dependence on independent contractors and third parties; risks associated with Achronix's reliance on certain suppliers for, among other things, silicon wafers; risks and uncertainties related to the ongoing COVID-19 pandemic; risks and uncertainties related to Achronix's international operations, including possible restrictions on cross-border investments which could harm Achronix's financial position; and risks associated with Achronix's ability to develop new products and adapt to new markets. The foregoing list of factors is not exhaustive. There may be additional risks that Achronix does not presently know, or that Achronix currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements as predictions of future events, and Achronix assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.
Trademarks
Achronix and Speedster are registered trademarks, and Speedcore and Speedchip are trademarks of Achronix Semiconductor Corporation. All other brands, product names and marks are the property of their respective owners.
Contacts
For Achronix:
IR@Achronix.com
Media@Achronix.com
ACHRONIX SEMICONDUCTOR CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Dollar in thousands, except shares and per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
| Three Months Ended |
| Six Months Ended |
| |||||||
|
|
|
|
|
| June 30, |
| June 30, |
| |||||||
|
|
|
|
|
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Revenue: |
|
|
|
|
|
|
|
|
|
|
| ||||
|
| Product |
|
|
| $ 33,812 |
| $ 13,672 |
| $ 59,416 |
| $ 18,888 |
| |||
|
| Licensing |
|
| 869 |
| 241 |
| 5,118 |
| 487 |
| ||||
|
|
| Total revenue |
| 34,681 |
| 13,913 |
| 64,534 |
| 19,375 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Cost of revenue |
|
| 6,367 |
| 2,736 |
| 12,994 |
| 4,159 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Gross profit |
|
| 28,314 |
| 11,177 |
| 51,540 |
| 15,216 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Operating expenses |
|
|
|
|
|
|
|
|
| ||||||
|
| Research and development |
| 8,280 |
| 6,973 |
| 15,862 |
| 13,538 |
| |||||
|
| Sales and marketing |
| 2,890 |
| 1,980 |
| 5,479 |
| 3,925 |
| |||||
|
| General and administrative |
| 6,082 |
| 1,025 |
| 9,464 |
| 1,998 |
| |||||
|
|
| Total operating expenses |
| 17,252 |
| 9,978 |
| 30,805 |
| 19,461 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Income (loss) from operations |
| 11,062 |
| 1,199 |
| 20,735 |
| (4,245) |
| |||||
|
| Total other income (expense), net |
| 1,061 |
| (1,476) |
| 250 |
| (1,356) |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Income (loss) before income tax expenses |
| 12,123 |
| (277) |
| 20,985 |
| (5,601) |
| |||||
|
| Provision for income tax |
| (53) |
| 21 |
| 46 |
| 44 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net income (loss)* |
| $ 12,176 |
| $ (298) |
| $ 20,939 |
| $ (5,645) |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net income (loss) per share |
|
|
|
|
|
|
|
|
| ||||||
|
| Basic |
|
|
| $ 0.66 |
| $ (0.05) |
| $ 2.23 |
| $ (0.91) |
| |||
|
| Diluted |
|
|
| $ 0.26 |
| $ (0.05) |
| $ 0.53 |
| $ (0.91) |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Weighted - average shares used in computing net income per share: |
|
|
|
|
|
|
|
| |||||||
|
| Basic |
|
|
| 18,495 |
| 6,226 |
| 9,370 |
| 6,226 |
| |||
|
| Diluted** |
|
| 47,278 |
| 6,226 |
| 39,511 |
| 6,226 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
* Net income does not exclude undistributed earnings attributable to participating securities. | |||||||||||||||
|
| |||||||||||||||
**Diluted shares include options and warrants on an as-if-converted basis and exclude redeemable preferred stocks. |
ACHRONIX SEMICONDUCTOR CORPORATION | |||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) | |||||||||||||
TO NON-GAAP MEASURES | |||||||||||||
(Dollar in thousands, except shares and per share amounts) | |||||||||||||
(Unaudited) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended |
| Six Months Ended |
|
| ||||
|
|
|
|
|
| June 30, |
| June 30, |
|
| ||||
|
|
|
|
|
| 2021 |
| 2020 |
| 2021 |
| 2020 |
|
|
Non-GAAP gross margin |
|
|
|
|
|
|
|
|
|
| |||
GAAP gross profit |
| $ 28,314 |
| $ 11,177 |
| $ 51,540 |
| $ 15,216 |
|
| |||
GAAP gross margin |
| 82% |
| 80% |
| 80% |
| 79% |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense - cost of revenue |
| 32 |
| 20 |
| 65 |
| 40 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit |
| $ 28,347 |
| $ 11,198 |
| $ 51,606 |
| $ 15,257 |
|
| |||
Non-GAAP gross margin |
| 82% |
| 80% |
| 80% |
| 79% |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating income (loss) |
|
|
|
|
|
|
|
|
|
| |||
GAAP operating income (loss) |
| $ 11,062 |
| $ 1,199 |
| $ 20,735 |
| $ (4,245) |
|
| |||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
| |||
|
| Cost of revenues |
| 32 |
| 20 |
| 65 |
| 40 |
|
| ||
|
| Research and development |
| 306 |
| 104 |
| 557 |
| 211 |
|
| ||
|
| Sales and marketing |
| 242 |
| 120 |
| 382 |
| 220 |
|
| ||
|
| General and administrative |
| 318 |
| 108 |
| 602 |
| 220 |
|
| ||
|
|
| Total stock-based compensation expense |
| 898 |
| 352 |
| 1,606 |
| 691 |
|
| |
Non-GAAP operating income (loss) |
| $ 11,960 |
| $ 1,551 |
| $ 22,341 |
| $ (3,554) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
|
|
|
|
|
|
|
|
| |||
GAAP net income (loss) |
| $ 12,176 |
| $ (298) |
| $ 20,939 |
| $ (5,645) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
| 898 |
| 352 |
| 1,606 |
| 691 |
|
| |||
Change in fair value of warrant liability |
| (1,095) |
| 222 |
| (328) |
| (118) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) |
| $ 11,979 |
| $ 276 |
| $ 22,217 |
| $ (5,072) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic earnings per share |
| $ 0.66 |
| $ (0.05) |
| $ 2.23 |
| $ (0.91) |
|
| |||
Effect of non-GAAP adjustments on basic earnings per share |
| (0.01) |
| 0.09 |
| 0.14 |
| 0.09 |
|
| |||
Non-GAAP basic earnings per share |
| $ 0.65 |
| $ 0.04 |
| $ 2.37 |
| $ (0.81) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share |
| $ 0.26 |
| $ (0.05) |
| $ 0.53 |
| $ (0.91) |
|
| |||
Effect of non-GAAP adjustments on diluted earnings per share |
| (0.00) |
| 0.09 |
| 0.03 |
| 0.09 |
|
| |||
Non-GAAP diluted earnings per share |
|
$ 0.25 |
| $ 0.04 |
| $ 0.56 |
| $ (0.81) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted - average shares used in computing net income (loss) per share: |
|
|
|
|
|
|
|
|
| ||||
|
| Basic |
|
|
| 18,495 |
| 6,226 |
| 9,370 |
| 6,226 |
|
|
|
| Diluted* |
|
|
| 47,278 |
| 6,226 |
|
39,511 |
| 6,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Diluted shares include options and warrants on an as-if-converted basis and exclude redeemable preferred stocks |
|
|
|
|
|
| Three Months Ended |
| Six Months Ended | ||||
|
|
|
|
|
| June 30, |
| June 30, | ||||
|
|
|
|
|
| 2021 |
| 2020 |
| 2021 |
| 2020 |
Adjusted EBIT |
|
|
|
|
|
|
|
|
| ||
GAAP net income (loss) |
| $ 12,176 |
| $ (298) |
| $ 20,939 |
| $ (5,645) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
| 898 |
| 352 |
| 1,606 |
| 691 | |||
Total other income (expense), net |
| (1,061) |
| 1,476 |
| (250) |
| 1,356 | |||
Provision for income tax |
| (53) |
| 21 |
| 46 |
| 44 | |||
Adjusted EBIT |
|
| $ 11,960 |
| $ 1,551 |
| $ 22,341 |
| $ (3,554) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to disclosing financial results calculated in accordance with U. S. generally accepted accounting principles (GAAP), the operating | |||||||
results presented contain non-GAAP financial measures that exclude the income statement effects of stock-based compensation expense | |||||||
and expenses related to the change in fair value of our redeemable preferred stock warrants. | |||||||
|
| |||||||
Management believes it is useful to provide these non-GAAP financial measures and a reconciliation to comparable GAAP financial measures | |||||||
as we believe non-GAAP measures provide useful supplemental information for investors to evaluate our operating results in the same manner | |||||||
as used by industry research analysts, all of whom present non-GAAP projections in their published reports. As such, non-GAAP measures | |||||||
provided by Achronix facilitate a more direct comparison of its performance with the financial reports published by the industry analysts. | |||||||
The items reconciling GAAP financial measures to non-GAAP financial measures and additional comments and the usefulness of each item are | |||||||
set forth below: | |||||||
|
| |||||||
(1) | Stock-based compensation is excluded by management when evaluating operating activities and for strategic decision making, forecasting | ||||||
|
| future results and evaluating current performance. Management believes that utilizing non-GAAP financial measures that exclude this | ||||||
|
| non-cash item is useful in providing an alternate measure that excludes the variability caused by different methodologies and subjective | ||||||
|
| assumptions used in the valuation of equity awards across different companies. | ||||||
|
| |||||||
(2) | Redeemable preferred stock warrant is excluded from the internal analysis of Achronix's operations and management does not view this | ||||||
|
| non-cash expense as reflective of the business' current performance. Management believes that utilizing non-GAAP financial measures | ||||||
|
| that exclude this non-cash item is useful in providing an alternate measure that excludes the variability caused by such item. | ||||||
|
| |||||||
Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other | |||||||
companies' financial information and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures | |||||||
calculated in accordance with GAAP. | |||||||
ACHRONIX SEMICONDUCTOR CORPORATION |
| |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
| |||||||
(Dollar in thousands) |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| June 30, |
| December 31, |
|
|
|
|
|
|
| 2021 |
| 2020 |
|
|
|
|
|
|
| (unaudited) |
| (audited) |
|
Assets |
|
|
|
|
|
|
| |
Current assets: |
|
|
|
|
|
| ||
|
| Cash and cash equivalents |
| $ 40,613 |
| $ 38,546 |
| ||
|
| Restricted Cash |
| 5,145 |
| 5,011 |
| ||
|
| Accounts receivable, net |
| 15,886 |
| 16,900 |
| ||
|
| Inventories |
|
| 14,174 |
| 2,116 |
| |
|
| Prepaid expenses and other current assets |
| 1,944 |
| 2,251 |
| ||
|
|
| Total current assets |
| 77,762 |
| 64,824 |
| |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
| 10,039 |
| 3,723 |
| |||
Operating lease assets, net |
| 5,722 |
| - |
| |||
Intangible assets, net |
| 21,477 |
| 16,432 |
| |||
Other current assets |
| 600 |
| 1,247 |
| |||
|
|
| Total assets |
| $ 115,600 |
| $ 86,226 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, redeemable convertible preferred shares and stockholders' equity (deficit) |
|
|
| |||||
Current liabilities: |
|
|
|
|
|
| ||
|
| Accounts payable |
| $ 3,442 |
| $ 5,938 |
| ||
|
| Accrued liabilities |
| 13,942 |
| 13,414 |
| ||
|
| Operating lease liabilities |
| 1,236 |
| - |
| ||
|
| Deferred revenue |
| 2,540 |
| 4,176 |
| ||
|
|
| Total current liabilities |
| 21,160 |
| 23,528 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock warrant liability |
| 3,983 |
| 4,311 |
| ||
|
| Deferred revenue - noncurrent |
| 4,942 |
| 2,800 |
| ||
|
| Operating lease liabilities - noncurrent |
| 2,317 |
| - |
| ||
|
| Other noncurrent liabilities |
| 9,619 |
| 6,125 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
| $ 42,021 |
| $ 36,764 |
| |
|
|
|
|
|
|
|
|
|
|
Redeemable convertible preferred stock |
| $ 320,916 |
| $ 320,916 |
| |||
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit): |
|
|
|
|
| |||
|
| Common stock |
| 18 |
| 9 |
| ||
|
| Additional paid-in capital |
| 9,151 |
| 5,983 |
| ||
|
| Currency translation adjustment |
| (86) |
| (87) |
| ||
|
| Accumulated deficit |
| (256,420) |
| (277,359) |
| ||
|
| Total stockholders' equity (deficit) |
| (247,337) |
| (271,454) |
| ||
|
|
| Total liabilities, redeemable convertible preferred
|
| $ 115,600 |
| $ 86,226 |
| |
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SOURCE Achronix
| Contact: |
| Company Name: Achronix
Web: achronix.com |
