Microchip Technology Inc: New Launches & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (02/23)

Microchip had a solid fourth quarter that surpassed Wall Street expectations in terms of revenues as well as earnings. The net sales of this quarter were 4.6% up sequentially. The company has managed a gross margin of 68.1%. Microchip has also increased the raw materials inventory to protect the internal manufacturing chains. It is now investing in building inventory for long-lived, high-margin products. The company has already paid almost 80% of the debt and considerably reduced its financial l

Microchip Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (11/22)

Microchip’s quarterly result was solid and it managed to surpass Wall Street expectations in terms of revenues as well as earnings. This helped its stock price surge over the past weeks. The company’s positive performance was driven by strong execution of the management and resilient end markets. Market demand increased sequentially at roughly the same rate as their sell-in-recognition-based GAAP net sales. Besides, their broad macro environment is still strong. Despite the capacity expansions t

Microchip Technology: Excellent Base of Intangibles & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (09/22)

Microchip’s results for the quarter were solid and the company’s revenue increased by 6.5% sequentially and 25.1% annually to $1.96 billion surpassing Wall Street expectations. It is worth highlighting that the company delivered an all-around beat despite dealing with many COVID-related operational issues throughout the quarter, including but not limited to the Shanghai shutdowns that impacted its clients and supply chain partners. The management has signed into multiyear long-term supply agreem

Microchip Technology Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (06/2022)

Microchip performed well across 2021 despite facing several operational challenges, including the impact of the pandemic which affected several of their factories, resulted in factory closures in several Chinese cities. The prevailing geopolitical environment resulted in the suspension of shipments to Russia which is why the company has failed to meet its revenue expectations in the recent quarters. However, the silver lining is that its microcontroller revenues have been growing at more than 20

Microchip Technology Inc.: Preferred Supply Program & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (06/22)

Microchip saw a decent quarterly result with revenue increasing 4.9% sequentially and 25.7% year over year to $1.84 billion. The company faced several operational challenges, including the rapid spread of the Omicron variant, which affected several of their factories, resulted in factory closures in several Chinese cities, and the suspension of shipments to Russia which is why it came up just short of its revenue guidance. The company’s microcontroller revenue surpassed $4 billion for the first

Microchip Technology Inc. - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 2/22

Microchip delivered another strong quarter with revenue growing 5.1% sequentially to achieve an all-time record at $1.65 billion. The company has made good progress in terms of handling its capital gearing and expects to continue reducing its debt and leverage ratio. Throughout the quarter, business conditions remained exceptionally strong, with record bookings and backlog for products to be shipped over multiple quarters. During the quarter, Microchip completed the acquisition of Iconic RF, a s

Microchip Technology Inc. - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 8/21

Microchip Technology had another solid quarter with a decent double-digit growth in its core microcontroller revenues which account for more than 55% of the top-line. The management is witnessing excellent product momentum and customer engagement and looks to continue increasing market share in the coming quarters with the goal of building the best-performing microcontroller franchise in the industry. Microchip’s Analog revenues were $432.1 million and the Asian market has been the largest contr

Microchip Invt Thesis, Financial & Price Forecasts, DCF Valuation

Microchip Technology offers a wide array of components ranging from microcontrollers to sensors to power management solutions. The company recently reported solid Q4 2021 results backed by robust demand for chips used in a variety of end markets. As the global semiconductor shortage rages on, the company has worked to build a Preferred Supply Program to improve customer order visibility. It has also carried out pertinent acquisitions over the years such as Microsemi and Atmel which are benefitti

Alphawave Semi: FY23 trading update, amended forward guidance

Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H

Audioboom Group - Q1 24 revenue growth of +11%, FY24E forecasts reiterated

Audioboom’s FY23 results and Q1 trading update show Q1 24 revenue growth of +11% yoy, $6.7m of March 2024 revenue marking the platform’s highest revenue month since May 2022, and a confident outlook that leads us to reiterate our FY24E forecasts. Following the focus on new initiatives through FY23, the platform is now in its strongest ever operational position, with a record 1.1bn monthly ad impressions created in March 2024, record global audience reach of 38.6m unique global listeners in Janua

Crimson Tide - FY23 reports +15% revenue; investment phase complete

Crimson Tide has reported FY23 results to December in line with expectations, with additional operating leverage benefitting updated FY24 and maiden FY25 and FY26 forecasts. FY23 delivered +15% revenue growth to £6.2m at 86% GM, of which over 90% is recurring, and maintained £5.8m ARR even after unexpected customer churn in the year as we previously noted. Crucially, the Group achieved milestone adj EBITDA profitability of £0.4m at 7% EBITDA margin, and edges closer to adj PBT profitability expe

Morning Note – 16 April 2024

Devolver Digital (DEVO LN) - Rebuild year

Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce

Morning Note – 15 April 2024

Intelligent Ultrasound Group - GE Healthcare launches new Voluson Signature with

GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI

Checkit - New product launch and contract wins

Checkit has won contracts with two customers worth at least £417k over the three-year lives of the contracts, confirming its ability to upsell to its existing customer base and supporting our forecasts. Having trialled the new technology with multiple customers, Checkit has launched its Asset Intelligence module, which uses advanced analytics and machine learning to enhance customer sustainability, reduce costs and increase revenue.

Soft growth patch

Auction Technology Group - H1/24 Trading update

ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).

Morning Note – 17 April 2024

Touchstar - Full year results: Recurring revenue strategy delivers further profit growth

Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning's full year results reflect the outcome of a multi-year strategy coming to fruition for the group, with recurring revenue growth of 8.7% delivering overall revenue growth of 7.1% and in turn a 60% increase in PBT to £0.7m. Over the past few years, Touchstar has focused on enhancing the returns from their product offering through a shift towards recurring software licen

It’s not what you sell, it’s the way that you sell it

This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored.  We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.

LIBERUM: Cirata plc: Cirata from the flames

Engage XR Holdings - Expanding from FY23, FY24E forecasts reiterated

ENGAGE XR’s FY23 results show revenue and net cash in line with the February trading update, EBITDA ahead at -€4.0m vs -€4.5m due to the split of cash outflow between opex and working capital, and a confident outlook that leads us to reiterate our FY24E forecasts. FY23 revenue for the core ENGAGE platform was unchanged vs FY22 at €3.3m, as H2 23 revenue was impacted by the record seven-figure contract announced in February shifting to 2024, and several enterprise customers scaling back renewals