Deals and Business Updates for Q3 2022

• Extends technology leadership with second 3nm design win
• Strong deals and design wins in the third quarter reflect a hybrid business model that combines IP and custom silicon.
• First integration into OpenFive groups. September 1, 2022
• Management remains confident in business prospects and will reiterate independently¹ Medium- to long-term guidance despite challenging macro environment

London When Toronto, October 17, 2022 /PRNewswire/ — Alphawave IP Group plc (LN: AWE) (“Alphawave”, the “Company”), a global leader in high-speed connectivity of the world’s technology infrastructure, announces the latest in its deals and business I am pleased to 3 months over September 30, 2022.

Alphawave IP Logo

US$ million	Q3 2022	Q3 2021	Change
Licenses and NREs	57.8	21.5	169%
Royalties and Silicon Orders	22.2	1.8	nm
New reservations (excluding VeriSilicon and WiseWave multi-year subscription licenses)	80.0	23.3	245%
Additional Design Winning Activities – FSA Drawdown and China Resale License2	8.5	3.9	118%
WiseWave Multi-Year Subscription License	–	–	nm
Number of final customers (at the end of the period)3	46	twenty one	nm

Due to rounding, numbers shown in tables may not add up to totals and percentages may not accurately reflect absolute numbers.

Tony PierisAlphawave IP President and Chief Executive Officer, said: “During the third quarter, we saw strong momentum, especially in design wins. North AmericaIn addition to this, we have already seen the benefits of scaling our hybrid business model, which allows us to further monetize our differentiated IP through custom silicon, expanding our technology leadership with our second 3nm design win. With our enhanced product portfolio of high-speed connectivity and an ever-expanding customer base, we are confident in the long-term growth potential of our business. “

John Lofton Holtsaid Alphawave IP Executive Chairman. “This quarter’s order levels reflect the strength of our technology and the continued strong execution of our team. We support the long-term growth potential of the company.

Changes to reports for bookings that include OpenFive

We have integrated the acquired OpenFive business effective September 1, 2022. As an integrated business, it brings a broad IP portfolio and engineering expertise in high-speed connectivity to customers in the digital infrastructure market. This, coupled with our growing customer base and growing scale of our hybrid business model, will help drive sustainable long-term revenue growth and create value for our shareholders.

The following table summarizes how each type of booking has been mapped to the new booking classifications.

alpha wave			open five			new alpha wave
type	include		type	include		type	Note	include
License and Related	– IP license, NRE and support		IP license	– IP license, NRE and support – IP usage fee		Licenses and NREs	Includes IP License, NRE Side job support independent of volume	– IP license NRE and support – Custom Silicon NRE – Other custom silicon (volume agnostic)
			custom silicon	– IP license, NRE and support – Custom Silicon NRE – Other custom silicone
potential future royalties	– IP usage fee		custom silicon	・Sales of custom silicon (finished products)		Royalties and silicon orders	volume dependent	– IP usage fee ・Sales of custom silicon (finished products)

major highlights

License and Temporary Engineering (“NRE”) bookings for Q3 2022 increased 169% year over year.Include estimates of potential future royalties^Four and silicon orders, new bookings excluding WiseWave multi-year subscription licenses grew 245% year-over-year.Orders in the third quarter came from customers in North America and China^Five.

Within the first month of completing the OpenFive acquisition, we acquired an industry-leading storage design leveraging both Alphawave IP and custom silicon capabilities acquired with OpenFive.

Cumulative bookings over the life of the company⁶ Beyond $480 million.

Expanding technology leadership and strong customer traction

Since 2017, we have demonstrated connectivity technology leadership with 7nm, 6nm, 5nm and 4nm technologies. In Q3 2022, Alphawave IP extended its leadership by winning his second design win for his 3nm technology. The company expects more design successes from him at 3nm and is working with foundry partners beyond 3nm.

In addition to year-over-year growth in new bookings (excluding multi-year subscription licenses) and growing customer base, two additional data points underscore strong levels of customer activity in Q3 .⁷ (“Financial Services Agency”) drawdown $3 millionWhen China (VeriSilicon) Distributor transaction⁸ of $5.5 millionBoth FSA and reseller deals represent turning customer commitments into design wins.

Design win activity was strong in the quarter, with 7 new design wins, including 5 from new customers and 2 from repeat customers. In the quarter, in September he acquired four new custom his silicon and built on the benefits of a hybrid business model. Our hybrid model enables businesses to generate greater revenue streams by maximizing the value embedded in our custom silicon products.

Alphawave has customers in 6 of the top 10 semiconductor device companies.⁹This reflects our continued strength in the data infrastructure market, which requires some of the most advanced connectivity technology in the world.

Outlook

Based on current visibility, we expect continued customer traction in the fourth quarter of this year.

Alphawave IP reiterates its independent medium- and long-term outlook. September 21, 2022 Interim results for the first half of 2022^TenDespite the uncertain macroeconomic environment, our growing pipeline reflects positive long-term growth trends in the data infrastructure market and continued investment in next-generation connectivity solutions. This, combined with our talented team and strong balance sheet, gives us confidence for the future.

2023 pro forma outlook and long-term financial model details, including acquisition of Banias Labs and multi-year deal with leading North American hyperscaler¹¹will be notified in the capital market day January 13, 2023.

About Alphawave IP Group plc (LN: AWE)

In the face of exponential data growth, Alphawave IP’s technology addresses a critical need to allow data to be transferred faster, more reliably, with lower power and higher performance. Alphawave IP is a global leader in high-speed connectivity for the world’s technology infrastructure. Our IP and custom silicon solutions meet the needs of global Tier 1 customers in data centers, computing, networking, AI, 5G, autonomous vehicles and storage.Founded in Toronto, Canada In 2017, with a team of proven experts in semiconductor IP licensing, our mission is to focus on the toughest connectivity challenges. For more information on Alphawave IP, please visit awaveip.com.

Related Party Disclosure

There are no new related parties disclosed in this press release.

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1 The stand-alone outlook does not include the acquisition of Banias Labs and the multi-year agreement with a leading North American hyperscaler announced on October 13, 2022.

2 Both FSA (Flexible Spending Account) drawdown and China resale license included in previously reported bookings Previously announced contractual commitments recognized as revenue over time New product designs Converts to the acquisition of

3 Includes OpenFive customers who are not yet Alphawave customers and have signed contracts after September 1, 2022.

Four Our bookings, in some cases, include estimates of potential future royalties. Our royalties are estimated based on contractually committed royalty advances or, in limited instances, on sensitive volume quotes provided by our customers.

Five These Chinese customers are not covered by WiseWave’s VeriSilicon agreement.

6 Since its inception in 2017.

7 An FSA, or Flexible Spending Account, represents a contract with a customer that promises regular payments. These payments are not related to a specific license, but can be used as credit towards future work. The FSA drawdown represents the design winning value of trades signed during the period against which FSA payouts are credited and converted to earnings over time.

8 In February 2021, Alphawave IP signed a three-year exclusive subscription reseller agreement with VeriSilicon for a minimum of US$54 million. The reseller deal represents VeriSilicon’s subsequent licensing of his IP to third parties in China and is part of a minimum US$54 million commitment, making it an additional booking for our company. not.

9 Semiconductor device companies ranked by market capitalization.

Ten Including financial contributions from OpenFive, the company expects to reach $325 million to $360 million in revenue in 2023. In the long term, we expect to exceed $500 million in 2024 and achieve an annualized rate of return that exceeds that of the United States. $1 billion by 2027. Short-term profit margins will be impacted as OpenFive’s business is consolidated and expanded. Adjusted EBITDA margin in 2023 is expected to be between 32% and 36%. expected synergistic effect. Excluding OpenFive, standalone revenue is expected to be in line with guidance provided in the IPO, i.e., $210M to $240M by 2023, with an adjusted EBITDA margin of 50% to 60% Become.

11 Notification on October 13, 2022

Contact Information: Alphawave IP Group plc, John Lofton HoltExecutive Chairman, Jose Cano, Head of IR, [email protected]+44 (0) 20 7717 5877; Brunswick Group, Simone Seltzer, Sarah West, [email protected]+44 (0) 20 7404 5959; Gravitate PR, Lisette Pallas, Wynton Yu, [email protected]+1 415 420 8420

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Source Alphawave IP Group Plc

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