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Auditor says chip maker Alphawave’s profits were $7m less than previously reported

Alphawave IP (Alphawave IP)
Alphawave IP (Alphawave IP)

Chip maker Alphawave revealed today that its profits for 2022 were $7 million (£5.6 million) lower than it had previously reported, as it released its audited accounts three weeks after the Financial Conduct Authority’s deadline.

Alphawave’s shares have been suspended since the end of April, when it said accountants at KPMG had to request more time to complete their audit of its results.

At the time, the chip firm published unaudited figures, showing profit was up 44% to £56.3 million as revenue more than doubled. Its board added that they did “not expect any changes” in the audited version, which they said were going to be published on 12 May, but its shares fell by 15% after it revealed the looming suspension.

A week later, the firm said CFO Daniel Aharoni would step down when the results were published. Aharoni’s target salary for last year was £866,000.

However, the final results published today show a profit of $49.3 million, $7 million less than reported in April, with revenue reduced by roughly the same amount.

Alphawave said the difference was mostly because of revenue acquired when it bought connectivity firm OpenFive, and noted that it only concerned non-cash items. This meant its free cash flow for the year was still the same as it reported last month.

Alphawave’s profit expectations for this year are unchanged, at $87 million. Its shares remain suspended, closing at 101.4p at the end of April.