Shares in Sondrel (Holdings) PLC (AIM:SND) fell 38% in early trading after the fabless chipmaker said discussions are ongoing with a customer after delays to an application specific integrated circuit (ASIC) project.
Funding for the delayed automotive project is not going to be resolved in time to be reflected in the company's calendar-2023 results, it said in a statement today.
Revenue from the project of around £2.7 million is now expected to be recognised in the 2024 calendar year, including £1.7 million that is now expected to be received this month or next, as was flagged on 28 December.
If the Reading-based company does not receive these payments, it said it is likely to need extra funding.
Revenues for 2023 are likely to be around £10 million and losses higher than expected, due to the delay and additional costs from the project.
Sondrel said it is also in late-stage talks for “significant” new ASIC projects that would start in the next few months, with “encouraging” indications of demand in European and US market for its turnkey ASIC services.
Management is also in negotiations with suppliers to improve the terms of existing supply arrangements, it added.
Shares in the company recovered from an early low of 3.7p to 5.5p after three-quarters of an hour of trading, a decline of 9% on the day. The shares are down over 90% from highs above 60p last summer, having floated at 55p in October 2022.