EnSilica PLC (AIM:ENSI) shares fell 15% after warning investors of delayed orders.
Due to two customer project hold-ups, the small-cap chip firm has materially reduced expectations for revenue and earnings for 2025.
One project is with SIAE MICROELETTRONICA, and the other is an Edge AI chip development. Together the delays are expected to lower revenue by around £4 million and EBITDA by about £3 million.
As a result, EnSilica now expects £19 million to £20 million of revenue, and £100,000 to £500,000 of earnings.
Looking further ahead, next year’s revenue is forecast between £33 million and £35 million – Ensilica said 80% of this pipeline was already contracted.
It expects the business to see positive cash generation by the end of the 2026 financial year.
"Over the first ten months of the current financial year we've secured six major new contracts,” chief executive Ian Lankshear said in a statement.
“This strong booking performance underscores EnSilica's position as a leading ASIC supplier in Europe.”
Lankshear added: “That said, the delays to the two contracts are obviously disappointing, particularly as these are both material projects reducing our reported results for this year but importantly not the performance of the business over the medium term.”
In London, Ensilica shares were down 6p or 15.3p changing hands at 33.05p.