Achronix Announces Record Second Quarter 2021 Financial Results and Business Highlights

Press Releases Date

Santa Clara, Calif., July 21, 2021 – Achronix Semiconductor Corporation, a leader in high-performance field-programmable gate arrays (FPGAs) and embedded FPGA (eFPGA) IP, today announced financial results for the second quarter of 2021, ending June 30, 2021.

Financial Highlights:

  • Revenue increased to $34.7 million from $13.9 million in the second quarter of 2020.
  • Gross margin expanded to 82%, compared to 80% in the prior year's quarter.
  • GAAP operating expenses were $17.3 million, which included $4.1 million in deferred offering costs.
  • GAAP net income improved to $12.2 million, or $0.26 per diluted share, compared to a net loss of $0.3 million, or ($0.05) per share, in the second quarter of 2020.
  • Non-GAAP net income was $12.0 million, or $0.25 per diluted share, compared to a net income of $0.3 million, or $0.04 per diluted share, in the year-ago quarter.
  • Cash, cash equivalents and restricted cash increased to $45.8 million.

Business Highlights:

  • Continued customer sample shipments of latest Speedster®7t high-performance data acceleration FPGAs.
  • Began shipping VectorPath™ PCIe form factor acceleration cards that include new 7nm Speedster 7t1500 FPGA devices.
  • Announced a partnership with Napatech to create solutions that combine Speedster7t FPGAs with Napatech's software to deliver the optimal mix of price, performance, power and feature set for SmartNIC designs.
  • Closed new Speedcore™ eFPGA contract in the Fintech market segment and shipped Speedcore IP for first automotive application.

Robert Blake, Achronix’s President and Chief Executive Officer commented, “We continued to build on our strong first quarter results by posting 16% sequential revenue growth in the second quarter, driven by increased customer demand for our Speedster FPGAs. We are seeing strong design activity for our latest Speedster and Speedcore IP products across multiple market segments, including data center networking, high-performance cloud computing and automotive to name a few. Also during the quarter, we continue to rollout shipments of customer samples on our Speedster7t FPGAs and VectorPath acceleration cards. Testing of these new devices is going well as we work to bring multiple variants of the family to market and advance toward production shipments by year-end.”

Blake concluded by stating, “With the strong momentum we have generated across our business and the significant growth opportunities that lie ahead, we believe Achronix is well positioned for a public market debut and remain focused on driving growth and profitability in the quarters and years ahead.”

About Achronix Semiconductor Corporation

Achronix Semiconductor Corporation is a fabless semiconductor corporation based in Santa Clara, California, offering high-end FPGA-based data acceleration solutions, designed to address high-performance, compute-intensive and real-time processing applications. Achronix is the only supplier to have both high-performance and high-density standalone FPGAs and licensed eFPGA solutions. Achronix FPGA and eFPGA IP offerings are further enhanced by ready-to-use accelerator cards targeting AI, machine learning, networking and data center applications. All Achronix products are fully supported by a complete and optimized range of Achronix software tools called ACE, which enables customers to quickly develop their own custom applications. Achronix has a global footprint, with sales and design teams across the U.S., Europe and Asia. For more information, please visit

Non-GAAP Results

We present non-GAAP supplemental performance measures in this press release. We have presented this financial information because we believe the exclusion of non-cash charges allows for a more relevant comparison of our results of operations to other companies used by industry analysts and investors to compare our performance against that of our peer group and they provide a useful measure for period-to-period comparisons of our core operating performance.

We use non-GAAP financial measures to help us make strategic decisions, establish budgets and operational goals for managing our business, analyze our financial results, and evaluate our performance. We also believe that the presentation of non-GAAP financial measures provides an additional tool for investors to use in comparing our core business and results of operations over multiple periods with other companies in our industry, many of which present similar non-GAAP financial measures to investors. However, non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. Non-GAAP financial measures should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP.

A reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.

In the second quarter of 2021, non-GAAP gross profit was $28.3 million, or 82% of revenue, non-GAAP operating expenses were $16.2 million, or 47% of revenue, non-GAAP income from operations was $12.0 million, or 35% of revenue and non-GAAP net income was $12.0 million, or $0.25 per diluted share.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words “intend,” “expect,” “estimate,” “project,” “potential,” “future,” “may,” “will,” “would,” “will be,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. All statements, other than statements of present or historical fact included in this press release, regarding ACE’s proposed acquisition of Achronix, ACE’s ability to consummate the proposed transaction, the benefits of the proposed transaction and the combined company’s future financial performance, as well as the combined company’s strategy, future operations, estimated financial position, estimated revenue growth, prospects and pipeline expectations, estimated market growth, estimated backlog, plans and objectives of management are forward-looking statements. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: the risk that the proposed transaction may not be completed in a timely manner or at all, which may adversely affect the price of ACE’s securities; the risk that the proposed transaction may not be completed by ACE’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by ACE; the failure to satisfy the conditions to the consummation of the proposed transaction, including the adoption of the Merger Agreement by the shareholders of ACE or the stockholders of Achronix and the receipt of certain governmental and regulatory approvals; the lack of a third party valuation in determining whether or not to pursue the proposed transaction; the inability to complete the concurrent PIPE financing; the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement; the effect of the announcement or pendency of the transaction with ACE on Achronix’s business relationships, operating results, and business generally; risks that the proposed transaction disrupts current plans and operations of Achronix; the outcome of any legal proceedings that may be instituted against Achronix or against ACE related to the Merger Agreement or the proposed transaction; the ability to maintain the listing of ACE’s securities on a national securities exchange; risks related to new accounting pronouncements or changes in accounting guidance; changes in domestic and foreign business, market, financial, political, and legal conditions and changes in the combined capital structure; the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities; failure to realize the anticipated benefits of the proposed transaction; risks relating to the uncertainty of the projected financial information with respect to Achronix; risks related to the rollout of Achronix’s business and the timing of expected business milestones; the effects of competition on Achronix’s business; the effects of the cyclical nature of the semiconductor industry on Achronix’s business; risks related to Achronix’s customer concentration; the risks to Achronix’s business if internal processes and information technology systems are not properly maintained; risks associated with Achronix’s operational dependence on independent contractors and third parties; risks associated with Achronix’s reliance on certain suppliers for, among other things, silicon wafers; risks and uncertainties related to the ongoing COVID-19 pandemic; risks and uncertainties related to Achronix’s international operations, including possible restrictions on cross-border investments which could harm Achronix’s financial position; and risks associated with Achronix’s ability to develop new products and adapt to new markets. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of ACE’s registration statement on Form S-4 discussed above and other documents filed, filed with the SEC on February 10, 2021, as may be amended from time to time with the SEC and available on EDGAR at These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. There may be additional risks that Achronix does not presently know, or that Achronix currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements as predictions of future events, and Achronix assumes no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.


Achronix and Speedster are registered trademarks, and Speedcore and Speedchip are trademarks of Achronix Semiconductor Corporation. All other brands, product names and marks are the property of their respective owners.


For Achronix:

(Dollar in thousands, except shares and per share amounts)
  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2021   2020   2021   2020
  Product $   33,812   $   13,672   $   59,416   $   18,888
  Licensing 869   241   5,118   487
  Total revenue 34,681   13,913   64,534   19,375
Cost of revenue 6,367   2,736   12,994   4,159
Gross profit 28,314   11,177   51,540   15,216
Operating expenses
  Research and development 8,280   6,973   15,862   13,538
  Sales and marketing 2,890   1,980   5,479   3,925
  General and administrative 6,082   1025   9,464   1,998
  Total operating expenses 17,252   9,978   30,805   19,461
  Income (loss) from operations 11,062   1,199   20,735   (4,245)
  Total other income (expense), net 1061   (1,476)   250   (1,356)
  Income (loss) before income tax expenses 12,123   (277)   20,985   (5,601)
  Provision for income tax (53)   21   46   44
Net income (loss)* $  12,176   $   (298)    $  20,939   $   (5,645) 
Net income (loss) per share
  Basic $   0.66    $   (0.05)    $   2.23    $   (0.91) 
  Diluted $   0.26   $   (0.05)    $   0.53    $   (0.91) 
Weighted - average shares used in computing net income per share:
  Basic 18,495   6,226   9,370   6,226
  Diluted** 47,278   6,226   39,511   6,226
* Net income does not exclude undistributed earnings attributable to participating securities.
**Diluted shares include options and warrants on an as-if-converted basis and exclude redeemable preferred stocks.
- more -
(Dollar in thousands, except shares and per share amounts)
  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2021   2020   2021   2020
Non-GAAP gross margin
GAAP gross profit $   28,314   $  11,177   $   51,540   $  15,216
GAAP gross margin 82%   80%   80%   79%
Stock-based compensation expense - cost of revenue     32       20       65       40
Non-GAAP gross profit $   28,374   $  11,198   $   51,606   $  15,257
Non-GAAP gross margin 82%   80%   80%   79%
Non-GAAP Operating income (loss)
GAAP operating income (loss) $  11,062   $   1,199   $  20,735   $   (4,245) 
Stock-based compensation expense
  Cost of revenues 32   20   65   40
  Research and development 306   104   557   211
  Sales and marketing 242   120   140   100
  General and administrative    284       112       382      220
  Total stock-based compensation expense    898      352     1606      691
Non-GAAP operating income (loss) $   11,960   $    1,551   $   22,341   $   (3,554) 
Non-GAAP net income
GAAP net income (loss) $   12,176   $     (298)    $  20,939   $   (5,645) 
Stock-based compensation expense 898    352    1606    691 
Change in fair value of warrant liability   (1,095)       222       (328)       (118) 
Non-GAAP net income (loss) $   11,979   $      276    $   22,217   $   (5,072) 
GAAP basic earnings per share $   0.66    $   (0.05)    $   2.23    $   (0.91) 
Effect of non-GAAP adjustments on basic earnings per share    (0.01)        0.09       0.14        0.09 
Non-GAAP basic earnings per share $   0.65    $    0.04    $   2.37   $   (0.81) 
GAAP diluted earnings per share $   0.26    $   (0.05)    $   0.53   $   (0.91) 
Effect of non-GAAP adjustments on diluted earnings per share    (0.00)        0.09       0.03        0.09 
Non-GAAP diluted earnings per share $   0.25    $    0.04    $   0.56    $   (0.81) 
Weighted - average shares used in computing net income (loss) per share:
  Basic    18,495       6,226        9,370       6,226 
  Diluted*    47,278       6,226       39,511       6,226 
*Diluted shares include options and warrants on an as-if-converted basis and exclude redeemable preferred stocks.
- more -
  Three Months Ended   Six Months Ended
  June 30,   June 30,
  2021   2020   2021   2020
Adjusted EBIT
GAAP net income (loss) $   12,176    $     (298)    $   20,939    $   (5,645) 
Stock-based compensation expense    898       352       1,606       691 
Total other income (expense), net (1,061)      1,476       (250)       1,356 
Provision for income tax   (53)       21       46       44 
Adjusted EBIT $   11,960    $    1,551    $   22,341    $   (3,554) 
  In addition to disclosing financial results calculated in accordance with U. S. generally accepted accounting principles (GAAP), the operating
  results presented contain non-GAAP financial measures that exclude the income statement effects of stock-based compensation expense
  and expenses related to the change in fair value of our redeemable preferred stock warrants.
  Management believes it is useful to provide these non-GAAP financial measures and a reconciliation to comparable GAAP financial measures
  as we believe non-GAAP measures provide useful supplemental information for investors to evaluate our operating results in the same manner
  as used by industry research analysts, all of whom present non-GAAP projections in their published reports. As such, non-GAAP measures
  provided by Achronix facilitate a more direct comparison of its performance with the financial reports published by the industry analysts.
  The items reconciling GAAP financial measures to non-GAAP financial measures and additional comments and the usefulness of each item are
  set forth below:
  (1) Stock-based compensation is excluded by management when evaluating operating activities and for strategic decision making, forecasting
  future results and evaluating current performance. Management believes that utilizing non-GAAP financial measures that exclude this
  non-cash item is useful in providing an alternate measure that excludes the variability caused by different methodologies and subjective
  assumptions used in the valuation of equity awards across different companies.
  (2) Redeemable preferred stock warrant is excluded from the internal analysis of Achronix's operations and management does not view this
  non-cash expense as reflective of the business' current performance. Management believes that utilizing non-GAAP financial measures
  that exclude this non-cash item is useful in providing an alternate measure that excludes the variability caused by such item.
  Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other
  companies' financial information and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures
  calculated in accordance with GAAP.
- more -
(Dollar in thousands)
  June 30,   December 31,
  2021   2020
  (unaudited)   (audited)
Current assets:
  Cash and cash equivalents $   40,613    $   38,546 
  Restricted Cash    5,145       5,011 
  Accounts receivable, net    15,886       16,900 
  Inventories    14,174       2,116 
  Prepaid expenses and other current assets    1,944       2,251 
  Total current assets    77,762       64,824 
Property and equipment, net    10,039       3,723 
Operating lease assets, net    5,722    -     
Intangible assets, net    21,477       16,432 
Other current assets      600       1,247 
  Total assets $   115,600    $   86,226 
Liabilities, redeemable convertible preferred shares and stockholders' equity (deficit)
Current liabilities:
  Accounts payable $   3,442    $   5,938 
  Accrued liabilities    13,942       13,414 
  Operating lease liabilities    1,236    -     
  Deferred revenue    2,540       4,176 
  Total current liabilities    21,160       23,528 
  Preferred stock warrant liability    3,983       4,311 
  Deferred revenue - noncurrent    4,942       2,800 
  Operating lease liabilities - noncurrent    2,317    -     
  Other noncurrent liabilities    9,619       6,125 
  Total liabilities $   42,021    $   36,764 
Redeemable convertible preferred stock $   320,916    $   320,916 
Stockholders' equity (deficit):
  Common stock    18       9 
  Additional paid-in capital    9,151       5,983 
  Currency translation adjustment    (86)       (87) 
  Accumulated deficit    (256,420)       (277,359) 
  Total stockholders’ equity (deficit)    (247,337)       (271,454) 
  Total liabilities, redeemable convertible preferred shares
  and stockholders' equity (deficit) $   115,600    $   86,226