- BrainChip had handed in its fourth quarter update
- The artificial intelligence technology company delivered strong sales growth but from a small base
- Management highlights a number of big developments during the quarter
The BrainChip Holdings Ltd (ASX: BRN) share price is rebounding strongly on Thursday.
At the time of writing, the artificial intelligence technology company’s shares are 12% to $1.60.
Why is the BrainChip share price storming higher?
Investors have been bidding the BrainChip share price higher today following the release of its fourth quarter update.
During the three months ended 31 December, the company achieved strong growth in its cash receipts, albeit from a very small base. Cash receipts from customers came in at US$1.1 million, up 83% quarter on quarter.
This couldn’t stop BrainChip from recording a net operating cash outflow of US$3.4 million for the three months. Though, this is an improvement on the prior period’s cash outflow of US$4 million.
This left the company with a cash balance of US$19.4 million at the end of December.
What else did the company say?
BrainChip provided investors with a breakdown on events during the fourth quarter of FY 2021. This includes the appointment of a new CEO and the receipt of the first batch of the Akida AKD1000 neuromorphic processor chips from Socionext America.
This has allowed the company to commence taking orders of the Akida development kits from its partners, large enterprises, and OEMs for their own internal testing and validation.
Management also highlights that during the quarter it licensed its Akida IP to major ASIC manufacturer, MegaChips, to help it enhance and grow its technology positioning for next-generation, Edge-based AI solutions.
BrainChip also separately provided an update on its top 20 shareholders which include a number of large financial institutions. It also revealed that its former CEO hasn’t sold shares since leaving the company early last year.
BrainChip’s CEO, Sean Hehir, commented: “The December Quarter was another breakout quarter for BrainChip that included the granting of three additional patents, further strengthening our patent portfolio; the completion of testing for the production version of our Akida technology; and the signing of another major license agreement with a top-tier customer, MegaChips. This was our second IP license agreement and further validates our technology.”
“Since the conclusion of the quarter, we have welcomed another Non-Executive Director, Pia Turcinov, plus launched our PCIe production board to the market via a low-touch ecommerce model. The Company also received yet another key patent grant related to the Akida technology. In the coming quarter, the Company will be focused on the Akida go-to-market strategy refinement and adding additional resources to our Sales and Marketing teams,” he added.
A big quarter for BrainChip, but expectations are very high for 2022. Time will tell whether it lives up to the hype.