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Results in: How did BrainChip (ASX:BRN) fare in FY20?

It’s been a tough day for ASX tech shares, with the S&P/ASX 200 (ASX: XJO) finishing more than 2% lower and various companies like Afterpay Ltd (ASX: APT), Kogan.com Ltd (ASX: KGN) and PointsBet Holdings Ltd (ASX: PBH) faring much worse.

After falling by as much as 6% throughout the day, the BrainChip Holdings Ltd (ASX: BRN) share price closed the session down 2.8% as the market digested its FY20 results.

BRN share price chart

Source: Rask Media 1-year BRN share price chart

What does BrainChip do?

BrainChip is focused on developing a neural networking processor which it says will help bring artificial intelligence (AI) and other high powered computing to more customers.

The company’s Akida neural processer is designed to help customers create low-powered chips and systems, making powerful computing available outside a cloud environment.

What did BrainChip report?

Over FY20, BrainChip recorded revenue from contracts with customers of US$120,829, growing 60% compared to the prior corresponding period (pcp). The company said this was driven by the recognition of Early Access Program product sales and engineering support and development revenues.

BrainChip’s net loss after tax (NPAT) widened to US$26.8 million, an increase of 137% on the pcp. Operating expenses also rose over the period, partly attributable to R&D costs of US$11.2 million, up 14% on the pcp.

BrainChip finished the year with net assets of US$17.7 million, including cash and cash equivalents of US$19.1 million.

On an operational level, the company indicated that it has commenced preparations for a production version of the chip following the success of the Multi-Project-Wafer and Early Access Program.

The manufacturing of the devices is set to commence in 2021, while intellectual property licences also remain a key focus area.

In December 2020, the US National Aeronautics and Space Administration (NASA) announced it ordered the Akida Early Access Evaluation Kit for use by the NASA Shared Service Center (NSSC) at a research centre in California. The kit will enable NASA to evaluate the Akida technology for use in programs with a neuromorphic processor that meets spaceflight requirements.

Management commentary 

Commenting on the year, Chairman Emmanuel Hernandez said: “We concluded 2020 having made significant strides in the development of our technology and commercialisation of Akida with the launch of our Early Access Program and the availability of Akida evaluation boards, new partnerships, expansion of our leadership team and global facilities.

In December we signed an agreement to license the Akida intellectual property to a major Japanese semiconductor company and we look forward to continuing this momentum throughout the upcoming year.”

For more reading on BrainChip, check out this article: What’s the hype with BrainChip Holdings Ltd?.

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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