Achronix Announces 2020 Financial Results and Business Highlights

Santa Clara, Calif., February 23, 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 year ended December 31, 2020, reporting revenue of $104.9 million and GAAP net income of $30.4 million and adjusted EBIT (non-GAAP) of $37.4 million.

2020 Highlights:

• Revenue increased to $105 million in line with prior expectations, driven by mainstream Speedster®22i products.
• Released the first device in the Speedster7t 7nm high-performance data acceleration FPGA family for manufacturing.
• Completed 7nm silicon validation of its 1-112G high-performance SerDes supporting 400G Ethernet and PCI Express Gen 5.
• Added 12 new sales representative teams in key geographies to accelerate the adoption of Speedster7t FPGAs and Speedcore™ products worldwide.
• Released new versions of Achronix design tools supporting the Speedster7t and Speedcore product offerings. New performance features include a simplified I/O designer toolkit and two-dimensional network on chip (2D NoC) analysis tools.
• Speedster7t FPGAs received the Frost and Sullivan New Product Innovation Award for 2020 North American FPGAs for Data Centers.

Robert Blake, Achronix’s Chief Executive Officer stated, “2020 was a strong growth year for Achronix. Our new and highly differentiated Speedster7t FPGAs together with our innovative Speedcore eFPGA IP solutions for data acceleration have seen significant levels of new design activity across all of our target end-market applications.”

Mr. Blake further commented, “We look forward to closing our merger with ACE Convergence Acquisition Corp. (ACE) in the second quarter of 2021 and completing our listing on Nasdaq under the new Achronix Semiconductor Corporation ticker symbol ACHX. Through this business combination, we intend to use the additional capital generated to help further accelerate the adoption of data acceleration solutions and strategic product development initiatives to drive long-term growth.”

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 artificial intelligence (AI), machine learning, networking and data center applications. All Achronix products are fully supported by a complete and optimized range of Achronix design tools, 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 www.achronix.com.

About ACE Convergence Acquisition Corp.

ACE Convergence Acquisition Corp. is a $230 million special purpose acquisition company whose business mandate is to identify and acquire an emerging leader in the IT infrastructure software/systems and system-on-a-chip markets that is well-positioned to capitalize on the changing landscape of data acceleration being driven by developments in AI, Cloud, and 5G technologies. ACE is comprised of a team of sector specialists with a solid track record of scaling complex technology organizations and making transformative value-creation decisions. For more information, please visit http://acev.io/home/default.aspx.

About ACE Equity Partners

ACE Equity Partners is an Asian-nexus mid-market cross-border private equity firm with a single-minded focus on the convergence of digital and industrial technologies. For more information, please visit: http://acelp.co.kr.

Adjusted EBIT (non-GAAP) Metric

We present adjusted EBIT (non-GAAP) in this press release, which is defined as our net income excluding stock-based compensation expense, total other income (expense), net, and provision for income taxes. We have presented adjusted EBIT because we believe it is an important measure 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, adjusted EBIT may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. Adjusted EBIT 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 from our net income to adjusted EBIT for the year ended December 31, 2020 is as follows:

Net income	$30,425
Stock-based compensation	1,466
Total other income (expense), net	5,418
Provision for income taxes	113
Adjusted EBIT	$37,422