EnSilica PLC shares surged on Thursday as it said it has struck an extended royalty agreement, estimated to be worth $28 million over the next 10 years.
Shares in EnSilica were up 21% at 42.38 pence in London on Thursday afternoon.
The Oxford, England-based computer chip maker was selected by an unnamed satellite service provider in 2021 to support the development of a satellite payload application specific integrated circuit.
The first royalty payments under the 2021 agreement have been triggered.
In addition to the previous agreement, EnSilica will now receive additional monthly payments for each satellite in operational service using the chip.
The total value of the expanded agreement is $28 million over ten years, up from the previous estimate of $15 million royalties over five years.
Chief Executive Officer Ian Lankshear said: ‘We are very pleased to reach this milestone, which is the result of over three years of meticulous research, development and testing, and I’m incredibly proud of what our team has done to get to this stage.
‘EnSilica now has five chips in the supply phase generating recurring revenues and twelve in the design phase, which represents a significant financial milestone for the company and underpinning our ongoing confidence in the business across the short and long term.’
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