BrainChip (ASX:RBN) Shares Rise on June Quarter Update

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Developer of neuromorphic processing AI technology BrainChip Holdings [ASX:BRN] was up on Wednesday after releasing June quarter results.

The company ended the June quarter with US$28.4 million in cash.

Receipts from customers totalled US$1.2 million on R&D spend of US$1.7 million.

The AI tech stock is up 80% year-to-date, and up 155% over the past 12 months:

ASX:BRN Brainchip stocks chart

 

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BrainChip’s June quarter

Reporting from Sydney on Wednesday morning, BrainChip released its quarterly activities report for the quarter ending 30 June 2022.

The company burned through cash during the June quarter, ending the period with a negative operating cash outflow of US$2.9 million.

For the six months to June 2022, BRN’s operating cash outflows totalled US$7.9 million.

During the six months ending June 2022, BrainChip spent US$3.8 million on research and development.

BRN’s CEO Sean Hehir released the following statement:

The recently ended Quarter amplified the execution of the Company’s commercialisation for our AkidaTM neuromorphic IP. During the June quarter, BrainChip introduced a complete company rebrand, reinforcing Essential AI: Optimizing compute. We continued to engage in meaningful technical evaluations with multiple target customers, and we announced key commercial partnerships with strategic technology (Arm, SiFive & Prophesee) and AI software leaders (Edge Impulse & NVISO), demonstrating pre-integration and interoperability.

During the June Quarter BrainChip was added to the S&P ASX200 Index, a major global index. This is a significant event, as it recognises the Company’s strong growth over the previous 12 months and raises the Company’s profile with institutional investors around the world.

In the coming quarter, the Company will be focused on deepening existing customer relationships and converting technical evaluations. In addition, the Company continues to invest in development of next-generation Akida IP and products to extend our technological lead.’

BRN’s tech stance and the future energy boom

Brainchip is seeking to pioneer new AI technology with its focus on neuromorphic processing.

However, as Chairman Antonio Viana said in BRN’s May AGM, being a pioneer does not necessarily guarantee success.

Commercial execution is just as important as scientific execution.

Time will tell whether BrainChip is able to translate its tech into sustainable cash flow.

The company is trading on a trailing 12-month price-to-sales ratio of more than 500 — that’s plenty of high expectations baked into the stock.

Now, while the neuromorphic AI tech BrainChip is developing may be a few years away from the mainstream, what is mainstream right now is the global pivot to EVs.

The EV revolution is set to change the way we travel all over the world.

And while in 2021, eight of the top 10 best-performing stocks in Australia may have been lithium stocks, our experts believe there’s a smarter way to play the rise of lithium in 2022.

It involves what you might call lithium’s ‘little brother’.

 

Regards,

Kiryll Prakapenka,

About Kiryll Prakapenka

Kiryll Prakapenka is a research analyst focusing on investigating the biggest trends in investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from the University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding…

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