(Copenhagen, 16 May 2024) Napatech A/S ("Napatech", OSE: NAPA) reported revenues
of DKK 21.5 million in the first quarter of 2024, in line with the announcement
of the preliminary financial results 2 May 2024, and an EBITDA of negative DKK
24.3 million (Q1 2023: -12.8). The company reaffirms the 2024 financial outlook,
including commencing shipments from the Intel/Altera collaboration during the
second half of 2024, and the increased unit potential of 50-60,000 at peak
years.
"Our financial results for the first quarter of 2024 were in line with the
preliminary announcement, following inventory safety stock depletion by one of
our largest customers and an unexpected slow March. The remainder of the year
holds exciting projects, groundbreaking developments, and collaborative business
opportunities that will push the boundaries of what we can achieve," says Lars
Boilesen, CEO of Napatech.
The preliminary figures provided 2 May 2024 can be found here:
https://newsweb.oslobors.no/message/617458, with the full Interim Management
Statement enclosed.
Napatech is a leading global provider of Programmable NICs, including Smart
Network Interface Cards (SmartNIC) and Infrastructure Processing Units (IPU),
used by cloud, enterprise, and telecommunication network operators to
dramatically improve the performance and economics of servers and appliances.
The company has announced a collaboration with Altera, an Intel company, on the
detailed specifications of the Hot Springs Canyon architecture for 400G IPUs. In
addition, the product designs with Intel/Altera were developed in partnership
with a tier-1, global server OEM that continues to lead in enterprise and cloud
data center deployments.
"The product is packed with the latest technology from Intel/Altera and is
designed with optimizations to meet the exact requirements of the server
manufacturer. The collaboration is anchored by commercial agreements, associated
statements of work that define the product specifications, and professional
services fees from both companies to Napatech. The collaboration includes these
significant contributions, reflecting the shared commitment required to expedite
the underlying engineering to deliver products in the second half of 2024,"
Boilesen says, and continues:
"As a result of these partnerships, the full potential is at the largest end of
the spectrum for transformational growth that Napatech envisioned. At peak
annual volumes, this single opportunity alone has the potential to transform
Napatech's long-term revenue and profits. Consequently, we are maintaining our
target of 4-6 design wins, while we increased our guidance from 30,000-40,000
units to 50,000-60,000 units in peak annual production years."
The company reaffirms the outlook for 2024:
- Revenue in the range of DKK 170 - 180 million
- Gross margin 69-71%
- Staff expenses and other external costs in the range of DKK 145-155 million
- Staff costs transferred to capitalized development costs DKK 10-15 million
With performance in the middle of the guided ranges, EBITDA would be negative
DKK 15.0 million in 2024.
In support of the significant steps forward with current customers and expanding
design-win pipeline, Napatech completed a capital raise of 9,000,000 shares at a
NOK 25.00 on 7 May 2024.
"The private placement was significantly oversubscribed and attracted interest
from high-quality accounts, as well as receiving strong support from existing
shareholders. The net proceeds will be used to finance the growth opportunity
arising from the announced partnerships resulting in the increased guidance,
including hiring of more developers and working capital requirements in
connection with increased production," Boilesen concludes.
Napatech will host a webcast presentation and a conference call of its
fourth quarter 2023 report today at 09:00 (CET). The presentation will be given
by Lars Boilesen (CEO) and Heine Thorsgaard (CFO).
The presentation will be delivered by webcast on:
https://app.webinar.net/zy1wZzX0eaM
Dial-in details for the conference call are:
DK: +45 89 87 50 45
NO: +47 81 50 33 08
US: +1 646 664 1960
UK: +44 20 3936 2999
Participant Access Code: 521156
*EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached Interim Management Statement for the first quarter of 2024.
For additional information, please contact:
Heine Thorsgaard, Chief Financial Officer
Phone: +45 4596 1500
E-mail: htg@napatech.com
Media inquiries:
Geir Bjørlo, Corporate Communications AS
Telephone: +47 915 40 000
E-mail: geir.bjorlo@corpcom.no
About Napatech
Napatech is a leading supplier of programmable FPGA-based SmartNIC solutions
used in telecom, cloud, enterprise, cybersecurity and financial applications
worldwide. Through commercial-grade software suites integrated with robust,
high-performance hardware, Napatech accelerates telecom, networking and security
workloads to deliver best-in-class system-level performance while maximizing the
availability of server compute resources for running applications and services.
www.napatech.com
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Heine Thorsgaard, CFO, Napatech A/S, on 16 May
2024 at 08:00 CET.