(Copenhagen, 2 May 2024) Napatech A/S ("Napatech", OSE: NAPA) today provided an
update on their business, including: an increase to design win pipeline
guidance, reaffirming CY 2024 financial guidance, and preliminary results for Q1
2024.

On April 18 Napatech announced a collaboration with Altera, an Intel company, on
the detailed specifications of the Hot Springs Canyon architecture and initial
product designs that were developed in partnership with a tier-1, global server
OEM that continues to lead in enterprise and cloud data center deployments. 

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 increasing our guidance from 30,000-40,000
units to 50,000-60,000 units in peak annual production years. 

The collaboration develops new programmable NIC hardware and software solutions
based on an architecture that promises to enable an innovative approach to
powering modern public cloud, private cloud, edge, and enterprise data centers
built for the AI era. The new solution is purpose-built for the highest growth
and largest volume applications, services and use cases for Programmable NICs.
These include modern cloud and edge computing applications and services,
artificial intelligence infrastructure, disaggregated storage, big data
analytics, cybersecurity, 5G mobile infrastructure, and microservices. 

The product is packed with the latest technology from the semiconductor vendor
and designed with optimizations to meet the exact requirements of the server
manufacturer. The collaboration is anchored by 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. 

Additionally, Napatech's financial outlook for 2024 remains unchanged:

-	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.

Preliminary Q1 2024 financial results included revenues of DKK 21.5 million in
the 37.1 million in the first quarter of 2023) and an EBITDA of DKK -24.3
million (-12.8). The free cash flow in the first quarter of 2024 ended at DKK
-6.4 million (17.2). At the end of the first quarter, Napatech had cash and cash
equivalents of DKK 27.5 million (12.3). 1Q 2024 was expected to be a slower than
normal start to the year primarily because one of our largest customers'
continuing inventory correction to deplete a covid-driven safety stock that is
expected to be completed through h1H 2024. In addition, March order flow was
unexpectedly slow, driven by one large order deferred to Q2 2024. The full Q1
reporting will take place on May 16, 2024. 

For additional information, please contact:

Lars Boilesen, CEO
Phone: +45 45961500
E-mail: larsb@napatech.com

Or 

Heine Thorsgaard, CFO
Phone: +45 4596 1500
E-mail: htg@napatech.com


This information is 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.