(Copenhagen, 3 May 2022) Napatech A/S ("Napatech", OSE: NAPA) reported revenues
of DKK 52.2 million in the first quarter of 2022 (46.8 million in the first
quarter of 2021), and an EBITDA of DKK -2.0 million (8.8). The company grew
revenues by 12% in the period. Napatech reiterates its strong outlook and
expects 2022 revenues of DKK 235-260 million.

"Napatech delivered its 14th quarter in a row of year-over-year growth gaining
momentum with our leadership position in the SmartNIC solutions market. We have
never been in a more compelling position to capitalize on the significant
opportunities being driven by server and application deployments in datacenters
by telco, cloud and enterprise network operators that are driving the need for
SmartNICs," says Ray Smets, CEO of Napatech.  

Napatech is a global leader of FPGA-based SmartNICs focused on high-speed
solutions for cloud, mobile, telecom, and enterprises with a goal of putting a
SmartNIC in every server requiring faster applications, better networking, and
more effective security applications. 

Napatech reported revenues of DKK 52.2 million in the first quarter of 2022
(46.8) million in the first quarter 2021), representing an increase of 12%, with
an EBITDA of DKK -2.0 million (8.8).

In USD terms, the company grew revenues by 4% in the first quarter of 2021
compared to the first quarter of 2021. The net cash flow from operating
activities ended at DKK -0.3 million (-12.0). At the end of the period, Napatech
had cash and cash equivalents of DKK 33.4 million (40.8). The margin was
negatively affected by the delivery of a large hardware order during the
quarter, where Napatech is confident on a subsequent software order. 

"We are navigating Napatech to be a key player in this evolution leveraging what
we do best, accelerating networking applications and services on FPGA-based
SmartNICs. We reiterate our strong outlook for 2022, and remain optimistic about
our potential to unlock higher growth within this market with innovative
SmartNIC solutions that deliver market leading performance for our customers,"
Smets concludes.

Napatech reiterates its outlook for 2022: 
- Revenue in the range of DKK 235-260 million
- Gross margin 69-71%
- Staff expenses and other external costs in the range of DKK 155-165 million 
- Staff costs transferred to capitalized development costs DKK 28-33 million 
- Depreciation and amortization in the range of DKK 23-28 million

With performance in the middle of the guided ranges, EBITDAC would be positive
DKK 13.3 million and EBIT would be positive DKK 18.3 million.  

For more information, please see the attached Interim Management Statement for
Q1 2022. 

Napatech will host a webcast presentation and a conference call of its
Q1 2022 report today at 09:00 (CET). The presentation will be given by Ray Smets
(CEO) and Heine Thorsgaard (CFO). 

The presentation will be delivered by webcast on:
https://streams.eventcdn.net/napatech/2022q1

The presentation and link to the webcast will also be available on the Napatech
Investor Information section.

Dial-in details for the conference call are:

Participant Access Code: 120516

DK: +45 89 87 50 45 
NO: +47 81 50 33 08 
US: +1 646 664 1960 
UK: +44 2039 362 999

EBITDA and other alternative performance measures (APMs) are defined on page 2
in the attached report for Q1 2022.

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 helps companies to reimagine their business by bringing Hyperscale
computing benefits to IT organizations of every size. We enhance open and
standard virtualized servers to boost innovation and release valuable computing
resources that improve services and increase revenue. Our reconfigurable
computing platformTM is based on a broad set of FPGA software for leading IT
compute, network, and security applications that are supported on a wide array
of FPGA hardware designs.

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 3 May 2022
at 08:00 CET.