(Copenhagen, 22 August 2024) Napatech A/S ("Napatech", OSE: NAPA) reported
revenues of DKK 23.2 million in the second quarter of 2024, a decrease of 39%
from 37.8 million in the second quarter of 2023. The company's EBITDA came in at
negative DKK 27.4 million (-3.5 million in the second quarter of 2023).

"The first half of 2024 has progressed largely according to expectations,
particularly good progress in reaching important design wins and mileposts of
our strategic plan that have clearly strengthened our position as an early
leader in the new and evolving market for programmable NICs. However, the
revenues in Q1 and Q2 have clearly been weaker than expected, creating high
uncertainty for our annual revenue guidance. We are very pleased with our
partnership with Intel Altera, which has exceeded our expectations in terms of
progress in our design win efforts and the number of promising opportunities,"
says Lars Boilesen, CEO of Napatech. 

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's strategy is anchored in three areas. Firstly, servicing Napatech's
valuable customers who are early adopters of Programmable NICs. Secondly,
accelerating Napatech's engineering investments into hardware and software that
extend the company's offering into new, high-growth segments. Finally,
developing a robust ecosystem that extends Napatech's own go-to-market reach via
marketing, business development and sales partnerships. 

One of the key developments in the second quarter was the May 7 private
placement, above the market price at the time. The private placement was
significantly oversubscribed and attracted interest from high-quality accounts,
as well as receiving strong support from existing shareholders. In parallel, the
company increased the guidance on the impact of design wins for these new
products from 30,000-40,000 units to 50,000-60,000 units in their peak annual
production years.

"The SigmaX.AI design win represents another new customer for our company,
created by our business development partnership with Intel and from our new
Intel-based IPU products. The strategic and operational progress in our key
areas allows us today to reaffirm our design-win guidance for 2024," Boilesen
adds and continues:  

"The second half of the year promises new product development milestones, along
with collaborative business opportunities that will push the boundaries of what
we can achieve. With your continued support, we are poised to make Napatech's
future even brighter," Boilesen concludes. 

For more information, please see the attached report for the second quarter and
first half of 2024. 

Napatech will host a webcast presentation and a conference call of its second
quarter and first half of 2024 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/6wqRp3WpKdL

Dial-in details for the conference call are: 

DK: +45 89 87 50 45 
NO: +47 81 50 33 08 
UK: +44 20 3936 2999 
US: +1 646 787 9445

Access Code: 308507

*EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for the second quarter and first half 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 22 August
2024 at 08:00 CET.