(Oslo, Norway – April 21, 2020) Nordic Semiconductor ASA reported revenue of USD
70.2 million for the first quarter 2020, an increase of 33% from USD 52.6
million in the same quarter last year. Bluetooth revenue increased by 37% to USD
51.2 million. Gross margin improved to 51.9% from 51.0%, and EBITDA increased to
USD 5.2 million from a loss of USD 0.7 million in the first quarter 2019. The
order backlog increased 39% year-on-year to USD 123 million at the end of the
The coronavirus outbreak and the public measures to prevent the spreading of the
virus have had a global effect on society and economy and also impacted the
people, organization and operations of Nordic Semiconductor in the first quarter
2020. While safety and security have taken top priority, the Board and
management have also worked to safeguard business continuity and ensure that the
company has remained fully operational for its customers, suppliers and
partners. The effects on the supply chain were manageable in the first quarter
and the company has so far seen only limited effects on demand.
“Our revenue reflects solid demand throughout the quarter, with a product mix
that generated a positive gross margin development. Demand is driven both by new
opportunities as a result of the current situation and by customers placing
early orders to secure supply. The increased order backlog provides support for
the second quarter in a more uncertain business environment,” says CEO
Svenn-Tore Larsen in Nordic Semiconductor ASA.
Based on the order backlog, the company guides for a total revenue level of USD
75-85 million for the second quarter 2020. The gross margin is expected at
around 50%, with the company maintaining that changes in the product and
customer mix are expected to move the gross margins into the 48%-50% range in
the medium term.
The coronavirus measures imply continued risk of disruptions in the supply
chain, and the effects on the global economy are expected to affect consumer
spending negatively going forward. However, the current situation also spurs
radical changes in technology adoption in several areas such healthcare and
disease monitoring and wearables and tracking, which represents upside
potential. The management of Nordic monitors the situation closely and will
optimize own production in alignment with any new signals from its customers and
distributors about underlying demand.
While Nordic believes revenue from Bluetooth Low Energy and multiprotocol
solutions will grow at an annual rate of 20-30% in the medium-term, it should
hence be noted that the demand for end-user products for the rest of the year is
Provided that supply chains and product markets normalize in the aftermath of
the coronavirus, the combination of strong market trends supporting
digitization, automation and connectivity and Nordic’s strong product and
customer roadmaps offers a favorable backdrop for Nordic’s aspiration to build a
USD 1 billion revenue company within five years.
The management team will host a webcast presenting the first quarter results
today at 08:00 CEST. The presentation will be held in English. A live webcast
from the presentation can be found at https://www.nordicsemi.com, and a recorded
version of the presentation will also be available after the event.
For further information, please contact:
Pål Elstad, CFO Nordic Semiconductor ASA Phone: +47 991 66 293
Ståle Ytterdal, IR Nordic Semiconductor ASA Phone: +47 930 37 430
About Nordic Semiconductor:
Nordic Semiconductor has been a pioneer in ultra- low power wireless solutions,
from proprietary technologies for PC accessories to today’s Bluetooth low energy
and multiprotocol products and long-range cellular IoT solutions. Nordic
Semiconductor is the clear market leader in the ultra-low power wireless
segment, serving a growing market in consumer electronics, wearables, building
and retail, healthcare and an increasing number of other verticals and
applications. Nordic Semiconductor (NOD) is a public company listed on the Oslo
stock exchange in Norway.
For more information go to www.nordicsemi.com
This information is subject to the disclosure requirements according to §5-12 in
the Norwegian Securities Trading Act.