(Oslo, July 3rd 2020) Nordic Semiconductor has seen higher demand than
previously expected through the second quarter and based on preliminary
financials now expects revenue for the quarter of USD 86-88 million. The gross
margin for the quarter is expected to come in at around 51-52%.
In the financial report for the first quarter, the company issued a revenue
guiding range of USD 75-85 million with an expected gross margin of around 50%,
highlighting that the guidance carried significant uncertainty due to the
effects of the coronavirus on supply chains and product demand.
The higher than expected revenue primarily reflects sales for end-user
applications in consumer electronics, wearables and connected healthcare
devices. The higher gross margin primarily reflects a product mix with continued
high demand for the most advanced SoCs (System-on-Chip).
"We have seen increasingly positive demand trends over the past months. The
Covid-19 pandemic increased the risk in our supply and logistics chain and the
uncertainty with regards to consumer spending and end-product demand. Our main
supply partners have managed to remain highly operational despite a challenging
logistics environment, and Covid-19 has increased demand in some segments," says
CEO Svenn-Tore Larsen in Nordic Semiconductor.
The positive demand trends are also reflected in a strong order backlog
indicating continued high demand in Q3. The current situation spurs changes in
technology adoption in several areas such as healthcare and disease monitoring,
wearables and tracking and home office equipment. Nonetheless, 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. The management of Nordic monitors the situation
closely and will optimize own production in alignment with customer demand.
Nordic Semiconductor releases its interim financial report for the second
quarter and first half year 2020 on July 13th 2020, which will include a more
detailed review of operations and financials as well as the guiding for Q3 2020.
For further information, please contact:
Pål Elstad, CFO Nordic Semiconductor ASA, +47 991 66 293
Ståle Ytterdal, IR Nordic Semiconductor ASA +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 Chapter
5 in the Norwegian Securities Trading Act and Chapter 3 of Oslo Stock Exchange’s
Continuing Obligations of stock exchange listed companies.