(Oslo, Norway – October 20, 2020) Nordic Semiconductor ASA reported revenue of
USD 119.4 million for the third quarter 2020, an increase of 45% from the same
quarter last year. Bluetooth revenue increased by 56% to USD 97.1 million. Gross
margin was 54.1%. EBITDA increased to USD 28.6 million from USD 11.5 million in
the same quarter last year. The EBITDA-margin improvement to 24.0% from 14.1%
highlights the strong operational leverage. Order backlog was record high at USD
288 million, growing 154% from the third quarter last year and 43% from the
second quarter 2020.
The third quarter revenue was higher than guided for in the interim report for
the second quarter and first half year 2020, and slightly above the level
indicated in the financial update issued on September 4, 2020.
“Product demand has continued to increase across the board. We see accelerating
technology adoption in all our main end-product markets, and the Covid-19
pandemic further fuels an already strong digitization trend. Our strong order
backlog increasingly reflects a shift in the customer mix, with several large
customers placing orders for high-volume products with a longer time perspective
than we have seen historically”, says CEO Svenn-Tore Larsen in Nordic
While the current order backlog extends over the next three quarters, it offers
strong supports for continued growth also in the final quarter of the year. The
high activity level in the semiconductor industry puts strain on the supply
chain, and bottlenecks in the supply chain may temporarily limit the output
capacity. Taking this into consideration, the current backlog allows Nordic to
guide for a total revenue level of USD 115-125 million for the fourth quarter
Full year revenue for 2020 is hence expected at USD 393-403 million,
corresponding to 36%-40% revenue growth from 2019 to 2020.
The gross margin development has been on a positive trend reflecting a product
mix with high volumes of advanced high margin products and continuous cost
improvements on newly launched products. Nordic expects a gross margin level of
51%-52% for the fourth quarter 2020, and still expects the higher share of sales
to tier-1 customers to move the gross margins into the 48%-50% range in the
The year-on-year revenue growth for Nordic’s Bluetooth low energy and
multiprotocol solutions has been 40% in the first three quarters of 2020,
exceeding the medium-term growth rate of 20%-30% indicated by the company.
Revenue from proprietary wireless solutions has also exceeded expectations this
year, with year-on-year growth of 17% in the first nine months.
In 2019, Nordic presented a bold aspiration to build a USD 1 billion company
within five years, and the positive demand trends and continued strengthening of
the customer base increase the confidence in this aspiration.
The management team will host a webcast presenting the third 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.