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Napatech A/S: Q3 2020 Financial Results

08:00 / 27 October 2020 Napatech Press release

(Copenhagen, 27 October 2020) Napatech A/S (“Napatech”, OSE: NAPA) reported
revenues of DKK 44.4 million in the third quarter of 2020 (38.7 million in the
third quarter of 2019), representing an increase of 15%, and an EBITDA of DKK
8.0 million (5.2). The company reiterates its outlook for 2020.

“Napatech continued its positive trajectory in the third quarter, showing our
resiliency and strength by delivering solid underlying growth, better earnings
and another period of significantly improved cash flow. We continue to perform
towards our outlook for the year as we aggressively execute on our plan to grow
our position in the market,” 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. 

“We will continue working hard growing a business built upon a solid foundation
of FPGA-based SmartNIC and software technology excellence, with a progressive
product strategy, and an improved go-to-market approach,” Smets continues.

Napatech grew revenues by 15% in the third quarter of 2020 to DKK 44.4 million
(DKK 38.7 million in the third quarter of 2019), with an EBITDA of DKK 8.0
million (5.2). The net cash flow from operating activities ended at DKK 14.8
million in the quarter (0.1), contributing to a cash balance of DKK 70.7 million

“Napatech has turned into a growing and profitable business, as displayed by our
positive earnings and strong revenue growth both in the third quarter and in the
first nine months of the year, and we continue delivering strong gross margins
in line with our guidance for the year,” says Smets.

Napatech reiterates the outlook for 2020: 
- Revenue in the range of DKK 185-205 million
- Gross margin 70-72%
- Staff expenses and other external costs in the range of DKK 120-125 million
- DKK 13-18 million transferred to capitalized development costs
- Depreciation and amortization in the range of DKK 20-25 million

With performance in the middle of the guided ranges, EBITDAC would be DKK 16.0
million and EBIT would be DKK 8.9 million.

“As we enter the final quarter of 2020, we reiterate our guidance for the full
year as we diligently execute in this market. We will focus on what we do best,
bringing a world-class technology solution to the markets that need us now more
than ever. We will do this with a focus on revenue growth, smart investments and
an eye on profitability. We have a passionate goal to demonstrate our potential,
with a good dose of pragmatism, so we can earn our investor’s trust. And we will
take the right risks, when presented, to capitalize on our potential to win,”
Smets concludes. 

For more information, please see the attached report for the third quarter of

Napatech will host a webcast presentation and a conference call of its
third quarter 2020 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:

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:

DK: +45 78 72 32 51
NO: +47 23 96 36 88
UK: +44 3333 009 263
US: +1 833 526 8382

EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for the third quarter of 2020.

For additional information, please contact:

Heine Thorsgaard, Chief Financial Officer
Phone: +45 4596 1500

Media inquiries: 
Geir Bjørlo, Corporate Communications AS
Telephone: +47 915 40 000
Oslo Børs

This information was distributed by Oslo Børs