Nordic Semiconductor

Earnings Release • Feb 6, 2024

NOD: Results for the fourth quarter and preliminary full year 2023

NOD: Results for the fourth quarter and preliminary full year 2023

(Oslo, Norway – February 6, 2024) Nordic Semiconductor ASA reported revenue of USD 108 million for the fourth quarter 2023, a decline of 20% from the previous quarter and 43% below the fourth quarter last year. Gross profit was USD 56 million with a gross margin of 52%, and with operating costs of USD 63 million the company showed an EBITDA loss of USD 7 million for the quarter.

Bluetooth customers remained cautious and continued to draw on inventories also in the fourth quarter. Proprietary revenue is beginning to stabilize, although at a relatively low level, and cellular IoT revenue showed a sequential improvement from the previous quarters of the year.

Revenue for the full year 2023 declined by 30% to USD 543 million, with a gross margin of 52% and a positive EBITDA of USD 49 million.

Although Nordic remains confident in the long-term market potential for its products and technologies, the market is in a cyclical downturn with macro headwinds. The company hence sees low revenue in the first quarter of 2024 due to continued inventory adjustments as well as a more normal seasonality. Total revenue is expected to fall within the range of USD 70-80 million in the first quarter. The company is not offering any revenue guidance beyond the current quarter.

Gross margin is expected at around 50% for the first quarter 2024, and the company reiterates its long-term ambition to maintain a gross margin level above 50%.

Nordic’s new CEO Vegard Wollan assumed the position with effect from 1 January 2024, and the overarching goal of the new top management is for Nordic to return to revenue growth and restore profitability.

"We have world-class engineers and great employees, innovative and leading products and solutions, and an impressive customer base. At the same time, we have potential for improved execution, and initial focus is on our product strategies and on maximizing the efficiency and throughput from our excellent engineering teams", says Vegard Wollan.

Nordic is on track to realize initial revenue from its new nRF54 Series SoCs for Bluetooth low energy towards the end of 2024 and regards its industry-leading 22nm wireless and embedded technology platform at two key partnering foundries a clear advantage going forward.

Practical arrangements

CFO Pål Elstad and CEO Vegard Wollan will host a webcast presenting the fourth quarter results today at 08:00 CET.

A live webcast of the presentation and call-in instructions can be found at https://www.nordicsemi.com/Investor-Relations, and a recorded version of the presentation will also be available after the event.

The company will from now on only be accepting question asked live through the Q&A dial-in function. The dial-in details are only applicable if you want to ask questions.

Please see the details below.

PIN Code for all countries: 286203

NO: +47 21 95 63 42

UK: +44 203 769 68 19

US: +1 646 787 01 57

DK: +45 78 76 84 90

SE: +46 8 12 41 09 52

DE: +49 30 21 78 93 27

FR: +33 1 81 22 12 59

For further information, please contact:

Pål Elstad, CFO / EVP Finance - Nordic Semiconductor ASA Phone: +47 991 66 293

Ståle “Steel” Ytterdal, SVP 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.

This stock exchange announcement was published by Pål Elstad, CFO, on February 6, 2024 at 07.00 CET.