Nordic Semiconductor

Earnings Release • Oct 20, 2022

NOD: Third quarter results 2022

NOD: Third quarter results 2022

(Oslo, Norway – October 20, 2022) Nordic Semiconductor ASA reported revenue of USD 202 million for the third quarter 2022, an increase of 36% from the third quarter last year. Revenue growth continues to be capped by limited wafer availability. Gross profit was USD 116 million, with a continued high gross margin of 57%. EBITDA more than doubled to USD 60 million in the third quarter, corresponding to an EBITDA-margin of 30%.

“We delivered record revenues and operating results also for the third quarter, with higher revenue from Bluetooth and cellular IoT offsetting a revenue decline for our proprietary products. Revenue continues to be held back by the persisting wafer shortage, and while we expect revenue on roughly the same level in the fourth quarter, this will ultimately depend on the timing of wafer deliveries during the quarter,” says CEO Svenn-Tore Larsen.

Bluetooth low energy revenues increased by 44% year-on-year to USD 179 million in the third quarter and cellular IoT revenues by 61% to USD 9 million. Revenues from proprietary products declined by 29% to USD 13 million. The latter reflects inventory adjustments among distributors and lower demand from smaller enterprises, whereas demand from tier-1 customers held up well.

Committed wafer allocations for Bluetooth products allow Nordic to guide for a revenue level of USD 190-210 million in the fourth quarter, considering both lower proprietary demand and increased short-term uncertainty for cellular IoT. Nordic expects the customer and product mix to allow for a gross margin above 54% also in the fourth quarter.

Overall demand for Bluetooth low energy products remains firm with continued high forecasts from tier-1 customers. Combined with an order backlog of USD 1.1 billion, this provides good coverage for the company’s overall 2023 revenue target of USD 1 billion . Lower demand for proprietary products does however imply that additional supplies of wafers will be needed for Bluetooth products to pick up the shortfall. Sourcing of material from alternative suppliers will improve the situation from 2024 onwards.

Nordic continues to invest in accordance with its longer-term ambitions to more than double revenue from 2023

to 2026. These ambitions are leaning on assumptions of economic growth and increasing product demand from both consumers and industrial customers. The company will adapt its investment plans as deemed necessary to reflect any persistent major changes in economic conditions and/or customer behavior.

Practical arrangements

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

For further information, please contact:

Pål Elstad, CFO / EVP Finance - Nordic Semiconductor ASA

Phone: +47 991 66 293

Ståle 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.