Nordic Semiconductor

Earnings Release • Dec 8, 2016

Nordic Semiconductor ASA: Mid-quarter update Q4 2016

Nordic Semiconductor ASA: Mid-quarter update Q4 2016

Nordic provides mid-quarter update:

- Updated guidance for Q4 2016 revenue to MUSD 52-54

- nRF52 yield issue resolved, however depletion of

inventories result in gross margins of 46-47%

- Continued strong design win momentum with Tier 1

customers

Updated guidance for Q4 2016

The guiding for Q4 2016 provided during the Q3 2016

presentation was a revenue of MUSD 54-57, Nordic

updates the guidance to MUSD 52-54. During Q4 2016 we

have regained the revenue loss within Bluetooth of two

major customers/designs in 2015.

Although solution for the nRF52 yield issue has been

rectified, depletion of Q3 inventory will, as

communicated in the Q3 report, continue to negatively

impact gross margins in Q4. Q4 gross margins are

expected to be in the 46-47% range.

Continued strong momentum with Bluetooth

The strong underlying growth rate in Bluetooth, as

communicated throughout the year and at the Q3 2016

presentation, continues, fueled by a strong growth in

number of customers.

Nordic continues to report Strong tier 1 design win

momentum in Bluetooth. This has escalated with the

nRF52 and we have during Q4 2016 announced design wins

with both Garmin and Xiaomi.

Launch of higher-end nRF52 Series IC and Bluetooth 5

Nordic launched on December 6th a new nRF52 Series

SoC, the nRF52840. The new chip extends Nordic

existing nRF52 Series line-up with a higher-end,

higher value single-chip solution for advanced

Bluetooth products including wearables, voice remotes

and smart home products. nRF52840 also includes

support for the IEEE 802.15.4 radio standard that

forms the foundation for other complementary short-

range wireless technologies including Thread, ZigBee

and RF4CE.

Aligned with the Bluetooth SIG's adoption of Bluetooth

5 on December 7th, Nordic announced the imminent

launch of its Bluetooth 5 software solution for both

the existing nRF52832 and the new nRF52840 SoCs. With

significant improvements to range, speed and broadcast

capacity, Bluetooth 5 is a major step forward for

short range IoT.

For further information, please contact:

Thomas Embla Bonnerud, Director of Strategy and IR.

+4795100257

Pål Elstad, CFO. +4799166293