Nordic Semiconductor

Earnings Release • Sep 8, 2016

NOD: Mid-Quarter Update

NOD: Mid-Quarter Update

Nordic Semiconductor ASA provides a mid-quarter update.

Highlights of the first two months of Q3 2016 is:

- Revenue in line with guiding provided during

Q2 2016 presentation

- nRF52 yield issue resolved, normal yield level

expected during Q4 2016

- Strengthened strategic position in wearables with

Tier 1 design win in China

The guiding for 2H 2016 offered during the Q2 2016

presentation was revenue in the range of MUSD 105-120.

Based on the latest forecasts, Nordic maintains the

guidance provided in the Q2 2016 presentation.

Bluetooth Smart growth will, as previously

communicated, continue to be muted in 2nd half due to

loss in 2015 of two major customers/designs.

However, with continued strong design win momentum

across a wide range of market verticals, we see

underlying Bluetooth Smart revenue growth to

compensate for these socket losses in 2nd half 2016.

The yield issue with nRF52, as reported in Q2 2016, is

now resolved. The fix is currently being phased into

our production flow and we expect to reach normal

yield level during Q4 2016. We are continuing our

commitment to meet our customers growing volume demand

for nRF52, therefore it is expected that the issue

will have a negative impact on gross margin also for

Q3 2016.

Nordic has for several years held a strong position

with small and medium-sized customers in the Chinese

wearable market. During Q3 2016 Nordic has

strengthened its position with a Tier 1 design win.

This nRF52 design win is our first with a Chinese Tier

1 wearable company and is of key strategic value for

our future ability to compete in this growing and

highly competitive market. Volume potential for the

design win is expected to be moderate with deliveries

to commence during Q4 2016.

For further information, please contact:

Thomas Bonnerud, Head of IR. +4795100257

Pål Elstad, CFO. +4799166293

About Nordic Semiconductor ASA

Nordic Semiconductor is a fabless semiconductor

company which designs, sells and delivers integrated

circuits and related intellectual property for use in

short-range wireless applications. The Company

specializes in ultra-low power wireless solutions,

based on its proprietary 2.4GHz RF and Bluetooth Smart

technologies. Nordic Semiconductor is a pioneer and

market leader in ultra-low power wireless technology,

with close to 300 million units sold in 2015.