Nordic Semiconductor warns of revenue shortfall in Third Quarter 2010 due to supply constraints

Nordic Semiconductor today announced that its revenue

in the Third Quarter 2010 will be below market

expectations. The revenue shortfall is due to a

limited supply of semiconductor wafers to meet

rapidly growing demand for the company's products.

"During the last year, demand for Nordic

Semiconductor's products has grown tremendously as

electronics manufacturers worldwide have adopted

Nordic's wireless solutions in their product lines,"

commented CEO Svenn-Tore Larsen. "As a result of

accelerating demand, the company is now facing supply

shortages of key semiconductor components. We expect

these supply constraints to ease as expanded

production capacity becomes available during the next

6-12 months."

The company now forecasts Q3 revenue of MUSD 33 -

37. In addition, the company's gross margin is

expected to be between 45-48% during the quarter, as

the company has adjusted its customer mix in response

to supply constraints.

The company will hold a conference call at 18.30 CET

this evening to discuss the revised Q3 outlook. Dial

in instructions are as follows:

From Norway: 800 888 60

From other locations: (+47) 23 18 45 00

Access code: 772 803

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