Nordic Semiconductor

Earnings Release • Jul 13, 2021

NOD: Second quarter and first half year results 2021

NOD: Second quarter and first half year results 2021

(Oslo, Norway – July 13, 2021) Nordic Semiconductor ASA reported revenue of USD 147.6 million for the second quarter 2021, an increase of 67% from the same quarter last year. Bluetooth revenue increased by 75% to USD 123.0 million, whereas Proprietary revenue grew 8% to USD 17.7 million and Cellular IoT revenue increased almost fourfold to USD 4.6 million. Gross margin was 50.9% compared to 51.9% in the second quarter 2020, and EBITDA improved to USD 29.2 million from USD 16.0 million in same period last year.

Demand remains strong across all end-user segments, and revenue growth continues to be held back by supply constraints. The order backlog continued to increase to USD 1,253 million at the end of June.

For the first half year 2021, revenue increased by 83% to USD 290.8 million, with EBITDA increasing to USD 54.1 million from USD 21.3 million in the first half 2020.

"Wireless connectivity finds its way into new applications for both industries and consumers, and we have seen new high-volume orders from several large customers and continued high demand in the broad market. At the same time the current supply constraints in the industry makes it challenging to manage the order volumes in a timely manner. Timing of deliveries will depend on wafer availability, and the current order backlog stretches out through 2022", says CEO Svenn-Tore Larsen in Nordic Semiconductor.

"We have been working hard to advance wafer deliveries and shorten the lead time from wafer deliveries to finished product to support our customers", adds Larsen.

The continuous work to advance wafer delivery schedules enables Nordic to guide for a revenue level of USD 130-150 million for the third quarter 2021, with the wide range reflecting the uncertainty regarding the supply situation. The company expects its suppliers to maintain wafer deliveries at minimum the same level also through the fourth quarter of the year.

The gross margin is expected to remain within the 50%-51% range in the third quarter, and the company reiterates that that the higher share of sales to tier-1 customers is expected to move gross margin for the short-range business into the 48%-50% range in the medium term.

In 2019, Nordic presented a bold aspiration to build a USD 1 billion company within five years, and the positive demand trends and continual strengthening of the customer base lends increasing confidence in this target. The company’s long-term strategy will be addressed on a Capital Markets Day in connection with the announcement of the third quarter 2021 results on 21 October 2021.

The management team will host a webcast presenting the second quarter results today at 08:00 CEST. The presentation will be held in English. A live webcast from the presentation can be found at https://www.nordicsemi.com, and a recorded version of the presentation will also be available after the event.

At the end of the presentation, it will be possible for participants to ask questions directly to the management team via the webcast.

Financial figures and APMs will be made available in a downloadable excel file shortly after publication of the quarter report and presentation documents. Accessible through the IR website under “Reports and Presentations” - “Other Resources”

For further information, please contact:

Pål Elstad, CFO Nordic Semiconductor ASA

Phone: +47 991 66 293

Ståle Ytterdal, SVP IR & Strategic Sales 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.