Napatech Follow

(Copenhagen, 3 November 2021) Napatech A/S ("Napatech", OSE: NAPA) reported
revenues of DKK 47.2 million in the third quarter of 2021 (44.4 million in the
third quarter of 2020), and an EBITDA of DKK 12.4 million (8.0). In USD terms,
the company grew revenues by 7% in the third quarter of 2021. Napatech
reiterates its outlook for 2021.

"Napatech continued to deliver year-over-year revenue growth, strong gross
margins, and improved earnings in the third quarter of the year. Building off
our solid market position with our leading SmartNIC solutions, we are now
accelerating our software investments to capture the opportunities we see in
fast-growing virtual networking. These strategic investments, which are fully
accounted for in our 2021 outlook, will enable 2022 design wins and revenue
expansion for the years to come," says Ray Smets, CEO of Napatech.  

Napatech is a global leader of FPGA-based SmartNICs focused on high-speed
solutions for cloud, mobile, telecom, and enterprises with a goal of putting a
SmartNIC in every server requiring faster applications, better networking, and
more effective security applications. 

Napatech reported revenues of DKK 47.2 million in the third quarter of 2021
(44.4 million in the third quarter 2020), representing an increase of 7%, with
an EBITDA of DKK 12.4 million (8.0). In USD terms, the company grew revenues by
7% in the third quarter of 2021 compared to the third quarter of 2020. The net
cash flow from operating activities ended at DKK 12.7 million (14.8). In YTD
2021, Napatech reported revenues of DKK 140.5 million (DKK 141.8 million in YTD
2020), with an EBITDA of DKK 29.8 million (23.6). At the end of the period,
Napatech had cash and cash equivalents of DKK 40.6 million (70.7). 

"Datacenters are the most important investment by network operators in cloud and
edge computing, mobile-telecom, and enterprises. We remain optimistic about our
potential to unlock higher growth within this market with innovative SmartNIC
solutions that deliver market leading performance for our customers," Smets
concludes.

Napatech reiterates its outlook for 2021: 
- Revenue in the range of DKK 210-230 million
- Gross margin 70-72%
- Staff expenses and other external costs in the range of DKK 125-135 million 
- Staff costs transferred to capitalized development costs DKK 20-25 million 
- Depreciation and amortization in the range of DKK 20-25 million

With performance in the middle of the guided ranges, EBITDAC and EBIT would be
positive DKK 26.2 million. 

For more information, please see the attached Interim Management Statement for
Q3 2021. 

Napatech will host a webcast presentation and a conference call of its
Q3 2021 report today at 09:00 (CET). The presentation will be given by Ray Smets
(CEO) and Heine Thorsgaard (CFO). 

The presentation will be delivered by webcast on: 

https://streams.eventcdn.net/napatech/q3_2021

The presentation and link to the webcast will also be available on the Napatech
Investor Information section.

Dial-in details for the conference call are:

DK: +45 78 15 01 10 
NO: +47 23 50 02 36 
US: +1 646 722 4904 
UK: +44 3333 009 266

EBITDA and other alternative performance measures (APMs) are defined on page 2
in the attached report for Q3 2021.

For additional information, please contact:

Heine Thorsgaard, Chief Financial Officer
Phone: +45 4596 1500
E-mail: htg@napatech.com

Media inquiries: 
Geir Bjørlo, Corporate Communications AS
Telephone: +47 915 40 000
E-mail: geir.bjorlo@corpcom.no


This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Heine Thorsgaard, CFO, Napatech A/S, on 3 November
2021 at 08:00 CET.

This information was distributed by Oslo Børs https://www.oslobors.no/