Napatech Follow

(Copenhagen, 25 February 2021) Napatech A/S ("Napatech", OSE: NAPA) reported
revenues of DKK 52.5 million in the fourth quarter of 2020 (54.0 million in the
fourth quarter of 2019), and an EBITDA of DKK 11.7 million (10.2). In USD terms,
the company grew revenues by 4% in the fourth quarter of 2020 compared to the
fourth quarter of 2019. In 2021, Napatech is expecting revenues in the range of
USD 35-38.3 million corresponding to growth between 17.8% - 29.1% compared to
2020.

"2020 was an eventful year for Napatech. We have shown our resiliency and
strength by delivering solid year-over-year revenue growth of 16%, best ever
EBITDAC, strong free cash flow, gross margins, and earnings, building a solid
momentum for future growth," says Ray Smets, CEO of Napatech. 

Napatech is a global leader of FPGA-based SmartNICs focused on high-speed
solutions for cloud, 5G 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 52.5 million in the fourth quarter of 2020
(54.0 million in the fourth quarter 2019), representing a decrease of 3%, with
an EBITDA of DKK 11.7 million (10.2). In USD terms, the company grew revenues by
4% in the fourth quarter of 2020 compared to the fourth quarter of 2019. The net
cash flow from operating activities ended at DKK 14.8 million in the quarter
(15.1). At the end of the period, Napatech had cash and cash equivalents of DKK
62.7 million (64.3). 

In full-year 2020, Napatech reported revenues of DKK 194.2 million (170.6) and
an EBITDA of DKK 35.4 million (15.3). The gross margin in the period was 71.5%
(74.5%). 

"In 2021, we will unlock higher growth by building on our solid foundation of
FPGA-based SmartNIC and software technology excellence. We are earning access to
the next level of growth by investing in our world-class SmartNIC products while
building new important partnerships to gain greater access to markets that need
our solution now more than ever," Smets concludes.

In 2021, Napatech is expecting revenue in the range of USD 35-38.3 million
corresponding to growth between 17.8% - 29.1% compared to 2020. Due to the
expected foreign exchange headwinds, the 2021 guidance in DKK is the following: 
- 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 report for the fourth quarter of
2020. 

Napatech will host a webcast presentation and a conference call of its fourth
quarter 2020 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://napatech.eventcdn.net/2020q4

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 96 39 38 
US: +1 833 823 0589 
UK: +44 3333 009 263

EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for the fourth quarter of 2020.

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


About Napatech 

Napatech helps companies to reimagine their business by bringing Hyperscale
computing benefits to IT organizations of every size. We enhance open and
standard virtualized servers to boost innovation and release valuable computing
resources that improve services and increase revenue. Our reconfigurable
computing platformTM is based on a broad set of FPGA software for leading IT
compute, network, and security applications that are supported on a wide array
of FPGA hardware designs.

www.napatech.com

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