Napatech Follow

(Copenhagen, 18 August 2022) Napatech A/S ("Napatech", OSE: NAPA) reported
revenues of DKK 35.5 million in the second quarter of 2022 (46.4 million in the
second quarter of 2021), and an EBITDA of DKK -6.9 million (8.6), following
challenging short-term market conditions. The company remains confident in the
outlook into 2023.

"Despite challenging market conditions affecting our operations in the second
quarter of 2022, Napatech's offering and market position is increasingly
stronger with a new breakthrough win with more to come in 2022, and we are ready
to resume the growth journey into 2023. We believe we are in a good place to
deliver on our growth strategy and to capitalize on our leadership position in
the SmartNIC solutions market," 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 87.7 million in the first half of 2022,
representing a decrease of 6% from DKK 93.2 million in the first half of 2021,
with an EBITDA* of DKK -9.0 million (17.4). The net cash flow from operating
activities in H1 ended at DKK 2.2 million (-13.0). At the end of the period,
Napatech had cash and cash equivalents of DKK 37.5 million (38.3). 

"Napatech has a lot of room to grow. The SmartNIC market is the fastest growing
part of the overall NIC market, and we are listed as a top vendor in this part
of the market with over 7% of market share. And we are in the top 10 largest
overall NIC makers. Our solution is relevant and growing in this market, and
when we gain traction with new design wins in this area, Napatech will see
significant growth coming from these opportunities. The pipeline development is
promising, and we expect revenues in the second half 2022 to exceed the same
period in 2021 with a growth acceleration into 2023," Smets adds and concludes:

"The SmartNIC market is forecasted by industry experts to grow rapidly over the
next five years and is ripe for further consolidation. Given Napatech's unique
leadership position within this fast-growing domain, our Board and Management
have initiated a strategic review to consider all strategic options to maximize
our shareholder value given the large opportunities that lie ahead of us," says
Smets. 

For more information, please see the attached report for the first half of 2022.


Napatech will host a webcast presentation and a conference call of its Q2 and
half-year 2022 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/2022q2

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:

Participant access code: 076024

DK: +45 89 88 95 13
NO: +47 80 02 51 23
UK: +44 2039 362 999
US: +1 646 664 1960

EBITDA and other alternative performance measures (APMs) are defined on page 2
in the attached report for H1 2022.

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 is the leading supplier of programmable FPGA-based SmartNIC solutions
used in telecom, cloud, enterprise, cybersecurity, and financial applications
worldwide. Through commercial-grade software suites integrated with robust,
high-performance hardware, Napatech accelerates telecom, networking and security
workloads to deliver best-in-class system-level performance while maximizing the
availability of server compute resources for running applications and services.

www.napatech.com

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to sections 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Heine Thorsgaard, CFO, Napatech A/S, on 18 August
2022 at 08:00 CET.

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