Napatech Follow

(Copenhagen, 2 November 2023) Napatech A/S ("Napatech", OSE: NAPA) reported
revenues of DKK 49.7 million in the third quarter of 2023, an increase of 34%
from 37.0 million in the third quarter of 2022. The company's EBITDA came in at
DKK 7.9 million (-7.0 million in the third quarter of 2022). Napatech reiterates
the 2023 outlook of revenues to grow to DKK 180-200 million.

"We are pleased that our business is expanding with increasing revenues and
strong product margins, accelerated by our delivery of high-speed solutions to
make applications faster and better to use, improve networking and make security
more effective. Napatech's growth is fueled by strong solutions, focused
execution and solid partnerships," says Henrik Brill Jensen, CEO of Napatech,
and continues:

"Our partnership with Intel continues to strengthen our business pipeline. We
experience increased attention from analysts, partners and customers for our new
Intel-based IPUs, available from December 2023, driven by the global launch at
the Intel Innovation event in September this quarter."

Napatech is a global leader of FPGA-based SmartNICs and IPUs 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. 

Napatech reported revenues of DKK 49.7 million in the third quarter of 2023,
representing a growth of 34% from DKK 37.0 million in the same period in 2022,
with an EBITDA* of DKK 7.9 million (-7.0). The net cash flow from operating
activities ended at DKK -8.8 million (-15.0) for the quarter. At the end of the
third quarter of 2023, Napatech had cash and cash equivalents of DKK 44.2
million (27.9).

"Our third quarter results are an important short-term milepost that also
creates longer-term confidence in our investments in products, people and
partnerships that support our design-win pipeline and aspirations for 2024-2026
revenue growth," says Brill Jensen.

The company reiterates the outlook for 2023:

-	Revenue in the range of DKK 180 - 200 million 
-	Gross margin 68-71%
-	Staff expenses and other external costs in the range of DKK 160-170 million 
-	Staff costs transferred to capitalized development costs DKK 20-25 million 

With performance in the middle of the guided ranges, revenue is expected to grow
20% and EBITDA will be negative DKK 10.5 million in 2023.
"In summary, I am pleased to affirm our full-year 2023 outlook. I remain
inspired that several aspects of our strategic plan have progressed faster than
we previously anticipated. We remain focused, knowing that we are still in the
initial stages, but also energized by these activities that strengthen our
confidence in our growth ambitions," Brill Jensen concludes.
For more information, please see the attached report for the third quarter of
2023. 

Napatech will host a webcast presentation and a conference call of its
third quarter 2023 report today at 09:00 (CET). The presentation will be given
by Henrik Brill Jensen (CEO) and Heine Thorsgaard (CFO).

The presentation will be delivered by webcast on:

https://eu-app.webinar.net/zvKMk5Mkwg0

Dial-in details for the conference call are: 

DK: +45 8987 5045 
NO: +47 8150 3308 
US: +1 646 664 1960 
UK: +44 20 3936 2999

Participant Access Code: 031723

*EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for Q3 2023.

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 a 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 section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Heine Thorsgaard, CFO, Napatech A/S, on 2 November
2023 at 08:00 CET.

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