Napatech Follow

(Copenhagen, 3 May 2023) Napatech A/S ("Napatech", OSE: NAPA) reported revenues
of DKK 37.1 million in the first quarter of 2023 (52.2 million in the first
quarter of 2022), and an EBITDA of DKK -12.8 million (-2.0), following the
challenging short-term market conditions. The company has recently announced
important customer agreements, a US-based technology company as new investor,
and reiterates the 2023 outlook of revenues to grow to DKK 180-200 million.

"In the beginning of 2023, we still felt the impact of the worldwide recession
on the tech industry and for many of our customers. Going into the second
quarter, we believe that improvements are starting to emerge which supports our
ambitions and expectations for 2023. We have recently named our new key
partnerships with Intel, F5 and Netscout, and talk more about the significance
of the companies and how they strengthen our position and enable us to leverage
our leadership in the SmartNIC market. They also represent a significant
milepost for Napatech in executing our strategic plan, provides validation of
the product, technology, and partnership vision that we have set," says Henrik
Brill Jensen, CEO of Napatech.

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 37.1 million in the first quarter of 2023,
representing a decrease of 29% from DKK 52.2 million in the first quarter of
2022, with an EBITDA* of DKK -12.8 million (-2.0). The revenues represent a
sequential DKK growth of 10% from the fourth quarter of 2022. The net cash flow
from operating activities ended at DKK 23.3 million (-0.3) for the quarter. At
the end of the first quarter of 2023, Napatech had cash and cash equivalents of
DKK 12.3 million (33.4).

In April 2023, the company announced a strategic agreement with Netscout,
alongside a USD 7.5 million investment in Napatech. 

"The agreement and associated investment are the extension of a successful,
long-term relationship that includes Napatech SmartNIC hardware and software
solutions, which help improve the performance of Netscout's applications.
Napatech's expertise and scale has over the years been leveraged by Netscout to
meet the demanding requirements of Netscout's market-leading solutions. We are
very much looking forward to providing more details during 2023, about
deliverables and business opportunities because of this enhanced collaboration
between the companies," Brill Jensen continues.

The company provides an outlook for 2023 (unchanged):

-	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'm pleased to report that Napatech is on track to meet our overall
objectives and deliverables for the year. Through dedicated effort and teamwork,
we have made significant progress in key areas and remain committed to achieving
our goals. We will continue to monitor our progress and adjust as necessary to
ensure successful completion of our objectives by the end of the year," Brill
Jensen concludes.

For more information, please see the attached report for the first quarter of
2023. 

Napatech will host a webcast presentation and a conference call of its
Q1 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/GRw4m3a8Xzg

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: 715772

*EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for Q1 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


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 May 2023
at 08:00 CET.

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