Napatech Follow

(Copenhagen, 24 August 2023) Napatech A/S ("Napatech", OSE: NAPA) reported
revenues of DKK 37.8 million in the second quarter of 2023, an increase of 7%
from 35.5 million in the second quarter of 2022. The company's EBITDA came in at
DKK -3.5 million (-6.9 million in the second quarter of 2022). Napatech
reiterates the 2023 outlook of revenues to grow to DKK 180-200 million.

"During the first half of 2023, we continued the development of complete
hardware and software solutions for SmartNICs and IPUs in our partnership with
Intel. This important activity and the related results allow us to position
Napatech for new high-growth market segments with Intel, that while we are still
early in the customer engagement process, are transformational to our business
scale. We are targeting a global public launch, orderability and delivery of our
IPU products and solutions in 2023," 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 37.8 million in the second quarter of 2023,
representing a growth of 7% from DKK 35.5 million in the same period in 2022,
with an EBITDA* of DKK -3.5 million (-6.9). The net cash flow from operating
activities ended at DKK -23.1 million (2.5) for the quarter. At the end of the
second quarter of 2023, Napatech had cash and cash equivalents of DKK 56.0
million (37.5).

In the quarter, 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, where Napatech's products over the years has been
leveraged by Netscout to meet the demanding requirements of Netscout's
market-leading solutions. During 2023 we look forward to brief about 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 am pleased to report that Napatech remains on track to meet our
objectives for 2023, and I am inspired that several aspects of our strategic
plan have progressed somewhat faster than we previously anticipated. While still
early, these activities strengthen our confidence in our growth ambitions,"
Brill Jensen concludes.

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


Napatech will host a webcast presentation and a conference call of its
Second quarter and first half 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/1BD30G5Qdno

Dial-in details for the conference call are: 

DK: +45 89 87 50 45 
NO: +47 81 50 33 08 
UK: +44 20 3936 2999 
US: +1 646 664 1960

Participant Access Code: 251435

*EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for H1 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 24 August
2023 at 08:00 CET.

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