Oslo, Norway – February 4, 2021) Nordic Semiconductor ASA reported revenue of USD 127.1 million for the fourth quarter 2020, an increase of 53% from the same quarter last year. Bluetooth revenue increased by 49% to USD 97.6 million. Gross margin was 52.7% compared to 51.6% in the fourth quarter 2019, and EBITDA increased by 120% to USD 26.9 million.
Revenue for the full year increased by 41% to USD 405.2 million, with EBITDA increasing 134% to USD 76.8 million. The order book increased to USD 492 million from USD 107 million at the end of 2019.
"We have seen accelerating order inflow throughout 2020. This reflects fast technology adoption and strong demand across all markets from both large tier-1 customers and the broad market. However, we have also seen increasing strains on the semiconductor supply chain, and temporarily limited supply of wafers means that we will not be able to take full advantage of the current strong demand in 2021", says CEO Svenn-Tore Larsen in Nordic Semiconductor.
Based on the high demand, Nordic placed early orders for wafer volumes that would allow for a significant increase in production volumes. The company has been informed by its main wafer supplier in Taiwan of limitations in wafer allocation for 2021, and current forecasts for wafer deliveries indicate that Nordic will have room to increase production by a minimum of 25% from 2020 to 2021. The wafer supplier has announced a significant increase in capital expenditures in 2021 to increase capacity going forward.
Based on current backlog and wafer allocation Nordic is guiding for a revenue level of USD 130-140 million for Q1 2021. The largest impact of the wafer shortage is expected in Q2 2021, with higher volumes expected in the second half of the year.
For Q1 2021 gross margin is expected at 50%-51%, and the company reiterates its expectation that a higher share of sales to tier-1 customers will move gross margins for the short-range business into the 48%-50% range in the medium term.
In 2019, Nordic presented a bold aspiration to build a USD 1 billion company within five years, and the positive demand trends and continued strengthening of the customer base increase the confidence in this aspiration.
The management team will host a webcast presenting the fourth quarter results today at 08:00 CET. The presentation will be held in English. A live webcast from the presentation can be found at https://www.nordicsemi.com, and a recorded version of the presentation will also be available after the event.
At the end of the presentation, it will be possible for participants to call in and ask questions directly to the management team. In addition, questions may still be asked through the webcast.
Please use the dial-in number & PIN code below. An operator will organize your entrance.
PIN Code for all countries: 286203
NO: +47-21-956342
UK: +44-203-7696819
US: +1 646-787-0157
DK: +45 78768490
SE: +46-8-1241-0952
For more international number, please contact us on contact@livehouseeurope.com
For further information, please contact:
Pål Elstad, CFO Nordic Semiconductor ASA
Phone: +47 991 66 293
Ståle Ytterdal, Director IR and Strategic Sales Nordic Semiconductor ASA
Phone: +47 930 37 430
About Nordic Semiconductor:
Nordic Semiconductor has been a pioneer in ultra- low power wireless solutions, from proprietary technologies for PC accessories to today’s Bluetooth low energy and multiprotocol products and long-range cellular IoT solutions. Nordic Semiconductor is the clear market leader in the ultra-low power wireless segment, serving a growing market in consumer electronics, wearables, building and retail, healthcare and an increasing number of other verticals and applications. Nordic Semiconductor (NOD) is a public company listed on the Oslo stock exchange in Norway.
For more information go to www.nordicsemi.com
This information is subject to the disclosure requirements according to §5-12 in the Norwegian Securities Trading Act.