(Oslo, Norway – April 20, 2023) Nordic Semiconductor ASA reported revenue of USD 145 million for the first quarter 2023, a decline of 21% from the first quarter last year. Bluetooth Low Energy (BLE) revenue declined by a more moderate 13%, with a stronger decline for proprietary products. Gross profit was USD 78 million with a gross margin of 53.3%, whereas the EBITDA of USD 15 million corresponded to an EBITDA-margin of 10%.
“We have seen slowing demand in the broad market for some quarters, and now also see tier-1 customers adjusting their inventories. This has a negative effect on our revenue and order levels, and we expect second quarter revenue at roughly the same level as in the first quarter. Looking further ahead we expect to return to year-on-year revenue growth towards the end of the year,” says CEO Svenn-Tore Larsen in Nordic Semiconductor.
Nordic’s revenue guidance for the second quarter 2023 is USD 140-160 million, with a gross margin exceeding 52%. The supply of wafers for Nordic’s BLE products has been constrained over the past years, although the currently lower demand means that the strain on the supply chain is easing. The first quarter was the last quarter with supply constraints, and given current demand and supply forecasts Nordic expects the supply of wafers to be sufficient to meet demand requirements for the remainder of 2023.
Nordic will continue to invest in building a leadership position in markets with significant growth potential and maintaining a positive long-term market outlook. The company acknowledges the increased uncertainty regarding the economic environment and product demand, particularly in the consumer segment. In view of the challenging short-term revenue outlook, targeted cost initiatives expected to impact financials from the second half of the year are currently being assessed.
Practical arrangements
The management team will host a webcast presenting the first quarter results today at 08:00 CEST. The presentation will be held in English. For Q&A there will be a call-in function. A live webcast of the presentation and call-in instructions can be found at https://www.nordicsemi.com/Investor-Relations , and a recorded version of the presentation will also be available after the event.
In addition to asking questions by following the link on the webcast, participants can call in and ask questions live. The dial-in details are only applicable if you want to ask questions.
Please see the details below.
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
DE: +49-89-61429299
FR: +33-1-81221259
For further information, please contact:
Pål Elstad, CFO / EVP Finance - Nordic Semiconductor ASA
Phone: +47 991 66 293
Ståle Ytterdal, SVP IR - 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.