(Copenhagen, 26 May 2025) Napatech A/S (“Napatech”, OSE: NAPA) reported revenues of DKK 23.8 million in the first quarter of 2025. Gross margins for the quarter were in line with expectations at 70.3%. The company’s EBITDA came in at negative DKK 29.0m for the quarter. Staff costs in Q1’25 were up 26% compared to Q1’24 due to the build of development staff to serve the increased design win pipeline.
“We have made considerable strides in meeting important mileposts of our strategic plan that strengthen our position as an early leader in the new and evolving mass market for advanced NICs. This includes both improving our core business and making measurable progress towards our design win goals that underpins our growth aspirations. This has gone according to plan, and in some areas ahead of our expectations. When we compare our place to just one year ago, we find ourselves in a much stronger position, with high-volume design wins, and a closeness to new opportunities. Combined this increases our visibility into the timing and scale of our transformation,” said Lars Boilesen, CEO of Napatech
In order to secure the Company’s path to profitability and provide sufficient working capital to scale once volume orders materialize, the Company intends to raise a minimum of NOK 150 million in new equity in the form of a Private Placement. The Company has received indications of interest for an amount in excess of NOK 150 million from larger existing shareholders (representing approx. 60% of the outstanding shares), including NOK 2 million from CEO Lars Boilesen and a pro-rata subscription of approximately 9.71% from Verdane Capital VIII K/S (“Verdane”). Verdane is a closely associated legal person of chairman Christian Jebsen. The Company has engaged ABG Sundal Collier ASA, DNB Carnegie, a part of DNB Bank ASA, and SpareBank 1 Markets AS as Joint Lead Managers and Bookrunners in the Private Placement. Further details are expected to be announced in due course.
Napatech previously announced a design win with a tier-1 server OEM to build a next generation solution to their specification for high volume use cases, as well as the general market. Napatech has consistently met the hardware mileposts ahead of plan and exceeded expectations. Napatech is intimately involved in the next stage of their process, which includes the development and integration of key software to meet their use-case requirements.
Napatech also reports a new high-volume design win, with d-Matrix, a leader in Artificial Intelligence inferencing for hyperscale cloud, next-wave cloud, and enterprise datacenters. Napatech’s Intel-Altra programmable NIC enables provides the AI infrastructure that enables d-Matrix to deliver blazing fast AI inference speeds, all at massive scale.
Napatech recently disclosed other winning solutions across an array of applications and services by leading companies in their respective vertical markets, including a cyber security solution with Broadcom Symantec, a Network and Server Infrastructure solution with Eideticom, and an Artificial Intelligence solution with Xelera for ultra-low latency transitions in financial services markets. These are all examples of Napatech expanding its business to large or high-growth segments that require our advanced NICs.
“We are inspired by these early success that are far ahead of the pace we could have envisioned one year ago. Additionally, new companies with applications and use cases are emerging regularly, expanding our pipeline of opportunities. Our partnership with Intel-Altera continues to exceed our expectations and play a critical role in our strategy and success,” continued Boilesen.
“We began 2025 clear in our vision, focused on our goals, and confident in our plans to achieve them. There are undeniable signs that programmable network interface cards are changing the way modern datacenters are designed. The early adopters have already decided, and many of them have standardized on the Intel-Altera architecture. The mass market is emerging in their wake. We know that it takes time to secure new design wins and move them from ideas to production within our customers. We know how advantageous our starting position is from our own long history, combined with the trajectory-boost provided by our partnership with Intel-Altera. As each new segment of the mass market unfolds, Napatech has made investments in people, products and partnerships to be in the best position to capitalize on this new demand,” Boilesen concluded.
For more information, please see the attached report for the first quarter, 2025.
Napatech will host a webcast presentation and a conference call of its first quarter 2025 report today at 09:00 (CET). The presentation will be given by Lars Boilesen (CEO) and Heine Thorsgaard (CFO).
The presentation will be delivered by webcast on:
https://events.q4inc.com/attendee/582360362
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: +1 646 787 9445
Access Code: 408079
*EBITDA and other alternative performance measures (APMs) are defined on page 3 in the attached report for the first quarter of 2025.
For additional information, please contact:
Heine Thorsgaard, Chief Financial Officer
Phone: +45 4596 1500
E-mail: htg@napatech.com
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 26 May 2025 at 08:00 CET.