(Oslo, Norway – October 17, 2023) Nordic Semiconductor ASA reported revenue of USD 135 million for the third quarter 2023, a decline of 12% from the previous quarter and 33% below the third quarter last year. Gross profit was USD 68 million with a gross margin of 50%, and the EBITDA of USD 13 million corresponds to an EBITDA-margin of 10%.
Bluetooth low energy revenue declined 16% from the second quarter and by 33% year-on-year.
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For the first nine months of 2023, revenue decreased by 26% to USD 435 million with a gross margin of 52%. The high leverage in the operational model generated a decline in EBITDA to USD 56 million from USD 167 million in the first nine months last year.
The current demand outlook indicates a revenue level of USD 110-130 million in the fourth quarter with a gross margin of around 50%.
“Our main markets remain in a cyclical downturn that is deeper and more prolonged than we had expected, with lower end-user demand and continued inventory adjustments. Given the current economic climate the visibility is low, and the timing of a market recovery remains uncertain,” says CEO Svenn-Tore Larsen.
Nordic has continued to invest in building a leadership position in markets with significant long-term growth potential. However, given the backdrop with lower revenue, margin pressure, and low revenue visibility, the company is adapting by reallocating investments and reducing costs.
Nordic will maintain its unique technology platform comprising both Bluetooth, Wi-Fi and Cellular IoT. However, the company will seek to reallocate resources from the longer-term projects to projects and products that will generate revenue and profits in the near- to mid-term.
Cost optimization measures will include reduced use of consultants, streamlining of operational structure and an assessment of the total resources required to continue the company’s main R&D programs. These measures will have effect from 2024 and will reduce quarterly operating expenses in the order of USD 5 million.
In terms of current R&D achievements, Nordic is establishing new industry standards with the launch of its new nRF54 Series products. While the nRF54H20 SoC will enable innovative IoT products that were previously unfeasible, the new nRF54L15 will offer a natural next step for customers currently on nRF52 products. The new nRF54 products are currently sampling with customers and are expected to begin generating revenue towards the end of next year.
“We are maintaining our position as market leaders in the Bluetooth market, with a high and stable share of design wins, and we believe our new generation products in the nRF54 Series will further strengthen this position going forward,” adds Larsen.
Practical arrangements
The management team will host a webcast presenting the third quarter results today at 08:00 CEST. The presentation will be held in English with a call-in function for Q&A. 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: +47-21956342
UK: +44-203-7696819
US: +1-646-787-0157
DK: +45-78768490
SE: +46-8-12410952
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.
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