Nordic Semiconductor ASA

Latest Results (07.08.2024):

Revenue Decline

Nordic Semiconductor ASA reported a total revenue of USD 74.5 million in Q1 2024, marking a significant decrease of 48.8% from USD 145.4 million in Q1 2023. This decline is attributed to lower end-customer demand and active inventory adjustments within its distribution channel. Despite the drop, sell-through from distributors was significantly higher than reported revenue, indicating improving demand from both tier-1 and broad market customers.

EBITDA Loss

In Q1 2024, Nordic Semiconductor ASA experienced an EBITDA loss of USD 22.8 million, a stark contrast to the positive EBITDA of USD 14.6 million in Q1 2023. This shift reflects the challenging market conditions and the company's strategic decisions to manage inventory levels and support future growth ambitions. The EBITDA margin also saw a significant decline, moving from 10.0% in Q1 2023 to -30.6% in Q1 2024.

Gross Margin

Nordic Semiconductor ASA's gross margin for Q1 2024 was 48.0%, down from 53.3% in Q1 2023. The reduction in gross margin is primarily due to the lower revenue base and the impact of inventory adjustments. Despite the decline, the company remains focused on maintaining a competitive edge in the market through strategic inventory management and product innovation.

Revenue by Technology

In Q1 2024, Bluetooth technology continued to dominate Nordic Semiconductor ASA's revenue, accounting for 84% of total revenue at USD 62.9 million. However, this represents a 51.9% year-on-year decrease. Proprietary wireless solutions contributed USD 6.1 million, while cellular IoT revenue was USD 3.8 million. The company also reported USD 0.9 million from ASIC components and USD 0.75 million from other technologies.

End-User Market Performance

Consumer markets remained the largest end-user segment for Nordic Semiconductor ASA in Q1 2024, contributing 69.1% of total revenues at USD 50.8 million. However, this was a 27.1% decrease year-on-year. Industrial revenue was USD 16.7 million, while healthcare revenue dropped significantly to USD 3.6 million due to inventory adjustments at a tier-1 customer. The 'Other' category accounted for USD 2.5 million in revenue.