Nordic Semiconductor ASA

NOD

Equity

ISIN NO0003055501 / Valor 440145

Oslo Stock Exchange (2024-09-17)

NOK 134.20+2.44%

Nordic Semiconductor ASA
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About company

Nordic Semiconductor ASA is a leading provider of low-power wireless communication solutions, specializing in maximizing Wi-Fi's low-power potential for various applications such as home automation, smart lighting, and other IoT devices. The company's software development kit and hardware development tools make it easy to build prototypes for smart home solutions, including the latest Matter connectivity standard. Nordic Semiconductor also offers solutions for cellular IoT, DECT NR+, Wi-Fi, and PMIC, showcasing its expertise in providing reliable and secure connectivity for a wide range of applications. With a focus on ultra-low-power wireless technology, Nordic Semiconductor's products, such as the nRF9160 SiP and nRF5340 SoC, are designed to meet industrial grade operating temperature requirements and provide efficient connectivity solutions for battery-powered devices. Additionally, the company is known for its excellent brand reputation and rapid technical support, making it a preferred partner for businesses looking to develop cutting-edge wireless solutions.

Summarized from source with an LLMView SourceSector: Technology

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.

Summarized from source with an LLMView Source

Key figures

9.42%1Y

-54.3%3Y

177%5Y

Performance

62.5%1Y

56.9%3Y

52.8%5Y

Volatility