Napatech A/S: Q3 2024 Financial Results

05 Nov 2024 08:00 CET

(Copenhagen, 5 November 2024) Napatech A/S (“Napatech”, OSE: NAPA) reported
revenues of DKK 34.01 million in the third quarter of 2024, an increase of 47.1%
from 23.2 million in the second quarter of 2024, but down 31% compared to Q3
2023. The company’s EBITDA came in at negative DKK 18.9 million (9.3 million
better and an improvement compared to the second quarter of 2024).

“As we enter the final quarter of our 2024 fiscal year, I am happy to report
that 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 market for programmable NICs. This includes both improving our core
business and making measurable progress towards our design win goals that
underpin our growth aspirations. In many ways this has gone according to plan,
and in some areas ahead of our expectations,” says Lars Boilesen, CEO of
Napatech.

Napatech is a leading global provider of Programmable NICs, including Smart
Network Interface Cards (SmartNIC) and Infrastructure Processing Units (IPU),
used by cloud, enterprise, and telecommunication network operators to
dramatically improve the performance and economics of servers and appliances.

The company’s strategy is anchored in three areas. Firstly, servicing Napatech’s
valuable customers who are early adopters of Programmable NICs. Secondly,
accelerating Napatech’s engineering investments into hardware and software that
extend the company’s offering into new, high-growth segments. Finally,
developing a robust ecosystem that extends Napatech’s own go-to-market reach via
marketing, business development and sales partnerships.

A key developments in the third quarter included our engineering team meeting a
significant milepost in the product design of our next-generation IPU, on
schedule, and shipped the first engineering samples to our lead customers, for
their initial bring-up and qualification. While this is an early step in a long
design-win engagement that will continue through 2025, it is an important
milepost that was met amidst challenge requirements and high expectations.

“We continued to expand our design-win pipeline with new opportunities and
projects emerging on a consistent basis. This is expected given a number of
positive factors benefiting Napatech, including: industry momentum for
programmable NICs in next generation datacenter architectures; our partnership
with Intel aiding in marketing and business development activities; and the new
products designed specifically for these customer needs. The opportunities span
a variety of applications, use cases, geographies, customer types and scale,”
Boilesen adds and continues:

“The remainder of the year will include development milestones being met for our
new products, as well as an increasing and maturing design win pipeline of
collaborative business opportunities that will push the boundaries of what we
can achieve. With your continued support, we are poised to make Napatech's
future even brighter,” Boilesen concludes.

For more information, please see the attached report for the third quarter,
2024.

Napatech will host a webcast presentation and a conference call of its third
quarter 2024 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://app.webinar.net/6wqRp3WpKdL

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: 308507

*EBITDA and other alternative performance measures (APMs) are defined on page 3
in the attached report for the second quarter and first half of 2024.

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 5 November
2024 at 08:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

631220_Napatech Q3 2024 Presentation.pdf
631220_Napatech Q3 2024 Interim Management Statement.pdf