13/02-2018 08:00:22: (NAPA) Napatech A/S : Q4 2017 financial Results
Napatech A/S : Q4 2017 financial Results
(Copenhagen, 13 February 2018) Napatech A/S ("Napatech", OSE: NAPA) reported revenues of DKK 47.9 million in the fourth quarter of 2017 (DKK 92.3 million in Q4 2016), representing a decrease of 48%, and an EBITDA of DKK -7.2 million (28.0) following quarter-to-quarter order volatility. The revenues for the full year 2017 saw a decline of 12% compared to 2016.
"The fourth quarter of 2017 was a disappointing period for Napatech in terms of revenue and profit development, with sales below the same period last year following continued order volatility due to postponement of a few major projects to 2018. Napatech, however, continues to attract a strong interest for its reconfigurable computing solutions. While North American end-user enterprise and government customers created short-term volatility in the timing of orders for Napatech's software and hardware solutions, the company remains well positioned to reap great rewards as major industry trends fuel an increasing use of FPGAs for accelerating network and security applications in modern data centers," says Henrik Brill Jensen, Chief Executive Officer of Napatech.
Major changes in communications created by cloud computing, 5G mobile and the Internet of Things (IoT) have led to exploding volumes of users, devices and data, requiring organizations to rethink the way they design, deploy, operate and secure their networks and services. A massive shift is under way that utilizes standard server platforms to host the most important network and security applications and services. Napatech is a global leader in enhancing standard servers with FPGA-based SmartNICs and software, to boost innovation and release valuable compute resources, that improve services and increase revenue.
"Naptech does this by being application driven to align with the leading cloud, mobile, IoT and security applications and services that are behind the network transformation. We are software centric in order to provide the most valuable FPGA software to accelerate and optimally enhance standard server platforms that host those leading applications. We are hardware independent allowing our software solutions to power FPGAs across an entire industry of leading vendors. And we are designed to be used across your entire network with solutions that scale for price and performance across enterprise premise, cloud datacenter and hybrid cloud deployments,"says Brill Jensen.
In 2018, Napatech is taking this journey with its current and prospective customers. This has involved investments in sales, marketing and engineering that will allow the company to grow its OEM business with new design wins providing peak volume production in 2020-2022, as well as expand Napatech's reach to a rapidly-growing end-user customer base in enterprise, service provide, datacenter and government networks.
The increased demand for SmartNIC hardware, software and services provides the catalyst for growth from Napatech's existing products and solutions, and anchors the company's strategic ambition of a 100 MUSD top-line.
The company expects the revenue growth to resume in 2018, but underlines that the short-term visibility is limited and will be affected by quarter-to-quarter order volatility and general business uncertainty.
As a result of the company's recent sales performance, and following a thorough evaluation of our 2020 ambition the company strongly believes in the 100 MUSD top-line ambition, but recognizes longer ramp-up time for some of the new applications. We therefore believe the target will be reached in 2022. In addition, the company provides the following guidance for 2018:
At the end of 2017, Napatech observed that large OEMs had higher than normal inventory, expected to affect the first quarter of 2018 as the customers are expected to reduce the inventories before placing new orders. In addition, the projects that were postponed from 2017 to 2018 are not expected to materialize in the first quarter of 2018. As a result of the combined effect, the company expects Q1 2018 to be weaker than normal.
For more information, please see the attached fourth quarter 2017 report.
Napatech will host an investor-, analyst- and media presentation at 09.00 (CET) at Hotel Continental in Oslo, Norway. The presentation, given by CEO, Henrik Brill Jensen, will be available live at: http://www.hegnar.no/TV/kvartalspresentasjon/77796212
This link can also be found on www.napatech.com
For additional information, please contact:
Henrik Brill Jensen, Chief Executive Officer
Phone: +45 2011 1673
Niels Hobolt, Chief Financial Officer
Phone: +45 2045 5441
Geir Bjørlo, Corporate Communications AS
Telephone: +-47 915 40 000
Internet-of-things (IoT), cloud and mobile networking have each changed the way businesses operate, enabling them to rapidly deliver new applications and services to customers and employees. At Napatech, we aim to help organizations to reimagine their business, by harnessing the technologies born in hyper-scale designs, and making their benefits available to every network. Our SmartNICs platform brings cloud-scale performance, economics, innovation and security to datacenters in fortune-5000 enterprises, government agencies, service providers and cloud operators. The Virtual Networking Platform combines standard, low-cost, high-volume servers, with the agility of Napatech's FPGA-based programmable SmartNICs and software, to improve datacenter performance and reduce costs by returning valuable compute resources to applications, services and revenue.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Napatech A/S via Globenewswire
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