Event information
Before entering the silent period ahead of the second quarter results, Investor Relations at Nordic Semiconductor have set up pre-close calls on 3-4 July with the analysts covering the stock. These calls are a service to the analyst following, and no new material information will be disclosed in the calls.
In connection with this, Nordic would like to remind analysts and investors about some publicly known factors relevant to consider for the quarter from our previous financial reports and earnings calls:
As noted in the financial report for the first quarter, revenue in Q2 is expected to fall within the range of USD 115-135 million with a gross margin of around 50%. Nordic also reiterates its long-term ambition to maintain a gross margin level above 50%.
Nordic’s first quarter revenue of USD 74.5 million was significantly impacted by inventory adjustments, and sell-through from distributors was significantly higher than reported revenue. In the first quarter report the company noted that demand was improving both with tier-1 and broad market customers, that distribution inventory adjustments were predominantly behind us, and that revenue in the second quarter also would be supported by seasonally higher demand.
Nordic in April announced the establishment of a new business structure with four new business areas to drive the product development roadmaps within Short-range, Long-range, Wi-Fi and Power Management (PMIC). Nordic expects the reorganization to clarify strategic direction, improve autonomy and accountability in the different areas, sharpen the focus on products and development roadmaps, and enable a customer centric and agile approach to improve market responsiveness and shorten time-to-market.
The overarching goal of the new management is to return to revenue growth and restore profitability, and the reorganisation is expected to increase return on R&D investments over time. The company will share more details on its strategic direction on the second quarter presentation on 8 August and on the upcoming Capital Markets Day on 26 September.