Nordic Semiconductor Announces Higher Fourth Quarter Revenue and Margins

OSLO (Reuters) – Nordic Semiconductor said on Friday that revenues and margins beat expectations in the final quarter of 2021 and demand remained strong in all of its markets.

Revenue for the October-December period was $171 million, according to preliminary data, above the company’s own forecast of $150 million to $170 million, the Norwegian company said in a statement.

Analysts on average had expected revenue of $163 million, according to data from Refinitiv Eikon.

“Our fourth quarter and full year revenue reflects continued strong performance across all of our end-user markets,” said Chief Executive Svenn-Tore Larsen.

Oslo-listed Nordic Semiconductor’s gross profit margin for the quarter is now in a range of 58% to 59%, significantly higher than the 51% to 53% originally forecast.

“The exceptionally high gross margin reflects a one-time effect of price adjustments for the company’s products,” Nordic said.

Taking into account these one-time price effects, the underlying gross margin was around 53% in the fourth quarter, he added.

Nordic sells chips and wireless devices designed for ultra-low power consumption, which are used in a wide variety of electronic devices and computers, but does not itself manufacture the silicon wafers used in the products.

Shares of the company are up 93% in the past 12 months, valuing the company at $6.2 billion. Shares have, however, fallen 6.7% so far in 2022, alongside a decline in global tech stocks.

Nordic Semiconductor’s fourth quarter earnings report is due out on February 3.

($1 = 8.6736 Norwegian kroner)

(Reporting by Terje Solsvik; editing by David Evans)

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