Nordic Semiconductor’s IPO is pending after new prospects – E24

The computer chip company delivered weaker in the first quarter of the year. In the second quarter, earnings are expected to pick up, which analysts are positive about.

The case is updated.

Oslo Børs-listed Nordic Semiconductor presents the figures for the first quarter on Wednesday.

• The result before tax ended at minus 30.6 million dollars, compared to 8.4 million dollars in the same period last year.
• Revenues were 74.6 million dollars, compared to 145.4 million dollars in the same period last year.
• Gross operating profit (ebitda) came in at minus 22.8 million dollars, compared to 14.6 million dollars in the same period last year.

Nordic Semiconductor predicted in advance that revenues in the first quarter would fall to between 70 and 80 million dollars.

– The low turnover in the first quarter reflects our work to reduce stock levels in the distribution channel. We now see an increasing demand from both tier-1 customers and customers in the wider market, and turnover in the second quarter will also be supported by seasonally higher demand, says CEO Vegard Wollan.

The company guides guidesGuidance on expected results. now revenues of between 115 and 135 million dollars in the second quarter, with a gross margin of around 50 percent, it appears. Such a conclusion will be down from 154 million dollars in the same period last year.

DNB Markets analyst Christoffer Wang Bjørnsen highlights in an update that the guidance is well above the analysts’ estimate of USD 97 million. He expects the share price to rise on Wednesday.

Sparebank 1 Markets analyst Petter Kongslie writes in a note that he expects a share price of ten percent on Wednesday. He emphasizes that Nordic Semiconductor now “seems to be back to normal seasonal patterns”.

Steep stock market fall

Nordic Semiconductor supplies data chips (semiconductors) for PCs, game consoles, cars, smartphones, toys and health sensors, among other things.

The IT share has fallen sharply from the top. The share price on Wednesday before the stock market opening is NOK 88.74, down from over NOK 300 in autumn 2021.

Among other things, several rounds of disappointing results in light of high inventories and a tough macro economy have weighed on investors’ view of the company.

“Light at the end of the tunnel”

Recently, there have been a bunch of uplifting updates from the analyst corps, which have occasionally sent the share up on single days.

Danske Bank analyst Mads Ek Strøm believes there is “light at the end of the tunnel”, but still sees uncertainty in the short term.

Carnegie analysts Oliver Schüler Pisani and Jenny Pedersen believe that Nordic Semiconductor is approaching a “positive turning point”.

They expect sales growth and better profitability from the first quarter. It points to several factors, including less stock correction, improvement in demand and seasonal factors, which they believe could ease concerns about structural problems.