XOSL:NAPA ESEF Annual Report
NAPATECH (XOSL:NAPA)
ESEF Annual Report
2024-09-10
For: 2024-06-30
View Original
Added on
September 23, 2026
NAPATECH
HALF-YEAR REPORT 2024
MANAGEMENT'S REPORT
As I began to pen our management report for the first half of 2024, I thought about both our long-time investors as well as the many
new investors and followers who have been drawn to Napatech in recent months. I am pleased to share with everyone our results
for the second quarter and first half of 2024. The first half of 2024 has progressed largely according to expectations, particularly good
progress in reaching important design wins and mileposts of our strategic plan that have clearly strengthened our position as an early
leader in the new and evolving market for programmable NICs. However, the revenues in Q1 and Q2 have clearly been weaker than
expected.
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.
Our strategy remains anchored in three areas. First, servicing our valuable customers who are early adopters of Programmable NICs.
They are a proving-ground for the technology and the value that our solutions bring to their businesses. Next, accelerating our
engineering investments into hardware and software that extend our offering into new, high-growth segments. Finally, developing a
robust ecosystem that extends our own go-to-market reach via marketing, business development and sales partnerships.
I would like to share a few highlights from the first half of 2024 that give us confidence we are executing upon our strategy:
•
•
To begin, in early April, Napatech extended our agreements with Altera, an Intel company, to include a next-generation 400G
Infrastructure Processing Unit, or IPU. The collaboration develops new programmable NIC hardware and software solutions
based on an architecture that promises to enable an innovative approach to powering modern public cloud, private cloud, edge,
and enterprise data centers built for the era of artificial intelligence.
Next, on April 18, we disclosed that the 400G IPU product design with Intel/Altera was developed in partnership with a tier-1,
global server OEM that continues to lead in enterprise and cloud data center deployments. The collaboration was anchored by
commercial agreements, associated statements of work that define the product specifications, and professional services fees
from both companies to Napatech. I am happy to report that our engineering team has met every development milepost on,
and in some cases ahead of schedule.
•
•
On May 2, based on these developments, we increased our guidance on the impact from design-wins for these new products,
from 30,000-40,000 units to 50,000-60,000 units in their peak annual production years.
On May 7, Napatech completed a private placement capital raise from 9,000,000 shares at a subscription price of NOK 25.00 –
above the market price at the time. The Private Placement was significantly oversubscribed and attracted interest from high-
quality accounts, as well as receiving strong support from existing shareholders. ABG Sundal Collier ASA and SpareBank 1
Markets AS served as managers of the Private Placement
•
•
•
On August 1, Amantya, a company focused on 5G infrastructure, specifically user plane function offload, or “UPF Offload”,
disclosed that they had successfully completed the engineering integration of their 5G packet core solutions on Napatech
programmable NICs. The integration significantly enhances their solution's performance and scalability, enabling them to offer
superior private 5G network services to their clients.
On August 22, we disclosed our latest design-win for our Intel-based IPUs, SigmaX.AI, an innovative provider of high-
performance and cost-effective big-data analytics solutions for an exploding list of datacenter and edge computing artificial
intelligence workloads. This design win represents another new customer for Napatech, created by our business development
partnership with Intel, and from our new Intel-based IPU products.
Combined, these key areas of success allow us today to reaffirm our design-win guidance for 2024.
Taking a broader view of the information technology market, there are signs of macro, tops-down industry headwinds that can
include less spending, longer buying cycles, and increased design-win development schedules. These issues, combined with our
customers’ inventory corrections, will continue to create short-term uncertainty in the revenue from our existing business for the
remainder of 2024. The primary risk for the second half of 2024 is that we do not have direct control over our customers and the
certainty and timing of their business, but we are prepared to fulfil their demand as is currently projected to us.
The second half of the year promises new product development milestones, along with 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.
Best regards,
Lars Boilesen
Chief Executive Officer
Napatech HALF-YEAR REPORT 2024
page 2 of 15
Highlights H1:
•
Revenue in USD amounted to 6.5m in H1 2024, a decline of 40% compared to H1 2023. In DKK, revenue amounted to 44.7m,
a decline of 40% compared to H1 2023.
•
•
•
•
•
•
•
The gross margin in H1 2024 was 68%, an increase of 2%-points compared to H1 2023.
Staff costs and Other external costs in H1 2024 amounted to DKK 83.9m compared to DKK 72.7m in H1 2023.
EBITDAC1 in H1 2024 amounted to negative DKK 53.4m compared to negative DKK 23.5m in H1 2023.
EBITDA in H1 2024 amounted to negative DKK 51.7m compared to negative DKK 16.4m in H1 2023.
Depreciation, amortization, and impairment for H1 2024 were DKK 15.6m compared to DKK 16.0m in H1 2023.
Net Cash flow from operating activities in H1 2024 was negative DKK 47.4m compared to positive DKK 0.2m in H1 2023.
Net working capital end of H1 2024 amounted to DKK 65.2m compared to DKK 38.5m end of H1 2023 and DKK 65.5m end
of 2023.
•
•
Net cash used in investing activities in H1 2024 amounted to DKK 3.7m compared to DKK 8.7m in H1 2023.
Cash and cash equivalents at the end of H1 2024 amounted to DKK 103.2m compared to DKK 56.0m at the end of H1 2023.
Highlights Q2:
•
Revenue in USD amounted to 3.4m in Q2 2024, a decline 39% compared to Q2 2023. In DKK, revenue amounted to 23.2m,
a decline of 39% compared to Q2 2023.
•
•
•
•
•
•
•
The gross margin in Q2 2024 was 65%, a decline of 11%-points compared to Q2 2023.
Staff costs and Other external costs in Q2 2024 amounted to DKK 43.3m compared to DKK 34.3m in Q2 2023.
EBITDAC in Q2 2024 amounted to negative DKK 28.2m compared to negative DKK 5.6m in Q2 2023.
EBITDA in Q2 2024 amounted to negative DKK 27.4m compared to negative DKK 3.5m in Q2 2023.
Depreciation, amortization, and impairment for Q2 2024 were DKK 7.7m compared to DKK 8.3m in Q2 2023.
Net Cash flow from operating activities in Q2 2024 was negative DKK 41.9m compared to negative DKK 23.1m in Q2 2023.
Net cash used in investing activities in Q2 2024 amounted to DKK 2.7m compared to DKK 2.6m in Q2 2023.
Key figures2:
Revenue USD m
Q2 2024 Q2 2023
FY 2024
6.5
-40%
44.7
-40%
68%
-53.4
-51.7
-47.4
65.2
FY 2023
10.9
-16%
74.9
-15%
66%
-23.5
-16.4
0.2
3.4
-39%
23.2
-39%
65%
5.5
10%
37.8
7%
76%
-5.6
-3.5
-23.1
38.5
56.0
Growth YoY USD m
Revenue DKK m
Growth YoY DKK m
Gross Margin
EBITDAC DKK m
EBITDA DKK m
Net Cash Flow from Operating Activities DKK m
Net Working Capital, end of period DKK m
Cash and cash equivalents, end of period DKK m
-28.2
-27.4
-41.9
65.2
38.5
56.0
103.2
103.2
This is Napatech
Napatech is a Danish tech company developing high-performance, programmable network interface cards and software for programmable NICs. The
Napatech software suite ensures broad compatibility and seamless integration for our family of FPGA-based SmartNICs. With support for all major
systems and a common API that easily integrates with custom-developed, open source, or commercial applications, we enable significantly reduced
time-to-market for new products.
Additional information is available at www.napatech.com\investor.
1 EBITDAC: Earnings before depreciation, amortization and impairment, and cost transferred to development projects.
2 Definitions: Gross Margin is calculated as ‘Gross Profit’ / ‘Revenue’; EBITDAC is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’ before
staff costs transferred to capitalized development costs; EBITDA is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’; Net working capital
represents the value of inventories, trade receivables of other current operating assets less trade payables and other current operating liabilities. Cash and cash
equivalents and income tax receivable or payable are not part of the net working capital; Cash flows from operating activities are profit or loss before tax added or
deducted changes in the net working capital, added or deducted changes in provisions and added the yearly depreciation and amortization; Free cash flow is net cash
flow from operating activities added or deducted investing activities.
Napatech HALF-YEAR REPORT 2024
page 3 of 15
Revenue and Gross Margin
Financial Items
H1
H1
Napatech reports revenue of DKK 44.7m in the first half
of 2024 compared to DKK 74.9m in the same period in
2023, equivalent to a decline of 40%. In USD, revenue was
down 40% compared to H1 2023.
Financial items for H1 2024 were negative DKK 0.7m
compared to a negative DKK 1.7m in H1 2023.
Q2
Financial items for Q2 2024 were negative DKK 0.7m
compared to a negative DKK 0.7m in Q2 2023.
The gross margin in H1 2024 was 68% compared to 66%
in H1 2023.
Taxes
Q2
H1
Napatech reports revenue of DKK 23.2m in Q2 2024
compared to DKK 37.8m in the same period in 2023,
equivalent to a decline of 39%. In USD, revenue declined
40% compared to Q2 2023.
Taxes for H1 2024 amounted to an income of DKK 0.7m
compared to a a cost of DKK 0.7m in H1 2023.
Q2
Taxes for Q2 2024 amounted to an income of DKK 0.7m
compared to a cost of DKK 0.7m in Q2 2023.
The gross margin in Q2 2024 was 65% compared to 76%
in Q2 2023.
Investments
Costs
H1
H1
The total net cash used in investing activities in H1 2024
was DKK 3.7m, of which DKK 1.9m was invested in new
product development. In H1 2023, the total net cash used
in investing activities was DKK 8.7m, of which DKK 8.2m
was invested in new product development.
Staff costs and Other external costs in H1 2024 amounted
to DKK 83.9m, compared to DKK 72.7m in H1 2023.
Operating expenses after transferal of staff costs to
capitalized development costs in H1 2024 amounted to
DKK 82.2m, compared to DKK 65.5m in H1 2023.
Q2
The total net cash used in investing activities in Q2 2024
was DKK 2.7m, of which DKK 0.9m was invested in new
product development. In Q2 2023, the total net cash used
in investing activities was DKK 2.6m, of which DKK 2.1m
was invested in new product development.
Q2
Staff costs and Other external costs in Q2 2024 amounted
to DKK 43.3m, compared to DKK 34.3m in Q2 2023.
Operating expenses after transferal of staff costs to
capitalized development costs in Q2 2024 amounted to
DKK 42.4m, compared to DKK 32.2m in Q2 2023.
Cash Flow
H1
Net cash flow from operating activities in H1 2024 was
negative DKK 47.4m compared to positive DKK 0.2m in H1
2023.
EBITDAC and EBITDA
H1
Earnings
before
Interest,
Tax,
Depreciation,
Amortization, and Capitalization of development cost
(EBITDAC) amounted to negative DKK 53.4m in H1 2024
compared to negative DKK 23.5m in H1 2023.
Free cash flow in H1 2024 amounted to negative DKK
51.1m compared to negative DKK 8.5m in H1 2023.
Net cash from financing activities in H1 2024 was positive
DKK 111.7m, compared to positive DKK 53.1m in H1 2023.
EBITDA in H1 2024 was negative DKK 51.7m compared to
negative DKK 16.4m in H1 2023.
Cash and cash equivalents end of H1 2024 was DKK
103.2m compared to DKK 56.0m at the end of H1 2023.
Q2
EBITDAC amounted to negative DKK 28.2m in Q2 2024
compared to negative DKK 5.6m in Q2 2023.
Q2
Net cash flow from operating activities in Q2 2024 was
negative DKK 41.9m compared to negative DKK 23.1m in
Q2 2023.
EBITDA in Q2 2024 was negative DKK 27.4m compared to
negative DKK 3.5m in Q2 2023.
Depreciation, amortization, and impairment
Free cash flow in the quarter amounted to negative DKK
44.6m compared to negative DKK 25.7m in Q2 2023.
H1
Depreciation, amortization, and impairment in H1 2024
were DKK 15.6m compared to DKK 16.0m in Q2 2023.
Net cash from financing activities in Q2 2024 was positive
DKK 120.2m, compared to a positive DKK 69.5m in Q2
2023.
Q2
Depreciation, amortization, and impairment in Q2 2024
were DKK 7.7m compared to DKK 8.3m in Q2 2023.
Changes in equity
The company's equity amounted to DKK 190.5m on June
30, 2024, this is an increase of DKK 78.8 from December
Napatech HALF-YEAR REPORT 2024
page 4 of 15
31, 2023. On May 7, 2024, Napatech completed a private
placement of 9,000,000 shares at a subscription price of
NOK 25.00 per share, raising DKK 143 million in gross
proceeds.
In H1 2024, equity was decreased by comprehensive
income with DKK -66.8m and increased with DKK 145.6m
by transactions with shareholders.
Shareholders and Share Information
Napatech, as of June 30, 2024, had 99,614,548 shares,
each with a nominal value of DKK 0.25. The share capital
is DKK 24,903,548.00, divided among the 2,041
shareholders.
Number of
shares
Investor
% of total
SUNDT AS
VERDANE CAPITAL VIII
LUDVIG LORENTZEN AS
J.P. MORGAN SE
ARBEJDSMARKEDETS TILLAEGSPENSION
BROWNSKE BEVEGELSER AS
SKANDINAVISKA ENSKILDA BANKEN AB
BANK PICTET & CIE (EUROPE) AG
SKANDINAVISKA ENSKILDA BANKEN AB
EXTELLUS AS
J.P. MORGAN SE
PRIVATE INVESTOR
MANARA AS
SKANDINAVISKA ENSKILDA BANKEN AB
THE BANK OF NEW YORK MELLON SA/NV
MP PENSJON PK
AREPO AS
DANSKE BANK A/S
12,475,975
9,713,618
6,600,000
6,200,738
5,800,000
3,804,445
3,755,095
3,278,405
2,570,863
2,425,411
2,389,433
1,900,000
1,860,988
1,826,127
1,767,022
1,569,090
1,361,535
1,311,969
1,271,922
1,211,842
73,094,478
26,520,070
99,614,548
12.52%
9.75%
6.63%
6.22%
5.82%
3.82%
3.77%
3.29%
2.58%
2.43%
2.40%
1.91%
1.87%
1.83%
1.77%
1.58%
1.37%
1.32%
1.28%
1.22%
73.36%
26.64%
100%
BNP PARIBAS
NORDNET BANK AB
Total number owned by top 20
Total 2,021 other shareholders
Total Number of shares
Events after the end of the period
No significant events have occurred after the end of the
reporting period.
Outlook for 2024
Since our capital raise in May this year, we have
accelerated our development activities significantly to
bring new products to the market quickly. As a result, we
are updating our guidance for Staff costs and Other
external costs in 2024 to be in the range of 170-180 mDKK
(previously 145-155 mDKK). Other financial guided
ranges remain unchanged with revenue in the range of
DKK 170-180m, gross margin in the range of 69-71%, and
Staff costs transferred to capitalized development costs
in the range of DKK 10-15m
Disclaimer:
With performance in the middle of the guided ranges,
EBITDA would be negative DKK 40 million (previously
negative DKK 15 million).
This report may contain statements regarding the future in
connection with Napatech's growth initiatives, profit figures,
outlook, strategies, and objectives. All statements regarding the
future are subject to inherent risks and uncertainties, and many
factors can lead to actual profits and developments deviating
substantially from what has been expressed or implied in such
statements.
The company is exposed to risks that might affect our
ability to reach our goals, such as currency fluctuations,
general market uncertainty, and material changes in our
large OEMs' needs for Napatech's products.
Napatech HALF-YEAR REPORT 2024
page 5 of 15
Executive Management
Board of Directors
Napatech HALF-YEAR REPORT 2024
page 6 of 15
INCOME STATEMENT
For the period ended June 30, 2024
Q2
2024
Q2
2023
H1
2024
H1
2023
DKK'000
Note
3
Revenue
(8,105 )
(28,581 )
(14,726 )
(28,236 )
(9,191 )
(23,455 )
(10,810 )
(5,610 )
(14,217 )
(56,339 )
(27,562 )
(53,400 )
(25,757 )
(52,911 )
(19,776 )
(23,502 )
Cost of goods sold
Gross profit
Staff costs
Other external costs
EBITDAC
Transferred to capitalized development costs
EBITDA
(27,369 )
(7,699 )
(35,068 )
(3,545 )
(8,300 )
(11,845 )
(51,684 )
(15,643 )
(67,327 )
(16,358 )
(16,026 )
(32,384 )
Depreciation, amortization and impairment
Operating result (EBIT)
Finance income
Finance costs
(1,112 )
(35,807 )
(662 )
(1,869 )
(1,690 )
Result before tax
Income tax
(12,505 )
(665 )
(67,990 )
(34,069 )
(672 )
Result for the period
(35,060 )
(13,170 )
(67,245 )
(34,741 )
H1
H1
Earnings / (loss) per share:
Basic, DKK
4
2024
(0.73 )
(0.73 )
2023
(0.40 )
(0.40 )
Diluted, DKK
STATEMENT OF COMPREHENSIVE INCOME
For the period ended June 30, 2024
H1
H1
DKK'000
2024
2023
Result for the period
(67,245 )
(34,741 )
Items that may be reclassified to profit and loss in subsequent periods:
Exchange differences on translation of foreign operations
(266 )
Other comprehensive income after tax
(266 )
Total comprehensive income
(66,845 )
(35,007 )
Napatech HALF-YEAR REPORT 2024
page 7 of 15
CASH FLOW STATEMENT
For the period ended June 30, 2024
Q2
2024
Q2
2023
H1
2024
H1
2023
DKK'000
Operating activities
Income/Loss before tax
(35,807 )
(12,505 )
(67,990 )
(34,069 )
Adjustments to reconcile profit before tax to net cash flows
Finance income
(373 )
(2 )
(1,206 )
(5 )
Finance costs
Depreciation, amortisation and impairment
Share-based payment expense
Working capital adjustments
Change in inventories
(4,549 )
(17,342 )
(6,097 )
Change in trade and other receivables and prepayments
(11,881 )
Change in trade and other payables and contract liabilities
Interest received
(4,434 )
(15,116 )
(16,296 )
Interest paid
(1,072 )
(79 )
(674 )
(670 )
(1,495 )
(80 )
(1,093 )
(670 )
Income tax received, net
Net cash flows from operating activities
(41,938 )
(23,089 )
(47,376 )
Investing activities
Purchase of tangible assets
(1,740 )
(896 )
(345 )
(2,120 )
(144 )
(1,740 )
(1,905 )
(46 )
(393 )
(8,150 )
(144 )
Investments in intangible assets
Investments in leasehold deposits
Net cash used in investing activities
(46 )
(2,682 )
(2,609 )
(3,691 )
(8,687 )
Free cash flow
(44,620 )
(25,698 )
(51,067 )
(8,526 )
Financing activities
Capital increase
Transaction costs on issue of shares
(5,188 )
(365 )
(5,188 )
(365 )
Increase (decrease) through treasury share transactions
Payment of financial lease liabilities
Repayment of borrowings
(873 )
(18,449 )
(880 )
(1,746 )
(27,621 )
(1,638 )
Net cash flows from financing activities
Net change in cash and cash equivalents
Net foreign exchange difference
(519 )
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Napatech HALF-YEAR REPORT 2024
page 8 of 15
BALANCE SHEET
ASSETS
30 June
2024
31 Dec.
2023
30 June
2023
DKK'000
Note
Development projects, completed
Development projects, in progress
Patents
Intangible assets
5
Plant and equipment
Right-of-use assets
Leasehold improvements
Tangible assets
Leasehold deposits
Other non-current assets
Non-current assets
Inventories
Trade receivables
Prepayments
Other receivables
Income tax receivable
Cash and cash equivalents
Current assets
Total assets
Napatech HALF-YEAR REPORT 2024
page 9 of 15
EQUITY AND LIABILITIES
DKK'000
30 June
2024
31 Dec.
2023
30 June
2023
Note
Share capital
6
7
(619 )
(2,110 )
(271 )
(2,456 )
(22 )
Share premium
Treasury shares
Foreign currency translation reserve
Other capital reserves
Retained earnings
(329,515 )
(265,251 )
(262,224 )
Equity
Interest-bearing loans and borrowings
Other non-current financial liabilities
Non-current lease liabilities
Non-current contract liabilities
Non-current liabilities
Interest-bearing loans and borrowings
Current lease liabilities
Trade payables
Other payables
Contract liabilities
Current liabilities
Total liabilities
Total equity and liabilities
Napatech HALF-YEAR REPORT 2024
page 10 of 15
STATEMENT OF CHANGES IN EQUITY
Foreign
currency
Share
based
Share
Share
Treasury translation payment Retained
Total
capital
premium
shares
reserve
reserve
earnings
equity
DKK'000
2024
Equity at January 1
(2,110 )
(271 )
(262,224 )
(67,245 )
(67,245 )
Result for the period
Total other comprehensive income
Total comprehensive income for the period
Transactions with shareholders
Issue of shares
(67,245 )
(66,845 )
(5,188 )
(5,188 )
Transaction costs
Increase (decrease) through treasury share
transactions
(46 )
(187 )
Reversal, exercised and lapsed options
Share-based payments
(859 )
Equity at June 30
(619 )
(329,515 )
H1 2023
Equity at January 1
(2,520 )
(234,560 )
(34,741 )
(34,741 )
(266 )
Result for the period
Total other comprehensive income
Total comprehensive income for the period
Transactions with shareholders
Issue of shares
(266 )
(266 )
(34,741 )
(35,007 )
(365 )
Transaction costs
(365 )
Share buyback
Reversal, exercised and lapsed options
Share-based payments
(5,053 )
(52 )
Equity at June 30
(2,456 )
(22 )
(265,251 )
2023
Equity at January 1
20,774
290,457
(2,520)
244
-
13,860
(234,560)
(32,016)
-
88,255
(32,016)
(515)
Result for the period
-
-
-
-
-
-
-
-
-
-
-
-
Total other comprehensive income
Total comprehensive income for the period
Transactions with shareholders
Issue of shares
(515)
(515)
(32,016)
(32,531)
1,770
51,970
(365)
-
-
-
-
-
-
53,740
(365)
-
Transaction costs
-
-
-
-
Share buyback
-
-
410
-
-
-
-
4,352
-
Reversal, exercised and lapsed options
Share-based payments
-
-
1,002
-
-
-
(5,689)
2,536
10,707
75
2,536
111,710
Equity at December 31
22,544
343,064
(2,110)
(271)
(262,224)
Napatech HALF-YEAR REPORT 2024
page 11 of 15
NOTES TO THE FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial
Reporting, as adopted by the EU, and additional Danish disclosure requirements for listed companies.
All new or amended standards (IFRS) and interpretations (IFRIC), as adopted by the EU and effective for the financial year
beginning on January 1, 2024, have been adopted. The implementation of these new or amended standards and interpretations
had no impact on the interim condensed consolidated financial statements.
The accounting policies are consistent with those applied to the consolidated financial statements for 2023.
The consolidated financial statements for 2023 contain a full description of accounting policies.
The interim condensed consolidated financial statements
The interim condensed consolidated financial statements comprise the parent company, Napatech A/S, and its subsidiary. The
subsidiary is fully consolidated from the date of acquisition and/or incorporation, the date on which the parent company obtains
control until such control ceases. The subsidiary's financial statements are prepared for the same reporting period as the parent
company's financial statements, using consistent accounting policies. The consolidated financial statements are prepared as a
consolidation of the parent company's and the subsidiary's financial statements, eliminating all intragroup balances, transactions,
unrealised gains and losses, and dividends.
The interim condensed consolidated financial statements are prepared on a historical cost basis.
The interim condensed consolidated financial statements are presented in thousand Danish kroner (DKK'000).
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES, AND ASSUMPTIONS
The preparation of the interim condensed consolidated financial statements requires the Management to make judgments,
estimates, and assumptions that affect the reported revenues, expenses, assets, and liabilities.
The accounting judgments, estimates, and assumptions that Management makes are the same for these interim condensed
consolidated financial statements as for the consolidated financial statements for 2023.
3. OPERATING SEGMENTS
The following tables present revenue and gross profit information about the Group's operating segments for H1 2024 and H1
2023, respectively:
Geographical segments
H1 2024
Consolidated
DKK'000
AMERICAS
ROW
Revenue
Total revenue
33,289
(11,828)
21,461
11,429
(2,389)
9,040
44,718
(14,217)
30,501
Cost of goods sold
Segment gross profit
H1 2023
DKK'000
Consolidated
AMERICAS
ROW
Revenue
Total revenue
55,372
(18,327)
37,257
19,570
(7,430)
11,928
74,942
(25,757)
49,185
Cost of goods sold
Segment gross profit
Explanation of abbreviations:
AMERICAS = North & South America ROW = Rest of the World
The geographical segmentation is based on the location of the customers.
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Business segments
H1 2024
SmartNIC
Products
Engineering
services
Consolidated
DKK'000
Revenue
Total revenue
42,645
2,073
44,718
Cost of goods sold
(14,217)
-
(14,217)
Segment gross profit
28,428
2,073
30,501
H1 2023
DKK'000
SmartNIC
Products
Engineering
services
Consolidated
Revenue
Total revenue
62,341
12,601
(3)
12,599
74,942
(25,757)
49,185
Cost of goods sold
(25,754)
Segment gross profit
36,586
Revenue from Engineering services is considered a separate segment from SmartNIC products due to the difference in economic
characteristics and the timing of revenue recognition. According to IFRS 15, revenue from engineering service contracts is
recognized in the income statement based on the stage of completion (over time), while the main part of the revenue from
SmartNIC products is recognized in the income statement at a point in time.
The Group monitors the segments' performance to the level of gross profit. All other income statement items, as well as assets
and liabilities, are managed on a group basis and, therefore, are not allocated to individual segments.
4. EARNINGS PER SHARE
H1
DKK'000
2024
2023
Net profit attributable to equity holders of the parent company for basic
earnings and the effect of dilution
(67,245)
(34,741)
H1
Thousands
2024
2023
Weighted average number of shares for basic earnings per share
92,703
85,889
Effect of dilution:
Share options
-
-
Weighted average number of shares adjusted for the effect of dilution
92,703
85,889
Number of share options with potential effect of dilution:
3,229
2,306
According to IAS 33 the effect of dilution from share options is not allowed to decrease the loss of earnings per share.
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5. INTANGIBLE ASSETS
Development Development
projects,
completed
projects,
in progress
Patents
10,435
Total
343,558
DKK'000
Cost at 1 January 2024
Additions in the period
Cost at 30 June 2024
330,897
-
2,226
1,905
4,131
-
1,905
330,897
10,435
345,463
Accumulated amortisation at 1 January 2024
Amortisation for the period
294,296
11,797
-
-
8,720
291
303,016
12,088
Accumulated amortisation and impairment 30 June 2024
Carrying amount at 30 June 2024
306,093
24,804
-
9,011
1,424
315,104
30,359
4,131
The annual impairment test for the intangible assets will be performed on December 31, 2024. As of June 30, 2023, the
Management has assessed that there were no indications of impairment concerning the Group's intangible assets in the reporting
period.
6. ISSUED SHARE CAPITAL AND RESERVES
Authorised shares
2024
2023
Thousands Thousands
Ordinary shares of DKK 0.25 each at 1 January
Increase in ordinary shares DKK 0.25 each
Ordiniary shares of DKK 0.25 each at 30 June
90,175
9,440
83,095
7,080
99,615
90,175
7. TREASURY SHARES
Treasury shares have been acquired to settle share options in the Group's share option program.
8. COMMITMENTS AND CONTINGENCIES
Collaterals
The Group has issued a floating charge of DKK 40 million secured on receivables, inventories, patents and plant and equipment
as collateral for loans.
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Tobaksvejen 23A, 1
DK-2860 Søborg
Denmark
CVR no. 10109124
Phone: +45 4596 1500
www.napatech.com
Napatech HALF-YEAR REPORT 2024
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