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(Copenhagen, 10 October 2018) Napatech A/S ("Napatech", OSE: NAPA) announces sales in the third quarter 2018 of 4.8 MUSD, compared to 4.0 MUSD in the second quarter of 2018. The company reiterates the baseline sales target for the second half of 2018 of 12 MUSD, within a range of 10-15 MUSD. In the third quarter 2018, Napatech will take an one-off adjustment to reported revenue of approximately minus 20 MDKK to reduce accumulated channel inventory.
"Although our sales performance is behind the corresponding period last year, still negatively affected by the previously communicated transformation in the market, postponement of customer projects and inventory reductions, the third quarter sales improved compared to the previous quarter. Looking forward, we continue to be motivated by the interest for our reconfigurable computing solutions as we build improved sales momentum in the fourth quarter of 2018. We reiterate our baseline sales target of 12 MUSD, within a range of 10-15 MUSD, for the second half of 2018," says Ray Smets, Chief Executive Officer of Napatech.
With respect to reported revenue in the quarter, Napatech has made a commercial decision to take an one-off adjustment to reported revenue of approximately minus 20 MDKK in the third quarter of 2018 to reduce accumulated inventory within the company`s channel due to changes in buying rates and patterns from several large customers. This one-off revenue adjustment and any resulting one-off impact to earnings will be fully reflected in Napatech`s third quarter 2018 financial results. Napatech confirms that this commercial decision will have no impact to the previously communicated cash flow expectations.
"With the intention of this adjustment to provide greater revenue stability for Napatech within the market, building stronger relationships with important value-added resellers, and continued transparency for our shareholders, we believe that this one-off adjustment to our reported revenues will provide improved clarity to the sales and revenue performance of our business going forward," says Smets.
Napatech will release the third quarter financial results on 6 November 2018. This Stock Exchange notification follows Napatech`s IR policy of providing a sales update shortly after the closing of a quarter.
For additional information, please contact:
Ray Smets, Chief Executive Officer
Phone: +45 4596 1500
E-mail: rsm@napatech.com
About Napatech
Napatech helps companies to reimagine their business by bringing hyperscale computing benefits to IT organizations of every size. We enhance open and standard virtualized servers to boost innovation and release valuable computing resources that improve services and increase revenue. Our reconfigurable computing platformTM is based on a broad set of FPGA software for leading IT compute, network and security applications that are supported on a wide array of FPGA hardware designs. Additional information is available at www.napatech.com