Nordic Semiconductor Asa · OSL:NOD
Nordic Semiconductor Asa — Q2 2013 Earnings Presentation
20 slides from Nordic Semiconductor Asa's earnings presentation, Jul 12, 2013
Slide 1: Q2 2013 Investor Presentation
wireless living .... Q2 2013 Investor Presentation Svenn-Tore Larsen, CEO Robert Giori, CFO July 12, 2013 1
Slide 2: Strong order inflows reflect increasing demand
2 Strong order inflows reflect increasing demand Lower shipments to PC accessories and ASIC segments in Q2 2013 Order volumes pick up (82% Q-over-Q growth), based on improving demand • Revenue of MUSD 28.8 • Order inflows of MUSD 42.5 • Operating profit (EBIT) of MUSD 2.8 • Cash flow from operations
Slide 3: Financial Highlights
wireless living .... FINANCIAL HIGHLIGHTS Robert Giori, CFO
Slide 4: Q2 2013 Financial Highlights (MUSD)
4 Q2 2013 Financial Highlights (MUSD) MUSD Financial objectives Q2 2013 Q2 2012 Comments Growth Revenue 28.8 38.7 Lower sales to PC accessory and ASIC segments Order Inflow 42.5 21.7 Strong order inflows reflects improving demand Profitability Gross Margin % 48% 52% Higher production costs relative
Slide 5: Group Revenues
5 Group Revenues • Q2 2013 Revenue of MUSD 28.8 (26% decline from prior year) – Slower shipments to PC accessories and ASIC segments – Sales of Bluetooth Smart solutions grow to 12% of revenue (from 1% in prior year) Segment revenue by quarter, 2011 – Q2 2013 (MUSD) 45 40 35 30 Sharp YOY decline in
Slide 6: Segment performance – Q2 2013
6 Segment performance – Q2 2013 PC Accessories Mobile devices ASICs (application specific IC’s) Wireless mouse, keyboard, Sports / medical monitors, mobile Wide sector span presentation tools accessories, wireless payments Q2 Revenue: MUSD 1.7 (MUSD 4.1) Q2 Revenue: MUSD 18.6 (MUSD 27.3) Q2 Revenue:
Slide 7: Order inflow / order backlog
7 Order inflow / order backlog • Order inflow of MUSD 42.5 in Q2 2013 (96% growth from prior year) • Order backlog of MUSD 35.5 at quarter-end – Higher order inflow and backlog reflects increased demand within traditional market segments and new product designs within Bluetooth Smart Order Inflow an
Slide 8: Gross Margin
8 Gross Margin • Gross margin of 48 % in Q2 2013 – Decline in gross margin from prior year as new products are launched with higher production costs relative to revenues – PC accessories market shifting to lower cost category Gross Margin % of revenue 2011 – Q2 2013 60% 50% New product 40% releases
Slide 9: Operating Profit
9 Operating Profit • Operating profit (EBIT) in Q2 2013 of MUSD 2.8 – EBIT decline driven by lower revenue and gross margin – Operating expenses remain stable during period Operating Profit by quarter 2011 – Q2 2013 (MUSD) 10 8 6 4 2 0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13
Slide 10: Q2 2013 Financial summary
10 Q2 2013 Financial summary Rapid growth in order inflows, as demand accelerates and new designs are launched • Group revenue of MUSD 28.8 (MUSD 38.7) – Decline in PC accessories and ASIC segments Revenue growth – 19% growth across other business segments, with increasing demand for Bluetooth Smart
Slide 11: Business Outlook
wireless living .... BUSINESS OUTLOOK Svenn-Tore Larsen, CEO
Slide 12: Revenue expected to accelerate in 2H 2013
12 Revenue expected to accelerate in 2H 2013 Business expected to return to growth from 2H 2013, as many new product designs containing Nordic’s Bluetooth Smart solutions are released • Revenue from PC accessories market is expected to stabilize in 2H 2013 • New customer designs with Nordic’s Blueto
Slide 13: Bluetooth Smart market is rapidly expanding
13 Bluetooth Smart market is rapidly expanding Installed base of Bluetooth 4.0 (Smart Ready) devices is now growing rapidly, driving increased demand for Bluetooth Smart accessories Adoption of BT 4.0 Specification of Sale of “BT Smart” “BT Smart Ready” wireless accessories Bluetooth 4.0 in hub devi
Slide 14: Major operating systems support Bluetooth Smart
14 Major operating systems support Bluetooth Smart By 2015, sales of Bluetooth 4.0 (Smart Ready) devices is expected to reach 2.2 billion*. Support for Bluetooth Smart accessories is progressing across PC’s, tablets, smartphones. Apple • First to support for Bluetooth Smart accessories across its ma
Slide 15: Nordic's sales of Bluetooth Smart are taking off
15 Nordic’s sales of Bluetooth Smart are taking off • Bluetooth Smart represented over 12% of Nordic’s revenue in Q2 2013, up from 1% in the previous year – Revenue growth from Bluetooth Smart expected to accelerate in 2H 2013, as many new products are launched featuring Nordic’s solutions Nordic %
Slide 16: Dramatic growth in demand for development kits
16 Dramatic growth in demand for development kits Growing interest in developing Bluetooth Smart applications is driving record demand for Nordic’s development kits Unit sales of development kits • 3127 developer kits distributed in 1H 2013, a 50% increase from 1H 2012 6000 5823 – Driven by new nRF5
Slide 17: News from Apple WWDC
17 News from Apple WWDC Strong support for Bluetooth Smart devices at Apple developers conference • Bluetooth Smart / robotics application takes center stage at Apple CEO’s keynote address – Anki demonstrates how smartphone can interact wirelessly with intelligent robotics systems via Bluetooth Smar
Slide 18: New application: Indoor location with Bluetooth Smart
18 New application: Indoor location with Bluetooth Smart Nordic partners with Korean Indoor GPS specialists DIO Interactive Co. Ltd. to develop Bluetooth Smart based indoor location systems • Nordic Bluetooth Smart wireless solution will be positioned every 15 – 30 sq. meters in indoor environment t
Slide 19: Strong competitive position in a high growth market
19 Strong competitive position in a high growth market Nordic’s competitive advantages Ultra-low power wireless Market forces pioneer and market leader • Clear market leader - over 800M IC’s sold • Key contributor to BT low energy standard Growth of wireless technology • Board member of Bluetooth fr
Slide 20: For more information on Nordic
20 For more information on Nordic Sign up for a Nordic MyPage account on our website www.nordicsemi.com Provides latest company and investor news directly to your Email address • Wireless Quarterly magazine – learn more about Nordic’s products and markets • Direct links to Nordic content on YouTube,