Computer chip company Nordic Semiconductor posted revenue of $ 202 million in the third quarter, up 36% from last year’s third quarter.
At the same time, pre-tax profit more than doubled, from $ 19.5 million in the third quarter of last year to $ 51.3 million this year.
Operating profit closed at $ 49 million, up from $ 19 million in the same period last year. According to Infront estimates, an operating profit of $ 36 million was expected.
– This quarter we deliver record revenue and operating profit once again, with higher revenue from Bluetooth and the Internet of Things segment, which offset a decline in revenue for our (proprietary) brands, says CEO Svenn- Tore Larsen in a stock market announcement.
However, on Thursday morning the share fell by more than ten percent in early trading on Oslo Børs, which Carnegie analyst Oliver Pisani attributes to several factors.
Significant drop in the order book
At the end of the quarter, the backlog was $ 1.1 billion, down approximately $ 300 million from the end of the second quarter.
Pisani analyst believes that it is this figure that contributes to the market by driving down the price of the stock in a decisive way.
Oliver Pisani i Carnegie. (Photo: Privat)
– The turnover and the result were good, better than expected. But the market is looking at the order book, which has suffered a sharp decline. Implicit order-taking is also weak, he says.
The analyst also refers to statements both in the report itself, but also to management’s comments on the occasion of the quarterly presentation.
– It is the uncertainty that increases. Demand for “owners” is weaker, and for the mobile segment there is uncertainty simply due to macroeconomic factors, Pisani says.
It also believes the guidance for the fourth quarter, in which the company expects revenues of between $ 190 and $ 210 million, is weak, due to supply-related challenges, which the company also addresses in the report.
– Furthermore, there is uncertainty about the outlook for both next year and 2024. There are some areas where we see weaker demand for consumer electronics.
Nordic Semiconductor is valued at NOK 28.4 billion on the Oslo Stock Exchange. The share has dropped just over 50 percent on the stock exchange so far this year. Folketrygdfondet is the largest owner of the company, with 10.3% of the shares.
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