October 20—Nordic Semiconductor’s third-quarter financial results reveal it increased its net income by 58 percent year-over-year. The manufacturer attributed its recent success to robust demand for its Bluetooth low energy (BLE) products.
The company also noted it has a record-high order backlog, which will enable its continued growth in the fourth quarter.
Nordic Strong Q3 Earnings
Nordic’s Q3 earnings are a prime example of the value of innovation. The company had a 45 percent market share of new Bluetooth low energy device certifications in the last year. That pioneering drive enabled the firm to build up a diverse portfolio that appeals to customers in several fields.
Consequently, the chipmaker made $64.6 million in net income last quarter, up from $40.9 million in Q3 2019. It also brought in $119.4 million in revenue, an annual improvement of 45.3 percent. Seeking Alpha reports Nordic outpaced Wall Street’s expectations for its sales in the September quarter by 4.12 percent.
The company’s robust profit and gross income intake topped its Q2 2020 earnings by 40.7 and 34.9 percent, respectively.
In its financial disclosure forms, the Oslo, Norway-based firm stated its performance spike largely came from sales of its BLE components. Last quarter, the segment generated $97 million in revenue, up 56 percent from the same period last year.
In addition, its cellular Internet of Things (IoT) business saw the highest growth at 187.7 percent year-over-year.
In terms of end-markets, consumer electronics manufacturers bought the lion’s share of Nordic’s products in Q3. That said, it saw double-digit improvement in its wearables, healthcare, and building/retail sales. In fact, the latter category took in 63.4 percent more income than it did last year.
Nordic’s Positive Q4 Forecast
For the holiday season, the Norwegian chipmaker anticipates generating $115 million to $125 million in revenue. Depending on how its Q4 earnings square with its forecast, the firm will beat its prior-year quarterly sales by 38.38 to 50.42 percent, respectively.
Nordic explained its optimism by noting it has a record-high order backlog of $288 million, up 154 percent from Q3 2019. Like its earnings last period, the company buoyant prediction is due to demand for its BLE components, which along with its protocol solutions, make up 82 percent of its backlog.
The firm also revealed it is bullish about the five new system-on-a-chip (SoC) and system-in-a-package (SiP) offerings it launched in Q3. Because its new products have popular applications like asset tracking, its clients responded positively to its lineup expansion.
Nordic mentioned it teamed with Amazon in September to develop new BLE devices compatible with its smart speakers. As it promises to extend the range and fidelity of Amazon Echoes and Nordic Tiles, the project should pay dividends for both companies.
Given the strength of its Q4 forecast, Nordic should exit 2020 in excellent financial shape.