Napatech: Sales slightly below, FY guidance unchanged - ABG

Q2 sales 3% below, 4% underlying growth
Reiterates FY guidance of 18-29% underlying sales growth
Limited estimate changes expected

Napatech delivered Q2 sales of DKK 46.4m, down 5% y-o-y and 3% below ABGSC at DKK 48m. In USD terms, however, revenue was up 4% y-o-y. The somewhat slower underlying y-o-y growth in H1 is likely explained by lower OEM sales which have been stalled due to COVID-19 as they require physical on-site installations. The gross margin was 72%, i.e. slightly below our estimate of 73%. EBITDA was DKK 8.6m (19% margin) vs. ABGSC at DKK 11m (23% margin). This deviation can be explained by slightly higher personnel expenses than we had anticipated in Q2.

Overall, we find the Q2 report fairly neutral, with the reiterated FY sales guidance which is slightly above our estimate on a midpoint basis. This shows that the company still has strong confidence in a H2 recovery. We expect to see limited estimate changes from cons following the report.

Länk till analysen i sin helhet: https://www.introduce.se/foretag/Napatech/Equity-research/2021/8/napatech---sales-slightly-below-fy-guidance-unchanged/