Napatech: Tough market, but transformative year ahead - ABG

Sales continue to be affected by slowdown...
...but demand should come up in H2...
...and transformative deals could materialise in next 12 months


Challenging market conditions continued to affect sales in Q2

Napatech continued to be affected by customers' buying behaviour in Q2. Revenue was up 7% y-o-y, but below our expectations and followed a 24% decline in Q2 last year. Our understanding is that the majority of the lower demand was driven by postponed server shipments. However, the gross margin was strong, driven by i) more revenue from the Intel contract, and ii) component costs coming down. As such, combined with lower operating costs, EBITDAC came in above our expectations.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Napatech/Equity-research/2023/8/napatech---tough-market-but-transformative-year-ahead/