OSLO (Reuters) – Nordic Semiconductor on Friday said its revenue and margins had exceeded expectations in the final quarter of 2021, and that demand remained strong across all its markets.
Revenue for the October-December period amounted to $171 million, preliminary data showed, above the company’s own guidance of $150 million-$170 million, the Norwegian firm said in a statement.
Analysts had on average expected revenue of $163 million, according to Refinitiv Eikon data.
“Our fourth-quarter and full-year revenue figures reflect continued strong performance across all our end-user markets,” Chief Executive Svenn-Tore Larsen said.
Oslo-listed Nordic Semiconductor’s gross earnings margin for the quarter is now seen in a range of 58%-59%, significantly higher than the 51%-53% it had originally expected.
“The exceptionally high gross margin reflects a one-off effect of price adjustments for the company’s products,” Nordic said.
Adjusting for these one-off pricing effects, the underlying gross margin was approximately 53% in the fourth quarter, it added.
Nordic sells wireless chips and devices designed for ultra-low power consumption, which are used in a wide variety of electronics and computers, but does not itself manufacture the silicon wafers used in the products.
The company’s shares have risen by 93% in the last 12 months, valuing the firm at $6.2 billion. The shares have dropped 6.7% so far in 2022 however, along with a decline in global tech stocks.
Nordic Semiconductor’s fourth-quarter earnings report is due on Feb. 3.
($1 = 8.6736 Norwegian crowns)
(Reporting by Terje Solsvik; editing by David Evans)
