NAPATECH  
HALF-YEAR REPORT 2023  
 
MANAGEMENT'S REPORT  
Napatech is a leading global provider of Smart Network Interface Cards (SmartNIC) and Infrastructure Processing Units (IPU) used by  
cloud, enterprise, and telecommunication network operators to dramatically improve the performance and economics of servers  
and appliances in modern data centres.  
Napatech's half-year results represent a mix of short-term activity from current customers and an array of positive news that reflects  
the validation of our strategic plans. Combined, this allows us to affirm our 2023 financial guidance as an important short-term  
milepost and express confidence in our investments in products, people and partnerships that support our design-win pipeline and  
aspirations for 2024-2026 revenue growth.  
Napatech's half-year financial results for 2023 mirror the general market conditions for global IT spending. Our European and Asian  
regions continue to perform according to plan, while North America, the home of our largest mix of prospects, pipeline, customers,  
and revenue, has continued to exhibit caution in IT spending. Several leading industry analysts have reported slower than anticipated  
server sales through the first half of 2023 and a return to growth in 2H-2023 and 1H-2024. As a leading indicator of Napatech demand,  
the server market also matches Napatech's pipeline, with several opportunities within enterprise, government and OEM customers  
deferred from the first half of the year yet still anticipated in 2023.  
In Q2'23, we announced a strategic agreement with Netscout, alongside a USD 7.5 million investment in Napatech. The agreement  
and associated investment are the extensions of a successful, long-term relationship, where Napatech's products over the years have  
been leveraged by Netscout to meet the demanding requirements of Netscout's market-leading solutions. During 2023 we look  
forward to brief about business opportunities because of this enhanced collaboration between the companies.  
Within the broader market, several indicators continue to support the market growth forecasts for Napatech SmartNICs and  
Infrastructure Processing Units. Leading industry analysts forecast strong customer demand for new projects in traditional segments  
for cybersecurity, cloud infrastructure, and telco 5G infrastructure, as well as predicted solid growth in emerging segments, including  
private enterprise 5G networks and data centre server acceleration for networking and storage workloads driven by an explosion of  
artificial intelligence (AI) applications. Each of these areas aligns with our product and technology strategy and our development  
investments and underpins our goals for 2024-2025 design-win pipeline development.  
During the first half of the year, Napatech made notable results that individually contributed to achieving our 2023 plans and  
collectively provided increasing visibility to our 2024-2026 business development aspirations.  
We continued the development of complete hardware and software solutions for SmartNIC's and IPUs in our partnership with Intel,  
allowing us to position Napatech for new high-growth market segments with Intel that, while we are still early in the customer  
engagement process, are transformational to our business scale. We are targeting a global public launch, orderability and delivery of  
the IPU products and solutions in 2023.  
We remain on schedule with our developments for the recently announced tier-1 OEM design win with F5 Networks, resulting in  
initial purchase orders for 2023 and preliminary volume forecast projects through 2024 to 2026.  
We continued to expand our go-to-market reach with partnerships for complete solutions for applications and services that are  
forecasted to be among the highest-growth segments for SmartNICs and IPUs in the future, with the leading suppliers of  
complementary hardware and software solutions in our ecosystem. It includes top global server manufacturers Jabil, Kontron, and  
Advantech, with three others in progress. It also includes leading software application vendors in 5G, such as A5G Networks and  
Druid Software, with six others in progress, and trusted firms in financial services like Orthogone and Databento. These partnerships  
have moved beyond agreements and into pipeline building, spanning active customer engagements, including demonstrations, proof-  
of-concepts, and trials. We also continue to develop new markets and opportunities as a part of our AMD partnership.  
In summary, I am pleased to report that Napatech remains on track to meet our objectives for 2023. Perhaps more importantly, I am  
inspired that several aspects of our strategic plan have progressed somewhat faster than we previously anticipated. While still early,  
these activities strengthen our confidence in our growth ambitions.  
Best regards,  
Henrik Brill Jensen  
Chief Executive Officer  
Napatech HALF-YEAR REPORT 2023  
page 2 of 15  
 
Highlights H1:  
•
Revenue in USD amounted to 10.9m in H1 2023, a decline of 16% compared to H1 2022. In DKK, revenue amounted to  
74.9m, a decline of 15% compared to H1 2022.  
•
•
•
•
•
•
•
The gross margin in H1 2023 was 66%, an increase of 7%-points compared to H1 2022.  
Staff costs and Other external costs in H1 2023 amounted to DKK 72.7m compared to DKK 73.6m in H1 2022.  
EBITDAC1 in H1 2023 amounted to negative DKK 23.5m compared to negative DKK 22.0m in H1 2022.  
EBITDA in H1 2023 amounted to negative DKK 16.4m compared to negative DKK 9.0m in H1 2022.  
Depreciation, amortization, and impairment for H1 2023 were DKK 16.0m compared to DKK 11.9m in H1 2022.  
Net Cash flow from operating activities in H1 2023 was positive DKK 0.2m compared to positive DKK 2.2m in H1 2022.  
Net working capital end of H1 2023 amounted to DKK 38.5m compared to DKK 38.9m end of H1 2022 and DKK 55.7m end  
of 2022.  
•
•
Net cash used in investing activities in H1 2023 amounted to DKK 8.7m compared to DKK 19.5m in H1 2022.  
Cash and cash equivalents at the end of H1 2023 amounted to DKK 56.0m compared to DKK 37.5m at the end of H1 2022.  
Highlights Q2:  
•
Revenue in USD amounted to 5.5m in Q2 2023, an increase of 10% compared to Q2 2022. In DKK, revenue amounted to  
37.8m, an increase of 7% compared to Q2 2022.  
•
•
•
•
•
•
•
The gross margin in Q2 2023 was 76%, an increase of 6%-points compared to Q2 2022.  
Staff costs and Other external costs in Q2 2023 amounted to DKK 34.3m compared to DKK 37.9m in Q2 2022.  
EBITDAC in Q2 2023 amounted to negative DKK 5.6m compared to negative DKK 12.9m in Q2 2022.  
EBITDA in Q2 2023 amounted to negative DKK 3.5m compared to negative DKK 6.9m in Q2 2022.  
Depreciation, amortization, and impairment for Q2 2023 were DKK 8.3m compared to DKK 6.2m in Q2 2022.  
Net Cash flow from operating activities in Q2 2023 was negative DKK 23.1m compared to positive DKK 2.5m in Q2 2022.  
Net cash used in investing activities in Q2 2023 amounted to DKK 2.6m compared to DKK 8.6m in Q2 2022.  
Key figures2:  
Revenue USD m  
Q2 2023  
5.5  
10%  
37.8  
7%  
76%  
-5.6  
-3.5  
Q2 2022  
5.0  
H1 2023  
10.9  
-16%  
74.9  
-15%  
66%  
-23.5  
-16.4  
0.2  
H1 2022  
12.9  
-15%  
87.7  
-6%  
59%  
-22.0  
-9.0  
Growth YoY USD m  
Revenue DKK m  
Growth YoY DKK m  
Gross Margin  
EBITDAC DKK m  
EBITDA DKK m  
Net Cash Flow from Operating Activities DKK m  
Net Working Capital, end of period DKK m  
Cash and cash equivalents, end of period DKK m  
-33%  
35.5  
-24%  
70%  
-12.9  
-6.9  
2.5  
38.9  
37.5  
-23.1  
38.5  
56.0  
2.2  
38.9  
37.5  
38.5  
56.0  
This is Napatech  
Napatech is a Danish tech company developing high-performance, programmable network interface cards and software for programmable NICs. The  
Napatech software suite ensures broad compatibility and seamless integration for our family of FPGA-based SmartNICs. With support for all major  
systems and a common API that easily integrates with custom-developed, open source, or commercial applications, we enable significantly reduced  
time-to-market for new products.  
Additional information is available at www.napatech.com\investor.  
1 EBITDAC: Earnings before depreciation, amortization and impairment, and cost transferred to development projects.  
2 Definitions: Gross Margin is calculated as ‘Gross Profit’ / ‘Revenue’; EBITDAC is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’ before  
staff costs transferred to capitalized development costs; EBITDA is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’; Net working capital  
represents the value of inventories, trade receivables of other current operating assets less trade payables and other current operating liabilities. Cash and cash  
equivalents and income tax receivable or payable are not part of the net working capital; Cash flows from operating activities are profit or loss before tax added or  
deducted changes in the net working capital, added or deducted changes in provisions and added the yearly depreciation and amortization; Free cash flow is net cash  
flow from operating activities added or deducted investing activities.  
Napatech HALF-YEAR REPORT 2023  
page 3 of 15  
 
Revenue and Gross Margin  
Financial Items  
H1  
H1  
Napatech reports revenue of DKK 74.9m in the first half  
of 2023 compared to DKK 87.7m in the same period in  
2022, equivalent to a decline of 15%. In USD, revenue was  
down 16% compared to H1 2022.  
Financial items for H1 2023 were negative DKK 1.7m  
compared to a positive DKK 2.9m in H1 2022.  
Q2  
Financial items for Q2 2023 were negative DKK 0.7m  
compared to a positive DKK 1.8m in Q2 2022.  
The gross margin in H1 2023 was 66% compared to 59%  
in H1 2022.  
Taxes  
Q2  
H1  
Napatech reports revenue of DKK 37.8m in Q2 2023  
compared to DKK 35.5m in the same period in 2022,  
equivalent to an increase of 7%. In USD, revenue grew  
10% compared to Q2 2022.  
Taxes for H1 2023 amounted to a cost of DKK 0.7m  
compared to a a cost of DKK 0.0m in H1 2022.  
Q2  
Taxes for Q2 2023 amounted to a cost of DKK 0.7m  
compared to a cost of DKK 0.0m in Q2 2022.  
The gross margin in Q2 2023 was 76% compared to 70%  
in Q2 2022.  
Investments  
Costs  
H1  
H1  
The total net cash used in investing activities in H1 2023  
was DKK 8.7m, of which DKK 8.2m was invested in new  
product development. In H1 2022, the total net cash used  
in investing activities was DKK 19.5m, of which DKK 17.1m  
was invested in new product development.  
Staff costs and Other external costs in H1 2023 amounted  
to DKK 72.7m, compared to DKK 73.6m in H1 2022.  
Operating expenses after transferal of staff costs to  
capitalized development costs in H1 2023 amounted to  
DKK 65.5m, compared to DKK 60.6m in H1 2022.  
Q2  
The total net cash used in investing activities in Q2 2023  
was DKK 2.6m, of which DKK 2.1m was invested in new  
product development. In Q2 2022, the total net cash used  
in investing activities was DKK 8.6m, of which DKK 8.3m  
was invested in new product development.  
Q2  
Staff costs and Other external costs in Q2 2023 amounted  
to DKK 34.3m, compared to DKK 37.9m in Q2 2022.  
Operating expenses after transferal of staff costs to  
capitalized development costs in Q2 2023 amounted to  
DKK 32.2m, compared to DKK 31.9m in Q2 2022.  
Cash Flow  
H1  
Net cash flow from operating activities in H1 2023 was  
positive DKK 0.2m compared to positive DKK 2.2m in H1  
2022.  
EBITDAC and EBITDA  
H1  
Earnings  
before  
Interest,  
Tax,  
Depreciation,  
Amortization, and Capitalization of development cost  
(EBITDAC) amounted to negative DKK 23.5m in H1 2023  
compared to negative DKK 22.0m in H1 2022.  
Free cash flow in H1 2023 amounted to negative DKK  
8.5m compared to negative DKK 17.3m in H1 2022.  
Net cash from financing activities in H1 2023 was positive  
DKK 53.1m, compared to positive DKK 15.4m in H1 2022.  
EBITDA in H1 2023 was negative DKK 16.4m compared to  
negative DKK 9.0m in H1 2022.  
Cash and cash equivalents end of H1 2023 was DKK 56.0m  
compared to DKK 37.5m at the end of H1 2022.  
Q2  
EBITDAC amounted to negative DKK 5.6m in Q2 2023  
compared to negative DKK 12.9m in Q2 2022.  
Q2  
Net cash flow from operating activities in Q2 2023 was  
negative DKK 23.1m compared to positive DKK 2.5m in Q2  
2022.  
EBITDA in Q2 2023 was negative DKK 3.5m compared to  
negative DKK 6.9m in Q2 2022.  
Depreciation, amortization, and impairment  
Free cash flow in the quarter amounted to negative DKK  
25.7m compared to negative DKK 6.1m in Q2 2022.  
H1  
Depreciation, amortization, and impairment in H1 2023  
were DKK 16.0m compared to DKK 11.9m in Q2 2022.  
Net cash from financing activities in Q2 2023 was positive  
DKK 69.5m, compared to a positive DKK 10.5m in Q2  
2022.  
Q2  
Depreciation, amortization, and impairment in Q2 2023  
were DKK 8.3m compared to DKK 6.2m in Q2 2022.  
Napatech HALF-YEAR REPORT 2023  
page 4 of 15  
 
Changes in equity  
The company's equity amounted to DKK 108.0m on June  
30, 2023, this is an increase of DKK 19.7 from December  
31, 2022.  
In H1 2023, equity was decreased by comprehensive  
income with DKK -35.0m and increased with DKK 54.7m  
by transactions with shareholders, hereof 53,7m from a  
cash raise.  
Shareholders and Share Information  
Napatech, as of June 30, 2023, had 90,175,700 shares,  
each with a nominal value of DKK 0.25. The share capital  
is DKK 22,543,925.00, divided among the 1,215  
shareholders.  
Investor  
No. of shares % of total  
TYPE  
VERDANE CAPITAL VIII  
SUNDT AS  
J.P. MORGAN SE  
22,613,618  
8,622,000  
6,200,738  
6,000,000  
4,483,681  
4,000,000  
2,741,147  
2,084,580  
1,995,384  
1,899,779  
1,857,859  
1,821,512  
1,459,728  
1,430,405  
1,421,126  
1,299,130  
1,184,136  
1,136,484  
1,069,318  
1,048,658  
74,369,283  
15,806,417  
90,175,700  
25.07% Ordinary  
9.56% Ordinary  
6.88% Nominee  
6.65% Ordinary  
4.97% Nominee  
4.44% Ordinary  
3.04% Ordinary  
2.31% Nominee  
2.21% Ordinary  
2.11% Nominee  
2.06% Ordinary  
2.02% Nominee  
1.62% Nominee  
1.59% Nominee  
1.58% Nominee  
1.44% Nominee  
1.31% Ordinary  
1.26% Nominee  
1.19% Nominee  
1.16% Nominee  
82.45%  
LUDVIG LORENTZEN AS  
SKANDINAVISKA ENSKILDA BANKEN AB  
ARBEJDSMARKEDETS TILLAEGSPENSION  
BROWNSKE BEVEGELSER AS  
SKANDINAVISKA ENSKILDA BANKEN AB  
MP PENSJON PK  
SKANDINAVISKA ENSKILDA BANKEN AB  
PRIVATE INVESTOR  
DANSKE BANK A/S  
THE BANK OF NEW YORK MELLON SA/NV  
NORDNET BANK AB  
JPMORGAN CHASE BANK, N.A., LONDON  
NORDEA BANK ABP  
EXTELLUS AS  
J.P. MORGAN SE  
THE BANK OF NEW YORK MELLON SA/NV  
BNP PARIBAS  
Total number owned by top 20  
Total 1195 other shareholders  
Total Number of shares  
17.55%  
100%  
Events after the end of the period  
No significant events have occurred after the end of the  
reporting period.  
Outlook for 2023  
The 2023 guidance remains unchanged:  
Guidance  
Revenue  
DKK 180-200m  
68-71%  
Gross margin  
Staff expenses & Other external costs  
DKK 160-170m  
Staff costs transferred to capitalized  
development costs  
DKK 20-25m  
With performance in the middle of the guided ranges,  
EBITDA would be negative DKK 10.5m.  
Disclaimer:  
The company is exposed to risks that might affect our  
ability to reach our goals, such as currency fluctuations,  
general market uncertainty, and material changes in our  
large OEMs' needs for Napatech's products.  
This report may contain statements regarding the future in  
connection with Napatech's growth initiatives, profit figures,  
outlook, strategies, and objectives. All statements regarding the  
future are subject to inherent risks and uncertainties, and many  
factors can lead to actual profits and developments deviating  
substantially from what has been expressed or implied in such  
statements.  
Napatech HALF-YEAR REPORT 2023  
page 5 of 15  
 
MANAGEMENT STATEMENT
The Board of Directors and the Executive Management have considered and adopted the interim report of Napatech Group
for the period from January 1 to June 30, 2023
The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and
additional Danish interim reporting requirements for listed companies.
In our opinion, the interim report gives a true and fair view of the Group's assets, liabilities, and financial position on June 30,
2023, and of the results of the Group's operations and cash flows for the period January 1 to June 30, 2023.
We find that the Management's commentary provides a fair statement of developments in the activities and financial
situation of the Group, financial results for the period, and the general financial position of the Group and describes the major
risks and elements of uncertainty faced by the Group. The term Company below refers as well to the Group.
The interim report is unaudited and has not been reviewed by the company's auditors.
Søborg, August 24, 2023
Executive Management  
Henrik Brill Jensen, CEO
Board of Directors  
Lars Boilesen, Chairman
Christian Jepsen
Heine Thorsgaard, CFO
Howard Bubb
Thomas Bonnerud
Danny Lobo
Beth Topolovsky
Napatech HALF-YEAR REPORT 2023  
page 6 of 15  
 
INCOME STATEMENT  
For the period ended June 30, 2023  
2nd quarter  
2023  
H1  
DKK'000  
Note  
3
2022  
2023  
2022  
Revenue  
37,846
(9,191)
28,655
(23,455)
(10,810)
(5,610)
2,065
35,484
(10,528)
24,956
(27,659)
(10,208)
(12,911)
5,965
74,942
(25,757)
49,185
(52,911)
(19,776)
(23,502)
7,144
87,721
(36,128)
51,593
(56,295)
(17,298)
(22,000)
13,029
(8,971)
(11,929)
(20,900)
3,511
Cost of goods sold  
Gross profit  
Staff costs  
Other external costs  
EBITDAC  
Transferred to capitalized development costs  
EBITDA  
(3,545)
(8,300)
(11,845)
2
(6,946)
(6,223)
(13,169)
2,242
(16,358)
(16,026)
(32,384)
5
Depreciation, amortization and impairment  
Operating result (EBIT)  
Finance income  
Finance costs  
(662)
(436)
(1,690)
(34,069)
(672)
(563)
Result before tax  
Income tax  
(12,505)
(665)
(11,363)
(35)
(17,952)
(33)
Result for the period  
(13,170)
(11,398)
(34,741)
(17,985)
H1  
Earnings / (loss) per share:  
Basic, DKK  
4
2023  
(0.40)
(0.40)
2022  
(0.22)
(0.22)
Diluted, DKK  
STATEMENT OF COMPREHENSIVE INCOME  
For the period ended June 30, 2023  
H1  
DKK'000  
2023  
2022  
Result for the period  
(34,741)
(17,985)
Items that may be reclassified to profit and loss in subsequent periods:  
Exchange differences on translation of foreign operations  
(266)
(266)
(330)
(330)
Other comprehensive income after tax  
Total comprehensive income  
(35,007)
(18,315)
Napatech HALF-YEAR REPORT 2023  
page 7 of 15  
 
CASH FLOW STATEMENT  
For the period ended June 30, 2023  
2nd quarter  
2023  
H1  
DKK'000  
2022  
2023  
2022  
Operating activities  
Income/Loss before tax  
(12,505)
(11,363)
(34,069)
(17,952)
Adjustments to reconcile profit before tax to net cash flows  
Finance income  
(2)
662
(2,242)
436
(5)
1,690
(3,511)
563
Finance costs  
Depreciation, amortisation and impairment  
Share-based payment expense  
Working capital adjustments  
8,300
488
6,223
2,003
16,026
1,350
11,929
2,818
Change in inventories  
(4,549)
975
(4,552)
12,797
(6,097)
39,320
(492)
Change in trade and other receivables, right-of-return asset and  
prepayments  
7,108
Change in trade and other payables, provisions, refund liability and  
contract liabilities  
Interest received  
(15,116)
2
(419)
-
(16,296)
5
2,215
7
Interest paid  
(674)
(670)
(388)
(34)
(1,093)
(670)
161
(462)
(34)
Income tax received, net  
Net cash flows from operating activities  
(23,089)
2,461
2,189
Investing activities  
Purchase of tangible assets  
Investments in intangible assets  
Investments in leasehold deposits  
Net cash used in investing activities  
(345)
(2,120)
(144)
(269)
(8,275)
(40)
(393)
(8,150)
(144)
(2,367)
(17,075)
(40)
(2,609)
(8,584)
(8,687)
(19,482)
Free cash flow  
(25,698)
(6,123)
(8,526)
(17,293)
Financing activities  
Capital increase  
53,740
(365)
-
-
53,740
(365)
-
-
Transaction costs on issue of shares  
Share buyback  
Payment of financial lease liabilities  
-
(264)
(738)
64
(1,638)
(264)
(1,486)
(880)
Proceeds from borrowings  
-
11,545
(14)
-
26,294
(9,170)
15,374
Repayment of borrowings  
16,965
69,460
1,326
53,127
Net cash flows from financing activities  
10,529
Net change in cash and cash equivalents  
Net foreign exchange difference  
43,762
5
4,406
(289)
44,601
(519)
(1,919)
(4)
Cash and cash equivalents at the beginning of the period  
Cash and cash equivalents at the end of the period  
12,277
56,044
33,409
37,526
11,962
56,044
39,449
37,526
Napatech HALF-YEAR REPORT 2023  
page 8 of 15  
 
BALANCE SHEET  
ASSETS  
30 June  
2023  
31 Dec.  
2022  
30 June  
2022  
DKK'000  
Note  
Development projects, completed  
Development projects, in progress  
Patents  
49,230
-
35,102
18,383
2,351
37,218
13,663
2,683
2,021
Intangible assets  
5
51,251
55,836
53,564
Plant and equipment  
Right-of-use assets  
4,329
9,513
475
5,551
4,708
635
7,158
5,853
795
Leasehold improvements  
Tangible assets  
14,317
10,894
13,806
Deferred tax asset  
-
-
9,715
1,397
Leasehold deposits  
Other non-current assets  
1,541
1,541
1,397
1,397
11,112
Non-current assets  
67,109
68,127
78,482
Inventories  
44,951
12,786
-
38,854
59,553
-
24,615
24,783
37
Trade receivables  
Right-of-return asset  
Prepayments  
2,004
15,121
5,500
56,044
1,164
8,808
5,500
11,962
-
Other receivables  
Income tax receivable  
Cash and cash equivalents  
14,322
-
37,526
Current assets  
136,406
125,841
101,283
Total assets  
203,515
193,968
179,765
Napatech HALF-YEAR REPORT 2023  
page 9 of 15  
 
EQUITY AND LIABILITIES  
DKK'000  
30 June  
2023  
31 Dec.  
2022  
30 June  
2022  
Note  
Share capital  
6
7
22,544
343,013
(2,456)
(22)
20,774
290,457
(2,520)
244
20,774
290,435
(264)
Share premium  
Treasury shares  
Foreign currency translation reserve  
Other capital reserves  
Retained earnings  
(60)
10,157
(265,251)
13,860
(234,560)
11,027
(204,201)
Equity  
107,985
88,255
117,711
Interest-bearing loans and borrowings  
Other non-current financial liabilities  
Non-current lease liabilities  
9,758
4,633
6,500
3,744
9,758
4,568
2,017
3,744
9,758
4,751
3,315
-
Non-current contract liabilities  
Non-current liabilities  
24,635
20,087
17,824
Interest-bearing loans and borrowings  
Current lease liabilities  
Trade payables  
35,031
33,770
16,536
2,804
10,497
12,398
16
3,247
2,929
4,045
11,821
Other payables  
10,603
6,538
Income tax payable  
Provisions  
-
-
-
17,969
-
-
30,568
-
267
Contract liabilities  
Refund liabilities  
1,558
154
Current liabilities  
70,895
85,626
105,713
193,968
44,230
Total liabilities  
95,530
62,054
Total equity and liabilities  
203,515
179,765
Napatech HALF-YEAR REPORT 2023  
page 10 of 15  
 
STATEMENT OF CHANGES IN EQUITY  
Foreign  
currency  
Share  
based  
Share  
Share  
Treasury translation payment Retained  
Total  
capital  
premium  
shares  
reserve  
reserve  
earnings  
equity  
DKK'000  
H1 2023  
Equity at January 1  
20,774
290,457
(2,520)
244
-
13,860
(234,560)
88,255
(34,741)
(266)
Result for the period  
-
-
-
-
-
-
-
-
-
-
-
-
(34,741)
-
Total other comprehensive income  
Total comprehensive income for the period  
Transactions with shareholders  
Issue of shares  
(266)
(266)
(34,741)
(35,007)
1,770
51,970
-
-
-
-
53,740
(365)
64
Transaction costs  
-
(365)
-
-
-
-
-
Share buyback  
-
-
951
64
-
-
4,050
-
Reversal, exercised and lapsed options  
Share-based payments  
-
-
-
-
-
(5,053)
1,350
(52)
-
-
1,350
107,985
Equity at June 30  
22,544
343,013
(2,456)
(22)
10,157
(265,251)
H1 2022  
Equity at January 1  
20,774
290,435
-
-
-
-
270
-
8,242
(186,249)
133,472
(17,985)
(330)
Result for the period  
-
-
-
-
-
-
-
-
-
(17,985)
-
Total other comprehensive income  
Total comprehensive income for the period  
Transactions with shareholders  
Share buyback  
(330)
(330)
(17,985)
(18,315)
-
-
(264)
-
-
-
(264)
-
Reversal, exercised and lapsed options  
Share-based payments  
-
-
-
-
-
-
-
(33)
33
-
-
2,818
2,818
117,711
Equity at June 30  
20,774
290,435
(264)
(60)
11,027
(204,201)
2022  
Equity at January 1  
20,774  
290,435  
-
-
-
-
270  
-
8,242 (186,249)  
133,472  
(48,259)  
(26)  
Result for the period  
-
-
-
-
-
-
-
-
-
(48,259)  
-
Total other comprehensive income  
Total comprehensive income for the period  
Transactions with shareholders  
Issue of shares  
(26)  
(26)  
(48,259)  
(48,285)  
-
22  
-
(2,634)  
114  
-
-
-
-
22  
(2,634)  
6
Share buyback  
-
-
-
-
Reversal, exercised and lapsed options  
Share-based payments  
-
-
-
-
-
(56)  
5,674  
(52)  
-
-
-
5,674  
88,255  
Equity at December 31  
20,774  
290,457  
(2,520)  
244  
13,860 (234,560)  
Napatech HALF-YEAR REPORT 2023  
page 11 of 15  
 
NOTES TO THE FINANCIAL STATEMENTS  
1. SIGNIFICANT ACCOUNTING POLICIES  
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial  
Reporting, as adopted by the EU, and additional Danish disclosure requirements for listed companies.  
All new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the financial  
year beginning on January 1 2023, have been adopted. The implementation of these new or amended standards and  
interpretations had no impact on the interim condensed consolidated financial statements.  
The accounting policies are consistent with those applied to the consolidated financial statements for 2022 except for the  
segment reporting, which has been changed from January 1, 2023, due to the contract for engineering services announced in  
December 2022, generating revenue of material size in 2023. Engineering services are now considered a separate segment from  
SmartNIC products due to the difference in economic characteristics and the timing of revenue recognition. The revenue from  
engineering service contracts is recognized in the income statement based on the completion stage (over time) according to IFRS  
15, while the main part of the revenue from SmartNIC products is recognized in the income statement at a point in time.  
Comparative figures for the segment information have been re-stated according to the new segment reporting. The performance  
of the segments is monitored to the level of gross profit. Hence assets and liabilities for individual segments are not presented.  
The consolidated financial statements for 2022 contain a full description of accounting policies.  
The interim condensed consolidated financial statements  
The interim condensed consolidated financial statements comprise the parent company, Napatech A/S, and its subsidiary. The  
subsidiary is fully consolidated from the date of acquisition and/or incorporation, being the date on which the parent company  
obtains control until the date when such control ceases. The financial statements of the subsidiary are prepared for the same  
reporting period as the parent company's financial statements, using consistent accounting policies. The consolidated financial  
statements are prepared as a consolidation of the parent company's and the subsidiary's financial statements, eliminating all  
intragroup balances, transactions, unrealized gains and losses, and dividends.  
The interim condensed consolidated financial statements are prepared on a historical cost basis.  
The interim condensed consolidated financial statements are presented in thousand Danish kroner (DKK'000).  
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES, AND ASSUMPTIONS  
The preparation of the interim condensed consolidated financial statements requires the Management to make judgments,  
estimates, and assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities.  
The accounting judgments, estimates, and assumptions that Management makes are the same for these interim condensed  
consolidated financial statements as for the consolidated financial statements for 2022.  
3. OPERATING SEGMENTS  
The following tables present revenue and gross profit information about the Group's operating segments for H1 2023 and H1  
2022, respectively:  
Geographical segments  
H1 2023  
Consolidated  
DKK'000  
AMERICAS  
ROW  
Revenue  
Total revenue  
55,372  
(18,327)  
37,045  
19,570  
(7,430)  
12,140  
74,942  
(25,757)  
49,185  
Cost of goods sold  
Segment gross profit  
H1 2022  
DKK'000  
Consolidated  
AMERICAS  
ROW  
Revenue  
Total revenue  
75,665  
(32,789)  
42,876  
12,056  
(3,339)  
8,717  
87,721  
(36,128)  
51,593  
Cost of goods sold  
Segment gross profit  
Napatech HALF-YEAR REPORT 2023  
page 12 of 15  
 
Explanation of abbreviations:  
AMERICAS = North & South America ROW = Rest of the World  
The geographical segmentation is based on the location of the customers.  
Business segments  
H1 2023  
SmartNIC  
Products  
Engineering  
services  
Consolidated  
DKK'000  
Revenue  
Total revenue  
62,341  
12,601  
(3)  
12,599  
74,942  
Cost of goods sold  
(25,754)  
(25,757)  
Segment gross profit  
36,586  
49,185  
H1 2022  
DKK'000  
SmartNIC  
Products  
Engineering  
services  
Consolidated  
Revenue  
Total revenue  
86,080  
1,641  
87,721  
(36,128)  
53,234  
Cost of goods sold  
(36,128)  
-
Segment gross profit  
51,593  
1,641  
Revenue from Engineering services is considered a separate segment from SmartNIC products due to the difference in economic  
characteristics and the timing of recognition of revenue. The revenue from engineering service contracts is recognized in the  
income statement based on the stage of completion (over time) according to IFRS 15, while the main part of the revenue from  
SmartNIC products is recognized in the income statement at a point in time. Comparative figures for the segment information  
have been re-stated according to the new segment reporting. The performance of the segments is monitored to the level of gross  
profit, hence assets and liabilities for individual segments are not presented.  
Adjustments and eliminations  
Research and development costs, selling and distribution expenses, administrative expenses, finance income and finance costs,  
as well as non-current assets, current taxes and deferred taxes, are not allocated to individual segments as they are managed on  
a group basis.  
4. EARNINGS PER SHARE  
H1  
DKK'000  
2023  
2022  
Net profit attributable to equity holders of the parent company for basic  
earnings and the effect of dilution  
(34,741)  
(17,985)  
H1  
Thousands  
2023  
2022  
Weighted average number of shares for basic earnings per share  
85,889  
83,095  
Effect of dilution:  
Share options  
-
-
Weighted average number of shares adjusted for the effect of dilution  
85,889  
83,095  
Number of share options with potential effect of dilution:  
2,306  
4,193  
Napatech HALF-YEAR REPORT 2023  
page 13 of 15  
 
5. INTANGIBLE ASSETS  
Development Development  
projects,  
completed  
projects,  
in progress  
Patents  
10,435  
Total  
333,182  
DKK'000  
Cost at 1 January 2023  
Additions in the period  
Transfers  
304,364  
-
18,383  
8,150  
(26,533)  
-
-
-
8,150  
-
26,533  
330,897  
Cost at 30 June 2023  
10,435  
341,332  
Accumulated amortisation at 1 January 2023  
Amortisation for the period  
269,262  
12,405  
-
-
8,084  
330  
277,346  
12,735  
Accumulated amortisation and impairment 30 June 2023  
Carrying amount at 30 June 2023  
281,667  
49,230  
-
-
8,414  
2,021  
290,081  
51,251  
The annual impairment test for the intangible assets will be performed on December 31, 2023. As of June 30, 2023, the  
Management has assessed that there were no indications of impairment concerning the Group's intangible assets in the reporting  
period.  
6. ISSUED SHARE CAPITAL AND RESERVES  
Authorised shares  
2023  
2022  
Thousands Thousands  
Ordinary shares of DKK 0.25 each at 1 January  
Increase in ordinary shares DKK 0.25 each  
Ordiniary shares of DKK 0.25 each at 30 June  
83,095  
7,080  
83,095  
-
90,175  
83,095  
7. TREASURY SHARES  
Treasury shares have been acquired with the purpose of settling share options in the Group's share option program.  
8. COMMITMENTS AND CONTINGENCIES  
Collaterals  
The Group has issued a floating charge of DKK 40 million secured on receivables, inventories, patents and plant and equipment  
as collateral for loans.  
Napatech HALF-YEAR REPORT 2023  
page 14 of 15  
 
Napatech A/S
Tobaksvejen 23A, 1  
DK-2860 Søborg  
Denmark  
CVR no. 10109124  
Phone: +45 4596 1500  
www.napatech.com  
Napatech HALF-YEAR REPORT 2023  
page 15 of 15