https://www.nordicsemi.com/-/media/Investor-Relations-and-QA/Quartely-Reports/2020/Q3_Quarterly_Report_2020.pdf?la=en&hash=2EF2518A45880C9B5B8208B4B4C4B5DB284CF644

Q3 HIGHLIGHTS
Revenue of USD 119 million (+45%)
Cellular IoT revenue of USD 1.6 million
Received first 100k unit order for single cellular design in October
Gross margin of 54.1%, with underlying margin of 52.4% excluding positive effect of reversal of goods sold from the previous quarter

Record order backlog of USD 288 million (+154%)
Backlog stretching out over the next three quarters
Distribution inventories remain at moderate levels
Successful private placement with gross proceeds of approximately USD 125 million

OUTLOOK
Nordic reported 45% revenue growth to USD 119 million for the third quarter 2020, and 35% growth to USD 278 million for the first nine months. The company ended the third quarter with an all-time high order backlog of USD 288 million, which was more than double the order backlog at the end of the third quarter last year.
The higher revenue reflects accelerated technology adoption across most of the company’s markets, supported by more rapid digitization due to the Covid-19 pandemic. The higher order backlog also reflects shifts in the customer mix, with more large customers placing orders for high-volume products with a longer time perspective.
The high activity level in the semiconductor industry puts strain on the supply chain, and bottlenecks in the supply chain may temporarily limit the output capacity. Taking this into consideration, the current backlog allows Nordic to guide for a total revenue level of USD 115-125 million for the fourth quarter.
Full year revenue for 2020 is hence expected at USD 393-403 million, corresponding to 36%-40% revenue growth from 2019 to 2020.
Gross margin was very strong at 54.1% in Q3 2020. While a reversal of cost of goods charged to the previous quarter accounted for 1.7%-points, the gross margin development has been on a positive trend reflecting a product mix with high volumes of advanced high-margin products and continuous cost improvements on newly launched products.
Nordic expects a gross margin level of 51%-52% for Q4 2020 and still expects the higher share of sales to tier-1 customers to move the gross margins into the 48%-50% range in the medium term.
The year-on-year revenue growth for Nordic’s Bluetooth low energy and multiprotocol solutions has been 40% in the first three quarters of 2020, exceeding the medium-term growth rate of 20%-30% indicated by the company. Revenue from proprietary wireless solution has also exceeded expectations this year, with year-on-year growth of 17% in the first nine months.
In 2019, Nordic presented a bold aspiration to build a USD 1 billion company within five years, and the positive demand trends and continued strengthening of the customer base increase the confidence in this aspiration.