COPENHAGEN, May 4, 2020 /PRNewswire/ -- Napatech™ (OSLO: NAPA.OL), the leading provider of reconfigurable computing platforms, today announced the company achieved record momentum in the first quarter of 2020.
Napatech grew revenues by 27% in the first quarter of 2020 compared to the first quarter of 2019, delivering solid underlying growth, positive cash flow from operations and improved earnings.
During 2019, revenue grew 61% year-over-year, and the company improved product margins to nearly 75%. Napatech simultaneously continued to improve its operating cost structure, driving costs down significantly, focusing research and development toward building products for future growth, and right-sizing business operations. Revenue growth and expense improvements resulted in positive free cash flow and earnings in 2019, far ahead of expectations.
Napatech was a pioneer of SmartNICs in 2003 and is the leading vendor of FPGA-based SmartNICs. As ethernet adapters continue to evolve to offload more CPU tasks while moving to higher speeds, new use cases for programmable NICs are emerging, creating new market opportunities for the company and enabling Napatech to address a much larger segment of the NIC market.
Ray Smets, CEO, Napatech said: "Our growth in 2019 was built on the strategic mindset of optimistic realism and our ability to find the right opportunities to win during a time of change. In the first quarter of 2020, we created opportunities to grow our revenue by inserting our solutions where our FPGA software expertise can be engaged to accelerate applications and virtualized network functions in rapidly growing next generation networks. Napatech is optimistic about the future. We see a growing need for technology and solutions we are focused on as there is a huge increase in software applications running on servers."
Napatech helps companies to reimagine their business by bringing hyperscale computing benefits to IT organizations of every size. We enhance open and standard virtualized servers to boost innovation and release valuable computing resources that improve services and increase revenue. Our reconfigurable computing platform™ is based on a broad set of FPGA software for leading IT compute, network and security applications that are supported on a wide array of FPGA hardware designs. Additional information is available at: www.napatech.com
No Forward-Looking Statements
This press release may contain forward-looking statements which are only predictions and may differ materially from actual future events or results due to a variety of factors, including but not limited to, business conditions, trends in the industry and markets, global economic and geopolitical conditions, macro-economic factors, and other risks and uncertainties set forth in Napatech's reports. The matter discussed in this release is based on current expectations and maybe subject to change. Napatech will not necessarily update this information. For details, visit us at www.napatech.com.