Nordic Semiconductor Ord

At this time, I would like to welcome everyone to this Nordic Semiconductor Q1 2026 presentation. For the first part of this call, all participants will be in a listen-only mode. Afterwards, there will be a question-and-answer session. To ask a question during the Q&A, please press 5-star on your telephone keypad. This call is being recorded. I would now like to hand the call over to Head of Investor Relations, Steele. Please begin.

Thank you, Rasmus, and good morning, everyone. Please note that this presentation is being recorded and will be accessible on the Nordic website in the investigation section. Additional, for those of you missing this release, you can find the earnings press release quarterly report and presentation materials also on our IR website. With me today, We have our CEO, Vegard Volland, and our CFO, Paul Elstad. They will share details about our recent financial performance and updates on key business developments. Following the presentation, we will move on to the Q&A session. During this time, live questions can be submitted through the Q&A dial-in feature. For instruction on how to do dial-in, please refer to the earnings call invitation available under Stock Exchange Notice on our IR website. Please keep in mind that the dial-in is required only if you like to ask questions. As a reminder, this presentation includes forward-looking statements that come with inherent risk and uncertainties. Actual outcome may differ materially from those statements expressed or implied. We highly recommend reviewing our detailed Q1 quarterly report and the 2025 annual report for deeper understanding of the risk and uncertainties that could impact our business operation. With that, I will now hand the microphone to our CEO, Vegard Wolland.

Thank you, Asil, and good morning. We continue our progress according to plan, financially, operationally, and strategically. I look forward to present the highlights of the quarter before handing over to Paul to take you through the financials in more detail. Revenue in first quarter increased by 24% to $192 million, continuing the solid growth trend we saw through 2025. This was in the high end of our guiding range and brings revenue for the last 12 months to $705 million, up 19% from the first quarter last year. We continue to see growth in both short-range and long-range and among both large key customers and in the broad market. And we see year-on-year growth across both the consumer and the industrial and healthcare segments. Gross margin was 52.1% in the first quarter, up from 49.5% in the first quarter last year, and this was roughly on par with the underlying margin level in Q4 2025. This generated an EBITDA of $24 million when adjusted for non-cash cost effects related to the Memfault acquisition, up from $15 million in the first quarter last year. As I mentioned, we continue to see growth both among our key customers and in the broad market. And the top 10 share of revenue has stabilized and actually declined somewhat. Revenue from the top 10 customers are at all-time high on a rolling 12-month basis. And with a high level of ongoing design activity, we continue to see upside potential with these customers. It has been a clear priority for us to regain traction in the broad market, and it is encouraging to see that growth is now picking up in this segment. We see an increasing number of customers, former customers returning, new products entering the market, and the overall design activity remains solid. Broad market revenue is no more than 40% up from the 2024 lows on a rolling 12-month basis, but remains approximately 25% below peak levels from 2022. That means that we also continue to see significant upside potential in the broad market going forward. Looking at end customer certifications, we continue to maintain a share in excess of 30%. The overall number of designs certified in Q1 was 133, up from 103 in the fourth quarter of 2025. The science based on the NRF54 theories accounted for a little over 15% this time with the certifications in Q1, and this will increase over time. Please note this counting of certifications does not distinguish between high and low volume products, and hence this cannot be translated directly into volume or revenue market shares. Q1 reflects strong execution towards an ambitious plan. And I'm proud of what our new business unit teams and our extremely dedicated employees are delivering. This quarter, we continued to deliver on our promises. We are expanding into new addressable markets. We are enabling improved intelligence at the edge. and we are strengthening the chip-to-cloud lifecycle value as we evolve to a complete wireless solutions provider. Let me highlight some of our Q1 launches. Starting with short-range, Q1 was about continued product expansion and continued differentiation of the NRF54L series, fully in line with our promises and product roadmap. At the entry level, we recently announced the 54LS05 variant, expanding our reach into more cost and power sensitive applications, broadening the addressable market while supporting volume growth. At the high end, we reinforce our differentiation with Ultra Low Power Edge AI by launching the large memory 54LM20B SoC. Together, these additions strengthen the NRF54L series offering across both market reach and capability, supported by the market-leading and trusted Nordic developer experience. We are also expanding the addressable market in our long-range offerings. Here, Q1 was about scaling the product portfolio with a clear, credible, and market-leading roadmap. Product manufacturers need future-ready roadmaps and solutions as networks and satellite connectivity evolve. This is exactly what we are delivering here. With the new NRF92 series, we introduce our next-generation low-power cellular platform with substantially higher compute performance and integrated edge intelligence. Built on the more cost-efficient 22-nanometer platform, enabling a more adaptive pricing strategy. With the NRF93 series, we expand into higher bandwidth Catalan-based applications, addressing new markets while maintaining Nordic's focus on low power and ease of integration. At the same time, we continue to strengthen the proven NRF91 series, including satellite connectivity support and sub-GHz fallback, ensuring a simple, consistent developer experience across product generations. No more on edge AI. Nordic moves far beyond connectivity in this area. We deliver real, on-the-wise intelligence by running AI algorithms and neural networks directly on our ultra-low power wireless SOCs and modules, bringing far more intelligence to the edge node. This matters because processing and decisions increasingly need to be made locally. both reliably and efficiently, without cloud dependency. And this is where our differentiation is clear. With the integrated Axon MPUs on our hardware, Nordic delivers industry-leading energy efficiency across a broad range of edge AI applications, setting a new standard for ultra-low power edge AI. And equally important is the ease of use. The Nordic Edge AI Lab makes the developer experience effortless, significantly reducing design complexity and accelerating time to market for our customers. Edge AI is an important structural growth driver, and Nordic is positioned to lead it. Our complete ultra-low-power Edge AI and chip-to-cloud solutions create compounding advantages that are designed to scale and hard to replicate. We are also strengthening lifecycle value with our chip-to-cloud solutions offering NRF Cloud. There is a structural shift in the market towards stronger security, lifecycle management and long-term maintainability of the fleets of connected products. Both driven by the EU Cyber Resilience Act and how customers want to build and operate products over time. This is an area where Nordic is deliberately investing in and executing on. With our newly launched lifetime license for firmware updates and device management, customers get a predictable and scalable way to keep products secure and maintained throughout their entire lifetime. This goes beyond regulatory compliance. It reduces complexity and cost for our customers. while improving long-term reliability and trust in the products they bring to market. Through NRF Cloud, we continuously manage and improve the security, software, battery health, and intelligence across fleets over the full product lifetime. That is a core part of Nordic's complete chip-to-cloud offering. With that, over to you, Paul, for more details on the financials.

Thank you, Vegard. Now we'll go into details on Q1 results. As Vegard mentioned, revenue amounted to $192 million in the first quarter of 26, a 24% increase from the same quarter in 2025, and a 14% increase from the previous quarter. On the rolling 12-month basis, revenue increased by 19% to $705 million. The revenue growth reflects Nordic's strong competitive position in a growing short-range market, a growing long-range business with higher product sales and cloud services revenue after the acquisition of Mempult. The short-range business remains the main revenue driver, growing by 22% year-over-year, $278 million, or 92% of the revenue. Compared to last quarter, revenue was up 12%. The long-range revenue amounted to 12.5 million in Q1, representing an increase of 66% compared to the first quarter of 2025, and an increase of 43% compared to the previous quarter. The growth reflects both increasing product sales after a slightly weaker Q4 and higher cloud revenue. The other category includes the early-stage businesses in PMIC and Wi-Fi, ASIC components, and development tool sales. Other revenue amounted to 2.4 million up from 1.5 million last year. Turning to the end-user markets, we see a broad growth in the quarter. Consumer is now 60% of total revenue and increased 30% compared to the same period last year and 15% compared to last quarter. Consumer sale is back to growth after a few quarters with low year-over-year growth due to strong comparables. While industrial and healthcare is 38% of total, consumer growth is relatively broad based across several verticals, with particular strength in PC accessories and gaming driving the year-on-year and quarter-on-quarter increase. Industrial and healthcare also contributes meaningfully to the quarter's growth. Continued strong healthcare numbers, strong long-range, which for the most part goes to the industrial customers, but also an improvement in the broad market contributes to the growth. However, as we have said before, revenue in industrial and healthcare still depends on a relatively small number of customers, and the quarterly revenue level reflects high sales in the ideal key customers also in this quarter. Gross profit was Just over $100 million in Q1, up from $77 million a year ago, the reported gross margin increased to $52.1 from $49.5 last year. The year-on-year improvement of 2.6 percentage points was primarily driven by changes in customer and product mix, higher sales in the broad market, and positive contributions from cloud services revenue. Compared to adjusted numbers for Q4 2025, Q1 gross margin was up 0.1 percentage points. EE broadly stable sequentially on an adjusted basis. We expect the gross margin to remain above 50% also in Q2, and we reiterate our long-term ambition to keep gross margins above 50%. Looking at the operating model, we have already talked about the 24% revenue increase and the strengthening gross margins. R&D has increased in absolute terms, but declined as a percentage of revenue, and it's worth looking a bit closer at where we spend our investments. We're still investing in a short-range business, but although short-range accounts for more than 90% of revenue, it now accounts for less than 60% of R&D. and the R&D to revenue ratio in this area has dropped to around 15%. We also have significant R&D investments in our long-range business and early-stage businesses. These remain very high compared to revenue, as they currently account for more than 40% of R&D, but less than 10% of revenue. These are investments for the future. Longer term, we expect significantly higher revenue in these areas, and to see R&D to revenue decline sharply. Selling and general expenses is up year-on-year because of acquisitions, generally higher activity, and weaker US dollars. Summing up, adjusted EBITDA increased by more than 60% year-over-year, with the EBITDA margin improving from 9.5% to 12.4% this quarter. Now I'm going to talk about the cash cost development. As you know, we continue to invest in future growth. For example, the increase in OPEX as a result of acquired businesses. Total cash operating expenses were $78 million in Q1 compared to $62 million in Q1 2025. Increasing cash operating expenses mainly reflect payroll expenses, which increased to $54 million from $42 last year. Of the increase, approximately $2 million relates to net salary adjustments, and around $4 million relates to acquired businesses. The remaining increase is driven by organic workforce growth of $1.3 million. Nordic is exposed to currency fluctuations, mainly NOC, Euro, and US dollars. Compared to Q1, changes in these exchange rates increased quarterly operating expenses by approximately $5 million, mainly reflected in salary. The total number of Nordic employees at the end of Q1 was 1433, including 59 employees that joined to the acquisitions last year. This corresponds to an economic increase of 4% and a total increase of 8% compared to a year ago. If we compare to last quarter, the number of employees is fairly stable or is pretty stable. Other cash operating expenses amounted to $24 million in Q1, up from $20 million a year ago, driven by higher hardware and software spend, along with increased self-activity. There are some moving parts here, especially continued weakening of the US dollar, but overall we expect a similar cash cost level going into Q2. CapEx this quarter was $9.2 million, up from $1.8 billion in the same quarter last year, and up from $6.6 million last quarter. The step-up reflects planned investment spacing rather than a change in underlying run rates. We are planning for growth and currently investing in added manufacturing capacity. Increase this quarter is mainly driven by purchase of additional testers in the supply chain to expand back-end production test capacity and support the ramp of new products, including the NRF54 series. CapEx intensity over the last 12 months is approximately 4.2% of revenue, with the most recent quarter at 4.8%. Historically, CapEx intensity has generally ranged from around 3-4%, with temporary increases during periods of elevated investments. The current level reflects ongoing product grab activities, and we expect capex intensity to remain around the last 12 months level in the near term. Turning to cash flow, operating cash flow was close to break-even. This compares to ABTA adjusted for capital development expenses of 18 million, with the difference mainly driven by a build in net working capital. Looking at that in more detail, the increase in working capital was mainly driven by higher receivables and inventory, partly offset by higher payables. Inventory ended the quarter at $184 million from Q1 last year and year-end. This reflects higher activity levels and the ramp-up of new products. Importantly, this is not an unhealthy build-up. Net working capital as percentage of last 12 months' revenue was 24%. down from 26% last year, indicating improved efficiency despite the increase in absolute levels. On financing, we had an outflow of 19 million, broadly in line with last year, mainly related to the share buyback program. Finally, cash and cash equivalents ended at 280 million at the end of the quarter. Finally, before handing the word back to Vegard, we can have a look at our near-term outlook. Based on current customer orders and forecasts, we're guiding for revenue of 200 to 220 million in the second quarter, corresponding to a year-on-year growth between 22% and 34%, with a midpoint of 28%. We reported a gross margin of 52% in Q1 and expect the gross margin to remain above 50% also in the second quarter. With that, I'll hand over to Vega for his final remarks.

Thank you, Paul. Our strategy is fully aligned with these four strong growth drivers for Nordic Semiconductor. Firstly, we continue to benefit from sustained market growth driven by the long-term wireless connectivity megatrend and the increasing number of connected IoT devices. Secondly, we are strengthening our competitive position through our renewed world-class product portfolio, enabling us to take market share in the markets we participate in. Thirdly, we are expanding our addressable markets to a broader product portfolio for Nordic to participate in new market segments we haven't previously participated in. And finally, throughout our complete wireless solution, spanning hardware, software, and cloud services, we are increasing lifecycle value per end product. These four growth drivers give us confidence in our long-term growth ambitions. Summing up, we are progressing to plan financially, operationally, and strategically. Financially, we deliver solid year-on-year growth in first quarter with improving growth margins and profitability, keeping us on track for our long-term growth plan. Operationally, execution remains strong. We continue to move at high speed on our extensive product renewal program with multiple launches and announcements across both short-range and long-range. Strategically, we are clearly evolving from a hardware supplier to a complete chip-to-cloud wireless solution partner. With that, we are happy to take your questions and I'll hand over to Steele.

Thank you, Vegard. We will now open up the line for questions. For instruction on how to join the Q&A, please refer to the earnings call invitation posted on our IR website under Stock Exchange Notice section. To allow as many participants as possible to ask questions before the market opens, we kindly ask you to limit yourself to one question following our initial response. you will have the opportunity to ask a follow-up question. With that, I will hand over to Rasmus, the operator, to begin the Q&A session.

Thank you. We'll now start the Q&A session. If you wish to ask a question, please press 5-star on your telephone keypad. To redraw your question, you may do so by pressing 5-star again. There'll be a brief pause while questions are being registered. And the first question will be from the line of Christopher from D&B Canadian. Please go ahead, and I will now be unmuted.

Good morning, guys. Thanks for taking my question. So I just wanted to cover a bit the dynamics you're seeing in customer behavior and so on. I think on the Q4 call, I'm talking about Q4 and Q1, Vega, you mentioned that The strength you're seeing given rule out somewhat of an impact on that from customers kind of restocking, not really pre-stocking, but maybe restocking. So it's a little bit about how customers have behaved during the quarter and what you're seeing thus far. Is the strength, you know, it's a lot better than typical seasonality, so are we seeing any pull forward as people are positioning ahead of the tightening market because they're worried about shortages

in the second half talk a bit about the downstream dynamics that would be super helpful thank you yeah uh thank you christopher um yeah so i think i think the main thing which we clearly see is that the market is continuing improving and we do see our customers selling more end products That's clearly the – it's important to say that that's truly what we see a lot of, and we see increases and forecasts increasing because of that. And I think the Q2 guide, of course, then, is based on current customer orders and the forecasts we have at the moment. Having said that, I think we cannot rule out the option that some customers are advancing orders because they are afraid of future capacity constraints elsewhere, as we know that there are some constraints elsewhere in the semiconductor market and supply chain at the moment. But I think the main thing for us is clearly to say that we see the market improving and we see our customers being selling more of their end products. And to some degree, we see some customers launching new products.

Okay, super helpful. And then just a quick follow-up, more forward-looking. I think over the last couple of weeks, we've seen reports noting that not only AI data center-related stuff is tight, but even more flash-tip-to-USMNT devices is entering into it. Have you kind of seen any demand disruption or lowered forecast for the second half from customers struggling with getting components sitting next to your components on the PCB for the second half? Do you see any signs that we will see demand disruption at all at this point?

Yeah, I think just as a first, thanks for the question. I appreciate the interest for second half also, Christoffer. as our guiding principles are fairly clear on not moving beyond the quarter we are talking, that would restrict me from saying much on that. But I think on a general view, we can say that we currently don't see direct impact from memory shortages or memory constraints. at our customers on a general basis. We have relatively few customers with larger memories sitting aside a Nordic SOC or a Nordic product. There are obviously some, and I do think It's hard for us to measure accurately potential impact there. And again, I don't think we can completely rule out the fact that that could give some indirect effects later on. But at the moment, we haven't seen any impact of that either.

Thank you. Thank you.

Thank you, Christopher. The next question will be from the line of Harry from UBS. Please go ahead. The line will now be unmuted.

Good morning, guys. Thanks for taking my questions. The first is just around your expectations on pricing this year. I know we've heard about some manufacturers putting through pricing increases. at the back end of last year and then also April this year. Is that something you're doing at all, or is the expectation still that pricing will be kind of down, low single ownership percentage?

Yeah, thanks, Harry. Appreciate the question and the interest in our pricing strategies and policies. We have to say we also keep our pricing and cost strategies confidential and cannot comment specifically on that. Pricing to our customers is generally managed in very close dialogue with our customers, and we remain confident that we are delivering competitive prices and very good value for money. But there is always a certain dynamic in both in the pricing and the cost picture. We don't comment specifically on that. Hope you can appreciate that, Harry. Thanks.

I guess my follow-up is kind of related to that, but on the cost side, how are you expecting costs to progress through the year, both OPEX and COGS, especially with the within the context of the disruption in the Middle East. But then also, we're obviously hearing about foundry price increases. And I know you can't comment kind of specifically about what you're foundry pricing, what you're seeing specifically, but I guess high level kind of how you're thinking about those kind of puts and takes and OPEX and cold sphere. Yeah.

Yeah, I can comment on the COG side first. I think at the moment it's an area where we're working extremely hard, a lot of attention on this as capacity is becoming slightly tighter in all kinds of manufacturing. Also why I think you heard Paul. say we are investing quite a lot in capacity now to support our planned growth. We are working extremely closely with our key foundry and OSAP partners, getting very solid support as we are. We have loyalty both ways, which goes way back in time. with our key foundry partners. And again, we cannot comment specifically on that. Should constraints and other materials prices continue to increase, of course, that may impact everyone in this industry. But at the moment, it is manageable. And as I said, we are very well supported by our manufacturing partners overall.

So, Harry, on OPEX, I mentioned two items before. First of all, our cost is mainly driven by the number of employees we have. And quarter over quarter, it's been pretty stable. We only added three people during the quarter. And then we are trying to improve efficiency, et cetera. So I wouldn't expect a large increase in number of employees going forward. On the opposite side, FX is a negative drag. The weak US dollar this quarter compared to a year ago cost us around $5 million in increased OPEX for the quarter. But overall, as I mentioned, we expect Q2 to be broadly in line with Q1 on OPEX level.

Great. Thanks, Paul. Thanks, Dagard.

Thank you.

Thank you, Harry. The next question will be from the line of Oliver Wong from Bank of America. Please go ahead. Your line will now be unmuted.

Hey, guys. Thanks for taking my question. I wanted to ask about log range. So now that R&D for long range was about 31% of the total, you know, is that kind of what you see going forward? Are you seeing specific opportunities that are kind of, you know, perhaps better than what you expected at your last CMV? Any color on what kind of opportunities and how should we think about kind of, you know, potential revenue ramps? Thank you.

Yeah, thanks, Oliver. So I think long range is a segment progressing very well for us, and I would say broadly progressing. in line with our ambitious plans. We are expecting this to be growing gradually and continue to be growing gradually from here on. And the premise for that is, of course, the basis of launching new products, which we have talked about and is part of that key plan. So I do think... Our current plan is to keep our R&D investments relatively flat as we have communicated in this area. So you should see that 31% go down as revenues are increasing. But overall, I think we are very, very pleased with our performance in long range. We're happy that we're now announcing the very important 92 series as our main next generation platform in long range based on 22 nanometer with a lot more compute intensity and edge AI, much lower power, which is a very natural extension from all of the 91 series business while we also actually make completions to our 91 series while we also expand into Cat1Vis, which is a new market for us and kind of the other part of the LTE market. So I think overall happy, very happy and pleased with our position there. I think we are really taking a leadership position product-wise technically in the market at the moment. The team is extremely energized and executing well. So we are optimistic for the coming time in long range.

Thank you very much.

Thank you. Thanks, Oliver. The next question will be from the line of Craig McDowell from J.P. Morgan. Please go ahead, and I will now be unmuted.

Hi, good morning. Thanks for taking my question. The first one I had was on the NRF54 launch. You talked about growing proportion of design certifications from that product launch. Wondering whether you can comment on some revenue contribution at this point. And then linked to this, can you remind us how we should think about the gross margin impact of this launch? And I've got a follow-up as well. Thank you.

yes uh thanks that that's that's great question i think also the 54 launch and the 54 rollout is uh is executing very well just to just say that proud of the team executing extremely fast and focused and and keeping a lot of attention on renewing us in the short range space um It is now, so if you look at certifications first, I think last time I think we said we were slightly short of 15% of the Bluetooth SIG certifications. This time we are just about, so it's growing, and we expect that to continue growing very clearly in the coming time. On the revenue side, it is starting to now begin to generate some meaningful changes revenues for us. The design activity and the way we measure design ins is still continuing very strongly with both key customers and the broad market, within key customers and within the broad market. So it is very clearly supporting our expectations for the 54 series that with these

very leading market leading products we will that will be a very key long-term growth driver for a nordic semiconductor and when it comes to gross margin mega i think we can say it's a very competitive product and then we're now able to sell the right product to the right customer at the right price so it should be positive on the cross market

Thanks for reminding me, Paul. I think overall, having the breadth of the product portfolio allows us to tailor more the product to the right solution, as Paul said. And the 22 nanometer production platform is a very solid foundation for us without being specific on the margins being changed. Thank you.

Thank you. Just as a follow-up, just pointing to the menthols acquisition and obviously a few months into integration now, just wondering whether you'd give us any sort of data points on maybe cross-sell or revenue synergies. Have you seen some revenue growth accelerate from the, I think, 40% growth it used to post? Any color would be great. Thank you.

Yeah, I appreciate the interest there. I think on a general basis, we don't provide standard breakdown on our cloud revenue at the moment, but I think we can clearly confirm that cloud revenue is growing according to our plan, and it is contributing positively to our growth margin, and I think software-based cloud services carry growth margins in line with more general software cross margins, which are somewhat higher than generally on the hardware side. So that's positive. I think the traction is positive on the cross selling. We do see high interest and I think particularly as we are now approaching the requirements of being cyber resilience ready in Europe and also similar situation with regulators in the United States. I think customers are becoming more and more aware of that. And of course, allowing us from a strong product offering side to be serving a large range of customers instead of each and one of these customers having a small R&D team. Resolving this by themselves makes a lot of sense and we do see that traction growing. and the premise that we made the acquisition on is absolutely valid, and I think we are pleased with the current progress we are having in the NRF cloud space.

Thanks so much. Appreciate that, too.

Thank you, Greg. The next question will be from the line of Owen Bechter from Jefferies. Please go ahead, your line will now be unmuted.

Hi, thanks for letting me on. I had two questions. Firstly, on the presentation deck, we can see that your broad market share has been increasing nicely year to date. So I was wondering, is this sort of NRF54 related, and if there's any sort of end markets or applications that you could flag to be driving this potential growth within the broad market?

Yeah, I think we are pleased to see the broad market gaining traction. And as we said, it's now about 40% above the low levels, still 25% below the peak. But we are seeing this and expecting this to be continuing to strengthen for us as we see the pipeline developing very positively there. I think there is still a blend of wins with old and new products. Of course, every month that we are executing at the moment, we see that percentage of wins based on the 54 series becoming higher and higher and higher. So I think overall, we are extremely pleased with the competitiveness of the 54 series broadly in all the geographies, as well as both with the key customers and within the broad market. So overall strong design activity on that without being specific on the numbers between old and new products.

And then my follow-up is just on sort of the dynamics into the second quarter. So back at fourth quarter results and also on the guidance, you've mentioned sort of an uptick in customer orders that's driving the sequential trend. And so my question is based on these engagements that you're getting, do you feel as though you're getting increased visibility from your customers given the pickup in market conditions?

Yeah, I'm a bit uncertain if I really captured the question clearly, but I think the main thing for us at the moment on that side is that we do see the underlying market is improving, and our Visibility, though, is still in line with recent quarters. Market-improving customers are selling more of their products, and that's, of course, encouraging to us. And currently, the Q2 guide is based on that current customer order and forecasting engine, which is always updated within the company.

Great. Thank you. Thank you.

Thanks, Owen. The next question will be from the line of from ABG. Please go ahead, John. I will now be unmuted.

I have a question. I have a question on the long-range segment. You had very strong growth there this quarter. Is this kind of the more quarterly variations or should we see this as the start of a new trend where growth is accelerating in this segment? And the second is, is this driven by new product launches like the 9151 and the satellite or is this still more on the old 9160 model where you're seeing growth.

Yeah, it was indeed a strong and a record quarter for long range. So we are very pleased with the trajectory there. The growth reflects both higher product sales and to some degree increasing revenue contributions from NRF cloud services. as well. We don't break out the 91.60 versus 91.51 revenues. 91.51 is, as the 54 series in short range is starting to meaningfully contribute, the 91.51 is now meaningfully contributing, definitely meaningfully contributing in long range. And I think to some degree it's relatively early days on NTN and satellite connectivity enablements, but we do see that being defined in and certifications are happening in that area. We're still at relatively low levels in long range, so we should, though, expect some variability, somewhat less stability in the revenues compared to short range, but we are clearly also expecting this to continue to grow as we have previously communicated. So very pleased with the current quarter for long range.

Thank you very much. Then a follow-up on your other product areas, PMIC and Wi-Fi. When should we kind of start to see more meaningful revenue contribution from these? Can you say something about the momentum that you're seeing there?

Yeah, that's a great question, Sten. Both those businesses, the Wi-Fi and PMIC, are still in the early commercial phase. which means we report them under the other segment. PMIC continues to gain very solid design traction on the back of a broader portfolio now, and we also have key customers starting to evaluate our PMIC offering, and the pipeline is growing well in that segment. Again, that will gradually improve and grow that revenue quarter by quarter in the coming year is our expectations. In Wi-Fi, there is design activity ongoing, but as we have communicated also, our NRF70 Wi-Fi competitive has some limitations in its reach, so we are only utilizing that in certain use cases. while the next generation NREF71 is assumed and expected to be a leading Wi-Fi SoCs with Nordic's ultra-low power leadership built on the same 22 nanometer platform as the 54 series and the 92 series. So we have very high expectations for that. and launch is expected towards the end of the year on that 71 series, and then you have to allow for the sign-in time and the natural development of that product beyond that.

Thank you very much. Thank you.

Thank you, Stein. And we have one follow-up from Christopher from B&B . Please go ahead. Your line will now be unmuted.

Just on the pre-payments to global foundries, can you talk a bit about whether that is linked to a particular product, or is it 64H only, or is that also going to be utilized against 64Ls if they are manufactured at global as well? Since that isn't moving down yet, is that only an indication that 64H is ramping, or Yeah, just anything you could read out to that member in the balance sheet.

Yeah, no, so it's related to Global Foundries, and L is another technology, so it's all related to the GF part of the business.

But it's probably important to say that the GF part of the business is more than the 54H. Yeah, correct. at the moment, so without being specific on where we manufacture, but on a general note, just mentioning that. Thank you. Yeah, thanks, Christopher.

Thanks, Christopher. As we have no more questions in the queue, I'll hand it back to Steele for an introduction remarks.

Thank you. Before we close today's session, I have one brief announcement. Nordic will conduct two post-Q1 2036 results and Q&A group calls with analysts and investors. The first group call for European investors will be hosted by Barclay and is scheduled for tomorrow, Wednesday, 29th of April, 2 p.m. Central European Summer Time. The second group call will be for U.S. investors, hosted by ABG Sundahl Collier, and is also scheduled for Wednesday at 5 p.m. Central European Summer Time. Both calls will be attended by CEO Vega Volland, CFO Paul Elstad, and IR team, and will be moderated by covering analysts at each representative brokerage. For registration, please visit the IR calendar on our website. With that, I will now hand over to Vegard Volland for his closing remarks.

Thanks a lot, everyone. Thanks for joining us. This concludes today's call.

Thank you. Thank you.