Overview FY2019/Q4 and guidance for 2020 – Short term risk assessment of Corona is marked as being low by CEO Ray Smelts. (Disclaimer I have shares in Napa). Overall I would say that these news are positive and continue to support a solid foundation of this turnaround case – Especially Napatech's ability to attract a new customer base with in cybersecurity & 5G – two tech trends that are becoming increasingly important.

This is what we learned:
• Solid Turn-around Year with Record Breaking Results
• Solid Revenues and Growth
• Strong Margins
• Positive EBITDAC
• Positive free cash flow for FY 2019
• Foundation of revenues built on both existing and new customers
• Core product line enhancements delivered
• Continued good momentum entering 2020
• Revenue in the upper half of the guided range
• GM above the guided range
• Operating expenses in the lower half of the guided range
• Investments in development projects in the lower half of the the guided range
• Depreciation and amortization slightly above the guided range
• EBITDAC 31.7 MDKK above middle of original guidance and 10.1 MDKK above middle of latest guidance.
• EBIT 20.2 MDKK above middle of original guidance and 6.1 MDKK above middle of latest guidance.

Plan of Attack:
1. Continue to drive FPGA-based SmartNIC leadership in current Packet Capture solutions
2. Expand our SmartNIC leadership beyond Packet Capture by supercharging our technology to address new higher-growth applications in markets such as Cybersecurity
3. Drive innovative developments in Virtual Switching Acceleration solutions to emerge in new user markets in Edge and Cloud Computing such as 5G Mobile to fuel new revenues in 2020 and beyond.

Guidance for 2020
• Revenue 185-205 MDKK
• Gross margin 68-72%
• Staff expenses & Other external costs 125-135 MDKK
• Transferred to capitalized development costs 15-20 MDKK
• Depreciation and amortization 20-25 MDKK
• EBITDAC would be 6.5 MDKK
• EBIT would be 1.5 MDKK