DGAP-News: AIXTRON SE: Q3 Orders and Revenues improve sequentially 15% and 35% / EUR 51.5m Inventory write-downs reflecting the slower than expected recovery of demand / LED-lighting gaining further momentum, but customers still hesitant to invest
ID: 196065
(firmenpresse) - DGAP-News: AIXTRON SE / Key word(s): Quarter Results/Forecast
AIXTRON SE: Q3 Orders and Revenues improve sequentially 15% and 35% /
EUR 51.5m Inventory write-downs reflecting the slower than expected
recovery of demand / LED-lighting gaining further momentum, but
customers still hesitant to invest
25.10.2012 / 08:00
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Q3 Orders and Revenues improve sequentially 15% and 35%
EUR 51.5m Inventory write-downs reflecting the slower than expected
recovery of demand
LED-lighting gaining further momentum, but customers still hesitant to
invest
2012 Revenues predicted to reach ca. EUR 220m with an EBIT loss of EUR 125m
Aachen/Germany, October 25, 2012 - AIXTRON SE (FSE: AIXA; NASDAQ: AIXG), a
leading provider of deposition equipment to the global semiconductor
industry, has seen its Q3/2012 equipment orders pick up by 15% sequentially
to EUR 34.5m. Current Q4/2012 quotation levels suggest a continuation of
this development, implying that the order trough point in the current
investment cycle has been passed. Q3/2012 revenues increased by 35%
sequentially to EUR 62.2m. However, the pickup in order intake and revenues
during Q3 was not as strong as expected.
Consequently, Management has reviewed the immediate outlook in comparison
to the inventories held and concluded that despite the positive long term
outlook for the LED industry that the existing stock held was
inappropriately high in comparison to the current subdued level of demand
in the market. Management has subsequently decided to write down EUR 51.5m
of inventories as excess to requirement. As it is now evident that AIXTRON
will not return to profitability during 2012, the Company has now guided
towards a 2012 EBIT loss of ca. EUR 125m with revenues of ca. EUR 220m for
the fiscal year 2012.
Key Financials
2012 2011 2012 2012Financial Highlights
(in EUR million) 9M 9M +/- Q3 Q2 +/-
Revenues 150.3 470.8 -68% 62.2 46.1 35%
Gross profit -17.3 219.7 n.m. -42.3 14.7 n.m.
Gross margin -11% 47% -58 pp -68% 32% n.m.
Operating result (EBIT) -113.0 129.8 n.m. -78.3 -16.5 n.m.
EBIT margin -75% 28% n.m. n.m. -36% n.m.
Net result -102.2 90.5 n.m. -78.3 -11.6 n.m.
Net result margin -68% 19% n.m. n.m. -25% n.m.
Net result per share - basic (EUR) -1.01 0.90 n.m. -0.77 -0.12 n.m.
Net result per share - diluted (EUR) -1.01 0.89 n.m. -0.77 -0.12 n.m.
Equipment order intake 96.0 484.1 -80% 34.5 30.0 15%
Equipment order backlog (end of 109.8 244.8 -47% 109.8 137.7 -6%
period)
Q3/2012 Revenues of EUR 62.2m increased on a sequential basis coming in 35%
higher (Q2/2012: EUR 46.1m; Q3/2011: EUR 89.8m) than Q2/2012. However, not
surprisingly, given the low order intake volumes recorded over the last 12
months, 9M/2012 revenues were 68% lower than the same prior year period
(9M/2011: EUR 470.8m).
The Q3/2012 gross profit was reported at EUR -42.3m. This figure was
significantly lower than in Q2/2012 (EUR 14.7m), mainly due to the
previously described inventory write-downs, but also influenced by a less
favorable product mix which included a lower level of final customer
acceptances and softer pricing on some legacy products. On a year on year
comparison, AIXTRON's nine month gross profit of EUR 17.3m was lower than
the corresponding 2011 period (Q3/2011: EUR 38.7m; 9M/2011: EUR 219.7m).
This is largely due to the effects described above, and from the ongoing
fix-cost effects of facility, production and service costs reflected in
cost of sales.
As a result of the reduced gross profit, EBIT in Q3/2012 decreased
sequentially from
EUR -16.5m to EUR -78.3m (Q3/2011: EUR 0.6m). The 9M/2012 EBIT amounted to
EUR -113.0m (9M/2011: EUR 129.8m).
Although customer orders improved less than expected, AIXTRON's order
intake volume in Q3/2012 increased from the trough levels recorded in the
first half of the year, and came in sequentially at EUR 34.5m (Q2/2012: EUR
30.0m, Q3/2011: EUR 51.5m) which represents a 15% improvement over the
previous quarter.
Despite high MOCVD utilization rates, which have historically been seen as
a precursor to an imminent pickup in equipment orders, in the current
environment, AIXTRON's customers still remain hesitant about adding new LED
production capacity. This hesitancy is perceived to be also influenced by
the recent highly competitive pricing development in consumer end markets
and the consequent margin pressure on LED manufacturers.
The total 9M/2012 order intake of EUR 96.0m compares to a 9M/2011 level of
EUR 484.1m. In other end markets, AIXTRON has seen its non-LED business
gaining further traction throughout 2012. This includes Silicon
Semiconductor equipment, with increasing demand for the new QXP-8300 ALD
system, offering a compelling and cost effective technology solution for
memory producers.
Similarly; the Company is seeing far greater interest from power
Electronics and LED customers in the recently launched AIX G5+ systems
which
are optimized for both Power electronics devices and GaN-on-Si LED
structures. The Company's recently announced PRODOS family of Organic
Semiconductor technology has attracted interest in both the R&D community
and amongst the emerging OLED production industry. AIXTRON is currently
commissioning and qualifying a production system for a major Asian
customer.
Management Review
Paul Hyland, President&Chief Executive Officer at AIXTRON remains
confident that AIXTRON has the appropriate strategy to capitalize on the
next LED-lighting investment cycle and to be able to pursue adjacent growth
market opportunities:
'We are clearly getting closer to the start of the third major LED
investment cycle, namely for LED general lighting. It is not a question of
'if' this substantial market arrives; it is only a question of 'when'.
Despite the difficult macro-economic circumstances we are all contending
with, we continue draw cautious optimism from the frequent evidence of
increasing adoption momentum towards LED-lighting. It is however
increasingly difficult in the current economic environment, to predict
accurately the exact timing of that Solid State Lighting inflection point.
This difficulty is evidenced by a much slower than expected pick up in
orders and revenues, which has led to the EUR 51.5m write down on
inventories we reported in Q3.
But whatever the precise timing may be, what is certain is that the
absolute volume growth being predicted for LED lighting adoption will
eventually require a very substantial buildup of LED manufacturing capacity
over the next years. This is a significant growth opportunity for AIXTRON
and we are confident that we are well positioned for this next market up
cycle with our market-driven R&D investments, our technology track record,
our strong local footprint and solid customer relationships.
We have the necessary support of a strong Balance Sheet with a solid cash
position and no debt and will continue to look for business efficient cost
saving measures to optimize our cost structure going forward.'
Outlook
For fiscal year 2012, AIXTRON expects sequentially stronger fourth quarter
revenues, albeit considerably less than previously expected. However, as a
result of the unexpected slower demand recovery, the Company will not
report a profit in fiscal year 2012. The company expects to achieve full
year 2012 revenues of ca. EUR 220m and an EBIT loss of ca. EUR -125m.
AIXTRON Management expects an increase in demand for manufacturing
equipment in 2013, driven by projected stronger equipment demand from the
LED general lighting market as well as other non-LED applications and
expects to return to profitability during the year 2013. AIXTRON also
expects to gain further traction in emerging MOCVD non-LED applications and
other technology markets, including Silicon Semiconductor, Power
Electronics and Organic Semiconductor applications.
Financial Tables
The 9M/2012 results presentation as well as the consolidated financial
statements (statement of financial position, income statement, cash flow
statement, statement of changes in equity) relating to this press release
are available at http://www.aixtron.com, section 'Investors,
Reports/Presentations', as part of AIXTRON's Nine Months Financial Report
2012.
Investor Conference Call
AIXTRON will host a financial analyst and investor conference call on
Thursday, October 25, 2012, 3:00 p.m. CEST (6:00 a.m. PDT, 9:00 a.m. EDT)
to review the first nine months 2012 results. From 2:45 p.m. CEST (5:45
a.m. PDT, 8:45 a.m. EDT) you may dial in to the call at +49 (69) 247501-899
or +1 (212) 444-0297. A conference call audio replay or a transcript of the
conference call will be available at http://www.aixtron.com, section
'Investors, Reports/Presentations', following the conference call.
Contact:
Guido Pickert
Investor Relations and Corporate Communications:
T: +49-241-8909-444
F: +49-241-8909-445
invest(at)aixtron.com
For further information on AIXTRON (FSE: AIXA, ISIN DE000A0WMPJ6; NASDAQ:
AIXG, ISIN US0096061041) please consult our website at: www.aixtron.com.
Forward-Looking Statements
This document may contain forward-looking statements regarding the
business, results of operations, financial condition and earnings outlook
of AIXTRON within the meaning of the safe harbor provisions of the US
Private Securities Litigation Reform Act of 1995. These statements may be
identified by words such as 'may', 'will', 'expect', 'anticipate',
'contemplate', 'intend', 'plan', 'believe', 'continue' and 'estimate' and
variations of such words or similar expressions. These forward-looking
statements are based on our current views and assumptions and are subject
to risks and uncertainties. You should not place undue reliance on these
forward-looking statements. Actual results and trends may differ materially
from those reflected in our forward-looking statements. This could result
from a variety of factors, such as actual customer orders received by
AIXTRON, the level of demand for deposition technology in the market, the
timing of final acceptance of products by customers, the condition of
financial markets and access to financing for AIXTRON, general conditions
in the market for deposition plants and macroeconomic conditions,
cancellations, rescheduling or delays in product shipments, production
capacity constraints, extended sales and qualification cycles, difficulties
in the production process, the general development in the semi-conductor
industry, increased competition, fluctuations in exchange rates,
availability of public funding, fluctuations and/or changes in interest
rates, delays in developing and marketing new products, a deterioration of
the general economic situation and any other factors discussed in any
reports or other announcements filed by AIXTRON with the U.S. Securities
and Exchange Commission. Any forward-looking statements contained in this
document are based on current expectations and projections of the executive
board and on information currently available to it and are made as at the
date hereof. AIXTRON undertakes no obligation to revise or update any
forward-looking statements as a result of new information, future events or
otherwise, unless expressly required to do so by law.
Contact:
Investor Relations and Corporate Communications
AIXTRON SE, Kaiserstr. 98, 52134 Herzogenrath, Germany
Phone: +49 241 8909 444, Fax: +49 241 8909 445, invest(at)aixtron.com
www.aixtron.com
End of Corporate News
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25.10.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: AIXTRON SE
Kaiserstr. 98
52134 Herzogenrath
Germany
Phone: +49 (241) 8909-444
Fax: +49 (241) 8909-445
E-mail: invest(at)aixtron.com
Internet: www.aixtron.com
ISIN: DE000A0WMPJ6, US0096061041
WKN: A0WMPJ
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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190092 25.10.2012
Themen in dieser Pressemitteilung:
aixtron-se-q3-orders-and-revenues-improve-sequentially-15-and-35-eur-51-5m-inventory-write
downs-reflecting-the-slower-than-expected-recovery-of-demand-led
lighting-gaining-further-momentum
but-customers-still-hesitant-to-invest
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2012 - 08:00 Uhr
Sprache: Deutsch
News-ID 196065
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