RoodMicrotec: EBITDA improved in 2015; new contracts boost our future sales expectations
(Thomson Reuters ONE) -
PRESS RELEASE
Zwolle, 10 March 2016
RoodMicrotec: EBITDA improved in 2015; new contracts boost our future sales
expectations
2015 HIGHLIGHTS
Commercial/operational
* Two big contracts in automotive sector, EUR 25 million and EUR 20 million
over 10 years
* Contract with OEM in the industrial sector, approximately EUR 9 million over
10 years
* Strengthened relationship with large players (wafer foundries, assembly
houses and design houses)
* Collaboration agreement with leading design houses in Europe
* Two publicly funded projects in the area of Industry 4.0 / IoT
* Several new qualification orders according automotive standard AEC-Q100
* Strengthened management team with addition of Martin Sallenhag as CTO
* Continued focus on supply chain management activities by addition of
experienced project manager
* Investments in Automotive Competence Center that resulted in new contracts
and new prospects
* Successful seminar on automotive qualification held with many industry
participants
Financials
* Sales in 2015 of EUR 10.3 million, 3% increase compared to 2014 (EUR 10.0
million)
* Net debt position decreased by 24% to EUR 1.6 million (2014: EUR 2.2
million)
* EBITDA: EUR 0.3 million negative (2014: EUR 0.7 million negative)
* EBIT (operating result) EUR 1.2 million negative (2014: EUR 1.5 million
negative)
* Net income: EUR 1.4 million negative (2014: EUR 1.7 million negative)
* Solvency increased to 41% (2014: 27%)
* Balance sheet total decreased to EUR 11.3 million (2014: 13.6 million) due
to netting of pension liabilities and pension assets
* Early January 2016, a final agreement was made with Grant Thornton regarding
the audit fees 2014. Total additional audit-related fees and legal fees to
finalise the annual report 2014, accounted for in 2015, were ? 0.2 million
* Early March 2016, a group of investors committed to provide an amount of up
to EUR 1.5 million to enable required investments in equipment in 2016 (see
press release 3 March 2016)
Key figures
(EUR x1,000 unless stated otherwise)
Unaudited
IFRS IFRS
2015 2014 Change
-------------------------------
Result
Net sales 10,250 9,971 3%
Gross margin 8,431 8,184 3%
EBITDA -313 -722 57%
EBIT (operating result) -1,242 -1,514 18%
EBT -1,429 -1,675 15%
Net result -1,439 -1,693 15%
Capital, debt & liquidity ratios
Total assets 11,347 13,617 -17%
Group equity 4,650 3,706 25%
Net debt 1,635 2,159 -24%
Capital (=net debt + equity) 6,285 5,865 7%
Gearing ratio (net debt / capital) 26% 37% -11%
Solvency (group equity / total liabilities) 41% 27% 14%
Debt ratio (net debt / EBITDA) -5.22 -2.99 -74%
Net working capital 523 -125 n/a
Working capital ratio
(current assets / current liabilities) 1.25 0.95 32%
Assets
Tangible and intangible fixed assets 7,169 7,308 -2%
Investments in (in)tangible fixed assets 790 499 58%
Depreciation of (in)tangible fixed assets 929 792 17%
Issue of nominal shares
At year-end (x 1,000) 54,411 43,519 25%
Number of FTEs (permanent)
Average 94 97 -3%
Sales and result
In 2015, RoodMicrotec's sales increased by 3% compared to 2014.
Net sales are presented below, broken down by customer category/sector (market
segment).
(x EUR 1,000) 2015 2014 approx.
change
--------------------------------------------------------
Automotive 3,021 2,671 +13%
Telecoms 211 239 -12%
Industrial/Medical 5,201 5,545 -6%
Electronic Data Processing 551 527 +5%
Consumer 598 478 +25%
Hi-rel/Space 668 511 +31%
--------------------------------------------------------
Total 10,250 9,971 +3%
The increase in the automotive market is mainly due to the announced new orders
and growth of recurring business of running projects. Industrial market with a
slight decrease from 2014 to 2015 but a stable growth over the year. In this
segment we started several projects which will create growing and recurring
revenue for the coming years. Hi-rel/space market increases significantly due to
several new and some running projects. This growth will continue into next
years.
The sales results of the business units were as follows:
(x EUR 1,000) 2015 2014 approx.
change
-----------------------------------------------------------
Test 3,676 3,503 +5%
Supply Chain Management 2,348 2,850 -18%
Failure & Technology Analysis 1,655 1,517 +9%
Test Engineering 437 516 -15%
Qualification & Reliability 2,134 1,585 +35%
-----------------------------------------------------------
Total 10,250 9,971 +3%
The growth in the BU Qualification & Reliability Investigation was the result of
an increase of qualification orders from automotive, industrial and space
customers. The increase in the BU Failure & Technology Analysis was due to the
fact that the company has strengthened its reputation in the market and also
offers new services. Sales in the BU Test increased as a result of a growing
market in existing products. Decrease in sales of the BU Supply Chain Management
was related to a temporary market driven slowdown of our main customer. This is
expected to recover in 2016. The BU Test Engineering invested effort in the
internal development of tools and procedures to prepare the BU Test for the
increasing demand in the future.
Sales by market segment in the second half of 2015 vs. first half of 2015
(EUR x 1,000) approx.
HY2 HY1 change
-------------------------------------------------------------------
Automotive 1,563 1,457 +7%
Telecom 131 80 +64%
Industrial/Medical 2,725 2,476 +10%
Electronic Data Processing 292 259 +13%
Consumer 270 329 -18%
Hi-Rel/Space 357 311 +15%
-------------------------------------------------------------------
Total 5,338 4,912 +9%
The recovery in the second half 2015 was seen in all relevant market segments.
Key customers continue to grow in industrial and hi-rel/space market in the
second half 2015.
Sales by business unit in the second half of 2015 vs. first half of 2015
(EUR x 1,000) approx.
HY2 HY1 change
----------------------------------------------------------------------
Test 1,946 1,730 +12%
Supply Chain Management 1,150 1,198 -4%
Failure & Technology Analysis 809 846 -4%
Test Engineering 266 171 +56%
Qualification & Reliability 1,167 967 +21%
-------------------------------------------------------------------------
Total 5,338 4,912 +9%
Developments
Our strategic move to larger and long-term projects brings more predictable and
recurring sales. In 2015 we succeeded in concluding a number of long-term
contracts with reputed companies in our focus sectors. One of our top 3
customers is among the top 500 fastest growing and most innovative companies in
Germany.
In 2014 we decided to set up our Automotive Competence Centre in order to be
able to offer new services that are required and expected for automotive
projects. Our main objectives were to act as an expert first point of contact
for automotive customers wishing to subcontract individual services such as
component qualification, or searching for a component manufacturer to develop a
new component and deliver it - under agreed accountability - to the
corresponding customer's site. Our efforts resulted in acceptance and
recommendation from the automotive sector and as a result we succeeded in
concluding two large contracts with well-known companies in the automotive
sector.
We achieved a partnership in two publicly funded projects. Being a partner in a
consortium with leading companies enhances our visibility in the market and so
strengthens our reputation and on top of that it will help us to gain further
expertise. Both projects are in the field of Industry 4.0 / IoT (Internet of
Things), which is one of our focus areas for 2016 and beyond. Industry 4.0 / IoT
means extensive networking, using innovative IT systems that enable entirely new
production methods.
We have concluded a major collaboration agreement with one of Europe's leading
and most successful fabless companies (design houses). This design house
develops many high-grade microchips every year. Due to its growth, the design
house felt a need to select a specialist supplier who could support it in
manufacturing high-grade microchips (high-reliability chips) and in its growth
process. Our experience, knowledge and infrastructure, including our equipment,
proved to be a perfect match to the design house's needs. Depending on the
product (the chip), we will provide both individual services and backend
manufacturing services. With this agreement we have gained a new customer
relationship with one of the leading fabless companies including a new order,
and we are preparing for a second new order for this customer.
These developments and also the fact that we are accepted by some big players in
the market (assembly houses, wafer fabs and Electronic Manufacturing Services)
proves that we are recognised as a serious player. This, next to concluding
contracts and receiving orders, is very important for our reputation and our
visibility in the market and therefore crucial for our future growth.
Trends 2015
Outsourcing
Medium-sized companies are increasingly working together in order to raise their
joint services to a higher level so as to best combat competition from Asian
countries. OEMs who still develop ASICs or other chips in-house will
increasingly outsource this work to independent service providers like
RoodMicrotec. This outsourcing trend is expected to continue. Partly due to our
infrastructure, we are in an excellent position to profit from this optimally.
We are highly experienced in a wide range of services, such as test engineering,
failure & technology analysis and qualification & reliability. With shock
proofing, thermal load and electrostatic discharge tests, we are uniquely able
to investigate whether products will function under all conditions and predict
their expected life. Another benefit is that as an independent service provider
we are never in competition with the Intellectual Property (IP) of other
companies; in fact we can protect our customers' IP.
Automotive
For a number of reasons, the automotive sector promises to be a particularly
dynamic driver of growth for the semiconductor industry. Although the
conventional car is still selling well, electric cars and hybrids are rapidly
gaining ground. Furthermore, the semiconductor content of cars is not only
growing quickly, as they rely on greater intelligence, connectivity and
sophisticated electronics (autonomous drive, car-to-car communication), but the
nature of the automotive industry model is also shifting in new directions.
Conventional cars will eventually disappear. Concepts of product ownership will
give way to service propositions to deliver mobility to consumers who will pay
only for what they use. Creating and managing the systems to deliver that
mobility will depend heavily on complex electronics.
Industrial (Industry 4.0/IoT)
The basic principle of Industry 4.0/ IoT is that by connecting machines,
equipment and systems, businesses are creating intelligent networks along the
entire value chain that can control each other autonomously. Characteristic for
industrial production in an Industry 4.0 environment are strong customisation of
products under the conditions of high flexibilised (mass-) production. The
required automation technology is improved by the introduction of methods of
self-optimisation, self-configuration, self-diagnosis, cognition and intelligent
support of workers in their increasingly complex work. Examples of Industry 4.0
are machines that can predict failures and trigger maintenance processes
autonomously or self-organising logistics that react to unexpected changes in
production.
In addition to Industry 4.0, IoT describes the complete world of different
sensors with electronics and is connected to detect and control temperature,
humidity, light, electricity, etc. in all kind of different applications in the
home (electricity, refrigerator, light, etc.), in cars (car-to-car
communication, internal car communication), in agriculture and elsewhere.
High customer expectations
In the semiconductor industry, and especially the sectors we focus on customers
that have high expectations concerning reliability and quality. These customers
also expect excellent service, on-time delivery, know-how and support. And in
addition to our strategy in which we contribute more actively to new product
development (co-creating and co-operation) and in which we are responsible for
the supply chain management, they also expect us to come up with solutions
during the whole process. These customers see us as the expert. As a consequence
we are responsible for each step in the process. We are fully aware of this and
are acting accordingly. The way we have set up the procedures in our Automotive
Competence Centre is completely in line with this urge for responsibility.
Personnel and organisation
During 2015 RoodMicrotec continued the consolidation process in personnel and
organisation.
In that period 12 employees from different departments left RoodMicrotec. In the
key positions RoodMicrotec hired experienced people to strengthen the position
of RoodMicrotec in the market, such as CTO Martin Sallenhag, CFO Erwin Vrielink,
Dr. Christin Gädtke in Sales & Marketing, Cornelia Gehweiler in SCM and Michael
Dommel in Qualification & Reliability.
The average number of full-time employees (FTE) decreased by approx. 3% from 97
FTEs in 2014 to 94 FTEs in 2015.
Sales per full-time employee increased by approx. 6% from EUR 103,000 in 2014 to
EUR 109,000 in 2015. Our policy is to continue to strive for growth of sales per
FTE.
Vision and Mission
Two major changes in the world will be of great importance for the future of our
company: increasingly outsourcing of activities and the fact that we are living
in a technology driven world. We anticipate that an increasing number of product
design companies will focus on the segments in which they have a strong
position, but also that many of these often vertically integrated companies will
outsource non-core activities to lower their risk exposure. Such activities
would be supply chain management (SCM), testing, assembly and engineering.
Rapid technological innovation is driving growth in the semiconductor industry.
More and more people are connected with each other and with equipment. Equipment
is also connected and communicating with other equipment. And this is only the
beginning. We are entering the fourth industrial revolution: Industry 4.0, the
collective term for embracing a number of contemporary automation, data exchange
and manufacturing technologies. In this context the automotive and industrial
markets will be growth engines for the semiconductor market. In the automotive
sector the main drivers are electric cars and hybrids, autonomous driving and
car-to-car communication.
The developments described above will create a market for specialised service
providers focusing on supporting leaner OEMs and Fabless Companies (FCs). We are
such a specialised service provider, and we have the knowledge to offer these
OEMs and FCs high-quality products, both independently and within our Supply
Chain Management. This forms the basis for our growth potential.
Our mission is to be a knowledge and technology driven service provider in the
field of modern devices that is able to handle the whole chain for complex
requirements as well as individual services.
Strategy
* We will focus on automotive and industrial markets to grow further in both
sectors.
* We will continue to work with fabless companies to show that RoodMicrotec is
a competitive SCM partner and encourage them so strengthen the partnership
with our company.
* We will continue to work with OEMs to show that RoodMicrotec can offer
competitive eXtended SCM in conjunction with design companies.
* We will continue to look for smaller faster turnaround opportunities in
Failure Analysis, Qualification & Reliability and Test.
* We will continue to strengthen our internal quality system by certification
according the new version 2015 of ISO 9001 with focus on risk assessment
which is important for automotive customers amongst others
The above items will result in a good combination of long-term contracts with
long lead times and short term orders with short lead times. Certainly for the
next 4 to 5 years we also need short-term orders to generate cash flow. In the
meantime we will continue to focus on concluding long-term contracts, which will
bring much more stable, predictable recurring revenues and make us the supply
chain specialist.
* To strengthen our technical position for automotive, industrial, Industry
4.0 and IoT we will invest in a new high-technological test system and 12"-
probe equipment.
* To establish direct contact with Tier 1 customers as an ASIC provider. This
will enable us to take on more of the tasks in the complete flow and thereby
generate more and higher sales.
* To strengthen relationships with customers, suppliers and appropriate
partners (foundries, assemblers, design houses, OEMs/system houses). This
will make us stronger as well as a better known and important player.
* Continuous training with focus on development of new technologies and
special requirements from the market, e.g. standard requirements for
automotive.
* To strengthen our awareness in the market by organising seminars on
qualification, failure analysis, outsourcing and supply chain activities.
Outlook for 2016
As a result of new announced arrangements early 2016 and the contracts announced
in 2015, RoodMicrotec expects that turnover will increase substantially in the
coming years. We expect that in 2020 our turnover will approximately be 75%
higher compared to the total turnover of over EUR 10 million in 2015.
Given the increased order value and other positive signals for 2016, we raise
our expectation for turnover in 2016 to the upper end of the marked growth range
(7% to 12%).
Conference call today, 10 March 2016, start 9.30 am
A conference call will be held for press, analysts and other interested parties
on 10 March 2016.
The telephone number to join the call is +31 20 531 5854.
Financial agenda
14 April 2016 Publication annual report 2015
12 May 2016 Publication trading update
26 May 2016 Annual general meeting of shareholders
7 July 2016 Publication sales figures first half 2016
25 August 2016 Publication interim report 2016
25 August 2016 Conference call for press and analysts
15 November 2016 Publication trading update
Forward-looking statements
This press release contains a number of forward-looking statements. These
statements are based on current expectations, estimates and prognoses of the
board of management and on the information currently available to the company.
The statements are subject to certain risks and uncertainties which are hard to
evaluate, such as the general economic conditions, interest rates, exchange
rates and amendments to statutory laws and regulations. The board of management
of RoodMicrotec cannot guarantee that its expectations will materialise.
Furthermore, RoodMicrotec does not accept any obligation to update the
statements made in this press release.
About RoodMicrotec
With more than 45 years' experience as an independent value-added service
provider in the area of micro and optoelectronics, RoodMicrotec offers Fabless
Companies, OEMs and other companies a one-stop shop proposition. With its
powerful solutions RoodMicrotec has built up a strong position in Europe.
Our services comply with the industrial and quality requirements of the high
reliability/space, automotive, telecommunications, medical, industrial and
electronics sectors.
Certified by RoodMicrotec concerns inter alia certification of products to the
stringent ISO/TS 16949 standard that applies to suppliers to the automotive
industry. The company also has an accredited laboratory for test activities and
calibration to the ISO/IEC 17025 standard.
Its value-added services include supply chain management and total manufacturing
solutions with partners, failure & technology analysis, qualification & burn-in,
test & product engineering, production test (including device programming and
end-of-line service), ESD/ESDFOS assessment & training and quality & reliability
consulting.
RoodMicrotec has branches in Germany (Dresden, Nördlingen, Stuttgart), United
Kingdom (Bath) and the Netherlands (Zwolle).
Further information:
Philip Nijenhuis, CEO, Reinhard Pusch, COO/CSO, Martin Sallenhag, CTO, Erwin
Vrielink, CFO
Telephone: +31 38 4215216
Postal address:
RoodMicrotec N.V., PO Box 1042, 8001 BA Zwolle
Email: investor-relations(at)roodmicrotec.com
Web: www.roodmicrotec.com
This press release is published in English, Dutch and German. In case of
conflict between these versions the English version shall prevail.
Consolidated statement of profit or loss
Unaudited
-------------------------------------------------------
(x EUR 1,000)
2015 2014
-------------------------------------------------------
Net sales 10,250 9,971
Cost of sales -1,819 -1,787
Gross profit 8,431 8,184
Personnel expenses -5,862 -6,058
Other operating expenses -2,882 -2,848
Total operating expenses -8,744 -8,906
-------------------------------------------------------
EBITDA -313 -722
Depreciation and amortisation -929 -792
-------------------------------------------------------
EBIT -1,242 -1,514
Financial expenses -187 -161
-------------------------------------------------------
Profit before tax -1,429 -1,675
Taxation -10 -18
-------------------------------------------------------
Net profit -1,439 -1,693
Consolidated statement of other comprehensive income
Unaudited
---------------------------------------------------------------------
(x EUR 1,000)
2015 2014
---------------------------------------------------------------------
Income for the year -1,439 -1,693
Remeasurement of defined benefit obligations 246 -954
Revaluation of building 14 191
---------------------------------------------------------------------
Total comprehensive income -1,179 -2,456
Consolidated statement of financial position (after appropriation of net
result) Unaudited
---------------------------------------------------------------
(x EUR 1,000)
2015 2014
---------------------------------------------------------------
ASSETS
Property, plant and equipment 4,928 5,567
Intangible assets 2,241 1,741
Deferred tax assets 1,083 1,079
Financial assets 488 2,982
---------------------------------------------------------------
Non-current assets 8,740 11,369
Inventories 315 344
Trade and other receivables 1,625 1,712
Cash and cash equivalents 667 192
---------------------------------------------------------------
Current assets 2,607 2,248
---------------------------------------------------------------
TOTAL ASSETS 11,347 13,617
EQUITY AND LIABILITIES
Share capital 5,985 4,788
Share premium 18,979 18,084
Other reserves -20,314 -19,166
---------------------------------------------------------------
Equity, attributable to shareholders 4,650 3,706
Loans and borrowings 2,264 2,306
Retirement benefit obligation 2,349 5,232
---------------------------------------------------------------
Non-current liabilities 4,613 7,538
Loans and borrowings 38 45
Trade and other payables 1,986 2,270
Current tax liabilities 60 58
---------------------------------------------------------------
Current liabilities 2,084 2,373
---------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 11,347 13,617
Accounting policies used in the preparation of the annual accounts
RoodMicrotec N.V.'s annual accounts for the financial year 2015 contain an
overview of the applied accounting policies for financial reporting. The
principles laid out in this overview are in accordance with the standards laid
down by the International Accounting Standards Board (IASB) and approved by the
European Commission, as applicable on 31 December 2015. The accounting policies
have been applied consistently to the periods presented in this press release.
RoodMicrotec N.V. has applied all the new and amended standards and
interpretations applicable to the year under review, which have been laid down
by the IASB and approved by the European Commission and which were in force for
the period beginning 1 January 2015. None of these standards had a material
effect on the Group's financial statements.
Other
The condensed financial information presented in this press release have not
been audited. For the insight required to arrive at a responsible opinion
concerning the financial position and the results of the company, this press
release should be read in combination with the annual accounts.
RoodMicrotec N.V. will publish its annual report 2015 on 14 April 2016. The
annual accounts 2015 will be submitted to the General Meeting of Shareholders
for adoption on 26 May 2016.
RoodMicrotec_Annual Figures 2015_ENG:
http://hugin.info/130789/R/1993257/733794.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: RoodMicrotec N.V. via GlobeNewswire
[HUG#1993257]
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Datum: 10.03.2016 - 08:15 Uhr
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News-ID 456575
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contact information:
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