The Company will not Return to Profitability within the Current Year.
AIXTRON SE(ISIN DE000A0WMPJ6),a leading provider of deposition equipment to the global semiconductor industry,wrote down EUR 51.5m of inventory due to a significantly slower than expected recovery of demand for MOCVD equipment.
The devaluation followed a comprehensive review of Inventory held,which concluded that despite the positive long-term outlook for the LED industry,the existing stock held was inappropriately high in comparison to the current subdued level of demand in the market.
These non-cash effects will lead to a negative operating result of ca.EUR 78m in Q3/2012 or ca.EUR 113m for the first nine months of 2012.
However,for fiscal year 2012,AIXTRON expects sequentially stronger fourth quarter revenues,albeit considerably less than previously expected.As a result of the unexpected slower demand recovery,the Company will not report a profit in fiscal year 2012.
AIXTRON anticipates for fiscal year 2012,that the Company will achieve full year total revenues of ca.EUR 220m and principally because of the previously described write-offs,the expected negative operating result will be ca.EUR 125m.
For fiscal year 2013,Management expects an increase of demand for LED manufacturing equipment driven by stronger projected demand in the LED lighting market and expects to return to profitability during the year.
Details to AIXTRON's third quarter and first nine months 2012 financials will be published as part of the AIXTRON Nine Months Group Financial Report on October 24,2012 before market opening in Germany.
