-Increased Order Intake and EBIT profitability expected to return within H2/2012 -
- 2013 expected to be a growth year -
- AIXTRON's non-LED activities gaining traction -
Aachen, Germany, July 26, 2012 – AIXTRON SE (ISIN DE000A0WMPJ6), a leading provider of deposition equipment to the global semiconductor industry, has seen its Q2 revenues and orders stabilize at the levels of Q1. With EUR 46.1m in revenues and an EBIT of EUR -16.5m, the Company has achieved a sequential improvement of its financial results. There is also evidence of improved capacity utilizations among LED producers and current quotation levels suggest that a bottom in the order intake cycle may have been reached. However, the prevailing market uncertainty makes the magnitude and timing of the equipment demand pick-up still difficult to forecast with any certainty, which may also affect the Company's ambition to be EBIT profitable in fiscal year 2012. The Company expects nevertheless to return to profitability in the course of the second half of this year.
Key Financials
Financial Highlights
Q2/2012 revenues have increased by 10% to EUR 46.1m compared to the previous quarter (Q1/2012: EUR 42.0m). For the total reporting period of H1/2012, AIXTRON recorded revenues of EUR 88.1m, a decrease of EUR 292.9m, or 77%, compared to EUR 381.0m for H1/2011.
The gross margin increased by 7 percentage points from 25% in Q1/2012 to 32% in Q2/2012, mainly due to a favorable product mix and currency effects. The H1/2012 gross margin was reported at 28%, down from 48% in the same period last year.
The EBIT remained negative, but improved by 10% sequentially, from EUR -18.3m in Q1/2012 to EUR -16.5m in Q2/2012. The H1/2012 EBIT decreased on a year-on-year comparison by 127%, from EUR 129.2m in H1/2011 to EUR -34.7m in H1/2012. This development was principally due to the significantly reduced gross profit, resulting from the lower sales volumes, coupled with an increasing absolute operating cost base, mainly driven by higher investments into R&D and currency effects.
In line with expectations, AIXTRON's order intake volume remained stable during the second quarter of this year. New orders amounted to EUR 30.0m and were broadly in line with the Q1 level of EUR 31.5m, possibly marking the trough level of the current investment cycle. The total H1/2012 order intake of EUR 61.5m compares to a H1/2011 level of EUR 432.5m.
Encouragingly, AIXTRON is seeing its non-LED business gaining traction. The Company recorded an increase in silicon equipment orders during H1/2012, strongly influenced by a major order placed by a leading Korean DRAM manufacturer for AIXTRON's next generation QXP-8300 ALD deposition tool. The Company also recorded several orders from the high potential power electronics market for both R&D and production tools.
Management Review
Paul Hyland, President & Chief Executive Officer at AIXTRON, remains confident that AIXTRON will benefit from the next major LED Investment cycle: "Recent reports from lighting companies confirm the increased growth dynamics of the LED lighting market, which we believe will trigger significantly higher demand for LED production equipment in the coming years." Paul Hyland reiterates the importance of a strong R&D: "As part of our long-term strategy to retain AIXTRON's technology market leadership, we continue to pursue our focused R&D programs which are not just limited to the development of next generation MOCVD tools, they also include technologies for other promising growth markets. As a result of these activities, we are today gaining traction in new emerging MOCVD applications and other technology markets, including Silicon Semiconductor and Organic Material applications which include OLEDs."
Outlook
Management continues to believe that orders and revenues in the second half of 2012 will pick up compared to the first six months of 2012. However, the recent perceived higher short-term macro-economic risks in the end markets AIXTRON addresses, has increased the timing risks on the predicted orders and shipments in the second half of the year. This development may also affect the Company's ambition to be EBIT profitable in 2012. Therefore, order intake and shipment commitments in Q3 and early Q4 will largely determine the full extent of the year end performance. The Company expects nevertheless to return to profitability in the course of the second half of this year. That said, AIXTRON will also continue to review and implement appropriate cost-saving measures to optimize the year-end result. Furthermore, the Company expects to see significantly higher demand and growth in 2013.
