AIXTRON SE, a leading provider of deposition equipment to the semiconductor industry, today announced revenues of EUR 45.3m for the second quarter of 2013, representing a quarterly sequential increase of 13 percent compared to EUR 40.2m in Q1/2013. AIXTRON also recorded improvements in its gross profit and operating result (EBIT).
This development reflects first positive impacts from the 5-Point-Program, which was started in Q1/2013. Efficiency improvements and cost cutting measures resulted in reductions in both cost of sales and operating expenses.
Key Financials
* Operating CF + Investing CF + Changes in Cash Deposits
Investment demand from LED manufacturers remained subdued despite a continued reduction of production overcapacities in the market. This was also reflected in the development of order intake (Q2/2013: EUR 30.5m; Q1/2013: EUR 29.9m).
Gross profit in Q2/2013 amounted to EUR 12.3m and thus came in significantly better than the previous quarter which had been affected by inventory write-downs (Q1/2013: EUR 47.7m; Q2/2012: EUR 14.7m; H1/2013: EUR 35.4m; H1/2012: EUR 25.0m). The Q2/2013 gross profit also benefitted from a favorable product mix.
The Q2/2013 EBIT of EUR -9.8m improved against both the previous year's and the last quarter's results (Q2/2012: EUR -16.5m; Q1/2013: EUR -76.3m; H1/2013: EUR -86.1m; H1/2012: EUR -34.7m). As mentioned above, this sequential development also reflects the initial success of the 5-Point-Program which began in Q1/2013.
The net result for Q2/2013 amounted to EUR -11.8m, representing a significant improvement over the EUR -76.0m in Q1/2013 (Q2/2012: -11.6m; H1/2013: EUR -87.8m; H1/2012: EUR-23.9m).
Free cash flow in the first half of 2013 amounted to EUR 5.6m, despite a net cash outflow of EUR -3.7m in Q2/2013. As of June 30, 2013, AIXTRON recorded cash and cash equivalents, including bank deposits with a maturity of more than three months, of EUR 215.9m (EUR 219.9m as of March 31, 2013; EUR 209.5m as of December 31, 2012).
5-Point-Program
This program, presented by the CEO in May 2013, consists of a number of targeted individual projects, which are all designed to address the following five topics: 1) focus on customer benefits; 2) utilization of technology and product portfolio; 3) processes; 4) attention to financial targets; 5) strengthening of AIXTRON's corporate culture.
The program consists of a series of different projects. After planning and implementing an improved product development process, a specific initiative for the optimization of the AIXTRON supply chain has been started. The aim is to increase efficiency on a global scale in procurement, logistics and inventory-management. In addition, AIXTRON continues customer-specific measures, e.g. to increase output and yield of the installed base. Another major objective of the Company program is to reduce operating expenses by 20%.
Management Review
Martin Goetzeler, President & Chief Executive Officer at AIXTRON SE since March 1, 2013, firmly believes in the success of the transformation measures: "With our 5-Point-Program we are on track to regain sustainable profitability. Our main focus is on innovative technology solutions, increasing the production efficiency of our customers as well as the efficiency of our own core process flows. This is valid for all of our targeted growth markets, including applications beyond LED, such as next generation memory chips. Our Q2 figures show first positive results of the successful implementation of our 5-point-program."
The rising rates of capacity utilization at leading LED manufacturers give reason to believe that the overcapacity in the market for MOCVD equipment for the production of LEDs continues to diminish. However, it remains difficult to predict, when and to what extent this will translate into significant new equipment orders. Due to this continuing low visibility, Management remains unable to give precise guidance on the Company's revenues and EBIT margin for the current financial year.
Financial Tables
The H1/2013 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 Reports/Presentations, as part of AIXTRON's financial report for the first half of 2013.
