DGAP-News: AIXTRON SE / Key word(s): Quarter Results/Development of
Sales
AIXTRON: Market correction and currency effects dilute result /
Unscheduled demand slow-down does not derail LED lighting vision /
AIXTRON exercises operational business flexibility in response to
market weakness
27.10.2011 / 07:29
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Market correction and currency effects dilute AIXTRON result
Unscheduled demand slow-down does not derail LED lighting vision
AIXTRON exercises operational business flexibility in response to market
weakness
Aachen, Germany, October 27, 2011 - AIXTRON SE (ISIN DE000A0WMPJ6,), a
worldwide leading provider of deposition equipment to the semiconductor
industry, today announced the consolidated financial results for the third
quarter and first nine months of 2011.
Key Financials
|[![CDATA[|[pre|]]]|]
2011 2010 +/- 2011 2011 +/-
(in EUR million) 9M 9M Q3 Q2
Revenues 470.8 559.1 -16% 89.8 175.6 -49%
Gross profit 219.7 294.5 -25% 38.7 76.9 -50%
Gross margin 47% 53% -6 pp 43% 44% -1 pp
Operating result (EBIT) 129.8 189.6 -32% 0.6 54.3 -99%
EBIT margin 28% 34% -6 pp 1% 31% -30 pp
Net result 90.5 130.9 -31% 0.0 38.2 -100%
Net result margin 19% 23% -4 pp 0% 22% -22 pp
Net result per share - basic
(EUR) 0.90 1.31 -31% 0.00 0.38 -100%
Net result per share - diluted
(EUR) 0.89 1.29 -31% 0.00 0.38 -100%
Equipment order intake 484.1 544.3 -11% 51.5 222.2 -77%
Equipment order backlog (end 244.8 278.7 -12% 244.8 373.5 -34%
of period)
|[![CDATA[|[/pre|]]]|]
Financial Highlights
In the third quarter of 2011, the previously high investment activities by
Asian LED manufacturers, driven by substantial government funding, have
become restrained by an unscheduled but significant slow-down in demand.
This partially resulted from insufficiently developed end-market demand,
but is also evidence of some financing pressures on the Asian LED
manufacturers, including increasing credit tightness in this region.
As a consequence, AIXTRON equipment order intake in Q3/2011 decreased
sequentially by 77% to EUR 51.5m (Q2/2011: EUR 222.2m). Equipment order
intake of the 9 month 2011 period came in at EUR 484.1m and was 11% lower
in a year on year comparison (9M/2010: EUR 544.3m).
Quarterly revenues decreased by 49% sequentially from EUR 175.6m in Q2/2011
to EUR 89.8m in Q3/2011. In a year on year comparison, the 9M/2011 revenues
of EUR 470.8m were down by 16% (9M/2010: EUR 559.1m). This sudden decrease
in revenues is principally down to a small number of significant customer
delayed deliveries, which are also reflected in the order backlog
adjustment, announced on September 15th.
The Company's gross margin decreased sequentially by 1 percentage point,
from 44% (EUR 76.9m) in Q2/2011 to 43% (EUR 38.7m) in Q3/2011. In 9M/2011,
the gross margin recorded was EUR 219.7m in absolute terms or 47% of sales,
25% or 6pp down from the same period of the previous year (9M/2010: EUR
294.5m, 53% of sales). The year on year decrease by comparison was mainly
due to adverse effects the currency had on revenues resulting in higher
cost of sales relative to revenues.
The Q3/2011 EBIT came in slightly above break-even, at EUR 0.6m with a 1%
EBIT margin (Q2/2011: EUR 54.3m or 31% margin). In 9M/2011 EBIT was EUR
129.8m with a 28% EBIT margin (9M/2010: EUR 189.6m or 34% margin). This
EBIT decline is largely due to lower revenues at the previously planned
cost base and due to the adverse effects of quarter-end mark-to-market of
pending hedging instruments and customer deposits in the third quarter of
2011. Without these non-operational currency related effects, recorded as
other operating expenses, the Q3/2011 EBIT would have been EUR 13.0m or 14%
of sales.
Management Review
Despite the current market correction, the AIXTRON Management remains
convinced that the development of a sustainable LED lighting industry will
follow this temporary period of uncertainty.
Paul Hyland, President & Chief Executive Officer at AIXTRON: 'There can be
no doubt in anybody's mind that the LED lighting investment cycle will come
and will be the biggest end market opportunity this industry has ever seen.
It is not a question of 'If' it is only a question of 'When'.
As you would expect; In the difficult market conditions we face today, we
are exercising our operational business flexibility and have already
initiated immediate cost reduction measures to ensure that the margin
effect of reduced shipping volumes is minimized.
However, the shorter-term market challenges we face will not distract us
from the longer-term market opportunities, into which we are continuing to
extensively invest in, through our R&D programs. We have a comprehensive
pipeline of product developments in progress which directly address the
needs of our customers to produce the highest quality products at the
lowest possible manufacturing cost and I am in no doubt, that the products
in development, will reinforce our traditionally very strong positioning in
all of the markets we serve.'
Outlook
AIXTRON Management confirms the guidance for the full fiscal year 2011
given on September 15, and is expecting revenues of EUR 600 million to EUR
650 million and an EBIT margin of circa 25-30%.
Financial Tables
The 9M/2011 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
2011.
Investor Conference Call
AIXTRON will host a financial analyst and investor conference call on
Thursday, October 27, 2011, 3:00 p.m. CEST (6:00 a.m. PDT, 9:00 a.m. EDT)
to review the first half-year 2011 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@aixtron.com
For further information on AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6;
NASDAQ: AIXG, ISIN US0096061041) please consult our website at:
www.aixtron.com.
Forward-Looking Statements
This news release may contain forward-looking statements about the
business, financial condition, results of operations and earnings outlook
of AIXTRON within the meaning of the 'safe harbor' provisions of the United
States Private Securities Litigation Reform Act of 1995. Words such as
'may', 'will', 'expect', 'anticipate', 'contemplate', 'intend', 'plan',
'believe', 'continue' and 'estimate', and variations of these words and
similar expressions, identify these forward-looking statements. The
forward-looking statements reflect our current views and assumptions and
are subject to risks and uncertainties. You should not place undue reliance
on the forward-looking statements. The following factors, and others which
are discussed in AIXTRON's public filings and submissions with the U.S.
Securities and Exchange Commission, are among those that may cause actual
and future results and trends to differ materially from our forward-looking
statements: actual customer orders received by AIXTRON; the extent to which
chemical vapor deposition, or CVD, technology is demanded by the market
place; the timing of final acceptance of products by customers; the
financial climate and accessibility of financing; general conditions in the
thin film equipment market and in the macro-economy; cancellations,
rescheduling or delays in product shipments; manufacturing capacity
constraints; lengthy sales and qualification cycles; difficulties in the
production process; changes in semiconductor industry growth; increased
competition; exchange rate fluctuations; availability of government
funding; variability and availability of interest rates; delays in
developing and commercializing new products; general economic conditions
being less favorable than expected; and other factors. The forward-looking
statements contained in this news release are made as of the date hereof
and AIXTRON does not assume any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by law.
End of Corporate News
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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@aixtron.com
Internet: www.aixtron.com
ISIN: DE000A0WMPJ6, US0096061041
WKN: A0WMPJ
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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143460 27.10.2011
DGAP-News: AIXTRON: Market correction and currency effects dilute result / Unscheduled demand slow-down does not derail LED lighting vision / AIXTRON exercises operational business flexibility in response to market weakness
| Source: EQS Group AG