IMPROVED PERFORMANCE IN A CONTINUED DIFFICULT MARKET
ET | Source:Cemat A/S
FINANCIAL RESULT FOR THE YEAR
Topsil’s revenue for 2013 was DKK 312.1 million (expectation of revenue in the region of DKK 310 million), an 8% year-on year increase.
EBITDA was DKK 21.0 million (expectation of EBITDA about DKK 20 million), which was a 64% year-on-year increase.
Topsil generated a cash inflow of DKK 18.3 million against a cash outflow of DKK 3.8 million in 2012
Despite the improved performance, the business is not yet profitable. For this reason, Topsil's Management does not consider the financial results to be satisfactory and will continue to work hard to improve performance in 2014.
Topsils primary market, the power market, was characterised by marginal volume growth but a decline of about 3% in terms of value. Expected growth in areas such as the transportation and automotive sectors failed to materialise and growing demand for power electronics for energy infrastructure was not strong enough to change that.
The long-term market trends for sales of ultra-pure silicon are positive. The growth economies need stable and efficient power grids, and mega cities need infrastructure and efficient transport solutions, which is expected to lead to growing global demand for energy.This requires high-performing, ultrapure silicon of the kind Topsil can manufacture as one of very few players worldwide.
STRATEGY “EXECUTING ON OPPORTUNITIES” 2013-2015
The strategy, “Executing on Opportunities”, aims to make Topsil stronger through long-term profitable growth. This growth is to be generated through aggressive marketing efforts combined with a large number of in-house efficiency improvements.
The results achieved in 2013 included:
Revenue from FZ-PFZ products increased by 27% year on year, and we submitted next-generation FZ-PFZ wafers (200 mm diameter) for customer qualification. Qualification is currently in progress at several major customers.
We continued our work to build up customer relations on the strategically important Japanese market. Qualification was initiated at several key customers, and we established a subsidiary in Japan towards the end of the year. In early 2014, we signed an agreement with a Japanese business partner to grow the market and strengthen sales.
Our focus on sourcing partnerships with suppliers and production efficiency resulted in substantial cost improvements.
After our new plant for production of ultra-pure silicon was qualified by customers, we began transferring production from our previous location.
opsil Poland was certified to the TS16949 standard, and all our production locations are now covered by the certification. The TS16949 standard is a demanding quality management standard that originates from the automotive industry, and which is demanded by both current and potential customers.
EXPECTATIONS FOR 2014
Revenue for 2014 is expected to be at the 2013 level, which was positively affected by extraordinary orders in Q2 to the extent of DKK 10 million.
For 2014, EBITDA is expected, as a minimum, to be at the 2013 level, as efficiency improvements and cost reductions in production and the supply chain are expected to compensate for the adverse effect of lower sales prices. This guidance includes temporary costs of operating at two locations in Denmark and one-off costs related to the planned move of all production to the new plant and closure of the old plant. These costs are estimated to be in the region of DKK 5 million.
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