DGAP-News: AIXTRON SE: Q2 Orders and Revenues Up Again / Phase Two of 5-Point-Program underway / Impending Launch of Next Generation MOCVD Tool


DGAP-News: AIXTRON SE / Key word(s): Half Year Results/Incoming Orders
AIXTRON SE: Q2 Orders and Revenues Up Again / Phase Two of
5-Point-Program underway / Impending Launch of Next Generation MOCVD
Tool

29.07.2014 / 07:33

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AIXTRON Q2 Orders and Revenues Up Again
Phase Two of 5-Point-Program underway
Impending Launch of Next Generation MOCVD Tool 

Herzogenrath, Germany, July 29, 2014 - AIXTRON SE (ISIN DE000A0WMPJ6), a
leading provider of deposition equipment to the semiconductor industry,
today announced revenues of EUR 46.2m for the second quarter of 2014, 5%
higher sequentially (Q1/2014: EUR 43.9m) and 2% higher compared to one year
ago (Q2/2013: EUR 45.3m). Q2/2014 EBIT at EUR -10.6m (Q2/2013; EUR -9.8m)
and net result at EUR -11.6m (Q2/2013: EUR -11.8m) were both also broadly
unchanged year-on-year.

AIXTRON's order intake in Q2/2014 improved by 25% year-on-year to EUR 38.2m
(Q2/2013: EUR 30.5m). Sequentially, orders were up for the fifth
consecutive quarter reflecting an improving market sentiment in the first
half of 2014 (Q1/2014: EUR 37.7m).

The Company has successfully entered Phase Two of its 5-Point-Program,
targeting to return to sustainable profitability. The focus is on lowering
material costs, discretionary spending and the optimization of processes.
At the same time, AIXTRON is currently preparing for the market launch of
its next generation MOCVD production tool in the course of the second half
of this year due to positive customer feedback.


Key Financials
<pre>
                                        2014  2013  +/-  2014  2014  +/-
(in EUR million)                        H1    H1         Q2    Q1
Revenues                                 90.1  85.6   5%  46.2  43.9  5%
Gross profit                             23.4 -35.4 166%  12.6  10.8 17%
Gross margin                              26%  -41% 67pp   27%   25% 2pp
Operating result (EBIT)                 -21.5 -86.1  75% -10.6 -10.9  3%
EBIT margin                              -24% -101% 77pp  -23%  -25% 2pp
Net result                              -23.4 -87.8  73% -11.6 -11.8  2%
Net result margin                        -26% -103% 77pp  -25%  -27% 2pp
Net result per share - basic (EUR)      -0.21 -0.87  76% -0.10 -0.11  9%
Net result per share - diluted (EUR)    -0.21 -0.87  76% -0.10 -0.11  9%
Equipment order intake                   75.9  60.3  26%  38.2  37.7  1%
Equipment order backlog (end of period)  66.4  71.7  -7%  66.4  64.2  4%
</pre>


Financial Highlights

Global demand for LEDs continues to increase, driven by the growing
adoption of LEDs in the general lighting market. Utilization rates of most
leading LED chip manufacturers also remain high. However, the increasingly
positive market sentiment has not yet translated into substantially
increased order levels for AIXTRONs LED manufacturing capacity.
Nevertheless, AIXTRON generated increased revenues sequentially and
year-on-year

The Company's gross profit at EUR 12.6m was 17% higher than in the previous
quarter, mainly due to higher volumes and a more favorable product mix
(Q1/2014: EUR 10.8m). It was up slightly year-on-year compared to EUR 12.3m
in Q2/2013.

Operating expenses at EUR 23.2m were slightly up both sequentially and
year-on-year (Q2/2013: EUR 22.0m; Q1/2014: EUR 21.7m) primarily due to
increased R&D costs.

Consequently, EBIT for Q2/2014 was broadly unchanged sequentially and came
in at EUR -10.6m (Q2/2013: EUR -9.8m; Q1/2014: EUR -10.9m). The net result
for Q2/2014 amounted to EUR -11.6m (Q2/2013: -11.8m; Q1/2014: EUR -11.8m).

AIXTRON's Q2/2014 equipment order intake, at EUR 38.2m, showed a
year-on-year increase of 25% from the EUR 30.5m in Q2/2013. Sequentially,
the equipment order intake was also up (Q1/2014: EUR 37.7m), representing
the fifth consecutive quarter of rising orders. The total equipment order
backlog of EUR 66.4m as at June 30, 2014 was 14% higher than the 2014
opening backlog of EUR 58.1m.

Mainly due to the next generation MOCVD tool being in the qualification
phase at key customers, Research and Development costs in Q2/2014 increased
year-on-year by 22% to EUR 15.5m and 13% sequentially (Q2/2013: EUR 12.7m;
Q1/2014: EUR 13.7m). At 34% of revenues, R&D spending remained at a
relatively high level that underlines the important strategic significance
of AIXTRON's internal R&D capabilities. Further progress was made in SG&A
expenses. They were further reduced sequentially by 13% to EUR 7.9m in
Q2/2014 (Q1/2014: EUR 9.1m).

Mainly due to the operating losses and a scheduled increase of inventories
for new MOCVD tools and spares, free cash flow was down to EUR -17.5m in
Q2/2014 (Q2/2013: EUR -3.7m; Q1/2014: -13.8m). Cash and cash equivalents
(including bank deposits with a maturity of more than three months) as of
June 30, 2014 amounted to EUR 275.6m (December 31, 2013: EUR 306.3m).


Management Review

Martin Goetzeler, President & Chief Executive Officer of AIXTRON SE,
comments on the market environment and the development in the second
quarter: "As evidenced by our 5th consecutive quarter of higher equipment
orders, the demand for LEDs is growing partially due to a wide range of new
LED lighting products being sold into the warehouses and stores, especially
into regions such as China. A successful sell-out to consumers would
represent the next stage of the transition away from traditional to LED
lighting. Evidenced by positive feedback from our customers, we have made
good progress in the qualification process and are preparing for the market
launch of our new MOCVD tool generation later this year. Furthermore, we
continue to push the development of our other technology areas. These
include MOCVD for power electronic and logic applications, ALD for memory,
OVPD for OLED applications and PECVD for carbon nanomaterials including
graphene. Here we continue to see substantial market potential for AIXTRON.
In parallel, we have successfully entered phase two of our 5-Point-Program
specifically addressing the reduction of material costs and discretionary
spending as well as further process improvements preparing the ground to
return to sustainable profitability. In combination with our continued
dedication to R&D, we remain confident that we are on track to bring
AIXTRON back on the path to success".


Guidance

Management reiterates its original guidance for fiscal year 2014 made at
the end of February, for revenues to be in line with those of last year.
Concurrently, the Company is not expected to be profitable on an EBIT basis
over the course of this year. Nevertheless, Management continues to expect
a year-on-year improvement in earnings due to progress made in cost savings
and restructuring.


Financial Tables

The H1/2014 results presentation will be available at
http://www.aixtron.com/en/investors/ir-presentation. 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/en/investors/financial-reports/ as part of AIXTRON's
half year financial report for the first half of 2014.


Investor Conference Call 

AIXTRON will host a financial analyst and investor conference call on
Tuesday, July 29, 2014, 3:00 p.m. CEST (6:00 a.m. PDT, 9:00 a.m. EDT) to
review the first half 2014 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) 444-0296. A conference call audio replay or a transcript of the
conference call will be available at
http://www.aixtron.com/en/investors/dates/conference-call/ following the
conference call.


Contact:

Guido Pickert
Investor Relations and Corporate Communications
T: +49-2407-9030-444
F: +49-2407-9030-445
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 document may contain forward-looking statements regarding the
business, results of operations, financial condition and earnings outlook
of AIXTRON within the meaning of the safe harbor provisions of the US
Private Securities Litigation Reform Act of 1995. These statements may be
identified by words such as "may", "will", "expect", "anticipate",
"contemplate", "intend", "plan", "believe", "continue" and "estimate" and
variations of such words or similar expressions. These forward-looking
statements are based on our current views and assumptions and are subject
to risks and uncertainties. You should not place undue reliance on these
forward-looking statements. Actual results and trends may differ materially
from those reflected in our forward-looking statements. This could result
from a variety of factors, such as actual customer orders received by
AIXTRON, the level of demand for deposition technology in the market, the
timing of final acceptance of products by customers, the condition of
financial markets and access to financing for AIXTRON, general conditions
in the market for deposition plants and macroeconomic conditions,
cancellations, rescheduling or delays in product shipments, production
capacity constraints, extended sales and qualification cycles, difficulties
in the production process, the general development in the semi-conductor
industry, increased competition, fluctuations in exchange rates,
availability of public funding, fluctuations and/or changes in interest
rates, delays in developing and marketing new products, a deterioration of
the general economic situation and any other factors discussed in any
reports or other announcements filed by AIXTRON with the U.S. Securities
and Exchange Commission. Any forward-looking statements contained in this
document are based on current expectations and projections of the executive
board and on information currently available to it and are made as at the
date hereof. AIXTRON undertakes no obligation to revise or update any
forward-looking statements as a result of new information, future events or
otherwise, unless expressly required to do so by law.


End of Corporate News

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Language:    English                                                 
Company:     AIXTRON SE                                              
             Dornkaulstraße 2                                        
             52134 Herzogenrath                                      
             Germany                                                 
Phone:       +49 (2407) 9030-0                                       
Fax:         +49 (2407) 9030-40                                      
E-mail:      invest@aixtron.com                                      
Internet:    www.aixtron.com                                         
ISIN:        DE000A0WMPJ6, US0096061041                              
WKN:         A0WMPJ                                                  
Indices:     TecDAX                                                  
Listed:      Regulierter Markt in Frankfurt (Prime Standard);        
             Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;  
             Terminbörse EUREX; Nasdaq                               
 
 
End of News    DGAP News-Service  
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