DGAP-News: AIXTRON SE: Earnings position improved, outlook confirmed / Technology portfolio strengthened by acquisition of PlasmaSi / Qualification of new AIX R6 is moving forward


DGAP-News: AIXTRON SE / Key word(s): Quarter Results/Forecast
AIXTRON SE: Earnings position improved, outlook confirmed / Technology
portfolio strengthened by acquisition of PlasmaSi / Qualification of
new AIX R6 is moving forward

28.04.2015 / 07:33

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AIXTRON: Earnings position improved, outlook confirmed
Technology portfolio strengthened by acquisition of PlasmaSi
Qualification of new AIX R6 is moving forward

Herzogenrath/Germany, April 28, 2015 - AIXTRON SE (FSE: AIXA; NASDAQ: AIXG)
a leading provider of deposition equipment to the semiconductor industry,
today announced financial results for the first quarter 2015.

Q1/2015 revenues at EUR 40.3m (Q1/2014: EUR 43.9 Mio.) were down 8% against
the previous year's level and 31% against the previous quarter (Q4/2014:
EUR 58.0m).

At EUR -6.4m EBITDA in the first quarter 2015 improved both against the
previous year and sequentially (Q1/2014: EUR -7.1m; Q4/2014: EUR -13.9m).

For the first time, the Company's order intake and revenues were influenced
by the large multiple tool order from a Chinese LED manufacturer for 50 AIX
R6 Showerhead(R) MOCVD tools AIXTRON received in September 2014. However, a
large portion of this order will be booked in the course of the financial
year 2015. Overall, order intake including spares and service in the first
quarter 2015 was solid with EUR 48.9m against the previous quarter and year
on year (Q1/2014: EUR 49.5m; Q4/2014: EUR 49.3m). In order to better
reflect industry practice and due to the intensified activities in the
spares & services business, Management has decided to start reporting total
order intake including spares & service.

Within the framework of the second stage of the 5-Point-Program, AIXTRON
has changed its organizational structure in line with changing customer and
market requirements. Alongside cost-cutting measures, AIXTRON is
continuously pursuing new market opportunities, for example with its new
AIX R6 MOCVD product generation and in promising future business fields
such as power and logic semiconductors as well as OLED. The acquisition of
US technology company PlasmaSi, Inc. effective as of April 1, 2015 took
place against this background and offers market as well as customer
synergies with OVPD(R) deposition technology. The technology of PlasmaSi
can be used for the cost efficient production of all OLED applications.
Through increased throughput compared to existing technologies, AIXTRON
sees significant market opportunities for this thin-film encapsulation
process.

 
Key Financials
<pre>
                                         2015  2014  +/-   2015  2014  +/-
(in EUR million)                         Q1    Q1*         Q1    Q4*
Revenues                                 40.3  43.9   -8%  40.3  58.0  -31%
Gross profit                              8.8  10.0* -12%   8.8  10.4* -15%
Gross margin                              22%  23%*  -1pp   22%  18%*   4pp
Earnings before interest, tax,
depreciation and amortization (EBITDA)   -6.4  -7.1   10%  -6.4  -13.9  54%
Operating result (EBIT)                  -8.8  -10.9  19%  -8.8  -18.9  53%
EBIT margin                              -22%  -25%   3pp  -22%  -33%  11pp
Net result                               -9.5  -11.8  19%  -9.5  -19.1  50%
Net result margin                        -23%  -27%   4pp  -23%  -33%  10pp
Net result per share - basic (EUR)       -0.08  -0.11 27%  -0.08 -0.17  53%
Net result per share - diluted (EUR)     -0.08  -0.11 27%  -0.08 -0.17  53%
Free Cash Flow FCF**                     -12.1 -13.8 12%  -12.1   5.9   n/a
                                          ***              ***
Equipment order intake (incl. spares
and service)                             48.9  49.5   -1%  48.9  49.3   -1%
Equipment order backlog (end of period)  79.0  64.2   23%  79.0  65.2   21%
</pre>
*   Restated according to "Additional Disclosures, 1. Accounting Policies"
in the Quarterly Group Financial Report Q1/2015
**  Operating CF + Investing CF + Changes in Cash Deposits
*** Excluding an effect of EUR -1.5m resulting from a short term loan prior
to the acquisition of PlasmaSi, Inc.


Business Development

The global trend towards LED lighting continues. This development as well
as the availability of new and more efficient MOCVD tool generations, does
not yet have a significant impact on investment demand. Compared to the
development in 2010, expansion plans of Chinese manufacturers in particular
are driven by the positive market development, a sustainable demand can be
expected. For the first time, the large tool order received in September
2014 is partially reflected in the figures of the first quarter 2015.

Revenues in Q1/2015 at EUR 40.3m were down 8% compared to the previous
year's level (Q1/2014: EUR 43.9m) and 31% down against the previous quarter
(Q4/2014: EUR 58.0m).

Volume-related first quarter cost of sales were EUR 2.5m lower year-on-year
at EUR 31.5m (Q1/2014: EUR 34.0m; Q4/2014: EUR 47.6m).

This resulted in a gross profit of EUR 8.8m, slightly lower against both
the previous year and sequentially (Q1/2014: EUR 10.0m; Q4/2014: EUR
10.4m).

The operating costs decreased to EUR 17.6m (Q1/2014: EUR 20.9m; Q4/2014:
EUR 29.3m) due to lower R&D expenses and positive currency translation
effects.

As a result of the above mentioned business development the first quarter
2015 EBIT at EUR -8.8m was an improvement from the previous year's figure
of EUR -10.9m (Q4/2014: EUR -18.9m).

The net result for Q1/2015 amounted to EUR -9.5m (Q1/2014: EUR -11.8m;
Q4/2014: EUR -19.1m) due to further cost reductions.

AIXTRON's equipment order intake including spares and service mirrors the
cautious market demand throughout the reporting period. For the first time
the aforementioned large Chinese order took effect so that  the first
quarter order intake at EUR 48.9m was similar to the previous year's EUR
49.5m (Q4/2014: EUR 49.3m).

The total equipment order backlog of EUR 79.0m as at March 31, 2015 was 23%
higher than the EUR 64.2m at the same point in time in 2014 and 21% higher
than the order backlog of EUR 65.2m as at 31 December 2014.

Free cash flow in the first quarter was EUR -12.1m (Q1/2014: EUR -13.8m;
Q4/2014: EUR 5,9m) adjusted for EUR -1.5m resulting from a short-term loan
prior to the acquisition of PlasmaSi, Inc.

Cash and cash equivalents (including bank deposits with a maturity of more
than three months) as of March 31, 2015 amounted to EUR 263.2m, 4.9m down
compared to the previous quarter (December 31, 2014: EUR 268.1m), and EUR
28.8m less than March 31, 2014. The difference from the free cash flow
mainly results from the currency difference of the US$-based cash and cash
equivalents.


Management Review

"Currently, we have contracts with seven LED manufacturers that are
assuring themselves of the performance of our next generation system. Due
to the increasing utilization rates, we expect a positive development for
the demand in production systems. At the same time, we must continue to
focus on the implementation of our 5-point program and, above all, bearing
in mind the cost side. The fact that we are on the right track in this
area, is demonstrated by the improvement of our performance indicators and
progress towards the targeted expansion of our product and technology
portfolio", says Martin Goetzeler, President and CEO of AIXTRON SE. "We
have successfully expanded the technology portfolio in the field of OLED by
the acquisition of PlasmaSi, Inc. at the beginning of April. Thereby, we
will be able to cover nearly two-thirds of the value chain in the front-end
of the OLED production in the future. Also, the preparations for putting
our Gen8 demonstrator into operation for the production of large-area OLEDs
are on track. Furthermore, it is encouraging that customer interest in our
other technologies remains high."


Guidance confirmed

Management pursues growth across all technology areas in 2015 and
therefore, expects full-year revenues to increase to between EUR 220m and
EUR 250m. As the Company will be pressing ahead with implementing its
innovation roadmaps, productivity and efficiency programs across all areas,
Management expects to see a sequential increase of the results in both
halves of 2015 compared with the previous six-month periods and a return to
positive EBITDA numbers in the second half of 2015.


Financial Tables

The Q1 2015 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
quarterly financial report for the first quarter of 2015.


Investor Conference Call 

AIXTRON will host a financial analyst and investor conference call on
Tuesday, April 28, 2015, 3:00 p.m. CEST (6:00 a.m. PDT, 9:00 a.m. EDT) to
review the first quarter 2015 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.



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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, DE000A14KS91                   
WKN:         A0WMPJ, A0D82P, A14KS9                                     
Indices:     TecDAX                                                     
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Munich,           
             Stuttgart; Terminbörse EUREX; Nasdaq                       
 
 
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349323 28.04.2015