Zwolle, 29 August 2013
Summary HY1 2013
| (x EUR 1,000) | HY1 2013 | HY1 2012 |
| Sales | 5,504 | 5,688 |
| Gross margin as % of sales | 82% | 82% |
| EBITDA | 202 | 189 |
| EBITDA as % of sales | 4% | 3% |
| EBIT | -264 | -278 |
| EBIT as % of sales | -5% | -5% |
| Net result | -386 | -422 |
| Net result as % of sales | -7% | -7% |
Highlights HY1 2013 compared to HY1 2012
- Sales in the first half of 2013 were € 5.504 million, a decrease of 3% compared to the first half of 2012 (€ 5.688 million).
- Supply Chain Management rose by 20% compared to the first half of 2012, while sales in the other business units decreased by between 5% and 17%. These other business units did contribute to the increasing supply chain activities.
- Expansion of sales capacity by appointment of an experienced international sales manager.
- Reduction of operating costs compared to the first half of 2012 of 7.4% to EUR 4.331 million.
- Net result of EUR -0.386 million compared to EUR -0.422 million in the first half of 2012.
- Improvement of the net debt position compared to the first half of 2012 by EUR 0.2 million to EUR 2.736 million.
- Solvency stable at 45%.
- Long-term liabilities decreased by EUR 0.2 by compared to the first half of 2012, while short-term debts increased by EUR 0.3 million. See also note 3 of this report: 'events after balance sheet date'.
Philip Nijenhuis, RoodMicrotec CEO:
'In the second quarter of the first half year, RoodMicrotec's market showed a clear recovery. This recovery is a reflection of the positive developments in the semiconductor industry (see the reporting of the Semiconductor Industry Association and STST). Moreover, recent indicators, both internal and external, are showing a markedly better outlook for the second half of this year. This raises our conviction that our strategy, focusing on supply chain management (including eXtended Supply Chain), is contributing maximally to our future growth and that it will boost the other business units.'
Performance Indicators | HY1 2013 | HY1 2012 | Change |
| (xEUR 1,000) | |||
| Result | |||
| Net sales | 5,504 | 5,688 | -184 |
| Gross margin | 4,532 | 4,688 | -156 |
| Gross margin as % of net sales | 82% | 82% | 0% |
| EBIT | -265 | -278 | 13 |
| EBIT as % of net sales | -5% | -5% | -10% |
| EBITDA | 201 | 189 | 12 |
| EBITDA as % of net sales | 4% | 3% | 1% |
| Cash flow (net profit + depreciation) | 80 | 45 | 45 |
| Cash flow operational | 152 | -39 | 191 |
| Net result | -386 | -422 | 36 |
| Net result as % of net sales | -7% | -7% | 0% |
| Financing costs | -121 | -144 | 23 |
| Capital, debt & liquidity ratios | |||
| Total assets | 13,111 | 12,421 | 690 |
| Group equity | 5,863 | 5,614 | 249 |
| Net debt | 2,736 | 2,943 | -207 |
| Capital (net debt + group equity) | 8,599 | 8,557 | 42 |
| Gearing ratio (net debt/capital) | 32% | 34% | -2% |
| Solvency (group equity/ liabilities + group equity) | 45% | 45% | 0% |
| Debt ratio (net debt /EBITDA) | 6.8 | 7.8 | -1 |
| Net working capital | -1,391 | -1.007 | -384 |
| Working capital ratio | 0.70 | 0.75 | -0.05 |
| Assets | |||
| Tangible fixed assets | 6,084 | 5.898 | 186 |
| Investment in tangible fixed assets | 271 | 349 | -78 |
| Depreciation of tangible fixed assets | 452 | 453 | -1 |
| Ordinary shares issued | 35,769 | 35,769 | - |
| Data per share (x EUR 1) | |||
| Capital and reserves | 0.09 | 0.16 | -0,07 |
| EBIT | -0.01 | -0.01 | 0,00 |
| Cash flow | -0.02 | 0.01 | -0,03 |
| Net result | -0.02 | -0.01 | -0,01 |
| Number of FTEs (Permanent) | |||
| At month-end | 100 | 107 | -7 |
| Average | 102 | 107 | -5 |
| Sales/ Average FTEs (Permanent) | 108 | 106 | 2 |
Report of the board of management
1. General
In January 2013, Mr Malkit Jhitta joined RoodMicrotec as a Sales Manager. As a result, new orders and customers are expected to increase in the second half of 2013.
The decrease in sales was due to postponed orders and deliveries to customers because of general market circumstances. However, we expect that sales will recover in the second half of 2013 due to a general recovery of the market circumstances. In the course of the second quarter we also received positive signals from customers and the number of order applications for the second half of 2013 increased.
High-tech projects for aeronautical and aerospace, new product developments and outsourcing opportunities are expected to stimulate sales growth in the second half of 2013 and the following years.
1.1 Developments by business unit (product /service group)
RoodMicrotec sales HY1 2013 vs HY1 2012
| (x EUR 1,000) | HY1 2013 | HY1 2012 | Change |
| Test | 2,165 | 2,360 | -8% |
| Supply Chain Management | 1,194 | 992 | 20% |
| Failure & Technology Analysis | 703 | 778 | -10% |
| Test Engineering | 293 | 353 | -17% |
| Qualification & Reliability Investigation | 1,149 | 1,205 | -5% |
| Total | 5.504 | 5.688 | -3% |
The fall in sales in Test en Failure & Technology Analysis was mainly temporary, due to cyclical economic movements and major reorganisations among customers. Over the next few months, we expect a recovery with new impulses for additional sales.
The business unit Test Engineering experienced serious negative consequences from the postponement of orders referred to above. In the course of the second quarter, the situation in Test Engineering improved significantly; so much so that this business unit is now in full operation.
The business unit Qualification & Reliability Investigation showed a minor decrease, due in particular to long-term projects that have not yet completed. We anticipate, however, that this business unit will show stable sales growth over the next few reporting periods.
1.2 Personnel
The number of employees on permanent staff decreased by approx. 7 fte's compared to 30 June 2012 to 100 fte's in total.
1.3 Risk management
The various risks the company is exposed to are listed in RoodMicrotec's 2012 annual report. We strive to limit the risks, inter alia by periodical and systematic risk reviews of selected aspects. These reviews are conducted approx. 8 times every year. Where necessary, corrective measures are taken. In view of the negative developments in the financial markets, the management is devoting additional attention to cash management. Otherwise, the management does not currently foresee any material changes in the risks in 2013.
2. NOTES TO THE FINANCIAL RESULTS
2.1 Sales and result
Sales in the first half of 2013 were € 5.504 million, a decrease of 3% compared to the first half of 2012 (HY1 2012: € 5.688 million).
EBITDA was € 0.201 million (HY1 2012: € 0.189 million), or 4% of sales.
EBIT was € -0.264 million (HY1 2012: € -0.278 million), which equates to -5% of sales.
The net result improved to € -0.386 million (HY1 2012: € -0.422 million), or -7% of sales. This is equivalent to € -0.01 per share.
Net financing costs were € 0.144 million, 16% down on the first half of 2012.
2.2 Cash flow
In the first half year of 2013, we realised cash flow from operating activities of EUR 273,000 (HY1 2012: EUR 105.000). Net cash flow from operating activities improved compared to the same period in 2012 to EUR 152,000 (HY1 2012: -/- EUR 39,000).
3 Events after balance sheet date
As of 1 July, capital insurance policies (that were recognised in financial assets up to 30 June) were paid out. As of 1 July, the capital released of approx. € 380,000 is freely available to the company.
4 Outlook for 2013
In the context of the lower than expected sales in the first few months of 2013, the Semiconductor Industry Association (SIA) has downgraded its sales forecasts for 2013 and 2014 (from 5.2% to 2.1% for 2013 and from 5.2% to 5.1% for 2014). For the second half of this year, SIA still forecasts reasonable growth compared to the first half year.
Our order development, particularly in recent months, confirms that the market is recovering. For this reason, we anticipate for the second half of 2013 and beyond, in accordance with earlier pronouncements, a market recovery and increasing sales for RoodMicrotec. We expect our results to recover accordingly.
5 Financial agenda 2013/2014
| 29 August 2013 | Conference call for press and analysts |
| 14 November 2013 | Publication trading update |
| 9 January 2014 | Publication annual sales figures 2013 |
| 27 February 2014 | Publication annual figures 2013 |
| 27 February 2014 | Conference call for press and analysts |
| 13 March 2014 | Publication annual report 2013 |
| 24 April 2014 | Annual general meeting of shareholders |
| 13 May 2014 | Publication trading update |
| 10 July 2014 | Publication trading figures |
| 28 August 2014 | Publication interim report 2014 |
| 28 August 2014 | Conference call for press and analysts |
| 13 November 2014 | Publication trading update |
About RoodMicrotec
With 40 years' experience as an independent value-added microelectronics and optoelectronics service provider, RoodMicrotec offers a one-stop shopping proposition to fabless companies, OEMs and other business partners.
RoodMicrotec has built up a strong position in Europe with its powerful solutions. Its services comply with the highest industrial and quality requirements as demanded by the high-reliability/aerospace, automotive, telecommunications, medical, IT and electronics sectors.
'Certified by RoodMicrotec' concerns certification of products inter alia to the stringent ISO/TS 16949 standard for suppliers to the automotive industry. The company has an accredited laboratory for testing and calibration activities in accordance with the ISO/IEC 17025 standard.
The value-added services include Extended Supply Chain Management Failure & Technology Analysis, Qualification & Monitoring Burn-In, Test- & Product engineering, Production Test (including device programming and end-of-line service), ESD/ESDFOS assessment & training, quality & reliability consulting, supply chain management and total manufacturing solutions with partners.
RoodMicrotec has facilities in Germany (Dresden, Nördlingen, Stuttgart), UK (Bath) and in the Netherlands (Zwolle).
Further information:
Philip Nijenhuis, CEO - Telephone +31 (0) 38 4215216
Email: investor-relations@roodmicrotec.com - Website: www.roodmicrotec.com
