PRODUCTION STARTED UP AT NEW PLANT
"The execution of our strategy continues as planned, and a significant milestone was reached in Q3 when we started up actual production at the new plant. Our revenue was up by 27% year on year in Q3 2013. However, last year was marked by extraordinarily weak demand. Operating profit before depreciation and amortisation of DKK 4 million met management's expectations. The silicon market continues to be marked by low visibility and growing pricing competition.” Kalle Hvidt Nielsen, CEO
Highlights of the quarter
- Revenue totalled DKK 79.4 million in Q3, up from DKK 62.6 million in Q3 2012 (+26.8%). In the nine months ended 30 September 2013, revenue grew by 9.4%.
- The contribution margin for Q3 was 42.4% against 43.3% in the year-earlier period. Performance was favourably affected by a number of cost efficiencies and adversely affected by changes to the product mix and growing price pressure from customers.
- Other external costs and staff costs were DKK 29.7 million, up from DKK 28.8 million in Q3 2012. The third quarter of 2013 included interim costs in the region of DKK 1 million relating to parallel production lines at two locations in Frederikssund.
- Operating profit before depreciation and amortisation (EBITDA) was DKK 4.0 million in Q3 2013 against an operating loss of DKK 1.6 million in Q3 2012, bringing the EBITDA margin to 5.0% against minus 2.6% in the year-earlier period.
- Working capital was reduced by DKK 15.6 million as at 30 September as compared with 30 June 2013. The reduction was mainly due to a fall in receivables and an increase in payables.
- Cash flows from operating activities were an inflow of DKK 20.9 million in Q3 2013 against an outflow of DKK 8.3 million in the year-earlier period. Costs of production equipment and product development were capitalised in Q3 in an amount of DKK 4.5 million.
- Production was initiated at the new plant in continuation of a successful internal qualification process.
- Management took steps to set up a sales office in Japan.
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Management initiated renegotiations with Topsil’s principal bankers.
Outlook for 2013
Relative to the increased revenue guidance announced on 27 August 2013, Topsil now gives a more precise guidance for 2013 at the level of DKK 310 million. The guidance for EBITDA is unchanged in the region of DKK 20 million.
Any queries regarding this stock exchange announcement may be addressed to the company's CEO and CFO through:
Christina Fris Bjørling, Communications, tel.: +45 2152 1011
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