- AIXTRON accelerates R&D investments through market downturn -
- EBIT profitability target for 2012 reiterated -
Aachen, Germany, April 26, 2012 - AIXTRON SE (ISIN DE000A0WMPJ6, DE000A1MMEF7), a leading provider of deposition equipment to the global semiconductor industry, openedfiscal year 2012 as expected with subdued Q1 revenues of EUR 42.0m and a correspondingly negative EBIT of EUR -18.3m, reflecting the current trough level market demand. Despite the difficult market conditions, the Company remains focused on delivering further improvements to existing products and services and on acceleratingspecific strategic R&D investments aimed at developing new products for future market opportunities. For the full year 2012, Management reiterated the target of remaining EBIT profitable.
Key Financials
Financial Highlights
With the considerable reduction in order intake
during the second half of 2011, in line with expectations
Q1/2012 revenues came in at EUR 42.0m for the quarter, 80%
down on the EUR 205.4m a year before, and 70% lower
sequentially (Q4/2011: EUR 140.1m). Gross profit decreased by
90% compared to the previous year from EUR 104.2m to EUR
10.3m and 13% sequentially (Q4/2011: EUR 11.8m).
Consequently, and as already predicted by Management in Q4/2011, Q1/2012 finished EBIT negative at EUR -18.3m, compared to EUR 74.9m in Q1/2011 and EUR -16.9m in Q4/2011.
The consolidated net result of the AIXTRON Group came in at EUR -12.3m for Q1/2012 (Q1/2011: EUR 52.3m; Q4/2011: EUR -10.9m).
Heavily influenced by fragile consumer confidence, credit tightness, reduced subsidies and ongoing customer overcapacity, the Company's order intake visibility remainslimited. The Q1/2012 order intake of EUR 31.5m was sequentially broadly in line with the Q4/2011 level of EUR 29.3m (Q1/2011: EUR 210.3m) which suggest that the current order levels may represent the trough level of the current cycle.
Despite the current market conditions, AIXTRON Management contiues to be convinced that the development of a sustainable LED lighting industry will follow this uncertaintransitory period.Set against this difficult environment, the Company remains focused on delivering further improvements to existing products and services and on acceleratingspecific strategic R&D investments focused on developing new products for future market opportunities.This strong R&D focus is reflected in the 32% year on year increase in R&D costs of EUR 16.4m in Q1/2012 (Q1/2011: EUR 12.4m) and the 12% sequential increase compared to the prior quarter(Q4/2011: EUR 14.6m), and additionally in the increased average number of 325 R&D employees in Q1/2012 compared to 316 in Q4/2011 and 252 in Q1/2011.
Management Review
Paul Hyland,President & Chief Executive Officer
at AIXTRON offered the following comment on the current
business and market situation: "Times are undoubtedly
very tough - but we remain convinced that we have built a
strong and resilient foundation to our business, designed to
protect the Company in the difficult climate that the whole
industry is currently operating in. Furthermore, we have
significantly enhanced our existing product portfolio over
the last 18 months, so that we are confident of being highly
competitive in the event of a sudden upturn of demand in the
market. Additionally, despite the very volatile current
economic environment, we have more than just sustained our
MOCVD R&D efforts, we have accelerated our investments into
both next generation MOCVD products and other 'Beyond
LED'products that we believe are necessary to support our
longer-term ambitions."
Outlook
Unfortunately, order intake visibility has not improved to
the point where AIXTRON Management can yet predict a full
year revenue figure. Nevertheless, the Company still targets
to remain EBIT profitable in 2012 under the current
circumstances. On a more positive note; there continues to be
solid evidence of emerging new LED lighting
productdevelopments, increasingly proactive government
engagements and clear company positioning investments.
Financial Tables
The Q1/2012 results presentation as well as 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
, section "Investors, Reports/Presentations", as
part of AIXTRON's quarterly financial report for the
first quarter of 2012.
Investor Conference Call
AIXTRON will host a financial analyst and investor
conference call on Thursday, April 26, 2012, 3:00 p.m. CEST
(6:00 a.m. PDT, 9:00 a.m. EDT) to review the first quarter
2012 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) 444-0297. A conference call audio replay or a
transcript of the conference call will be available at
http://www.aixtron.com
, section "Investors,Reports/Presentations",
following the conference call.
Contact:
Guido Pickert
Investor Relations and Corporate Communications:
T: +49-241-8909-444
F: +49-241-8909-445
invest(at)aixtron.com
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