AIXTRON : off to a good start in 2018

AIXTRON SE (FSE: AIXA), a leading provider of deposition equipment to the semiconductor industry, today announced its financial results for the first quarter 2018.

Order intake including spare parts and service improved in Q1/2018 to EUR 78.6m, an increase of 27% over the previous year and 20% over the previous quarter. This positive order development is mainly due to the continued demand for MOCVD systems for laser applications such as vertical cavity surface emitting lasers (VCSELs) for 3D sensor technology or optical data transmission.

Equipment order backlog increased to EUR 114.9m as of March 31, 2018, an increase of 31% year-on-year and 6% year-on-year compared to December 31, 2017.

The continued positive development in order intake and order backlog was also reflected in revenues, which rose 16% year-on-year as well as 15% sequentially to EUR 62.4m in Q1/2018.

Gross profit and gross margin improved both year-on-year and sequentially in the first quarter of 2018.

Operating result (EBIT) in Q1/2018 improved year-on-year to EUR 7.9m.

Net profit in Q1/2018 rose to EUR 12.3m. In addition to the positive business and cost development, the capitalization of deferred taxes in the amount of EUR 5m had a positive effect (Q1/2017: 0; Q4/2017: EUR 2.3m).

EBIT as well as net profit in Q4/2017 were significantly influenced by the positive effects of the sale of the ALD/CVD product line in the amount of EUR 23.9m.

Cash flow from operating activities amounted to EUR -21.1m in the first quarter of 2018. This development is mainly due to planned payments in connection with the sale of the ALD/CVD product line in Q4/2017.

Cash and cash equivalents (including cash deposits with a maturity of more than 90 days) decreased to EUR 223.2m as of March 31, 2018, compared to EUR 246.5m as of December 31, 2017. The difference is also mainly due to planned payments in connection with the divested ALD/CVD product line and increased receivables due to a high number of deliveries of MOCVD systems at the end of the quarter.

Key Financials

Business Development

AIXTRON opened 2018 with a good first quarter and remains committed to its annual goal of a sustainable return to profitability for 2018. Continued market demand for MOCVD equipment for VCSEL and other laser applications, ROY and specialty LEDs, and power electronics, as well as higher margins and lower costs, support this target.

Cost of sales fell disproportionately less than revenues by 11% from EUR 40.0m in Q1/2017 to EUR 35.6m in Q1/2018, bringing cost of revenues to 57% in the first quarter of 2018 (Q1/2017: 75%; Q4/2017: 61%).

At EUR 18.9m, operating expenses decreased by 28% year-on-year (Q1/2017: EUR 26.4m). Operating expenses as a percentage of sales decreased to 30% in the first quarter of 2018 (Q1/2017: 49%). Operating expenses in the previous quarter were significantly influenced by the positive effects of the sale of the ALD/CVD product line in the amount of EUR 23.9 million and therefore, are not comparable.

Management Review

Dr. Bernd Schulte, President of AIXTRON SE, comments: 'We are pleased with the good start into the new fiscal year. Q1/2018 was AIXTRON's strongest first quarter since 2011, with further increases in revenues and order intake, as well as in order backlog, enabling us to confirm the guidance for 2018 issued in February. We expect both revenues and EBIT to be close to the upper end of the corresponding range. AIXTRON benefits from the robust demand for MOCVD tools for optoelectronics and power electronics as well as the successful realignment of its product portfolio'.

'AIXTRON currently has a very good market position in laser and specialty LED applications as well as promising equipment technologies for power electronics. With our comprehensive roadmap for technology and product development, we ensure the continuous, market-oriented further development of our MOCVD systems for optoelectronics as well as the improvement of our offering in the field of power electronics. In the medium term, we expect power electronics based on gallium nitride and silicon carbide in particular to offer significant potential for the Company,' adds Dr. Felix Grawert, President of AIXTRON.

Guidance

Based on the results for the first three months of the fiscal year 2018 and the internal assessment of the development of demand, AIXTRON Management confirms its 2018 full year guidance given in February 2018 whereby both revenues and EBIT are expected to be close to the upper end of the guidance due to the positive course of business.

For fiscal year 2018, the Management expects revenues and order intake to range between EUR 230 million and 260 million. The gross margin is expected to be between 35% and 40% and EBIT to come in at 5% to 10% of revenues. Operating cash flow for 2018 as a whole is expected to be positive, but lower than in 2017.

Further details can be found in chapter '3.1. Expected Developments ' of the Annual Report 2017, which is publicly available for download on the Company's website at http://www.aixtron.com/en/investors/financial-reports/.

Financial Tables

The Q1/2018 results presentation is available at http://www.aixtron.com/en/investors/ir-presentation. The consolidated financial statements (income statement, statement of comprehensive income, balance sheet, 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 Statement for the first quarter of 2018.

Investor Conference Call

AIXTRON will host a financial analyst and investor conference call on Thursday, April 26, 2018, 3.00 p.m. CEST (6.00 a.m. PDT, 9.00 a.m. EDT) to review the first quarter 2018 results. You can dial into the call at +49 (30) 23 25 31 411 or +1 (862) 701-2734 from 2.45 a.m. CEST (5.45 p.m. PDT, 8.45 a.m. EDT). An audio replay or transcript will be available after the conference call at http://www.aixtron.com/en/investors/events/conference-call/.

Contact:

Guido Pickert
Investor Relations and Corporate Communications
T: +49 (2407) 9030-444
F: +49 (2407) 9030-445

Andrea Su
Investor Relations US
T: +1 (669) 228-3895
Send e-mail