ROODMICROTEC : - Trading update; Limited sales increase, and major order in automotive sector

  
In the third quarter of 2015, sales saw a limited increase on the average for the first two quarters of this year. This was somewhat below expectations. On the other hand, in line with expectations, RoodMicrotec booked some large long-term orders in the first nine months of 2015, which will generate stable recurring sales for the next few years.

In the first nine months of 2015, the quote portfolio expanded further. Besides, well over 50% of the offers are converted into orders (hitrate). The book-to-bill ratio continues to rise, and stood at 1.5 in Q3 2015.

Major order in automotive sector
In the fourth quarter, RoodMicrotec secured yet another major order with total sales of approx.
€ 10 million and a 10-year term. The customer is active in the automotive sector with high-grade and sophisticated technology. The first invoicing in the engineering (pre-production) phase will take place in the second quarter of 2016. Volume production is expected to kick off in the fourth quarter of 2017, and from this time annual invoiced amounts will be on average € 1 million.

Besides this new order, RoodMicrotec in recent months has secured the following major orders:

• a supply chain order in the automotive sector representing total sales of approx. € 25 million, which will run 10 years (press release 2 July 2015);
• collaboration agreement with one of Europe's leading and most successful fabless companies (design houses), for which both individual services and backend manufacturing services will be provided (press release 24 August 2015);
• contract with a OEM (Original Equipment Manufacturer) to engineer and provide volume production of a new product (chip) representing total sales of approx. € 9 million, which will run more than 7 years (press release 1 September 2015).

'RoodMicrotec has secured major orders in recent months and is very proud of this new order because this customer's requirements are very high indeed. This shows that the automotive industry has great confidence in RoodMicrotec. Our quote portfolio, hitrate and book-to-bill ratio provide us with an excellent foundation. As indicated before, however, projects have long lead times, so that it is difficult to make definite statements every quarter or half year. Consequently, it is also hard to give definite information about when marked or significant sales growth will be realised. This may occur some months earlier or later. But it is not a question of if, just of when it will happen,' said Vic Tee, chairman of the Supervisory Board.

Outlook for 2015
Second half of 2015 will show an increase of sales compared to the first half of 2015. Our quote portfolio, hitrate and book-to-bill ratio provide us with an excellent foundation. But it is too early to say when this will lead to a marked or significant sales increase.

We maintain our previously stated long-term objective of annual autonomous growth of between 3% and 13% at an average growth of the semiconductor market of 6%, and of improving the operating result and the net result.

Adjusted financial agenda 2016

About RoodMicrotec
With more than 45 years' experience as an independent value-added service provider in the area of micro and optoelectronics, RoodMicrotec offers Fabless Companies, OEMs and other companies a one-stop shop proposition. With its powerful solutions RoodMicrotec has built up a strong position in Europe.

Our services comply with the industrial and quality requirements of the high reliability/space, automotive, telecommunications, medical, IT and electronics sectors.
Certified by RoodMicrotec concerns inter alia certification of products to the stringent ISO/TS 16949 standard that applies to suppliers to the automotive industry. The company also has an accredited laboratory for test activities and calibration to the ISO/IEC 17025 standard.
Its value-added services include failure & technology analysis, qualification & 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 branches in Germany (Dresden, Nördlingen, Stuttgart), United Kingdom (Bath) and the Netherlands (Zwolle).

Further information:
Erwin Vrielink, CFO                    Telephone: +31 38 4215216
Postal address:
RoodMicrotec N.V., PO Box 1042, 8001 BA  Zwolle
Email:       investor-relations@roodmicrotec.com:
mailto:investor-relations@roodmicrotec.com
Web:          www.roodmicrotec.com:
http://www.roodmicrotec.com