Riber Revenue Up 7 Percent
MBE system sales, driven by the development of 5G, show 140 percent growth
Riber, a maker of semiconductor industry equipment, has released its full-year earnings for 2019. Full-year revenues came to €33.4m for 2019, up 7 percent year-on-year. MBE system sales, driven by the development of 5G, show 140 percent growth. This progress offset the flat level of evaporator sales, impacted by the lack of investment in the OLED screen industry. Sales of services and accessories decreased slightly compared to 2018 (-€0.7m).
Operating income climbed to €0.9m, a significant improvement compared with 2018.
The change in revenues for each product line and the €0.5m of non-recurring commissioning costs contributed to the €1.2m contraction in the gross margin for the year (€9.9m in 2019 versus €11.1m in 2018).
Overheads show a significant decrease of €2m (€9m in 2019 versus €11m in 2018), linked to the €1.4m reduction in administrative costs, of which €1.1m of non-recurring costs in 2018. Sales and marketing costs are stable. Gross R&D effort amounts to €2.4m at the same level as in 2018
Net income represents €1.1m, compared with €0.3m for 2018, up €0.8m.
Cash flow and balance sheet
The cash position at end-December 2019 is positive, with €5.9m, up €3.4m from the end of December 2018. This growth reflects the reduction in inventory and the favorable position for deposits received on orders at end-2019, as well as the good level of the company's cash flow from operations.
Shareholders' equity represents €19.2m, stable compared with 2018.
The order book at December 31, 2019 remained high at €28.7m. The MBE systems order book (€21.8m) includes 12 machines to be delivered in 2020, with five production units. The order book for services and accessories is stable year-on-year at €6.9m.
Outlook for 2020
In the context of the Covid-19 epidemic, Riber has adapted its organisation in order to minimize the impact of this health crisis on its business. The company has taken all the measures needed to ensure the safety of its staff and continue operating.
Riber says it has been able to keep almost all its staff operational, working either from home or on site. More specifically, the company is still able to produce and deliver, while continuing to develop its strategic projects. However, the company faces a slowdown in its commercial activity, with certain orders deferred, especially in China, Riber's leading region, where the 5G market is still very buoyant.
Alongside this, the company is continuing to closely monitor its levels of cash and it intends to use some of the support measures put in place by the public authorities.