Aixtron confirms growth guidance
SiC and GaN power electronics strongest demand drivers with revenues, margins and earnings increased
Aixtron has announced revenues in the first nine months of 2023 increased by 49 percent to €415.7 million (9M/2022: €279.9 million). In the third quarter 2023, revenues reached €165.0 million, up 86 percent versus the same period last year (Q3/2022: €88.9 million).
Aixtron's systems for power electronics based on GaN and SiC accounted for the largest share in total revenues. In the third quarter 2023, revenues for SiC and GaN-systems reached €116.0 million, a total of 82 percent of the equipment revenue share (9M/2023: €286.4 million; 82 percent). In comparison, in the first nine months of 2022, equipment for these material systems generated a combined share of 37 percent of the company's equipment revenues. In the third quarter 2022, their share in equipment revenues reached 51 percent.
Aixtron says a key factor for the strong performance in Q3 2023 was the introduction of the new G10-GaN, launched in September 2023. The G10-GaN is a compact cluster solution that can be equipped with up to three process modules, delivering a capacity of 15x200 mm wafers.
In the third quarter 2023, Aixtron received orders for the G10-GaN from many existing as well as new customers. Aixtron expects the G10-GaN to generate more than 50 percent of its total GaN revenues in 2024.
Besides the G10-GaN, the new G10 product portfolio consists of the G10-SiC for efficient power electronics based on SiC and the G10-AsP for Micro LED and laser devices.
Aixtron will invest up to €100 million to build a new Innovation Center at its headquarters in Herzogenrath, Germany to expand its research and development (R&D) capacities.
Orders
In the first nine months of 2023, Aixtron's high-level order intake increased by another 2 percent year-on-year, reaching €436.2 million (9M/2022: €425.6 million). In the third quarter 2023, the order intake was at €118.5 million and below the previous year's quarter (Q3/2022: €142.8 million). As the demand in particular for efficient power electronics remains strong, Aixtron fully confirms its full-year-guidance and expects a correspondingly higher order intake in the fourth quarter 2023.
The order backlog on September 30, 2023, was with €368.0 million on comparable levels as in the same period last year (9M/2022: €369.4 million).
Earnings
Gross profit in third quarter 2023 was €76.2 million, which equals a growth of 94 percent, almost doubling the results achieved in the same period of the previous year (Q3/2022: €39.3 million). Due to the improved product mix, the gross margin increased significantly to 46 percent (Q3/2022: 44 percent). In the first nine months of 2023, Aixtron's gross profit grew by 60 percent reaching €180.8 million resulting in a gross margin of 43 percent (9M/2022: €113.1 million; 40 percent).
Aixtron concluded the third quarter 2023 with an operating result (EBIT) of €45.3 million and an EBIT margin of 27 percent, an increase of 180 percent and 9 percentage points (Q3/2022: €16.2 million; 18 percent). In the first nine months of 2023, the operating result (EBIT) reached €93.4 million, with an EBIT margin of 22 percent (9M/2022: €47.6 million; 17 percent). The profit for the period in the first nine months of 2023 increased significantly by 66 percent to €83.5 million (9M/2022: €50.2 million). Of this, €39.6 million were achieved in the current year's third quarter, an increase of 107 percent compared to the same period in 2022 (Q3/2022: €19.1 million).
2023-full-year growth guidance confirmed
Due to the unabated strong demand, the Executive Board expects the strong growth – especially in the segment of efficient power electronics – to continue for the remainder of the financial year. Accordingly, the guidance for FY/2023 is fully confirmed, with an expected order intake between €620.0 million and €700.0 million, revenues to range between €600.0 million and €660.0 million, an expected gross margin of approx. 45 percent and EBIT margin of around 25 percent to 27 percent.
"Aixtron's success grounds on several factors. One important driver is our sense for new trends of global impact. Combined with our innovative strength, we are able to develop solutions for the future demand at a very early stage and to successfully position them on the market. The perfect example for that is our new G10 product family which supports the expansion of our strong competitive position," says Felix Grawert, CEO and president of Aixtron SE.
"Further important elements of our success are our employees and sustainability. Aixtron is an attractive employer, offering a modern working environment and a meaningful task. All of this enables us to recruit new talents, strengthening the organisation from within to be best prepared for the expected continuous growth," says Christian Danninger, CFO of Aixtron SE.
