Aixtron anticipates market recovery this year
Aixtron, the Germany-based manufacturer of MOCVD equipment, has reported revenue of €91.3 million for the full fiscal year 2003.
The figure represents a drop of almost 40% on the company’s 2002 revenue, €150.7 million. Aixtron recorded a net loss of €19.2 million for 2003, compared with a profit of €15.3 million in the prior year.
It’s not all doom and gloom, however. Aixtron is forecasting a return to growth this year, with revenue predicted to come in at €121 million, which would amount to a 33% increase. Aixtron believes that it will break even on this figure.
Blaming the 2003 slump on a variety of factors, including the weak dollar, the war in Iraq and the effect of the SARS virus in Asia (as Aixtron’s biggest market, Asia represents 72% of the company’s revenue), Aixtron believes that it has at least maintained a market share of more than 60%.
“2003 has been the most difficult in Aixtron’s 20-year history,” said Aixtron’s president and CEO Paul Hyland. “During 2003 we took the decisions to restructure our organization…and to further develop our out-sourcing strategy,” Hyland added.
“We now go into 2004 in a better position to capitalize on the market recovery that we now appear to see some signs of,” continued Hyland. He believes that the LED market will remain strong.
Owing to the 2003 difficulties, Aixtron has decided not to pay a dividend to its shareholders, although the company says that its balance sheet remains strong with €45.3 million cash and no debt.
