Riber's loss widens on weak demand and dollar
France-based MBE equipment supplier Riber has reported a 22% drop in sales from 2003 to 2004.
The company registered €13.5 million ($17.5 million) in revenue for fiscal 2004, €1 million of which arose from sales by the Addon components business that it acquired last year.
The downturn in sales of MBE equipment, primarily the result of weak demand for research machines last year, had a big impact on the company's bottom line.
Riber's net loss widened from €3.8 million in 2003 to €11.5 million last year.
The slumping value of the US dollar during 2004 also had a negative impact, says Riber, especially given that its main competitor, Veeco, sells in the US currency.
As a result, Riber held only €5.8 million in cash and cash equivalents at the end of last year, compared with €9.8 million one year previously.
With a sales order backlog of €9.8 million for 2005, Riber is not expecting a strong upturn in demand for production machines in the near future, although it does reckon that the research sector will continue to be more positive. The company does is forecasting an overall increase in revenue from 2004 to 2005.
Riber says that it is "refocusing" its growth strategy and is also taking measures to cut costs. One of these measures is the sale of its Rueil-Malmaison site, which is expected in mid-2006. The site sale will mean that Riber's production activity will be concentrated in one location.