Profitable Aixtron watchful on "stormy" market
MOCVD equipment supplier Aixtron returned to profitability in 2004 after posting full-year sales of €140 million ($180 million).
That represents a 55% improvement on the 2003 revenue figure, which was carried through to the bottom line as the Aachen, Germany, company posted a profit of €7.1 million.
In 2003, which Aixtron had described as the "most difficult in its 20-year history" (see related story), the company made a loss of €17.8 million.
The burgeoning LED market was largely responsible for the improvement, with the sector accounting for 81% of equipment despatched in 2004. In 2003, the equivalent figure was 74%.
The outlook appears positive as well, with orders up 40% on the previous year, while the company claims to be maintaining its sales prices and taking market share from its competitors.
However, Aixtron CEO Paul Hyland warns that some more difficulties may lie ahead. "As is being predicted by many market watchers, we believe that the business climate may remain difficult for the next 12 months," he said. After a very strong first half to 2004, the market appeared to weaken in the remainder of the year, he added.
"The market confidence recovery we saw in late 2003 and 2004 is still fragile. I believe it will be another tough year, and one in which we may still experience some more stormy weather," said Hyland.
As well as being upbeat on the prospects for the newly-acquired Genus division, Aixtron says that the emerging application for LEDs being used to backlight large displays and the next-generation DVD market will benefit the company in the near future.
"The manufacturers of the next-generation DVD players are waiting in the wings, and several manufacturers have already chosen Aixtron equipment for the intended mass production of blue lasers."
