Aixtron predicts annual loss with subdued outlook
MOCVD and atomic layer deposition (ALD) equipment provider Aixtron posted sales of €22.2 million and a net loss of €0.9 million in the first three months of 2005.
With the German company listed on the NASDAQ stock exchange following its recent acquisition of ALD specialist Genus, Aixtron now reports its finances quarterly.
As well as Aixtron's sales being noticeably lower than those reported for the equivalent period last year (€26.6 million), orders were also down by 25%.
CEO Paul Hyland said that Aixtron had been affected by a "subdued economic outlook for 2005 and continued weakness in the semiconductor industry".
However, the company does predict an increase in full-year revenue for 2005 to €160 million-€170 million.
But while last year Aixtron made a €7.1 million million profit on total sales of €140 million, the company is now expecting to record a €10 million loss in 2005 "“ although this is a figure that will include costs attributable to the acquisition of Genus.
Discounting the effects of this acquisition, Aixtron says that its core MOCVD business will break even this year, despite the significant increases in LED manufacturing capacity that were made in 2004.
Following the recent build-up of LED manufacturing capacity in Asia, Aixtron's sales in the region fell to 54% of overall revenue, down from a figure of 78% this time last year.
Aixtron admitted that results from the Genus division have been weak in the past two quarters, and that significant challenges remain in terms of integrating this business into the overall Aixtron setup.
But the company added that the acquisition is central to its future strategy for the silicon semiconductor industry, and that its management would spend 2005 largely focused on the integration and consolidation of the Aixtron and Genus silicon activity.
