Aixtron Celebrates 237% Increased Revenue

Aixtron, a worldwide provider of deposition equipment to the semiconductor industry has announced its consolidated financial results for the first half of 2010.

Continuing healthy demand, beneficial volume effects, and a stronger US Dollar have all contributed to the positive business performance in H1/2010. The gross margin in H1/2010 was 10 percentage points higher at 53% compared to H1/2009. The H1/2010 operating result increased year on year by 769% to EUR (€) 106.9m with a 19 percentage points higher EBIT margin of 31%, leading to a net result of €74.1m or 21% return on sales. The H1/2010 net income was 742% up year on year.

Q2/2010 saw a continuation of the positive growth trend in revenues and profitability seen in prior quarters. This was supported by ongoing high system demand, mainly fuelled by High Brightness LED backlighting and lighting applications. The results were also positively influenced by the stronger US Dollar and Q2/2010 revenues increased by 24% over the first quarter from €154.5m to €191.8m. The quarterly gross margin significantly improved sequentially by 5 percentage points from 50% in Q1/2010 to 55% in Q2/2010.

 

 

Key Financials                                                             

                                                     2010    2009        +/-               2010    2009        +/-   

(in EUR (€) million)                     H1       H1           %                Q2       Q2           %      

Revenues                                  346.3   102.9       237              191.8   56.7       238

Gross profit                                183.9     44.5       313              105.9   23.5       351

Gross margin                              53%     43%       10 pp           55%    41%       14 pp

Operating result (EBIT)            106.9   12.3         769              60.6     4.7         1189

EBIT margin                                 31%     12%       19 pp           32%     8%        24 pp

Net result                                      74.1     8.8          742              42.3     3.3         1182

Net result margin                        21%     9%         12 pp           22%     6%         16 pp

Net result per share

- basic (€)                                     0.74     0.1          640               0.42     0.04        950

Net result per share

- diluted (€)                                   0.73     0.1          630               0.42     0.04        950

Equipment order intake           343.9   89.1          286           175.4      57.8        203

Equipment order

backlog (end of period)            250      109.4       129            250      109.4         129

Despite some offsetting effects on operating margin from currency hedging and translation expenses, the operating result sequentially increased by 31% to €60.6m in Q2/2010 to result in an EBIT margin of 32%. The net income improved by 33% over Q1/2010 from €31.8m to €42.3m or 22% of sales.

In line with Management expectations; equipment orders continued at a very high level (Q1/2010 €168.5m; Q2/2010 €175.4m) continuing the strong demand trend previously predicted. Approximately 8% of the LED system orders recorded in H1/2010 were for the new generation systems, launched in Q1/2010.

Paul Hyland, President & CEO at Aixtron, made the following statement;

“We are unquestionably enjoying a very healthy period of growth, mainly driven by the current and anticipated demand coming from higher LED penetration and emerging LED applications.”

“It seems clear to me that a combination of the positive volume and performance effect the backlighting applications have had on LED industry yields and efficiencies and the sustained government subsidies we are now seeing, are creating tangible momentum in the development of Solid State Lighting applications. This is an early and very encouraging development.”

“The macro perspective is that the industry is clearly moving from a technical niche market to a more sustainable and larger commodity market, and this development is already having a corresponding effect on the expectations of customers who are demanding, better performing products with better cost of ownership, which in turn is driving shorter product cycles and for us; increased R&D investments.”

We are, I believe, fully prepared and ready at Aixtron for the type of exciting opportunities we will see emerging over the next 3 to 5 year.”  

Reflecting the current healthy climate, and the recently positive $/€ exchange rate development, the Executive Board has raised the 2010 full year guidance to ca. €750m revenues and 33% EBIT.

Investor Conference Call

Aixtron will host a financial analyst and investor conference call on

Thursday, July 29, 2010, 3:00 p.m. CEST (6:00 a.m. PDT, 09:00 a.m. EDT) to review the H1/2010 results.

The call can be accessed from 2:45 p.m. CEST (5:45 a.m. PDT, 8:45 a.m. EDT) by dialing

+49 (69) 247 501–891                       or                           +1 (212) 444–0297.

 A conference call audio replay or a transcript of the conference call will be available at http://www.Aixtron.com, section “Investors/Reports/Presentations”, following the conference call.