News Article
Aixtron Announces Record Q3 2010 Results
The latest quarter results have increased by 159% year-over year from €82 m to €212.7 m.
Aixtron, a worldwide provider of deposition equipment to the semiconductor industry, has announced the consolidated financial results for the first nine months of 2010.
Continuing healthy demand, beneficial volume effects, and a stronger US Dollar have all contributed to the positive business performance in 9M/2010. The gross margin in 9M/2010 was 10 percentage points higher at 53% compared to 9M/2009. The 9M/2010 operating result increased year on year by 554% to €189.6m, with a 18 percentage points higher EBIT margin of 34%, leading to a net result of €130.9m or 23% return on sales. The 9M/2010 net income was up 542% year on year.
The third quarter of 2010 saw a continuation of the positive growth trend in orders, revenues and profitability seen in prior quarters. Supported by ongoing high system demand, mainly fuelled by High Brightness LED backlighting and lighting applications, and positively influenced by the stronger US Dollar, Q3 2010 revenues increased by 11% over the second quarter from €191.8m to €212.7m.
The quarterly gross margin declined sequentially by 3 percentage points from 55% in Q2/2010 to 52% in Q3/2010 mainly due to the product and final acceptance mix in the quarter.
Despite some offsetting effects on the operating margin from currency hedging and translation expenses, the operating result sequentially increased by 36% to €82.6m in Q3/2010 to result in an EBIT margin of 39%. Net income improved by 34% over Q2/2010 from €42.3m to €56.8m or 27% of sales.
In line with Management expectations; equipment orders were recorded on a very high level (Q1/2010 €168.5m; Q2/2010 €175.4m; Q3/2010 €200.4m), continuing the strong demand trend previously predicted. Approximately 30% of the LED system orders recorded in Q3/2010 were for new generation systems, launched in Q1/2010.
Paul Hyland, President & CEO at Aixtron, comments, “I am delighted that we have once more delivered on what we said we would deliver, namely a very strong set of results with excellent operational leverage. I believe it is a significant moment, when we can report an EBIT figure for the first nine months of the year that is higher than the revenue figure for the same period in the prior year.”
Reflecting the positive outlook for our business for the remainder of the year, we have reiterated our full year revenue guidance of ca. €750m, which is more than USD 1 billion at today’s exchange rate, and we have increased our EBIT margin guidance to ca. 35% for the year.
“We continue to see healthy demand in the current quarter, mainly for LED backlighting and increasingly for LED lighting manufacturing systems, which, in my opinion, looking ahead at the next 2-3 years, underlines the very positive outlook for the industry.”
With the opening of our new R&D center this month, we plan to even further strengthen our ability to offer the most competitive and compelling technology and value propositions to our customers available on the market,” he concludes.
Reflecting the healthy business development and the current USD/EUR exchange rate levels, the Executive Board reiterates the 2010 full year revenue guidance of circa €750m and has decided to increase the EBIT margin guidance to circa 35%.
Investor Conference Call
Aixtron will host a financial analyst and investor conference call on Thursday, October 28, 2010, 3:00 p.m. CEST (6:00 a.m. PDT, 09:00 a.m. EDT) to review the 9M/2010 results.
From 2:45 p.m. CEST (5:45 a.m. PDT, 8:45 a.m. EDT) the call may be accessed by dialing:
+49 (69) 247 501–899 or +1 (212) 444–0296.
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.
