News Article
Aixtron reduces 2011 guidance
Asian customers have revealed to Aixtron an increasing concern about the short-term fragility of the economic recovery, leading to consequent investment caution.
Aixtron has issued a new 2011 revenue and EBIT guidance of € 600m – 650m revenues with an EBIT performance of approximately 25-30%.
Aixtron’s management has also reviewed the existing equipment order backlog and has decided, as a matter of prudence, to reduce the previously published order backlog by € 100m.
Aixtron says this new guidance and backlog adjustment reflects the perceived increase in conversion risk, purchase order delays and deferred system delivery requests into 2012 by several customers, specifically in Asia.
In the opinion of the Aixtron management, the mid- to long-term LED market opportunities remain very positive. However, recent discussions with Asian customers have revealed an increasing concern about the short-term fragility of the economic recovery, leading to consequent investment caution.
Coupled with evident margin pressures from rapidly dropping end market prices for LEDs, several customers are delaying new purchase order placements and deferring system deliveries into 2012.
With the very positive customer response to the company’s recent new MOCVD CRIUS II-L product release, Aixtron’s management team still believes that the imminence of an emerging LED lighting industry in conjunction with initiatives such as the Chinese 5 year plan continues to support the positive outlook for the LED industry, despite short-term demand adjustments driven by market uncertainty.
