News Article
Change in product mix slashes Riber financials
MBE equipment manufacturer, Riber has released its earnings for the first half of 2012.
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In view of the level of growth in the order book at the end of August, full-year revenues for 2012 are expected to represent €26 to €28 million, enabling Riber to achieve an operating margin ratio of 7 to 9 percent of revenues.
In an uncertain economic environment for the semiconductor industry, revenues for the first half of 2012 came to €9.4 million. As expected, this performance reflects a change in the product mix in favour of MBE system sales, unrivalled since 2002.
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In this way, sales of MBE systems are up 89 percent, buoyed by the consolidation of Riber`s commercial positions, particularly in the research sector.
Sales of evaporation sources and cells were down compared with the previous year, which included the delivery of a major investment order for OLED production equipment in Asia.
The services and accessories business was down 15 percent, set against the slowdown in demand in Europe and the US. Riber made major efforts to build its order book back up again on this segment, with an upturn in business in the third quarter of 2012.
The half-year gross margin before changes in provisions for inventories came to €3.0 million (€5.6 million at June 30th, 2011), representing 32 percent of revenues. It reflects an unfavourable change in revenues and product mix in relation to the first half of 2011. The provisions recorded for inventories showed a net charge of €0.2 million (compared with a €0.2 million reversal on June 30th, 2011), bringing the gross margin to € 2.8 million.
Operating income showed a loss of €1.2 million, compared with a €1.8 million profit for the first half of 2011. Consolidated net income represented a €1.0 million loss, compared with a net profit of €1.8 million on June 30th, 2011.
With around one third of revenues recorded during the first half of the year, but half of fixed costs, the earnings figures on June 30th cannot be extrapolated over the full year.
Cash totalled €6.0 million at June 30th, 2012, some €6.1 million less than December 2011, factoring in the half-year losses, the dividend paid out in June and the increase in inventories in anticipation of the production plan for the second half of the year.
Outlook for 2012
The order book at the end of August 2012 came to €22.3 million, 13 percent higher than the same period the previous year. The order book for MBE systems is up 40 percent over one year.
It includes one production system and 15 research systems, to be delivered between 2012 and 2013, which represents approximately one year`s business for this segment. These book figures do not include an order placed in September 2012 for a research system in India.
For cells and sources, the order book (€1 million at the end of August 2012) was down following the completion of investments in OLED production lines, as well as the difficulties faced by the photovoltaic sector as a result of the general economic environment. Riber is currently preparing a range of new generation cells with a view to the next waves of investments.
In view of these elements, 2012 revenues are expected to come in at between €26 and €28 million, enabling Riber to record a profit in 2012, with operating income representing 7 percent to 9 percent of its revenues, including an OSEO refundable advance debt write-off with positive impact on the second half of the year for €579,000.
In view of the level of growth in the order book at the end of August, full-year revenues for 2012 are expected to represent €26 to €28 million, enabling Riber to achieve an operating margin ratio of 7 to 9 percent of revenues.
In an uncertain economic environment for the semiconductor industry, revenues for the first half of 2012 came to €9.4 million. As expected, this performance reflects a change in the product mix in favour of MBE system sales, unrivalled since 2002.
In this way, sales of MBE systems are up 89 percent, buoyed by the consolidation of Riber`s commercial positions, particularly in the research sector.
Sales of evaporation sources and cells were down compared with the previous year, which included the delivery of a major investment order for OLED production equipment in Asia.
The services and accessories business was down 15 percent, set against the slowdown in demand in Europe and the US. Riber made major efforts to build its order book back up again on this segment, with an upturn in business in the third quarter of 2012.
The half-year gross margin before changes in provisions for inventories came to €3.0 million (€5.6 million at June 30th, 2011), representing 32 percent of revenues. It reflects an unfavourable change in revenues and product mix in relation to the first half of 2011. The provisions recorded for inventories showed a net charge of €0.2 million (compared with a €0.2 million reversal on June 30th, 2011), bringing the gross margin to € 2.8 million.
Operating income showed a loss of €1.2 million, compared with a €1.8 million profit for the first half of 2011. Consolidated net income represented a €1.0 million loss, compared with a net profit of €1.8 million on June 30th, 2011.
With around one third of revenues recorded during the first half of the year, but half of fixed costs, the earnings figures on June 30th cannot be extrapolated over the full year.
Cash totalled €6.0 million at June 30th, 2012, some €6.1 million less than December 2011, factoring in the half-year losses, the dividend paid out in June and the increase in inventories in anticipation of the production plan for the second half of the year.
Outlook for 2012
The order book at the end of August 2012 came to €22.3 million, 13 percent higher than the same period the previous year. The order book for MBE systems is up 40 percent over one year.
It includes one production system and 15 research systems, to be delivered between 2012 and 2013, which represents approximately one year`s business for this segment. These book figures do not include an order placed in September 2012 for a research system in India.
For cells and sources, the order book (€1 million at the end of August 2012) was down following the completion of investments in OLED production lines, as well as the difficulties faced by the photovoltaic sector as a result of the general economic environment. Riber is currently preparing a range of new generation cells with a view to the next waves of investments.
In view of these elements, 2012 revenues are expected to come in at between €26 and €28 million, enabling Riber to record a profit in 2012, with operating income representing 7 percent to 9 percent of its revenues, including an OSEO refundable advance debt write-off with positive impact on the second half of the year for €579,000.
