News Article

Aixtron Admits It Will Not Return To Profitability This Year

The company has made €51.5m inventory write-downs due to dwindling MOCVD demand
Aixtron SE wrote-down EURO (€) 51.5 million of inventory due to a significantly slower than expected recovery of demand for MOCVD equipment.

The devaluation followed a comprehensive review of inventory held.

This concluded that despite the positive long-term outlook for the LED industry, the existing stock held was inappropriately high in comparison to the current subdued level of demand in the market.

These non-cash effects will lead to a negative operating result of around €78 million in Q3/2012 or €113 million for the first nine months of 2012.

However, for fiscal year 2012, Aixtron expects sequentially stronger fourth quarter revenues, albeit considerably less than previously expected. As a result of the unexpected slower demand recovery, the company will not report a profit in fiscal year 2012.

Aixtron anticipates for fiscal year 2012, that it will achieve full year total revenues of around €220 million. This would be mainly due to the write-offs and the expected negative operating result will be about €125 million.

For fiscal year 2013, the firm's management expects an increase of demand for LED manufacturing equipment. This would be driven by stronger projected demand in the LED lighting market and Aixtron expects to return to profitability during the year.

AngelTech Live III: Join us on 12 April 2021!

AngelTech Live III will be broadcast on 12 April 2021, 10am BST, rebroadcast on 14 April (10am CTT) and 16 April (10am PST) and will feature online versions of the market-leading physical events: CS International and PIC International PLUS a brand new Silicon Semiconductor International Track!

Thanks to the great diversity of the semiconductor industry, we are always chasing new markets and developing a range of exciting technologies.

2021 is no different. Over the last few months interest in deep-UV LEDs has rocketed, due to its capability to disinfect and sanitise areas and combat Covid-19. We shall consider a roadmap for this device, along with technologies for boosting its output.

We shall also look at microLEDs, a display with many wonderful attributes, identifying processes for handling the mass transfer of tiny emitters that hold the key to commercialisation of this technology.

We shall also discuss electrification of transportation, underpinned by wide bandgap power electronics and supported by blue lasers that are ideal for processing copper.

Additional areas we will cover include the development of GaN ICs, to improve the reach of power electronics; the great strides that have been made with gallium oxide; and a look at new materials, such as cubic GaN and AlScN.

Having attracted 1500 delegates over the last 2 online summits, the 3rd event promises to be even bigger and better – with 3 interactive sessions over 1 day and will once again prove to be a key event across the semiconductor and photonic integrated circuits calendar.

So make sure you sign up today and discover the latest cutting edge developments across the compound semiconductor and integrated photonics value chain.



Search the news archive

To close this popup you can press escape or click the close icon.
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.

Please subscribe me to:


You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
Live Event