News Article
Riber revenues plummet 14 percent
Although seventeen MBE systems were sold to research customers in 2013, no production machines were sold in the same period
MBE tool manufacturer, Riber has released its full-year earnings for 2013.
Revenues came to €23.5 million for 2013, compared with €27.4 million in 2012. During the past year, Riber further strengthened its positions on research markets in order to limit the significant downturn affecting industrial markets with their current excess capacity.
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MBE system sales (€16.9 million) were down 13 percent on 2012 (€19.4 million). Seventeen MBE systems were sold to research customers (versus 15 in 2012), partly offsetting the fact that no production machines were sold in 2013 (2 were sold in 2012).
Sales of services and accessories (€5.3 million) and cells and sources (€1.3 million) were down 18 percent overall, primarily due to the weak level of demand in 2013 from industrial customers. Sales of cells for the new markets (OLED and solar) remained sluggish, waiting for the next waves of capacity investments in South Korea. This decrease was limited by the development of sales of MBE effusion sources to R&D customers.
CHANGE IN PROFITABILITY
Factoring in the change in revenues, the gross margin came to €7.5 million in 2013 (€9.1 million in 2012), representing 32.2 percent of revenues. More specifically, the 1-point drop in the margin rate reflects the provisioning for inventories, with a net charge of €0.2 million for 2013, compared with a €0.6 million reversal in 2012.
Operating expenses were down year-on-year, notably benefiting from the policy rolled out by Riber at the beginning of 2013 to reduce its fixed costs.
In this context, consolidated net income came to €0.2 million in 2013 (representing 1.0 percent of revenues), compared with €1.9 million in 2012 (representing 7.0 percent of revenues).
Cash represented €1.7 million at December 31st, 2013, down €3.6 million in relation to December 31st, 2012, notably factoring in the high level of billing at the very end of the year and the ramping up of innovation efforts during the year. Despite a lower level of business, the company generated €1.2 million in cash flow from operations in 2013.
In view of the results for 2013 and the requirements for financing innovation, the Management Board will not be submitting a proposal for a dividend at the general meeting on June 3rd, 2014.
OUTLOOK
At the end of February 2014, the order book represented €7.4 million (€7.0 million at end-2013), with six research systems to be delivered from the second quarter of 2014 and significant levels of orders for services and accessories. The company is currently seeing an increase in the deal flow for the R&D MBE market.
In 2014, Riber is concentrating its efforts on promoting its new Compact 21 DZ R&D MBE system and extending its range of MBE effusion sources and continuing gains in market share. The firm also aims to develop thin-layer complex material depositing equipment, particularly for the buoyant OLED flat screen sector. Over the longer term, the firm aims to incorporate MBE within the silicon manufacturing chain (III-V on silicon materials, etc.).
Riber's technological expertise, its presence in South Korea and its research partnerships represent strong assets to support these developments.
The 2014 first-quarter revenues will e announced on April 28th after close of trading.
Revenues came to €23.5 million for 2013, compared with €27.4 million in 2012. During the past year, Riber further strengthened its positions on research markets in order to limit the significant downturn affecting industrial markets with their current excess capacity.
MBE system sales (€16.9 million) were down 13 percent on 2012 (€19.4 million). Seventeen MBE systems were sold to research customers (versus 15 in 2012), partly offsetting the fact that no production machines were sold in 2013 (2 were sold in 2012).
Sales of services and accessories (€5.3 million) and cells and sources (€1.3 million) were down 18 percent overall, primarily due to the weak level of demand in 2013 from industrial customers. Sales of cells for the new markets (OLED and solar) remained sluggish, waiting for the next waves of capacity investments in South Korea. This decrease was limited by the development of sales of MBE effusion sources to R&D customers.
CHANGE IN PROFITABILITY
Factoring in the change in revenues, the gross margin came to €7.5 million in 2013 (€9.1 million in 2012), representing 32.2 percent of revenues. More specifically, the 1-point drop in the margin rate reflects the provisioning for inventories, with a net charge of €0.2 million for 2013, compared with a €0.6 million reversal in 2012.
Operating expenses were down year-on-year, notably benefiting from the policy rolled out by Riber at the beginning of 2013 to reduce its fixed costs.
In this context, consolidated net income came to €0.2 million in 2013 (representing 1.0 percent of revenues), compared with €1.9 million in 2012 (representing 7.0 percent of revenues).
Cash represented €1.7 million at December 31st, 2013, down €3.6 million in relation to December 31st, 2012, notably factoring in the high level of billing at the very end of the year and the ramping up of innovation efforts during the year. Despite a lower level of business, the company generated €1.2 million in cash flow from operations in 2013.
In view of the results for 2013 and the requirements for financing innovation, the Management Board will not be submitting a proposal for a dividend at the general meeting on June 3rd, 2014.
OUTLOOK
At the end of February 2014, the order book represented €7.4 million (€7.0 million at end-2013), with six research systems to be delivered from the second quarter of 2014 and significant levels of orders for services and accessories. The company is currently seeing an increase in the deal flow for the R&D MBE market.
In 2014, Riber is concentrating its efforts on promoting its new Compact 21 DZ R&D MBE system and extending its range of MBE effusion sources and continuing gains in market share. The firm also aims to develop thin-layer complex material depositing equipment, particularly for the buoyant OLED flat screen sector. Over the longer term, the firm aims to incorporate MBE within the silicon manufacturing chain (III-V on silicon materials, etc.).
Riber's technological expertise, its presence in South Korea and its research partnerships represent strong assets to support these developments.
The 2014 first-quarter revenues will e announced on April 28th after close of trading.
