Aixtron reports a 'challenging' Q2
Order backlog supports a more positive view for second half of the year
Aixtron SE, the semiconductor deposition equipment company, has announced financial results for the first half and the second quarter 2015.
Q2 was a challenging quarter, said Martin Goetzeler, president and CEO of Aixtron SE, having been influenced by the ongoing qualification processes of the AIX R6 MOCVD equipment, with respective effects on margins.
During the second quarter of 2015, Aixtron generated €40.4 million in revenues, which was 13 percent lower than the €46.2 million generated in the same quarter last year, and more or less in line with the €40.3 million generated in the first quarter. On a half yearly basis, H1 2015 revenues at €80.6 million were down by 10 percent from the previous year's €90.1 million.
"The weak revenue numbers are a clear reflection of not only the cautious investment behaviour of our customers, but also of the R6 qualification process, which has caused potential buyers to wait and see how the product performs other than buying the whole generation of equipment," said Goetzeler. However, total order intake for the second quarter at €52.5 million was 6 percent up year-on-year and 7 percent up on the previous quarter.
At the end of Q2, the equipment order backlog was €91.2 million, which was 37 percent up on the same point last year and 15 percent ahead of the previous quarter. The majority of the backlog is shippable in 2015.
Management review
"In the context of the qualification of our new MOCVD tool AIX R6, we have been working intensively with our customers. Thereby, specific additional costs are reflected in the unsatisfactory result of the second quarter. Overall, we have agreements with eight customers for the AIX R6, of which one has recently qualified the system for production", says Martin Goetzeler, president and CEO of Aixtron SE.
"We continue to make good progress in the strengthening of our product and technology portfolio. In the field of OLEDs, we are seeing strong interest from customers regarding the technology of the recently acquired PlasmaSi, Inc. First test runs of our Gen8 demonstrator for the production of large-area OLEDs are positive. In addition, during 2015 we expect significant growth for our planetary systems covering applications such as LED, laser, telecommunication and power electronics as well as for our memory and logic products. This is included in our expectations for the second half of 2015 which are supported by the strong backlog."
Guidance
Based on the first half 2015 results and the current assessment of Aixtron's latest revenue forecast, the company has reiterated its February revenue forecast of €220 to 250 million for fiscal year 2015. This guidance is supported by the backlog and based on the assumption of current $/€exchange rates. Furthermore, it includes expected shipments of AIX R6 MOCVD tools which still depend on successfully reaching customer specific milestones within their individual production qualification processes. Management continues to expect returning to EBITDA break-even within the second half of 2015.
