Riber reports second year of falling revenues
MBE specialist Riber is reporting €12.8 million in revenues for 2015, down 23 percent following sharp contraction in its markets. Nevertheless, the order book at end-2015 shows a clear upturn, according to the company, up 103 percent from the end of 2014 to €12.1 million.
In a market that is at a cyclical low, Riber recorded a drop in business in 2015, for the second consecutive year, linked primarily to the MBE market's significant contraction over the past two years. In this environment, and despite very strong competitive pressure, Riber says it has maintained its market shares by focusing its commercial actions on R&D customers, the company's traditional core business.
2015 was marked by significant fluctuations in MBE system sales, with the majority of orders booked in the second half of the year. Over the full year, nine R&D systems were delivered and invoiced, including four in the fourth quarter, compared with a total of 11 for the whole year in 2014.
Sales of services and accessories (€4.2 million) are down 31 percent from 2014, which included a major sale for the full reconfiguration of a production system in France (€1.2 million). Restated for this order, revenues would be down 13 percent compared with 2014. The contraction in volumes has been mitigated by the redeployment of the range of services and accessories on the Company's leading customers, as well as the diversification and strengthening of the range of solutions offered following the acquisition of MBE Control Solutions in the US.
Sales of cells and sources are growing strongly, thanks to the development efforts made, making it possible to further strengthen and diversify the offering and the range of cells available.
At December 31st, 2015, the breakdown of Riber's revenues was as follows: 45 percent for Europe, 35 percent for Asia, 10 percent for North America, and 10 percent for other continents (primarily South Africa and New Zealand).
In the fourth quarter of 2015, Riber's order levels continued to improve, thanks to two research MBE systems ordered in Germany and the US, and one production MBE system order in China, with this last order announced on January 18th.
At December 31st, 2015, the order book represented €12.1 million, up 103 percent from the end of 2014, including seven systems to be delivered in 2016, with two production systems, for a total of €9.1 million, up 125 percent, as well as orders for services, cells and accessories (€3.0 million, up 58 percent).
Riber is confirming its forecast for 2015 earnings to come in lower than 2014. Net cash at end-2015 was positive, with €0.1 million (€2.0 million at end-2014), an improvement compared with the end of June 2015 (-€0.1 million).
Business is expected to pick up again in 2016 thanks to the improvement in Riber's commercial activity over the second half of 2015, as confirmed with its order book building back up again.
2015 full-year earnings will be released on March 31st, 2016 (before start of trading).
