Info
Info
News Article

Aixtron Reports Tough H1/2016 In Line With Expectations

News
Executive and supervisory boards recommend takeover offer by Grand Chip Investment

Deposition equipment company Aixtron has announced financial results for the first half and Q2 2016, along with a published opinion recommending a takeover offer by Chinese firm Grand Chip Investment.

Although total order intake in H1/2016 decreased by 6 percent to €95.5m (H1/2015: €101.4m)     year-on-year,     it     improved     by     15 percent sequentially (Q2/2016: €51.1m; Q1/2016: €44.4m).

Equipment order backlog in the first half 2016 was slightly down against the previous year at €86.2m, but increased by 27 percent compared to March 31, 2016 (H1/2015: €91.2m; Q2/2016: €86.2m; Q1/2016: €67.7m).

H1/2016 total revenues decreased to €55.5m (H1/2015: €80.7m) while revenues in Q2/2016 improved against the previous quarter (Q2/2016: €34.1m; Q1/2016: €21.4m).

"Despite the weak development of revenues in the first half, we reiterated our 2016 full year revenue guidance due to a solid order momentum which is set to continue into Q3/2016. Before transaction related impacts, 2016 results and free cash flow are expected to improve slightly compared to 2015 but to remain negative as revenue volumes still remain too low to enable full financing of all products in the development pipeline", explains Martin Goetzeler, president and CEO of Aixtron SE.

"In our joint reasoned opinion which was also published today, the Executive Board and Supervisory Board after thoughtful consideration recommend that our shareholders accept the takeover offer from Grand Chip Investment. Compared to alternative scenarios which may either be very risky or would result in a smaller, potentially restructured Aixtron with reduced total growth opportunities, we believe that the transaction is the right step for all our stakeholders. Our works councils agree with this assessment and have issued their own statement also supporting the takeover offer."

Business Development

The development of revenues and earnings was in line with expectations while manufacturers remain cautious concerning capacity expansion. The development in revenues and order intake in Q2/2016 was mainly driven by demand for production systems for opto and power electronics as well as for the silicon industry.

As described above, H1/2016 revenues at €55.5m were down by 31 percent year-on-year (H1/2015: €80.7m). This reflects lower demand from GaN LED- and silicon applications, particularly in Q1/2016. Compared to the previous quarter, revenues in Q2/2016 increased to €34.1m (Q1/2016: €21.4m).

The year-on-year decrease of cost of sales to €45.5m in H1/2016 were mainly attributable to lower volume in H1/2016 and higher qualification costs for the AIX R6 in H1/2015. Against the previous quarter, cost of sales were lower relative to revenues at €27.2m (Q1/2016: €18.3m).

Due to an improved gross margin (H1/2016: 18 percent; H1/2015: 15 percent; Q2/2016: 20 percent; Q1/2016: 15 percent) despite lower revenues year-on-year, gross profit was €10.0m (H1/2015: €12.4m; Q2/2016: €6.9m; Q1/2016: €3.1m).

Operating expenses in H1/2016 of €35.9m were 8 percent lower year-on-year compared to €39.1m in H1/2015. The additional costs from PlasmaSi and the comparative negative currency effect in Q1/2016 were offset by higher productivity, better cost control and a contractual settlement. In a quarterly sequential comparison, operating costs were stable at €18.0m compared to €17.8m in Q1/2016 despite increased revenues in the same period.

Guidance

Despite the fact that the first half 2016 revenues were 31 percent weaker compared to the first six months of 2015, management expects stronger revenues in the second half of 2016 compared to the first half. Total order intake in Q2/2016 as well as equipment backlog were up compared to the previous quarter, supporting Management's expectation of significant revenue growth for the second half of 2016. Consequently, Management reiterates the full year 2016 revenue guidance given in February 2016.

Based on the assessment of Aixtron's current order situation, including current risks and opportunities as well as on the internal budget rate of $/€1.10, Management expects to achieve for fiscal year 2016 revenues between €170 and 200 million. Total 2016 order intake is expected to be between €180 and 200 million.

Based on the internal budget rate of $/€1.10 and depending on the successful completion of qualification processes, market entry efforts as well as the achievement of revenues at the high end of the guidance range, management expects to achieve another improvement of results in 2016. Before transaction related impacts, EBITDA, EBIT, net result and free cash flow are expected to improve slightly compared to 2015 but to remain negative for the full year 2016.



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.

REGISTER FOR FREE

VIEW SESSIONS

Info
×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
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:
 
X
Info
X
Info
{taasPodcastNotification}
Live Event