Quarterly Report • Nov 7, 2013
Quarterly Report
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| in 1 million | Q3 / 2013 | Q3 / 2012 | Change | 9M / 2013 | 9M / 2012 | Change |
|---|---|---|---|---|---|---|
| Continuing Operations | ||||||
| Order entry | 34.3 | 36.6 | -6.3 % | 105.9 | 117.0 | -9.5 % |
| Order backlog as of 09 / 30 | -- | -- | -- | 97.6 | 102.4 | -4.7 % |
| Total sales | 38.9 | 40.7 | -4.4 % | 94.0 | 108.2 | -13.1 % |
| Sales margin | 3.1% | 1.0 % | 2.1 %-points | -11.2% | 0.7 % | -11.9 %-points |
| Gross profit | 12.5 | 13.4 | -6.7 % | 19.3 | 38.3 | -49.6 % |
| Gross margin | 32.1% | 32.9 % | -0.8 %-points | 20.5% | 35.4 % | -14.9 %-points |
| Cost of sales | 26.4 | 27.3 | -3.3 % | 74.6 | 69.9 | 6.7 % |
| R&D costs | 2.5 | 2.7 | -7.4 % | 7.8 | 7.1 | 9.9 % |
| Continuing operations | ||||||
| EBITDA | 2.8 | 3.3 | -15.2 % | -8.3 | 8.2 | -- |
| EBITDA margin | 7.2% | 8.1 % | -0.9 %-points | -8.8% | 7.6 % | -16.4 %-points |
| EBIT | 1.8 | 1.6 | 12.5 % | -13.2 | 3.1 | -- |
| EBIT margin | 4.6% | 3.9 % | 0.7 %-points | -14.0% | 2.9 % | -16.9 %-points |
| Earnings after tax | 1.2 | 0.4 | >100.0 % | -10.5 | 0.8 | -- |
| Earnings per share (in 3) basic | 0.06 | 0.02 | >100.0 % | -0.55 | 0.04 | -- |
| Continuing and discontinued operations |
||||||
| Earnings after tax | 1.2 | 0.4 | >100.0 % | -10.5 | 2.3 | -- |
| Earnings per share (in 3) basic | 0.06 | 0.02 | >100.0 % | -0.55 | 0.12 | -- |
| Balance sheet and cash flow | ||||||
| Equity | -- | -- | -- | 115.5 | 122.3 | -5.6 % |
| Equity ratio | -- | -- | -- | 64.7% | 60.6 % | 4.1 %-points |
| Return on equity | 1.0% | 0.3 % | 0.7 %-points | -9.1% | 0.7 % | -9.7 %-points |
| Balance sheet total | -- | -- | -- | 178.4 | 201.7 | -11.6 % |
| Net cash | -- | -- | -- | 21.9 | 30.7 | -28.7 % |
| Free cash flow(1) | 2.5 | 0.9 | >100.0 % | -9.9 | -6.2 | -- |
| Further key figures | ||||||
| Investments (2) | 9.6 | 0.5 | >100.0 % | 11.4 | 3.0 | >100.0 % |
| Investment ratio | 24.7% | 1.2 % | 23.5 %-points | 12.1% | 2.8 % | 9.3 %-points |
| Depreciation(3) | 1.1 | 1.7 | -35.3 % | 5.0 | 5.0 | 0.0 % |
| Employees as of 09 / 30 | -- | -- | -- | 673 | 699 | -3.7 % |
For the third quarter of 2013, the experts from the ifo Institute in Munich expect minimal economic growth in the eurozone of 0.1 percent. In the fourth quarter, growth in the eurozone should amount to 0.3 percent and another increase of 0.4 percent is forecast for the first quarter of 2014. Despite restrictive fiscal measures, slightly stronger European domestic demand and robust demand from the industrialized economies account for the modestly positive outlook. However, it must be expressed clearly that a tangible economic recovery, which had still been anticipated at the beginning of 2013, has still not taken hold in the second half of 2013. A similar picture is currently visible in the semiconductor equipment sector in which SUSS MicroTec operates. Here a significant upturn in order entry was still forecast for the second half of 2013 at the beginning of year. However, the most recent market studies are now projecting a decline in the semiconductor equipment market of more than 8 percent (Source: Gartner September 2013). A return to a growth trajectory is now expected only for the 2014 fiscal year.
In the last week of September 2013, SUSS MicroTec purchased the property of the Company headquarters in Garching, as already announced at the beginning of 2013. The purchase price for the real estate and the approximately 20,000m2 property amounted to EUR 8.9 million (including ancillary costs) and was financed with available cash and cash equivalents. With the acquisition, the Company is ensuring not only lease savings but also a high degree of operational flexibility in view of Company-specific requirements for the property, and is making a clear commitment to production in Garching.
For the SUSS MicroTec share, the third quarter was characterized by a steady decline in the share price. By contrast, the TecDAX and Prime IG Semiconductor benchmark indexes were both able to record price gains. As a result of the low price level and the concomitant lower market capitalization, the Deutsche Börse (German Stock Exchange) decided at the beginning of September to remove the SUSS MicroTec share from the TecDAX select index as of 9/23/2013. Although we regret this very much, we do not anticipate any serious consequences from leaving the TecDAX.
In the quarterly comparison, order entry amounted to EUR 34.3 million after EUR 36.6 million in the previous year's quarter, representing a decrease of approximately 6 percent. Sales in the months from July to September totaled EUR 38.9 million, about 4.4 percent below the level of the previous year (Q3 2012: EUR 40.7 million). EBIT of EUR 1.8 million in the third quarter was 12.5 percent above the EUR 1.6 million amount in the previous year's quarter.
Sales in the first nine months reached EUR 94.0 million, about 13 percent below the level of EUR 108.2 million in the previous year. Order entry held its own in an uncertain market environment at EUR 105.9 million, but remained below the EUR 117.0 million of the previous year. This resulted in order backlog of EUR 97.6 million (previous year: EUR 102.4 million) as of the reporting date of September 30, 2013.
Lithography, the Company's largest division, was able to report sales of EUR 64.9 million in the first nine months (previous year: EUR 81.1 million). The Photomask Equipment division recorded sales of EUR 15.7 million (previous year: EUR 8.6 million). The Substrate Bonder division produced a lower contribution to sales of EUR 9.8 million (previous year: EUR 15.3 million).
Earnings before interest and taxes (EBIT) of EUR -13.2 million were below the EUR 3.1 million of the previous year's quarter. EBIT for 2013 included an extraordinary effect of EUR -6.0 million from refocusing the Permanent Bonding product line. The extraordinary effect primarily included value adjustments for demonstration equipment and inventories and capitalized development costs from the years prior to 2008. EBIT for 2012 included one-time currency effects of EUR -0.4 million. This resulted from the settlement of Company-internal foreign currency credits of SUSS MicroTec AG to SUSS MicroTec, Inc. in connection with the acquisition of Tamarack Scientific in March 2012. As a result, adjusted EBIT for the first nine months of 2013 was EUR -7.2 million (previous year: EUR 3.5 million). The weaker margins in the coater /developer division, especially the unfavorable product mix between 200mm and 300mm coating tools and the negative EBIT impact resulting from SUSS MicroTec Photonic Systems (former Tamarack Scientific) are weighing on the margins in 2013.
Frank Averdung Chief Executive Officer
Michael Knopp Chief Financial Officer
Earnings after taxes (EAT) for continuing operations amounted to EUR -10.5 million, compared to EUR 0.8 million in the previous year. Earnings after taxes (EAT) for continuing and discontinued operations amounted to EUR -10.5 million, compared to EUR 2.3 million in the previous year. The figure in 2012 included a tax-free amount of EUR 1.5 million, which resulted from the sale of the Test Systems division in 2010. Basic earnings per share (EPS) from continuing operations amounted to EUR -0.55 (previous year: EUR 0.04).
Net liquidity came in at EUR 21.9 million as of the reporting date (September 30, 2012: EUR 30.7 million). Free cash flow before the inclusion of securities sales /purchases and extraordinary effects from M&A activities came to EUR -9.9 million in the first nine months of the year (previous year: EUR -6.2 million).
Due to a reevaluation of the business situation in permanent bonding and the ongoing losses in this product line the management has decided to expand the restructuring measures, which have been taken in the second quarter this year, and to cease production of cluster systems for permanent bonding applications. The development and production of the successful manual permanent bonding systems are not affected by this strategic action. In this context one-off expenses of EUR 8.3 million can be expected in the fourth quarter 2013. This one-off effect includes EUR 6.7 million for write-offs on inventories (raw materials, unfinished goods as well as demonstration tools) and EUR 1.6 million of precautionary provisions formed for single customer projects. With this move the management expects to pronouncedly reduce the losses of the Substrate Bonding Division.
The Company announces a revision of the full year guidance 2013. The sales expectation of formerly EUR 150 million is revised to a bandwidth of EUR 125 to EUR 135 million. The reason is a potential delay in the sales recognition of several machines, which have already been shipped but are still waiting for final acceptance of the customer. The tools include temporary and permanent bond cluster systems for international customers. Due to the lower overall sales level, the EBIT will most likely not reach in the original range of minus EUR 10 to minus EUR 15 million. Taking the one-off expenses into account an EBIT in the range of minus EUR 22 to minus EUR 27 million can be expected. The EBIT of 2013 will include a EUR 14.3 million charge for the restructuring of the product line permanent bonding.
For the fourth quarter 2013, the Company expects a robust order intake in the range of EUR 30 to EUR 40 million.
Garching, Germany, November 2013
Frank Averdung Michael Knopp
Chief Executive Officer Chief Financial Officer
This year's Semicon Westtook place on July 8–11 in San Francisco. In contrastto previous years, SUSS MicroTec had a much smaller exhibition stand at this trade fair. The Company has, however, placed a stronger focus on its own workshop, the technology forum. Speakers from various customers and research institutes made a major contribution to the success ofthe workshop. The key issues at the forum were new technologies and products for 3D integration and advanced packaging. Approximately 160 participants registered for the workshop, underscoring the intense interestin the core themes. As a result ofthe emergency landing of an Asiana Airlines Boeing 777 in San Francisco, many regional flights were canceled. In the end, only approximately 130 participants were able to attend the workshop. Compared to the previous year,this means thatthe number of participants almost doubled.
In July 2013, SUSS MicroTec was honored with the "Outstanding Performance Award"from SPIL (Siliconware Precision Industries Co., Ltd.). SPIL, headquartered in Taichung, Taiwan, is a leading backend IC packaging house. Their services include wafer bumping, wafer sorting, assembly, and testing. Every two years, the Company presents the "Outstanding Performance Award" to its most reliable suppliers. This year, SPIL presented this award only to SUSS MicroTec and one other company, out of approximately 500 suppliers. The award is based on such criteria as quality, price, delivery, support, service, and technology. "In the fast-paced semiconductor industry, quality,technology, and service are major distinctive features relative to the competition. At SUSS MicroTec we continuously strive to improve our service and the quality of our products in order to create the greatest possible value for the customer," explained Frank P. Averdung, Chief Executive Officer of SUSS MicroTec AG.
On September 4–6, SUSS MicroTec participated in Semicon Taiwan, at which various technology forums, symposiums, and workshops were held. In addition, the Company conducted two workshops of its own. The Advanced Packaging Technology Forum addressed topics involving excimer laser ablation – an innovative patterning technology. Atthe SiP Global Summit, SUSS MicroTec gave representatives an update on materials and process technologies for 2.5D and 3D integration.
As previously announced atthe beginning of 2013, SUSS MicroTec purchased the property atthe Company headquarters in Garching atthe end of September 2013. The purchase price forthe real estate and the approximately 20,000m2 property amounted to EUR 8.9 million, including ancillary costs, and was financed with available cash and cash equivalents. With the acquisition, the Company is ensuring not only lease savings but also a high degree of operational flexibility in view of Company-specific requirements for the property, and is making a clear commitment to production in Garching.
In May 2013 the announcement by the Federal Reserve Bank that it would end its quantitative easing program earlier than expected led to a sharp increase in nervousness in the financial markets. However,the US central bank's mostrecent announcement in September 2013 that it would maintain its loose monetary policy, particularly the purchase of bonds measured in the billions of dollars, stimulated worldwide stock prices. In the wake of this news, the DAX reached a record high of 8,770 points and closed at 8,694 points on that same day.
In real economic terms,the eurozone was able to record growth for the first time since the fourth quarter of 2011 as early as the second quarter of 2013, namely by +0.3 percent. The reason for this was robust foreign demand. In addition, private consumer spending in Germany and France rose, as did equipment investment. However, contrary to the original forecasts, industrial production may have declined slightly in the third quarter, which can be viewed primarily as a correction for the sharp increase in the second quarter. For the entire year, economists from the ifo Institute in Munich expectincreases in gross domestic product of 1.4 percent in the eurozone and 0.6 percent in Germany from the previous year.
During the first quarter of 2013, the price of the SUSS MicroTec share rose above EUR 10.00 once again, but it dropped significantly in response to the announcement in February 2013 of a subdued outlook for the full year. This trend was broken briefly with the announcement of an important customer order in the area of 3D integration on March 28, 2013. Following this report, the price rose sharply and the share was able to conclude the first quarter with an overall increase of one percent, corresponding to a closing price of EUR 8.91. During the second quarter,the share declined, accompanied by low trading volumes and continuing high volatility, closing the second quarter at a price of EUR 7.88. This corresponds to a loss of approximately eleven percent since the beginning ofthe year. Possible reasons forthe price drop were the still challenging environment in the semiconductor sector and the lack of resurgent demand for semiconductor equipment. In July 2013, earnings expectations for all of 2013 were adjusted lower and pressure on the share price continued in view of the gloomy outlook for the entire year. In September 2013,the Gartner market research institute lowered its forecasts for the market performance ofthe semiconductor equipment sector significantly and now assumes a decline in demand for all of 2013 of 8.5 percent. In 2012, the market had already shrunk by approximately 16 percent, according to Gartner's estimates. Only forthe full year of 2014 are rising sales expected in the semiconductor equipment market. These moderate prospects are reflected in the performance of the share price in the third quarter of 2013. On September 30,the share closed with a Xetra price of EUR 6.68.
In August and September, there were also noteworthy changes in ownership information, as the DWS (Frankfurt and Luxembourg) completely sold its shares and corresponding voting rights announcements were published. In September, UBS AG Zürich reported temporary holdings of more than ten percent, but fell below the three percent reporting threshold over the course of the month. As a result, the free float still amounts to 100 percent, according to the definition of the German Stock Exchange (Deutsche Börse). In July of this year, we were able to gain coverage for SUSS MicroTec by another international bank; with the addition of Berenberg Bank in London, ten research firms currently cover us.
In conclusion, if one considers the performance ofthe benchmark indexes overthe course ofthe year,the resulting picture emerges. Since May 2013,the TecDAX and the Semiconductor Index ofthe Deutsche Börse have outperformed the SUSS MicroTec share. In the first nine months, the TecDAX rose by 29 percent and the Semiconductor Index rose by 17 percent, while the SUSS MicroTec share fell over the same period by approximately 25 percent.
As a result of decline in market capitalization,the Company was removed from the TecDAX effective September 23, 2013, but is still listed in the Prime Standard of the Deutsche Börse.
The average daily trading volume of SUSS MicroTec shares on all German stock exchanges in the first nine months of 2013 amounted to approximately 97,000 shares (9M 2012: average daily trading volume of approximately 129,000 shares).
SUSS MicroTec share performance in 2013 (SUSS MicroTec share price on Januar 2, 2013: 3 8.85)
of SUSS MicroTec AG
With the exception ofthe fourth quarter of 2011, order entry has been in a range of 1 30–40 million for ten consecutive quarters. A revival in the order behavior of our customers essentially depends on whether additional production capacity is needed. Our Asian customers currently operate with an average capacity utilization of approximately 90 percent. In the past, reaching this limit has led to investments to expand production capacity. However, considerable restraint has already been noted for some time in the order behavior of customers and investment decisions have been delayed as long as possible in order to counter the volatility of the end markets. This development requires a high degree of flexibility in order to accommodate significantly reduced delivery times on occasion. In some cases, it has led to an increase in working capital.
In this environment we have succeeded once again in generating a robust order entry of 1 34.3 million in the third quarter of 2013 (previous year: 1 36.6 million). Sales of 1 38.9 million in the third quarter were only slightly below the corresponding quarter of the previous year (Q3 2012: 1 40.7 million). It was possible to increase earnings before interest and taxes (EBIT) slightly to 1 1.8 million, compared to 1 1.6 million in the previous year.
Considering the entire nine months of 2013, order entry was 1 105.9 million (previous year: 1 117.0 million) and sales were 1 94.0 million (previous year: 1 108.2 million). Both figures are below the level of the previous year. The order backlog as of September 30, 2013 amounted to 1 97.6 million (September 30, 2012: 1 102.4 million).
Gross profit margin in the third quarter was 32.1 percent after 32.9 percent in the corresponding previous year period. For the first nine months,the gross profit margin was 20.5 percent, which represents a decrease of 14.9 percentage points from the previous year.
Earnings before interest and taxes (EBIT) of 1 -13.2 million were below the 1 3.1 million ofthe previous year's quarter. The 1 3.1 million included foreign currency effects totaling 1 -0.4 million. This resulted from the settlement of Company-internal foreign currency credits of SUSS MicroTec AG to SUSS MicroTec, Inc. in connection with the acquisition of Tamarack in March 2012. EBIT for the first nine months of 2013 included an extraordinary effect of 1 -6.0 million from refocusing the Permanent Bonding product line. The extraordinary effect primarily included value adjustments for demonstration equipment and inventories as well as capitalized development services from the years prior to 2008.
Earnings after taxes (EAT) for continuing operations amounted to 1 -10.5 million, compared to 1 0.8 million in the previous year. Earnings after taxes (EAT) amounted to 1 -10.5 million for continuing and discontinued operations, compared to 1 2.3 million in the previous year. This included a tax-free amount of 1 1.5 million, which resulted from the sale ofthe Test Systems division in 2010. Basic earnings per share (EPS) from continuing operations amounted to 1 -0.55 (previous year: 1 0.04).
Net liquidity came in at 1 21.9 million as of the reporting date (September 30, 2012: 1 30.7 million). Free cash flow before the inclusion of securities sales/purchases and extraordinary effects from M&A activities came to 1 -9.9 million in the first nine months of the year (previous year: 1 -6.2 million). In September 2013, SUSS MicroTec acquired the property at the Garching site. The purchase price plus ancillary costs (notary costs and the real estate transfer tax) of 1 8.9 million were financed by available cash and cash equivalents.
In the first nine months of 2013, all regions except for Europe recorded a decline in order entry: The region of North America recorded a drop of approximately 21 percent, Japan a drop of 57 percent, and Rest of Asia a decline of approximately 13 percent. By contrast, Europe was able to increase order entry by 26 percent from the previous year.
Sales displayed a decline in all regions in the first nine months. While the region of North America recorded a decline of approximately 23 percent, Europe reported a decline of 2.4 percent, sales in Japan decreased by 59 percent, and Rest of Asia saw 4 percent lower sales from the previous year.
9M 2012 9M 2013
The Lithography division comprises the development, manufacture, and sale ofthe Mask Aligner, Developer, and Coater product lines, as well as lasertechnology and UV projection lithography. These productlines are developed and produced in Germany at the locations in Garching near Munich and in Sternenfels as well as in Corona, USA.
The Lithography division recorded a decline in order entry and sales in the first nine months of the 2013 fiscal year. Order entry of 1 67.5 million was 11.6 percent below its total of 1 76.4 million a year earlier. Division sales in the first nine months of 2013 amounted to 1 64.9 million after 1 81.1 million in the previous year. Division earnings deteriorated as a result of overall lower sales, a less favorable product mix, and continued below-average margins for Tamarack products from 1 16.3 million to 1 2.6 million.
The Substrate Bonder division comprises the development, production, and sale of the Substrate (Wafer) Bonder product line and is located at our site in Sternenfels (Germany).
In the first nine months of the 2013 fiscal year, the Substrate Bonder division recorded another increase in order entry, reaching 1 22.4 million after 1 19.3 million in 2012. Sales declined from 1 15.3 million in the previous year to 1 9.8 million. Division earnings fell by the end of the quarter to 1 -16.0 million (9M 2012: 1 -9.2 million). Weak earnings resulted from continued high research and development costs as well as additional demands from several customer-oriented projects. Results from the second quarter of 2013 also include an extraordinary effect of 1 -6.0 million from refocusing the Permanent Bonding product line.
The Photomask Equipment division comprises the development, manufacture, and sale of the HMx, ASx, MaskTrack, and Mask-Track Pro product lines. The development and production of specialized systems for the cleaning and processing of photomasks forthe semiconductor industry are also conducted atthe Sternenfels site in Germany.
The Photomask Equipment division recorded lower order entry of 1 12.3 million in the first nine months of 2013 (9M 2012: 1 18.1 million) as well as much higher division sales of 1 15.7 million (9M 2012: 1 8.6 million). Accordingly, division earnings improved to 1 0.9 million in the first nine months of 2013 (9M 2012: 1 -2.5 million).
The Others division comprises micro-optics activities at the Neuchâtel, Switzerland, location, the C4NP business, as well as the costs for central Group functions that generally cannot be attributed to the main divisions.
Division sales of 1 3.6 million increased from 1 3.2 million in the previous year, while order entry grew by approximately 16 percentto 1 3.7 million (9M 2012: 1 3.2 million). Division earnings of 1 -0.8 million improved from 1 -1.4 million in the previous year. The main reason was a significant decline in the costs for central Group functions.
of SUSS MicroTec AG as of September 30, 2013
| in 1 thousand | 07/01/2013 – 09/30/2013 |
07/01/2012– 09/30/2012 |
01/01/2013 – 09/30/2013 |
01/01/2012– 09/30/2012 |
|---|---|---|---|---|
| Sales | 38,927 | 40,716 | 93,950 | 108,228 |
| Cost of sales | -26,411 | -27,285 | -74,622 | -69,881 |
| Gross profit | 12,516 | 13,431 | 19,328 | 38,347 |
| Selling costs | -4,262 | -5,262 | -12,991 | -14,817 |
| Research and development costs | -2,465 | -2,732 | -7,792 | -7,098 |
| Administration costs | -3,742 | -4,133 | -11,242 | -12,628 |
| Other operating income | 829 | 562 | 2,486 | 2,242 |
| Other operating expenses | -1,122 | -281 | -3,022 | -2,920 |
| Analysis of net income from operations (EBIT) | ||||
| EBITDA (Earnings before Interest and Taxes, Depreciation and Amortization) |
2,783 | 3,342 | -8,272 | 8,154 |
| Depreciation and amortization of tangible assets, intangible assets and financial investments |
-1,029 | -1,757 | -4,961 | -5,028 |
| Net income from operations (EBIT) | 1,754 | 1,585 | -13,233 | 3,126 |
| Financial income | 75 | 198 | 425 | 663 |
| Financial expense | -142 | -170 | -324 | -531 |
| Financial result | -67 | 28 | 101 | 132 |
| Profit or loss from continuing operations before taxes | 1,687 | 1,613 | -13,132 | 3,258 |
| Income taxes | -506 | -1,180 | 2,666 | -2,470 |
| Profit or loss from continuing operations | 1,181 | 433 | -10,466 | 788 |
| Net profit from discontinued operations (after taxes) | 0 | 0 | 0 | 1,507 |
| Net profit or loss | 1,181 | 433 | -10,466 | 2,295 |
| Thereof equity holders of SUSS MicroTec | 1,181 | 433 | -10,466 | 2,265 |
| Thereof minority interests | 0 | 0 | 0 | 30 |
| Earnings per share (undiluted) | ||||
| Basic earnings per share from continuing operations in EUR | 0.06 | 0.02 | -0.55 | 0.04 |
| Basic earnings per share from discontinued operations in EUR | 0.00 | 0.00 | 0.00 | 0.08 |
| Earnings per share (diluted) | ||||
| Basic earnings per share from continuing operations in EUR | 0.06 | 0.02 | -0.55 | 0.04 |
| Basic earnings per share from discontinued operations in EUR | 0.00 | 0.00 | 0.00 | 0.08 |
| in 1 thousand | 01/01/2013 –09/30/2013 | 01/01/2012 –09/30/2012 |
|---|---|---|
| Net profit or loss | -10,466 | 2,295 |
| Items that will not be reclassified to profit and loss | ||
| Remeasurements on defined benefit pension plans | 3 | -11) |
| Other comprehensive income after tax for items that will not be reclassified to profit and loss |
3 | -1 |
| Items that will be reclassified subsequently to profit and loss | ||
| Fair value fluctuations of available for sale securities | -190 | 78 |
| Foreign currency adjustment | -1,217 | 776 |
| Cash flow hedges | 147 | -163 |
| Deferred taxes | 12 | -5 |
| Other comprehensive income after tax for items that will be reclassified to profit and loss | -1,248 | 686 |
| Total income and expenses recognized in equity | -1,245 | 685 |
| Total income and expenses reported in the reporting period | -11,711 | 2,980 |
| Thereof equity holders of SUSS MicroTec | -11,711 | 2,941 |
| Thereof minority interests | 0 | 39 |
1) Since January 1, 2013,the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and comparatives 2012 have been restated. The impacts resulting from the adjustment are described in the selected explanatory notes (Point 3.2).
| ASSETS in 1 thousand | 09/30/2013 | 12/31/2012 |
|---|---|---|
| Non-current assets | 46,597 | 37,325 |
| Intangible assets | 4,745 | 7,504 |
| Goodwill | 15,352 | 15,394 |
| Tangible assets | 21,083 | 12,068 |
| Tax refund claims | 63 | 80 |
| Other assets | 531 | 773 |
| Deferred tax assets | 4,823 | 1,5061) |
| Current assets | 131,549 | 143,088 |
| Inventories | 86,733 | 82,179 |
| Trade receivables | 15,068 | 21,758 |
| Other financial assets | 389 | 547 |
| Securities | 16,063 | 11,394 |
| Tax refund claims | 263 | 295 |
| Cash and cash equivalents | 9,818 | 25,192 |
| Other assets | 3,215 | 1,723 |
| Total assets | 178,146 | 180,413 |
1) Since January 1, 2013,the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and comparatives 2012 have been restated. The impacts resulting from the adjustment are described in the selected explanatory notes (Point 3.2).
| Liabilities & shareholders' equity in 1 thousand | 09/30/2013 | 12/31/2012 | |
|---|---|---|---|
| Equity | 115,481 | 127,193 | |
| Total equity attributable to shareholders of SUSS MicroTec AG | 115,481 | 127,193 | |
| Subscribed capital | 19,116 | 19,116 | |
| Reserves | 99,477 | 109,944 | |
| Accumulated other comprehensive income | -3,112 | -1,867 1) | |
| Minority interests | 0 | 0 | |
| Non-current liabilities | 10,152 | 11,039 | |
| Pension plans and similar commitments | 3,857 | 4,119 1) | |
| Provisions | 131 | 296 | |
| Financial debt | 3,793 | 3,981 | |
| Other financial liabilities | 2,221 | 2,577 | |
| Deferred tax liabilities | 150 | 66 | |
| Current liabilities | 52,513 | 42,181 | |
| Provisions | 3,622 | 3,602 | |
| Tax liabilities | 374 | 1,050 | |
| Financial debt | 191 | 288 | |
| Other financial liabilities | 6,145 | 6,815 | |
| Trade payables | 5,913 | 6,862 | |
| Other liabilities | 36,268 | 23,564 | |
| Total liabilities and shareholders' equity | 178,146 | 180,413 |
1) Since January 1, 2013,the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and comparatives 2012 have been restated. The impacts resulting from the adjustment are described in the selected explanatory notes (Point 3.2).
| in 1 thousand | 01/01/2013–09/30/2013 | 01/01/2012 –09/30/2012 |
|---|---|---|
| Net profit or loss (after taxes) | -10,466 | 2,295 |
| Amortization of intangible assets | 3,097 | 3,486 |
| Depreciation of tangible assets | 1,864 | 1,587 |
| Profit or loss on disposal of intangible and tangible assets | -2 | 0 |
| Profit or loss on disposal of available-for-sale securities | 4 | 0 |
| Change of reserves on inventories | 3,531 | 3,772 |
| Change of reserves for bad debts | 1,342 | 79 |
| Non-cash income from the reversal of provisions | -9 | 0 |
| Other non-cash effective income and expenses | 334 | 315 |
| Acquisition costs Tamarack | 0 | 259 |
| Gain from subsequent purchase price payment Test business | 0 | -1,507 |
| Change in inventories | -8,490 | -17,112 |
| Change in trade receivables | 4,554 | 3,775 |
| Change in other assets | -1,043 | -639 |
| Change in pension provisions | -262 | 150 |
| Change in trade payables | -710 | -1,181 |
| Change in customer deposits | 14,184 | 6,471 |
| Change in other liabilities and other provisions | -3,204 | -5,227 |
| Change of deferred taxes | -3,233 | 324 |
| Cash flow from operating activities | 1,491 | -3,153 |
| in 1 thousand | 01/01/2013 –09/30/2013 | 01/01/2012 –09/30/2012 | |
|---|---|---|---|
| Disbursement for aquisition of property in Garching (land and building) | -8,9391) | 0 | |
| Disbursements for other tangible assets | -2,041 | -2,367 | |
| Disbursements for intangible assets | -399 | -699 | |
| Purchases of current available-for-sale securities | -11,963 | -14,868 | |
| Proceeds from redemption of available-for-sale securities | 7,097 | 6,041 | |
| Proceeds from subsequent selling price Test business | 0 | 1,507 | |
| Payments for purchase of Tamarack | 0 | -5,443 | |
| Cash flow from investing activities | -16,245 | -15,829 | |
| Repayment of bank loans | -180 | -180 | |
| Change in current bank liabilities | -97 | -99 | |
| Change in other financial debt | -8 | -616 | |
| Payments for purchase of shares in SMO | 0 | -1,126 | |
| Proceeds from exercise of subscription rights | 0 | 19 | |
| Cash flow from financing activities | -285 | -2,002 | |
| Adjustments to funds caused by exchange-rate fluctuations | -335 | -56 | |
| Change in cash and cash equivalents | -15,374 | -21,040 | |
| Funds at beginning of the year | 25,192 | 37,036 | |
| Funds at end of the period | 9,818 | 15,996 | |
| Cash flow from operating activities includes: | |||
| Interest paid during the period | 99 | 163 | |
| Interest received during period | 518 | 691 | |
| Tax paid during the period | 1,202 | 6,841 | |
| Tax refunds during the period | 0 | 0 |
1) The amount comprises purchase price of 1 8,600 thousand and ancillary costs of 1 339 thousand.
| Additional | ||||
|---|---|---|---|---|
| in 1 thousand | Subscribed capital | paid-in capital | Earnings reserve | Retained Earnings |
| As of January 01, 2012 | 19,101 | 98,383 | 433 | 2,799 |
| Adjustments1) | ||||
| As of January 01, 2012 (adjusted) | 19,101 | 98,383 | 433 | 2,799 |
| Net loss | 2,265 | |||
| Total income and expenses recognized | ||||
| Total comprehensive income | 2,265 | |||
| Exercise of subscription rights | 15 | 4 | ||
| Issuance of subscription rights | ||||
| Purchase of minority interest SMO | -773 | |||
| As of September 30, 2012 | 19,116 | 97,614 | 433 | 5,064 |
| As of January 01, 2013 | 19,116 | 97,614 | 433 | 11,896 |
| Adjustments1) | ||||
| As of January 01, 2013 (adjusted) | 19,116 | 97,614 | 433 | 11,896 |
| Net loss | -10,466 | |||
| Total income and expenses recognized | ||||
| Total comprehensive income | -10,466 | |||
| Exercise of subscription rights | ||||
| Issuance of subscription rights | ||||
| Purchase of minority interest SMO | ||||
| As of September 30, 2013 | 19,116 | 97,614 | 433 | 1,430 |
1) Since January 1, 2013,the SUSS MicroTec Group applies IAS 19 (revised). This change in accounting policy was recognised retrospectively and comparatives 2012 have been restated.
2) Actuarial valuations of the actuarial gains and losses are only compiled as of December 31 each year. Present amounts exclusively result from adjustments due to exchange-rate fluctuations.
| Equity | Minority interests |
Total equity attributable to shareholders of Suss MicroTec AG |
Accumulated other comprehensive income | ||||
|---|---|---|---|---|---|---|---|
| Deferred taxes | Fair value fluctua tions of available for sale securities |
Cash flow hedges | Foreign currency adjustments |
Remeasure ments on defined benefit pension plans |
|||
| 120,394 | 689 | 119,705 | 22 | 240 | -317 | -956 | 0 |
| -412 | -412 | -412 | |||||
| 119,982 | 689 | 119,293 | 22 | 240 | -317 | -956 | -412 |
| 2,295 | 30 | 2,265 | |||||
| 685 | 9 | 676 | -5 | 78 | -163 | 767 | -1 2) |
| 2,980 | 39 | 2,941 | -5 | 78 | -163 | 767 | -1 |
| 19 | |||||||
| 0 | |||||||
| -1,501 | -728 | -773 | |||||
| 121,480 | 0 | 121,480 | 17 | 318 | -480 | -189 | -413 |
| 128,107 | 0 | 128,107 | 73 | 248 | -505 | -768 | 0 |
| -915 | -915 | -915 | |||||
| 127,192 | 0 | 127,192 | 73 | 248 | -505 | -768 | -915 |
| -10,466 | -10,466 | ||||||
| -1,245 | -1,245 | 12 | -190 | 147 | -1,217 | 3 2) | |
| -11,711 | 0 | -11,711 | 12 | -190 | 147 | -1,217 | 3 |
| 0 | |||||||
| 0 | |||||||
| 0 | |||||||
| 115,481 | 0 | 115,481 | 85 | 58 | -358 | -1,985 | -912 |
| in 1 thousand | Lithography | Substrate Bonder | Photomask Equipment | |||
|---|---|---|---|---|---|---|
| 9M /2013 | 9M /2012 | 9M / 2013 | 9M / 2012 | 9M / 2013 | 9M /2012 | |
| External sales | 64,926 | 81,059 | 9,791 | 15,340 | 15,655 | 8,594 |
| Internal sales | 0 | 0 | 0 | 0 | 0 | 0 |
| Total sales | 64,926 | 81,059 | 9,791 | 15,340 | 15,655 | 8,594 |
| Result per segment (EBIT) | 2,593 | 16,340 | -15,994 | -9,232 | 924 | -2,540 |
| Income before taxes | 2,496 | 16,327 | -15,994 | -9,232 | 919 | -2,543 |
| Significant non-cash items | 467 | -1,342 | -6,759 | -2,133 | -1,087 | -356 |
| Segment assets | 77,624 | 84,693 | 32,492 | 35,090 | 12,012 | 16,725 |
| thereof Goodwill | 15,352 | 17,535 | 0 | 0 | 0 | 0 |
| Unallocated assets | ||||||
| Total assets | ||||||
| Segment liabilities | -26,577 | -32,508 | -17,378 | -4,714 | -2,536 | -10,055 |
| Unallocated liabilities | ||||||
| Total liabilities | ||||||
| Depreciation and amortisation | 1,598 | 1,637 | 2,007 | 1,635 | 249 | 459 |
| thereof scheduled | 1,598 | 1,637 | 851 | 1,635 | 249 | 459 |
| thereof impairment loss | 0 | 0 | 1,156 | 0 | 0 | 0 |
| Capital expenditure | 343 | 5,511 | 66 | 175 | 131 | 60 |
| Workforce at September 30 | 410 | 415 | 108 | 134 | 103 | 105 |
| in 1 thousand | Sales (continuing operations) |
Capital expenditure | Assets (without Goodwill) |
||||
|---|---|---|---|---|---|---|---|
| 9M / 2013 | 9M / 2012 | 9M / 2013 | 9M / 2012 | 9M / 2013 | 9M /2012 | ||
| Europe | 25,910 | 26,555 | 11,251 | 2,701 | 104,635 | 103,372 | |
| North-America | 17,621 | 22,903 | 49 | 4,913 | 18,258 | 22,259 | |
| Japan | 4,513 | 11,031 | 4 | 0 | 1,710 | 2,579 | |
| Rest of Asia | 45,906 | 47,739 | 75 | 27 | 2,162 | 1,552 | |
| Consolidation effects | 0 | 0 | 0 | 0 | 526 | -757 | |
| Total | 93,950 | 108,228 | 11,379 | 7,641 | 127,291 | 129,005 |
| Discontinued Operations Continuing operations (Test business) Consolidation effects Total |
Other | |
|---|---|---|
| 9M / 2013 9M /2012 9M / 2013 9M / 2012 9M / 2013 9M / 2012 9M /2013 |
9M /2012 | 9M / 2013 |
| 3,235 93,950 108,228 0 0 - - 93,950 |
3,578 | |
| 6,279 4,196 6,279 0 0 -4,196 -6,279 0 |
4,196 | |
| 9,514 98,146 114,507 0 0 -4,196 -6,279 93,950 |
7,774 | |
| -1,442 -13,233 3,126 0 1,507 - - -13,233 |
-756 | |
| -1,294 -13,132 3,258 0 1,507 - - -13,132 |
-553 | |
| 13 -7,460 -3,818 0 0 - - -7,460 |
-81 | |
| 10,032 142,643 146,540 0 0 - - 142,643 |
20,515 | |
| 0 15,352 17,535 0 0 - - 15,352 |
0 | |
| 35,503 | ||
| 178,146 | ||
| -2,350 -48,054 -49,627 0 0 - - -48,054 |
-1,563 | |
| -14,611 | ||
| -62,665 | ||
| 1,297 4,961 5,028 0 0 - - 4,961 |
1,107 | |
| 1,297 3,805 5,028 0 0 - - 3,805 |
1,107 | |
| 0 1,156 0 0 0 - - 1,156 |
0 | |
| 1,895 11,379 7,641 0 0 - - 11,379 |
10,839 | |
| 673 699 0 0 - - 673 |
45 | 52 |
of SUSS MicroTec AG as of September 30, 2013
The consolidated financial statements of SUSS MicroTec AG as of December 31, 2012, have been prepared in accordance with the International Financial Reporting Standards (IFRS) applied by the International Accounting Standards Board (IASB) as of the closing date. The consolidated interim financial statements as of September 30, 2013, which were prepared on the basis of International Accounting Standards (IAS) 34 "Interim Financial Reporting," do not contain all of the necessary information as required for the preparation of the Annual Report and should be read in conjunction with the consolidated financial statements of SUSS MicroTec AG as of December 31, 2012. In the interim financial statements as of September 30, 2013, the same accounting methods were applied as in the consolidated financial statements for the 2012 fiscal year.
All of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in effect as of September 30, 2013, have been applied.
The following new IFRS standards to be applied since January 1, 2013, are relevant for SUSS MicroTec AG:
Amendments to IAS 1 (Presentation of the Financial Statements) Amendments to IAS 19 (Employee Benefits)
The retroactive application of the amended IAS 19 led to the complete recording in the statement of financial position of actuarial losses related to pension provisions, which were recognized with a time lag as of December 31, 2012, using the corridor method. The previous year's figures were adjusted accordingly.
For additional information about specific accounting and measurement methods,please see the consolidated financial statements of SUSS MicroTec AG as of December 31, 2012.
The Group auditor has neither audited nor reviewed the interim financial statements.
The consolidated financial statements include the financial statements of SUSS MicroTec AG and of all material companies over which, independent of the level of its participatory investment, the proprietary company can exercise control (i.e. the control principle).
Compared with the consolidated financial statements as of December 31, 2012,there were no changes to the scope of consolidation.
SUSS MicroTec Group has various credit facilities with national and international banks and insurance companies. The credit and guarantee line of 1 7.5 million provided by the bank consortium led by BayernLB and with the participation of Deutsche Bank AG and DZ Bank AG remained in effect until March 31, 2013.
As of April 1, 2013, SUSS MicroTec AG and SUSS MicroTec Lithography GmbH concluded new credit agreements with the bank consortium.The new credit agreements resulted in credit and guarantee lines totaling 1 4.5 million.The new credit lines were granted until further notice and were issued without covenants.Their primary purpose is to serve as backing for down payment guarantees.
SUSS MicroTec AG has decided to reduce the guarantee lines because the previously available lines have by no means been exhausted. As of September 30, 2013, credit and guarantee lines of 1 8.0 million, of which 1 3.1 million were utilized in the form of guarantees, were available to SUSS MicroTec Group.
The following changes resulted from the initial application of IAS 19 (2011).
The SUSS MicroTec Group maintains defined benefit pension plans in Germany,Japan, and Switzerland.Using the corridor method, actuarial losses of 1 1,242 thousand were not recognized as of December 31, 2012. Pension plans are discussed in detail in the 2012 Annual Report (Notes to the IFRS consolidated financial statements, Item 22).
SUSS MicroTec AG applied IAS 19 (2011) for the first time retrospectively and adjusted the comparative figures accordingly. In the process,the pension provision as of December 31, 2012 / January 1, 2013,was increased by 1 1,242 thousand; in exchange,the deferred tax assets increased by 1 327 thousand. Accumulated other comprehensive income was adjusted by 1 -915 thousand.
As of December 31, 2011 / January 1, 2012, the adjustment amount in accumulated other comprehensive income came to 1 -412 thousand. It resulted from (so far unrecognized) actuarial losses of 1 551 thousand and corresponding deferred tax assets of 1 139 thousand.
The following change results from the new rules in IAS 1:
The items in other comprehensive income must be divided into two categories: Items that are recorded in later periods via the statement of income are disclosed separately from items that remain in other comprehensive income.
SUSS MicroTec AG has provided the necessary information in the statement of comprehensive income and in the statement of changes in equity. The comparative figures were adjusted accordingly.
In May 2013, SUSS MicroTec AG announced a repositioning of the Substrate Bonder division1). The Company decided to focus the Permanent Bonding product line on MEMS and LED applications in order to address the unsatisfactory earnings level so far. The Company will continue its policy of concentrating on the Temporary Bonding product line,which will mainly drive the future growth of the Substrate Bonder division. With this step, the Company takes into account the technological advancement of the product portfolio and the market development in recent years.
In connection with these measures, SUSS MicroTec AG undertook a non-cash value adjustment of approximately 1 4.6 million in the second quarter, which primarily accrues to capitalized development costs from the years prior to 2008 and no longer needed demonstration equipment and other inventories. In addition, provisions of 1 1.4 million were formed for commitments entered and other agreements. As a result, extraordinary expenses for refocusing the Permanent Bonding product line amount to approximately 1 6.0 million.
With the purchasing agreement as of January 23, 2013, SUSS MicroTec AG acquired the property at the Company headquarters in Garching, where SUSS MicroTec AG and parts of SUSS MicroTec Lithography GmbH are located. The transfer of ownership of the property took place in September 2013. The purchase price plus ancillary costs (notary costs and the real estate transfer tax) of 1 8.9 million were financed by available cash and cash equivalents.
The securities held as available for sale recognized in the statement of financial position include – as in the previous year – corporate and government bonds as well as commercial papers with a term of up to three months. The securities have been measured at market prices. Any fluctuations in the market price are recognized in accumulated other comprehensive income and therefore do not affect profit and loss.
Financial expense includes 1 102 thousand in interest cost from the compounding of noncurrent financial liabilities,which resulted from the acquisitions of Tamarack /USA (100 percent acquisition) and Suss MicroOptics /Switzerland (15 percent acquisition) in the 2012 fiscal year.
Other issues influencing assets, liabilities, shareholders'equity,the result for the period,or cash flows and unusual in terms of their nature, magnitude, or frequency did not arise during the interim reporting period.
SUSS MicroTec AG has accordingly implemented the required disclosures in the revised IAS 1 (see the discussion under Point 3.3). No further changes have been made; the remaining presentation of the consolidated financial statements as of September 30, 2013, is analogous to the presentation as of December 31, 2012.
To the extent that estimates were made in the interim reports,the methodology underlying the estimates remained fundamentally the same during the fiscal year and in comparison to the previous fiscal year.
In a departure from the approach used at the end of the fiscal year, income tax expense in each interim reporting period is recorded on the basis of the best estimate of the weighted average annual income tax rate which is expected for the entire fiscal year.
SUSS MicroTec AG currently assumes that the annual income tax rate will deviate from the expected tax rate of approximately 28 percent. The primary reason for this is that the losses accrued by foreign subsidiaries cannot be capitalized.
Otherwise there are no changes requiring disclosure which would have a material impact on the current interim reporting period.
During the reporting period, no issuances,repurchases, or repayments occurred involving either bonds or equity securities.
During the reporting period, no dividend was distributed nor was such a distribution proposed.
SUSS MicroTec AG is currently working on a refinancing of the property and building in Garching, which came under SUSS MicroTec AG's ownership in September 2013.The purchase price (including ancillary purchase costs) came to approximately 1 8.9 million. SUSS MicroTec received a loan commitment from the KfW for 1 7.5 million in mid-October 2013.A retrieval of the loan and disbursement by the bank have not yet occurred.
Due to a reevaluation of the business situation in permanent bonding and the ongoing losses in this product line the management has decided to expand the restructuring measures, which have been taken in the second quarter this year, and to cease production of cluster systems for permanent bonding applications. The development and production of the successful manual permanent bonding systems are not affected by this strategic action. In this context one-off expenses of 1 8.3 million can be expected in the fourth quarter 2013. This one-off effect includes 1 6.7 million for write-offs on inventories (raw materials, unfinished goods as well as demonstration tools) and 1 1.6 million of precautionary provisions formed for single customer projects. With this move the management expects to pronouncedly reduce the losses of the Substrate Bonding Division.
There are no contingent receivables. There were no substantial changes in contingent liabilities since the previous reporting date of December 31, 2012.
Basic earnings per share are calculated by dividing the net profit or loss for the period (net of minority interests) by the average number of shares.
In order to calculate diluted earnings per share, the profit or loss for the period attributable to shareholders (net of minority interests) and the weighted average of outstanding shares are adjusted for the impact of all potential dilutive shares.
The following table shows the calculation of the basic and diluted earnings per share:
| in 1 thousand | 9M / 2013 | 9M / 2012 |
|---|---|---|
| Profit or loss from continuing operations | -10,466 | 788 |
| Less minority interests | 0 | -30 |
| Profit or loss from continuing operations attributable to shareholders of SUSS MicroTec AG | -10,466 | 758 |
| Weighted average number of outstanding shares | 19,115,538 | 19,106,396 |
| Effect of the (potential) exercise of stock options (number of options) | 0 | 0 |
| Adjusted weighted average number of outstanding shares | 19,115,538 | 19,106,396 |
| Earnings per share in 1 from continuing operations – basic – | -0.55 | 0.04 |
| Earnings per share in 1 from continuing operations – diluted – | -0.55 | 0.04 |
of SUSS MicroTec Group
Sales Other /Non-operating
Holding company Production (1) in liquidation
| Nine-month Report 2013 | November 7 |
|---|---|
| German Equity Forum, Frankfurt/Main | November 11 – 13 |
| Morgan Stanley TMT Conference, Barcelona | November 21–22 |
| KeplerCheuvreux Investment Conference, Frankfurt | January 20–22 |
| Annual Report 2013 | March 28 |
| Quarterly Report 2014 | May 8 |
| Shareholders' Meeting, Haus der Bayerischen Wirtschaft, Munich | June 17 |
| Interim Report 2014 | August 7 |
| Nine-month Report 2014 | November 6 |
| Published by | SUSS MicroTec AG |
|---|---|
| Edited by | Finance, Julia Natterer |
| Investor Relations, Franka Schielke | |
| Concept and design | Whitepark GmbH & Co., Hamburg |
| Photography | Michael Lange, SUSS MicroTec AG |
SUSS MicroTec AG Schleißheimer Straße 90 85748 Garching,Germany Phone: +49 (0)89-32007-0 E-mail: [email protected]
Investor Relations Phone: +49 (0)89-32007-161 E-mail: [email protected]
Forward-looking statements: These reports contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements.These statements are based oncurrent plans, estimates, and projections,and should be understood as such. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties.We caution readers that a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement.
SUSS MicroTec AG Schleißheimer Straße 90 85748 Garching, Germany Phone: +49 (0)89-32007-0 E-mail: [email protected]
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