Quarterly Report • Nov 8, 2012
Quarterly Report
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1 January – 30 September
| in 1 million | Q3 / 2012 | Q3 / 2011 | Change | 9M / 2012 | 9M / 2011 | Change |
|---|---|---|---|---|---|---|
| Continuing operations | ||||||
| Order entry | 36.6 | 38.2 | -4.2 % | 117.0 | 118.6 | -1.3 % |
| Order backlog as of 09/ 30 | -- | -- | -- | 102.4 | 103.5 | -1.1 % |
| Total sales | 40.7 | 45.9 | -11.3 % | 108.2 | 130.6 | -17.2 % |
| Sales margin | 1.0 % | 6.3 % | -5.3%-points | 0.7 % | 8.6 % | -7.9%-points |
| Gross profit | 13.4 | 16.2 | -17.3 % | 38.3 | 50.1 | -23.6 % |
| Gross margin | 32.9 % | 35.3 % | -2.4%-points | 35.4 % | 38.4 % | -3.0%-points |
| Cost of sales | 27.3 | 29.7 | -8.1 % | 69.9 | 80.5 | -13.2 % |
| R&D costs | 2.7 | 3.7 | -27.0 % | 7.1 | 9.2 | -22.8 % |
| Continuing operations | ||||||
| EBITDA | 3.3 | 5.8 | -43.1 % | 8.2 | 19.5 | -57.9 % |
| EBITDA margin | 8.1 % | 12.6 % | -4.5%-points | 7.6 % | 14.9 % | -7.3%-points |
| EBIT | 1.6 | 4.1 | -61.0 % | 3.1 | 14.7 | -78.9 % |
| EBIT margin | 3.9 % | 8.9 % | -5.0%-points | 2.9 % | 11.3 % | -8.4 %-points |
| Earnings after tax | 0.4 | 2.9 | -86.2 % | 0.8 | 11.2 | -92.9 % |
| Earnings per share (in 1) basic | 0.02 | 0.15 | -86.7 % | 0.04 | 0.59 | -93.2 % |
| Continuing and discontinued operations | ||||||
| Earnings after tax | 0.4 | 2.9 | -86.2 % | 2.3 | 11.2 | -79.5 % |
| Earnings per share (in 1) basic | 0.02 | 0.15 | -86.7 % | 0.12 | 0.59 | -79.7 % |
| Balance sheet and cash flow | ||||||
| Equity | -- | -- | -- | 122.3 | 117.1 | 4.4 % |
| Equity ratio | -- | -- | -- | 60.6 % | 60.3 % | 0.3%-points |
| Return on equity | 0.3 % | 2.5 % | -2.2%-points | 0.7 % | 9.6 % | -8.9%-points |
| Balance sheet total | -- | -- | -- | 201.7 | 194.1 | 3.9 % |
| Net cash | -- | -- | -- | 30.7 | 40.1 | -23.4 % |
| Free cash flow* | 0.9 | 4.5 | -80.0 % | -6.2 | 2.0 | <-100.0 % |
| Further key figures | ||||||
| Investments ** | 0.5 | 0.5 | 0.0 % | 3.0 | 3.0 | 0.0 % |
| Investment ratio | 1.2 % | 1.1 % | 0.1%-points | 2.8 % | 2.3 % | 0.5%-points |
| Depreciation | 1.7 | 1.6 | 6.3 % | 5.0 | 4.8 | 4.2 % |
| Employees as of 09/ 30 | -- | -- | -- | 699 | 637 | 9.7 % |
* Before consideration of purchase or sale of available-for-sale securities and before consideration of extraordinary items from purchase or sale of subsidiaries.
** without consideration of purchase of subsidiaries.
Foreword by the Management Board
Highlights Q3 2012
A year ago, we wrote to you in this letter that the preceding quarter had been characterized by tremendous uncertainty both politically and macroeconomically, not least due to the apparently never-ending debate about the debt crisis in Europe. Now that the third quarter of 2012 has come to an end, we must acknowledge that the situation has scarcely changed. In the meantime, various bailout packages have been arranged and just recently the permanent European Stability Mechanism ESM has taken effect. However, a lasting solution to the pan-European debt crisis is still not in sight and the probability that the entire world economy will be impacted is high.
The effects on the real economy are already palpable. According to research by RWI Essen (Rheinisch-Westfälisches Institut für Wirtschaftsforschung in Essen), the global economy had already begun to slow in the first half of 2012. The German economy revived slightly in the first half of the year, driven primarily by exports, but domestic demand remained weak. Against this backdrop, RWI lowered its forecast for gross domestic product growth in Germany this year to 0.8%, having predicted 1.1% growth in June.
In our sector, the semiconductor and semiconductorrelated industry, an increasing number of warning signals have been heard from large equipment manufacturers and semiconductor companies in the past months. The Gartner market research institute asserts that investments in wafer fab equipment will decline in 2012, anticipates that these investments will stabilize in 2013 and for 2014 they forecast another upturn. Given our broadly diversified product range and our focus on the robust packaging market, we can mitigate the effects of this sector-specific cyclicality, but we cannot entirely eliminate them. The behavior of our customers also reflects uncertain macroeconomic conditions. We continue to perceive a high level of uncertainty, combined with individual cases of delays in the placement of orders similar to what we have seen already in the last quarters. Despite this environment, we have once again managed to generate good order entry in the third quarter.
The uncertainty of the economic environment is also reflected in the capital markets, particularly in the performance of stock prices. Our TecDAX and Prime IG Semiconductor benchmark indexes recorded significant price losses in the third quarter. The SUSS MicroTec share was able to record a gain since the beginning of the year, but it retreated significantly from its annual highs in March and May.
Frank Averdung Chief Executive Officer
Michael Knopp Chief Financial Officer
Dear shareholders, we would like to take this opportunity to provide an update on the operational business development of our divisions. Our largest division, Lithography, continues to display very robust business activity. Tamarack Scientific, which we acquired in March of this year, is part of this division. We are satisfied with progress integrating the new business into our organizational structure and continue to see tremendous potential for Tamarack products. Focusing on our target markets and the corresponding related activities, like hiring and training of new employees, the manufacture of new generations of tools as well as the build-up of working capital, will remain dominant themes in the Lithography Division in the coming year, with a corresponding negative impact on the margin similar to 2012.
We see the greatest growth potential for our Company in the Substrate Bonder division. The growth in the volume of products that require permanent bonding processes such as image sensors, MEMS, and LEDs is continuously increasing and requires additional capacities. The introduction of 3D technology in chip processing requires complex and technologically demanding new processes that we develop in close collaboration with customers and cooperation partners. This area will also see a negative result in the coming fiscal year, generated by high expenses in the area of research and development combined with some product margins that continue to be very low. However, the losses will be less than those in 2012. The latest generation of Bond Cluster tools delivered to an internationally leading integrated device manufacturer in December 2011 was installed successfully. Together with the customer, our engineers work to optimize processes in order to make the crossover into pre-serial production possible. These activities proceed according to plan. Follow-up orders are expected over the course of the 2013 fiscal year.
The Photomask Equipment division develops cyclically with the semiconductor market. Following strong order entry in 2010, we saw a correspondingly sharp rise in sales in 2011. So far in 2012, order entry has been very satisfactory, but, as expected, it does not match the high level seen in 2010. The business is primarily determined by the demand for production equipment in the high-end Photomask area and benefits from the introduction of new technology nodes on the front-end.
In view of the macroeconomic environment, order entry remained positive for us in the third quarter of 2012. Although the demand for SUSS MicroTec equipment declined slightly from the corresponding quarter of the previous year, it remained at the upper end of our estimate range. In the quarterly comparison, order entry amounted to 1 36.6 million after 1 38.2 million in the corresponding quarter of the previous year, representing a decrease of approximately 4%. Sales in the months from July to September totaled 1 40.7 million, about 11% below the previous quarter's level (Q3 2011: 1 45.9 million). EBIT of 1 1.6 million in the third quarter was 61% below the 1 4.1 million amount in the corresponding quarter of the previous year.
Sales in the first nine months came to 1 108.2 million, below the high level in the previous year of 1 130.6 million. This corresponds to a decrease of approximately 17%. Order entry declined slightly from 1 118.6 million in 2011 to 1 117.0 million in 2012. As of the reporting date of September 30, 2012, the order backlog amounted to 1 102.4 million (previous year: 1 103.5 million).
The gross profit margin for SUSS MicroTec Group declined in the first nine months of the year to 35.4% (9M 2011: 38.4%). This decline was primarily attributable to the diminished margin in the Photomask Equipment division as well as the margin in the Lithography division, which returned to a normal level after an extremely strong year in 2011.
Earnings before interest and taxes (EBIT) of 1 3.1 million were below the 1 14.7 million of the previous year. EBIT included one-time currency effects of 1 -0.4 million. This resulted from the settlement of Companyinternal foreign currency credits of SUSS MicroTec AG to SUSS MicroTec Inc. in connection with the acquisition of Tamarack in March 2012. The margin also suffered from the higher share of sales for Substrate Bonder, the loss at Tamarack, and higher research and development costs.
Earnings after taxes (EAT) for continuing operations amounted to 10.8 million, compared to 1 11.2 million in the previous year. Earnings after taxes (EAT) amounted to 1 2.3 million for continuing and discontinued operations, compared to 1 11.2 million in the previous year. This included a tax-free amount of 1 1.5 million, which resulted from the sale of the Test Systems division in 2010. Basic earnings per share (EPS) from continuing and discontinued operations amounted to 1 0.12 (previous year: 1 0.59).
Cash and interest-bearing securities totaled 1 44.3 million as of September 30, 2012 (September 30, 2011: 1 54.7 million). Net liquidity came in at 1 30.7 million as of the reporting date (September 30, 2011: 1 40.1 million). Free cash flow before the inclusion of securities sales /purchases and extraordinary effects from M&A activities came to 1 -6.2 million in the first nine months of the year (previous year: 1 2.0 million).
We reiterate our forecast that in the current fiscal year the Company expects to achieve sales between 1 160 and 1 170 million as well as an EBIT between 1 5 and 1 10 million, and a free cash flow in the low single digit million 1 range.
Due to our currently very limited visibility, we broaden our order intake guidance for the fourth quarter and expect an order intake of 1 25 – 40 million.
Garching, Germany, November 2012
Frank Averdung Michael Knopp
Chief Executive Officer Chief Financial Officer
In July SUSS MicroTec launched the third generation of the ACS200 Coating and Developing Platform. This newly developed tool offers an excellent mix of innovation and production proven technology components of the well-established ACS200Plus and Gamma platforms. The configuration flexibility of modules and technologies meets not only the requirements of the Advanced Packaging, MEMS and LED markets, it also bridges the gap between research & development and high volume manufacturing. Especially the newly designed coater module offers state of the art open bowl spin coating as well as the patented GYRSET® closed cover coating technology.
This year's Semicon West took place from July 10 to 12 in the Moscone Center in San Francisco. SUSS MicroTec presented itself under the well known theme "shrink, stack, integrate" on its exhibition stand to customers and business partners. Main focus of this years' show was the Lithography Plus campaign, promoting the recent acquisition of Tamarack Scientific and reflecting the expansion of SUSS MicroTec's technology competence. As in the previous years, SUSS MicroTec invited for the annual 3D Integration Technology Workshop under the slogan "3D Integration Technology – Ready for Take Off?". Over 70 participants listened to speakers from preeminent companies and world-renowned research institutions, like 3M, Dow Corning, IMEC, Yole, etc., presenting updates on 3D technology development.
Since August 2012, SUSS MicroTec is an official partner of the BluECOmpetence" initiative of the VDMA. SUSS MicroTec joined this initiative because sustainability is gaining importance in the industrial sector. The activities are aligned to achieve sustainable developments on a global perspective. As part of our Corporate Social Responsibility, SUSS MicroTec views environmental protection, health and safety of the society and the wellbeing of the individual person as values on its own. Production, relationships with our business partners and the design of the products are not only based on economic and financial factors but consider environmental and social issues with equal adherence.
According to a paper from the research institute RWI, Essen, the global business cycle cooled down in the first half of 2012 and the upswing in the US and in Asia began to lose momentum in past months. Growth in Latin America remained halting. Production levels in the Eurozone continued to fall, as expected. The Euro debt crisis and the fear of a long term recession are proving to be a growing burden on the global economy. As long as this crisis remains unsolved, the risks for the global economy are substantial.
The development is also reflected in the capital market and especially the stock market. The successful approval of the bailout packages at the European and international level have led to a certain easing of tensions in the financial markets in the first half of 2012, which in turn has led to partially rising share prices. Starting in the second quarter already a high degree of uncertainty and volatility returned to the capital markets. This situation is still present today and dominated the activities of the stock market participants.
Our share began the 2012 fiscal year with an XETRA closing price of 1 5.83 on January 2. In the first quarter of 2012, the price of the SUSS MicroTec share almost doubled since then and was once again able to surpass the 1 10 threshold. This price increase, which was even more rapid than the price increase in the first quarter of the previous year, was accompanied by volatility that is typical for technology stocks. Ultimately, the SUSS MicroTec share closed the first quarter of 2012 with a price of 1 10.76, which corresponded to an increase of more than 90% from the beginning of 2012. This positive trend was broken in April 2012. The TecDAX and the Prime IG Semiconductor have experienced share price declines since then.
The SUSS MicroTec share also displayed price declines compared to the first quarter 2012. In the beginning of the third quarter, the SUSS MicroTec share generally moved sideways, but coupled with high daily volatility. Compared to the end of the second quarter, the share price decreased further in the third quarter, but could defend the plus of 28%of the share price compared to beginning of 2012.
The two benchmark indexes TecDAX and Prime IG Semiconductor performed differently in the first nine months of 2012. The TecDAX closed the first nine months with a gain of approximately 18%, while the Prime IG Semiconductor recorded a decrease of 7% in the first nine months. Thus, the SUSS MicroTec share once again outperformed both benchmark indexes.
The average daily trading volume of SUSS MicroTec shares on all German stock exchanges in the first nine months of 2012 amounted to approximately 129k shares (9M 2011: average daily trading volume of approximately 326k shares). A consideration here, however, is that extraordinarily high trading volumes were recorded in the first quarter of 2011 prior to the share's inclusion in the TecDAX. Additionally, almost all stock listed companies are suffering a general decline in trading volume in 2012, but the SUSS MicroTec share is holding its position in the middle field of the TecDAX ranking according to trading volume (September Ranking: #17).
| Shares | Options | |
|---|---|---|
| Management Board |
||
| Frank Averdung | 83,200 | 0 |
| Michael Knopp | 22,500 | 0 |
| Supervisory Board |
||
| Dr. Stefan Reineck | 9,600 | 0 |
| Jan Teichert | 0 | 0 |
| Gerhard Pegam | 0 | 0 |
of SUSS MicroTec AG
Order entry of 1 36.6 million in the third quarter of the current fiscal year fell just slightly short of the 1 38.2 million level in the same quarter in the previous year. Sales in the third quarter of 2012 amounted to 1 40.7 million, 11.3% lower than 1 45.9 million in the previous year's quarter. Demand for SUSS MicroTec equipment primarily involved the two largest market segments, advanced packaging and MEMS.
The nine-month period developed as follows: order entry of 1 117.0 million in the first nine months of 2012 was 1.3% below the corresponding amount of 1 118.6 million in the previous year. Compared with the same period of the previous year, sales decreased by 17.2% from 1 130.6 million in 2011 to 1 108.2 million in 2012. The order backlog as of September 30, 2012 amounted to 1 102.4 million (September 30, 2011: 1 103.5 million).
The gross profit margin reached 32.9% in the third quarter after 35.3% in the corresponding quarter of the previous year, reflecting a larger share of sales for Substrate Bonder and a lower margin in the Lithography division. For the full year, the gross profit margin was 35.4%, which represents a decrease of three percentage points from the previous year.
Earnings before interest and taxes (EBIT) of 1 3.1 million were below the 1 14.7 million of the previous year's quarter. EBIT included one-time currency effects of 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. Additional negative factors were the higher share of sales for Substrate Bonder, the loss at Tamarack, and the lower margin in the Photomask Equipment and Lithography divisions.
Earnings after taxes (EAT) for continuing operations amounted to 10.8 million, compared to 1 11.2 million in the previous year. Earnings after taxes (EAT) amounted to 1 2.3 million for continuing and discontinued operations, compared to 1 11.2 million in the previous year. This included a tax-free amount of 1 1.5 million, which resulted from the sale of the Test Systems division in 2010. Basic earnings per share (EPS) from continuing and discontinued operations amounted to 1 0.12 (previous year: 1 0.59).
Cash and interest-bearing securities amounted to 1 44.3 million as of September 30, 2012 (September 30, 2011: 1 54.7 million). Net liquidity came in at 1 30.7 million as of the reporting date (September 30, 2011: 1 40.1 million). Free cash flow before the inclusion of securities sales /purchases and extraordinary effects from M&A activities came to 1 -6.2 million in the first nine months of the year (previous year: 1 2.0 million).
The weakening order entry in the first nine months of the 2012 fiscal year exclusively involved the Rest of Asia region. This region primarily comprises of Taiwan, China, Korea and Malaysia. It recorded 15.3% fewer orders than in the corresponding period of the previous year. Since the Rest of Asia region constitutes more than 50% of order entry, total order entry declined in the first nine months even though all other regions recorded increases. The regions of North America (+13.8%), Europe (+21.4%), and Japan (+25.0%) all reported double-digit increases in order entry.
The regional distribution of sales in the first nine months offers a similar picture. The Rest of Asia region also experienced a decline in sales (-32.6%). In addition, sales fell in Europe (-11.5%). By contrast, the regions of Japan and North America reported growth of 13.1% and 14.6%, respectively.
The Lithography division includes the development, manufacture, and sale of the Mask Aligner, Developer, and Coater product lines. These product lines are developed and produced in Germany at the locations in Garching near Munich and Sternenfels. The Lithography division was strengthened in the first quarter of 2012 by the acquisition of Tamarack Scientific Co., Inc. The company was founded in 1966 and has its headquarters in Corona in southern California (USA). Tamarack is a leading provider of UV projection lithography devices as well as laser-based microstructuring systems.
The Lithography division recorded a decline in order entry in the first nine months of 2012. Order entry of 1 76.4 million for the nine-month period of 2012 could not quite reach the comparable value in the previous year of 1 81.1 million. Division sales in the first nine months of 2012 amounted to 1 81.1 million after 1 84.4 million in the corresponding period of the previous year, representing a decrease of approximately 4%. Division earnings (EBIT) in the Lithography division declined in the ninemonth comparison from 1 20.0 million in the previous year to 1 16.3 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 fiscal year, the Substrate Bonder division recorded a 29.5% increase in order entry from the previous year. Sales also rose from the corresponding period of the previous year. While order entry increased to 1 19.3 million (9M 2011: 1 14.9 million), sales rose from 1 14.8 million to 1 15.3 million. Division earnings as of September 30, 2012 deteriorated to 1 -9.2 million (9M 2011: 1 -7.7 million). The reasons for this included the resumed delivery of low-margin devices and higher research and development costs in this division.
Substrate Bonder Division Overview in 3 million 9M 2011 9M 2012
The Photomask Equipment division comprises the development, manufacture, and sale of the HMx, ASx, MaskTrack, and MaskTrack Pro product lines. The development and production of specialized systems for the cleaning and processing of photomasks for the semiconductor industry are also conducted at the Sternenfels site in Germany.
In the first nine months of 2012, the Photomask Equipment division recorded order entry of 1 18.1 million, slightly above the level of 1 17.9 million in the previous year. However, division sales fell significantly to 1 8.6 million (9M 2011: 1 25.8 million). Division earnings in the first nine months showed a loss of 1 -2.5 million (9M 2011: 1 4.4 million), reflecting lower sales. This division is heavily influenced by leaps in technology on the front-end of the semiconductor industry, resulting in a pronounced cyclicality.
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. At the end of 2011, the Mask business for the semiconductor industry in Palo Alto, USA, was sold. Ownership of the Micro-optics business was boosted to 100% in the first half of the year. In this way, the company, which commands important enabling technologies, will be even more closely tied to SUSS MicroTec.
Order entry declined from 1 4.7 million in the first nine months of 2011 to 1 3.2 million. Division sales after the first nine months of 2012 amounted to 1 3.2 million after 1 5.5 million in the corresponding period of the previous year. Division earnings amounted to 1 -1.9 million in the first nine months of 2011 and 1 -1.4 million in the first nine months of 2012.
of SUSS MicroTec AG
| in 1 thousand | Q3 2012 | Q3 2011 | 01/01/2012 – 09/30/2012 |
01/01/2011 – 09/30/2011 |
|---|---|---|---|---|
| Sales | 40,716 | 45,913 | 108,228 | 130,575 |
| Cost of sales | -27,285 | -29,700 | -69,881 | -80,477 |
| Gross profit | 13,431 | 16,213 | 38,347 | 50,098 |
| Selling costs | -5,262 | -4,965 | -14,817 | -14,031 |
| Research and development costs | -2,732 | -3,656 | -7,098 | -9,228 |
| Administration costs | -4,133 | -3,570 | -12,628 | -11,880 |
| Other operating income | 562 | 1,383 | 2,242 | 3,675 |
| Other operating expenses | -281 | -1,263 | -2,920 | -3,917 |
| Analysis of net income from operations (EBIT): | ||||
| EBITDA (Earnings before Interest and Taxes. Depreciation and Amortization) | 3,342 | 5,784 | 8,154 | 19,503 |
| Depreciation and amortization of tangible assets, intangible assets and investments in subsidiaries |
-1,757 | -1,642 | -5,028 | -4,786 |
| Net income from operations (EBIT) | 1,585 | 4,142 | 3,126 | 14,717 |
| Financial income | 198 | 253 | 663 | 1,562 |
| Financial expenses | -170 | -147 | -531 | -767 |
| Financial result | 28 | 106 | 132 | 795 |
| Proft from continuing operations before taxes | 1,613 | 4,248 | 3,258 | 15,512 |
| Income taxes | -1,180 | -1,325 | -2,470 | -4,263 |
| Profit from continuing operations | 433 | 2,923 | 788 | 11,249 |
| Net profit or loss from discontinued operations (after taxes) | 0 | -2 | 1,507 | -23 |
| Net profit | 433 | 2,921 | 2,295 | 11,226 |
| Thereof equity holders of SUSS MicroTec | 433 | 2,880 | 2,265 | 11,096 |
| Thereof minority interests | 0 | 41 | 30 | 130 |
| Earnings per share (undiluted) | ||||
| Basic earnings per share from continuing operations in EUR | 0.02 | 0.15 | 0.04 | 0.59 |
| Basic earnings per share from discontinued operations in EUR | 0.00 | 0.00 | 0.08 | 0.00 |
| Earnings per share (diluted) | ||||
| Basic earnings per share from continuing operations in EUR | 0.02 | 0.15 | 0.04 | 0.59 |
| Basic earnings per share from discontinued operations in EUR | 0.00 | 0.00 | 0.08 | 0.00 |
| in 1 thousand | 01/01/2012 – 09/30/2012 | 01/01/2011 – 09/30/2011 | ||
|---|---|---|---|---|
| Net profit or loss | 2,295 | 11,226 | ||
| Fair value fluctuations of available for sale securities | 78 | -66 | ||
| Foreign currency adjustment | 776 | -837 | ||
| Cash flow hedges | -163 | -189 | ||
| Deferred taxes | -5 | 70 | ||
| Total income and expenses recognized in equity | 686 | -1,022 | ||
| Total income and expenses reported in the reporting period | 2,981 | 10,204 | ||
| Thereof equity holders of SUSS MicroTec | 2,942 | 10,059 | ||
| Thereof minority interests | 39 | 145 |
| ets in 1 thousand Ass |
09/30/2012 | 12/31/2011 |
|---|---|---|
| NON-CURRE NT ASSETS |
44,047 | 37,691 |
| Intangible assets | 8,903 | 8,568 |
| Goodwill | 17,535 | 13,599 |
| Tangible assets | 11,705 | 9,462 |
| Current tax assets | 69 | 87 |
| Other assets | 784 | 592 |
| Deferred tax assets | 5,051 | 5,383 |
| CURRE NT ASSETS |
157,669 | 150,055 |
| Inventories | 93,950 | 71,632 |
| Accounts receivable | 14,446 | 17,790 |
| Other financial assets | 720 | 756 |
| Securities | 28,265 | 19,362 |
| Current tax assets | 1,368 | 686 |
| Cash and cash equivalents | 15,996 | 37,036 |
| Other assets | 2,924 | 2,793 |
| TOTAL ASSETS |
201,716 | 187,746 |
| Liabilities & shareholders' equity in 1 thousand | 09/30/2012 | 12/31/2011 | |
|---|---|---|---|
| Equity | 122,267 | 120,393 | |
| Total equity attributable to shareholders of SUSS MicroTec AG | 122,267 | 119,704 | |
| Subscribed capital | 19,116 | 19,101 | |
| Reserves | 103,487 | 101,616 | |
| Accumulated other comprehensive income | -336 | -1,013 | |
| Minority interests | 0 | 689 | |
| NON-CURRE NT LIA BILITIE S |
15,471 | 10,500 | |
| Pension plans and similar commitments | 3,022 | 2,872 | |
| Provisions | 363 | 348 | |
| Financial debt | 4,000 | 4,279 | |
| Other financial liabilities | 3,751 | 244 | |
| Deferred tax liabilities | 4,335 | 2,757 | |
| CURRE NT LIA BILITIE S |
63,978 | 56,853 | |
| Provisions | 2,972 | 3,322 | |
| Tax liabilities | 2,051 | 5,734 | |
| Financial debt | 9,515 | 10,131 | |
| Other financial liabilities | 7,440 | 5,995 | |
| Accounts payable | 6,620 | 7,582 | |
| Other liabilities | 35,380 | 24,089 | |
| TOTAL LIA BILITIE S AND SHAREHOLDER S' EQUITY |
201,716 | 187,746 |
| in 1 thousand | 01/01/2012 – 09/30/2012 | 01/01/2011 – 09/30/2011 |
|---|---|---|
| Net profit (after taxes) | 2,295 | 11,226 |
| Amortization of intangible assets | 3,486 | 3,119 |
| Depreciation of tangible assets | 1,587 | 1,667 |
| Profit or loss on disposal of intangible and tangible assets | 0 | 59 |
| Profit on disposal of Cascade shares | 0 | -833 |
| Change of reserves on inventories | 3,772 | -163 |
| Change of reserves for bad debts | 79 | 102 |
| Non-cash stock based compensation | 0 | 45 |
| Other non-cash effective income and expenses | 315 | -565 |
| Acquisition costs Tamarack | 259 | 0 |
| Gain from subsequent purchase price payment Test business | -1,507 | 0 |
| Change in inventories | -17,112 | -12,966 |
| Change in trade receivables | 3,775 | -1,828 |
| Change in other assets | -639 | -1,159 |
| Change in pension provisions | 150 | -79 |
| Change in trade payables | -1,181 | -2,996 |
| Change in other liabilities and other provisions | 1,244 | 6,237 |
| Change of deferred taxes | 324 | 3,041 |
| Cash flow from operating activities | -3,153 | 4,907 |
| in 1 thousand | 01/01/2012 – 09/30/2012 | 01/01/2011 – 09/30/2011 |
|---|---|---|
| Disbursements for tangible assets | -2,367 | -2,317 |
| Disbursements for intangible assets | -699 | -645 |
| Purchases of current available-for-sale securities | -14,868 | -29,955 |
| Proceeds from redemption of available-for-sale securities | 6,041 | 2,099 |
| Proceeds from redemption of Cascade shares | 0 | 3,333 |
| Proceeds from disposal of intangible and tangible assets | 0 | 61 |
| Proceeds from subsequent selling price Test Business | 1,507 | 0 |
| Payments for purchase of SMO shares | -1,126 | 0 |
| Payments for purchase of Tamarack | -5,443 | 0 |
| Cash flow from investing activities | -16,955 | -27,424 |
| Repayment of bank loans | -180 | -180 |
| Change in current bank liabilities | -99 | 17 |
| Change in other financial debt | -616 | -708 |
| Proceeds from exercise of subscription rights | 19 | 453 |
| Cash flow from financing activities | -876 | -418 |
| Adjustments to funds caused by exchange-rate fluctuations | -56 | -156 |
| Change in cash and cash equivalents | -21,040 | -23,091 |
| Funds at beginning of the year | 37,036 | 36,525 |
| Funds at end of the period | 15,996 | 13,434 |
| Cash flow from operating activities includes: | ||
| Interest paid during the period | 163 | 360 |
| Interest received during period | 691 | 607 |
| Tax paid during the period | 6,841 | 1,466 |
| Tax refunds during the period | 0 | 16 |
| in 1 thousand | Subscribed capital | Additional paid-in capital |
Earnings reserve | |
|---|---|---|---|---|
| As of 01 January 2011 | 18,721 | 98,225 | 433 | |
| Exercise of subsription rights | 349 | 103 | ||
| Issuance of subscription rights | 45 | |||
| Net loss | ||||
| Total income and expenses recognized in equity | ||||
| As of September 30, 2011 | 19,070 | 98,373 | 433 | |
| As of 01 January 2012 | 19,101 | 98,384 | 433 | |
| Exercise of stock options | 15 | 4 | ||
| Issuance of subscription rights | ||||
| Net profit | ||||
| Total income and expenses recognized in equity | ||||
| Purchase of minority interest SMO | -398 | |||
| As of September 30, 2012 | 19,116 | 97,990 | 433 |
| Equity | Minority interests | Total equity attributable to shareholders of SUSS MicroTec AG |
Accumulated other Comprehensive Income |
Retained Earnings |
|---|---|---|---|---|
| 106,404 | 398 | 106,006 | -659 | -10,714 |
| 452 | 452 | |||
| 45 | 45 | |||
| 11,226 | 130 | 11,096 | 11,096 | |
| -1,022 | 15 | -1,037 | -1,037 | |
| 117,105 | 543 | 116,562 | -1,696 | 382 |
| 120,393 | 689 | 119,704 | -1,013 | 2,799 |
| 19 | 19 | |||
| 0 | 0 | |||
| 2,295 | 30 | 2,265 | 2,265 | |
| 686 | 9 | 677 | 677 | |
| -1,126 | -728 | -398 | ||
| 122,267 | 0 | 122,267 | -336 | 5,064 |
| Lithography | Substrate Bonder | Photomask Equipment | ||||
|---|---|---|---|---|---|---|
| in 1 thousand | 9M / 2012 | 9M / 2011 | 9M / 2012 | 9M / 2011 | 9M / 2012 | 9M / 2011 |
| External Sales | 81,059 | 84,412 | 15,340 | 14,822 | 8,594 | 25,847 |
| Internal Sales | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Sales | 81,059 | 84,412 | 15,340 | 14,822 | 8,594 | 25,847 |
| Result per segment (EBIT) | 16,340 | 19,968 | -9,232 | -7,735 | -2,540 | 4,376 |
| Income before taxes | 16,327 | 19,930 | -9,232 | -7,737 | -2,543 | 4,374 |
| Significant non-cash items | -1,342 | -863 | -2,133 | -1,835 | -356 | -299 |
| Segment assets | 84,693 | 64,332 | 35,090 | 36,281 | 16,725 | 16,840 |
| thereof Goodwill | 17,535 | 13,599 | 0 | 0 | 0 | 0 |
| Unallocated assets | ||||||
| Total assets | ||||||
| Segment liabilities | -32,508 | -28,537 | -4,714 | -7,870 | -10,055 | -9,656 |
| Unallocated liabilities | ||||||
| Total liabilities | ||||||
| Depreciation and amortisation | 1,637 | 1,210 | 1,635 | 1,548 | 459 | 467 |
| thereof scheduled | 1,637 | 1,210 | 1,635 | 1,548 | 459 | 467 |
| thereof impairment loss | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital expenditure | 5,511 | 948 | 175 | 802 | 60 | 279 |
| Workforce at September 30 | 415 | 337 | 134 | 136 | 105 | 105 |
| Sales (continuing operations) | Capital expenditure | Assets | |||||
|---|---|---|---|---|---|---|---|
| in 1 thousand | 9M / 2012 | 9M / 2011 | 9M / 2012 | 9M / 2011 | 9M / 2012 | 9M / 2011 | |
| Europe | 26,555 | 30,014 | 2,701 | 2,037 | 103,372 | 99,470 | |
| North-America | 22,903 | 19,986 | 4,913 | 828 | 22,259 | 9,222 | |
| Japan | 11,031 | 9,751 | 0 | 3 | 2,579 | 2,495 | |
| Rest of Asia | 47,739 | 70,824 | 27 | 94 | 1,552 | 1,282 | |
| Consolidation effects | 0 | 0 | 0 | 0 | 16,778 | 8,134 | |
| Total | 108,228 | 130,575 | 7,641 | 2,962 | 146,540 | 120,603 |
| Other | Continuing operations | Discontinued Operations (Test business) |
Consolidation effects | Total | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9M / 2011 | 9M / 2012 | 9M / 2012 | 9M / 2011 | 9M / 2012 | 9M / 2011 | 9M / 2012 | 9M / 2011 | 9M / 2012 | 9M / 2011 | |||||||
| 5,494 | 3,235 | 108,228 | 130,575 | 0 | 380 | - | - | 108,228 | 130,955 | |||||||
| 5,389 | 6,279 | 6,279 | 5,389 | 0 | 0 | -6,279 | -5,389 | 0 | 0 | |||||||
| 10,883 | 9,514 | 114,507 | 135,964 | 0 | 380 | -6,279 | -5,389 | 108,228 | 130,955 | |||||||
| -1,892 | -1,442 | 3,126 | 14,717 | 1,507 | -23 | - | - | 4,633 | 14,694 | |||||||
| -1,055 | -1,294 | 3,258 | 15,512 | 1,507 | -23 | - | - | 4,765 | 15,489 | |||||||
| -109 | 13 | -3,818 | -3,106 | 0 | 0 | - | - | -3,818 | -3,106 | |||||||
| 9,857 | 10,032 | 146,540 | 127,310 | 0 | 0 | - | - | 146,540 | 127,310 | |||||||
| 0 | 0 | 17,535 | 13,599 | 0 | 0 | - | - | 17,535 | 13,599 | |||||||
| 55,176 | 66,749 | |||||||||||||||
| 201,716 | 194,059 | |||||||||||||||
| -1,905 | -2,350 | -49,627 | -47,968 | 0 | 0 | - | - | -49,627 | -47,968 | |||||||
| -29,822 | -28,986 | |||||||||||||||
| -79,449 | -76,954 | |||||||||||||||
| 1,561 | 1,297 | 5,028 | 4,786 | 0 | 0 | - | - | 5,028 | 4,786 | |||||||
| 1,561 | 1,297 | 5,028 | 4,786 | 0 | 0 | - | - | 5,028 | 4,786 | |||||||
| 0 | 0 | 0 | 0 | 0 | 0 | - | - | 0 | ||||||||
| 933 | 1,895 | 7,641 | 2,962 | 0 | 0 | - | - | 7,641 | ||||||||
| 59 | 45 | 699 | 637 | 0 | 0 | - | - | 699 |
to the Interim Report of SUSS MicroTec AG as of September 30, 2012
The consolidated financial statements of SUSS MicroTec AG as of December 31, 2011 have been prepared in accordance with the International Financial Reporting Standards (IFRSs) applied by the International Accounting Standards Board (IASB) as of the closing date. In the consolidated interim financial statements as of September 30, 2012, which were prepared on the basis of International Accounting Standards (IAS) 34 "Interim Financial Reporting," the same accounting methods were applied as in the consolidated financial statements for the 2011 fiscal year.
All of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) in effect as of September 30, 2012 have been applied.
For additional information about specific accounting and measurement methods, please see the consolidated financial statements of SUSS MicroTec AG as of December 31, 2011.
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). By purchase agreement dated March 29, 2012, SUSS MicroTec Group acquired 100% of the shares in Tamarack Scientific Co. Inc. (Corona, CA, USA). The purchase price consists of a fixed component of US\$ 9.34 million as well as a variable component, which depends on the development of revenues in the next three fiscal years. As of September 30, 2012, provisions were set aside for the potential earn-out. Based on the existing corporate plans for Tamarack, the amount of the total earn-out liability was estimated to be approximately US\$ 6.8 million. In the second quarter of 2012, a provisional purchase price allocation was carried out that led to the capitalization of hidden reserves of US\$ 5.2 million. At the same time, deferred tax liabilities of US\$ 2.1 million were recognized. The purchase price allocation resulted in total goodwill of US\$ 5.1 million, which will be tested for impairment once a year in the future or whenever there are unusual events. Goodwill related to the acquisition will be allocated to the Lithography division. Additional acquisition costs currently amounting to 1 280 thousand were directly recognized under expenses.
With the purchase agreement dated May 14, 2012, SUSS MicroTec acquired 15% of the shares of SUSS MicroOptics S.A., Neuchâtel (Switzerland), in the process boosting its stake from 85% to 100%. The purchase price totaled CHF 1.35 million and was paid in May 2012.
Compared with the consolidated financial statements as of December 31, 2011, there were no additional 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 8 million provided by a bank consortium led by BayernLB remained in effect until March 31, 2012. In addition, DZ Bank AG provided a credit and guarantee line of 1 2 million, which also had a term until March 31, 2012.
Upon expiration of the previous credit agreements, the bank consortium was expanded to include not only BayernLB as the lead manager and Deutsche Bank, but also DZ Bank AG, as of April 1, 2012. SUSS MicroTec and SUSS MicroTec Lithography GmbH concluded new credit agreements with the new bank consortium in March 2012. The new credit agreements resulted in credit and guarantee lines totaling 1 7.5 million. The credit lines, whose term runs until March 31, 2013, were issued without covenants. Their primary purpose is to serve as backing for down payment guarantees.
By purchase agreement dated March 29, 2012, SUSS MicroTec Inc. (Sunnyvale, California, USA) acquired 100% of the shares in Tamarack Scientific Co. Inc. based in Corona, California, USA.
The acquisition of the shares and assets or liabilities is recorded in the consolidated financial statements of SUSS MicroTec AG in accordance with the International Financial Reporting Standards as a business combination, as stipulated in IAS 27 (rev. 2008) and IFRS 3 (rev. 2008). In this context, the acquired assets, liabilities, and contingent liabilities (with a few exceptions) are to be recognized at fair value at the time of acquisition (IFRS 3.18). In accordance with the guidelines of IFRS 3 in connection with IAS 38, not only assets appearing in the statement of financial position are to be taken into account, but also not yet recognized intangible assets.
In view of this, a provisional purchase price allocation was conducted for the acquired assets and liabilities. The acquired assets and liabilities were recognized at the time of initial consolidation on March 31, 2012, as follows:
| in USD million | Book Value according to IFRS |
Value at time of acquisition |
|---|---|---|
| Intangible assets | 1.2 | 4.2 |
| Tangible assets | 1.7 | 1.9 |
| Other non-current assets | 0.3 | 0.3 |
| Current assets | 12.8 | 14.8 |
| Total assets | 16.0 | 21.2 |
| Non-current financial liabilities | 0.0 | 2.1 |
| Current financial liabilities | 9.2 | 9.2 |
| Total liabilities | 9.2 | 11.3 |
| Net assets | 6.8 | 9.9 |
| Acquisition costs | 9.3 | |
| Provisions for earn-out | 5.7 | |
| Goodwill | 5.1 | |
At the time of initial consolidation, previously unrecognized intangible assets of approximately US\$ 3.0 million, which primarily related to the acquired technology, were capitalized. The measurement of the technology is based on planning for the years 2012 to 2020 and the resulting cash flows. In addition, hidden reserves within tangible assets of US\$0.2million were disclosed. Hidden reserves of approximately US\$ 2.0million, which related to tools and unfinished goods in inventory reserves, were recognized in current assets.
Under noncurrent liabilities, deferred tax liabilities of US\$ 2.1 million were recognized as a result of the initial consolidation. The tax rate of approximately 40% for Tamarack Scientific Co., Inc. (Corona, USA) is relevant for the calculation.
Aside from the fixed purchase price of approximately US\$ 9.34 million, a variable purchase price component, which depends on the development of sales and margins in the next three years, has been agreed upon. The amount of the anticipated earn-out liability was estimated to be approximately US\$ 6.8 million, based on existing corporate plans. At the time of initial consolidation, appropriate (noncurrent) provisions of US\$ 5.7 million were recognized as liabilities.
Goodwill, which amounts to approximately US\$ 5.1 million, is allocated to the Lithography division. Goodwill will be tested for impairment in the future once a year or whenever there are unusual events.
The values calculated in the purchase price allocation should be regarded as provisional values. The purchase price allocation will be concluded by December 31, 2012 at the latest.
Additional acquisition costs currently amounting to 1 280 thousand were recognized under expenses.
Tamarack Scientific Co., Inc.'s income and expenses in the months from April to September 2012 are recorded in the consolidated statement of income. In this period, Tamarack Scientific Co., Inc. contributed sales of US\$ 0.8 million and earnings of US\$ -2.5 million to consolidated earnings after taxes. In addition, an additional loss of US\$ -0.3 million resulted from the amortization of hidden reserves. If SUSS MicroTec Group had already acquired Tamarack at the beginning of the reporting period, consolidated sales would have totaled 1 111.5 million and consolidated earnings after taxes 1 -2.2 million (continuing operations). Here it should be taken into account that Tamarack Scientific Inc. had to recognize several extraordinary effects in income at the time of the acquisition. As a result, deferred tax assets of US\$ 1.8 million had to be deleted.
With the purchase agreement dated May 14, 2012, SUSS MicroTec acquired 15% of the shares of SUSS MicroOptics S.A., Neuchâtel (Switzerland), in the process boosting its stake from 85% previously to 100%. The purchase price of the acquired shares amounts to CHF 1.35 million and was paid to the sellers in May 2012.
In the consolidated financial statements of SUSS MicroTec AG, the share purchase was recorded as an equity transaction in accordance with IAS 27. The difference in amount between the paid purchase price and the lower carrying value of the acquired minority shares came to approximately 1 0.4 million and was recognized under consolidated capital surplus.
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 six 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.
In connection with the sale of the Test Systems division in January 2010, portions of the agreed purchase price were placed in escrow. Release was dependent on certain conditions. As of December 31, 2011, these escrow accounts reported a remaining amount of 1 1.5 million. The conditions were deemed to be fulfilled in January 2012. As a result, in February 2012 the total amount of 1 1.5 million was paid out to SUSS MicroTec AG and recognized with effect on profit and loss. The income is recognized as of September 30, 2012, under profit from discontinued operations.
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.
The presentation of the consolidated financial statements as of September 30, 2012, is analogous to the presentation as of December 31, 2011. There were no changes in presentation.
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%. 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.
In connection with the exercise of 14,510 stock options from the 2008 stock option plan, a total of 14,510 new shares were issued until September 30, 2012. No additional issuances, repurchases, or repayments occurred involving either bonds or equity securities.
During the reporting report, no dividend was distributed nor was such a distribution proposed.
No material events occurred after the end of the interim reporting period.
There are no contingent receivables. There were no substantial changes in contingent liabilities since the previous reporting date of December 31, 2011.
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 T1 | 9M / 2012 | 9M / 2011 |
|---|---|---|
| Profit from continuing operations | 788 | 11,226 |
| Less minority interests | -30 | -130 |
| Profit from continuing operations attributable to shareholders of SUSS MicroTec AG |
758 | 11,096 |
| Weighted average number of outstanding shares |
19,106,396 | 18,847,759 |
| Effect of the (potential) exercise of stock options (number of options) |
0 | 46,010 |
| Adjusted weighted average number of outstanding shares |
19,106,396 | 18,893,769 |
| Earnings per share in 3 from continuing operations – basic – |
0.04 | 0.59 |
| Earnings per share in 3 from continuing operations – diluted – |
0.04 | 0.59 |
Holding Company Production
Sales Other / Non-operating
* in liquidation
| German Equity Forum, Frankfurt /Main | November 12–14 |
|---|---|
| TMT Konferenz Morgan Stanley, Barcelona | November 16 |
| Cheuvreux German Corporate Conference, Frankfurt /Main | January 21 |
| Annual Report 2012 | March 28 |
| Quarterly Report 2013 | May 8 |
| Commerzbank German Midcap Conference, Boston/New York | May 22 / 23 |
| "Shareholders' Meeting, Haus der Bayerischen Wirtschaft, Munich" | June 19 |
| Interim Report 2013 | August 8 |
| Nine-month Report 2013 | November 7 |
SUSS MicroTec AG Schleißheimer Straße 90 85748 Garching, Deutschland Fon: +49 (0)89-32007-0 E-Mail: [email protected]
Investor Relations Fon: +49 (0)89-32007-161 E-Mail: [email protected]
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
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.
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