Earnings Release • May 8, 2007
Earnings Release
Open in ViewerOpens in native device viewer
| March 30, 2007 | Annual Press Conference |
|---|---|
| March 30, 2007 | Annual Analysts' Conference |
| May 8, 2007 | Q1/2007 Report |
| June 6, 2007 | Annual Shareholders Meeting |
| August 7, 2007 | Q2/2007 Report |
| November 6, 2007 | Q3/2007 Report |
Granted convertible bonds and stock options (€ 1 nominal value) as of March 31, 2007: Stefan Baustert 200,000 shares Staff 807,182 shares
| 2003 | 2004 | 2005 | 2006 | 2007 | ||
|---|---|---|---|---|---|---|
| US GAAP | IFRS | IFRS | IFRS | IFRS | ||
| Gross revenues | Mio. € | 56.9 | 69.4 | 50.4 | 48.8 | 49.8 |
| Order intake | Mio. € | 128.6 | 139.9 | 34.3 | 107.5* | 60.4 |
| Order backlog (03/31) | Mio. € | 130.1 | 160.5 | 40.6 | 119.5 | 92.1 |
| EBIT | Mio. € | 8.7 | 6.6 | 0.9 | 7.0** | 0.2 |
| Profit before tax | Mio. € | 9.1 | 7.1 | 1.3 | 7.2 | 0.6 |
| Net income | Mio. € | 5.8 | 4.3 | 0.8 | 9.6 | 0.7 |
| Operating cash flow | Mio. € | - 9.6 | 7.7 | - 4.1 | 3.1 | 1.0 |
| Equity capital | Mio. € | 186.3 | 231.8 | 250.2 | 273.0 | 275.3 |
| Balance sheet total | Mio. € | 273.0 | 350.4 | 380.0 | 433.0 | 389.5 |
| Research & development | Mio. € | 4.2 | 4.3 | 4.4 | 5.0 | 4.8 |
| Staff (03/31) | 508 | 702 | 692 | 1,240 | 699 | |
| Weighted average shares | 36,792,226 | 37,064,316 | 35,341,987 | 34,941,929 | 34,941,929 | |
| outstanding, basic | ||||||
| Earnings per share, basic | € | 0.16 | 0.12 | 0.02 | 0.28 | 0.02 |
* incl. € 42.6 Mio. from HamaTech takeover
** incl. extraordinairy income effect in the net amount of € 14.0 Mio.
This report contains future-oriented statements based on the current expectations, assessments and forecasts of the Executive Board as well as on the currently available information to them. Known as well as unknown risks, uncertainties and impacts could cause the actual results, the financial situation or the development to differ from the statements made in this report. We assume no obligation to update the future-oriented statements made in this report.
Hanauer Landstraße 103 D-63796 Kahl Tel.: +49-6188-440-0 Fax : +49-6188-440-110 Investor Relations: Maren Schuster Tel.: +49-6188-440-612 Fax : +49-6188-440-110
SINGULUS TECHNOLOGIES AG Mail: [email protected] Web: www.singulus.de
Consolidated Statements IFRS for Fiscal 2007 as of 31/03/07 (unaudited)
Compared with the previous year the 1st quarter 2007 showed a significant improvement in the adjusted operating result and the operating margin for SINGULUS TECHNOLOGIES (SINGULUS). The operating result (EBIT) in the 1st quarter 2007 amounted to € 0.2 million. In the previous year an EBIT of € 7.0 was posted, which however included an extraordinary one-off net contribution of € 14.0 million in connection to the first time consolidation of the HamaTech group. Insofar the operating earnings situation was substantially improved by the implemented cost reduction programs of the past two years.
Although the segment Manufacturing Services, Slovakia, and ETA-Optik are no longer included in the sales of the 1st quarter 2007, the consolidated sales increased to € 49.8 million (previous year: € 48.8 million).
With the acquisition of the HamaTech AG in January 2006 an order backlog in the amount of € 42.6 million was acquired, which together with the continuing order intake of € 64.9 million in the 1st quarter 2006 resulted in an order intake totaling € 107.5 million. An adjustment of the continuing order intake in the amount of € 64.9 million by the segments of the HamaTech Group, which are not being continued, results in an amount of € 55.6 million. Therefore, the order intake in the 1st quarter 2007 totaling € 60.4 million on a like-for-like basis (continuing order intake 2006 and 2007) is above previous year's level.
The market segments Prerecorded CD and DVD will remain a stable pillar of SINGULUS' activities in 2007 as well. Accordingly, the company received large orders for new investments in the segments audio CD for the production line SKYLINE II from Europe in mid- and end-2006. 40 machines were delivered by the end of March 2007. The performance of the production line SKYLINE II enabled the new set-up of a CD production site with large cost advantages for the operating company.
The DVD market will grow in 2007, too. Amongst others, this is supported by a large order for DVD machines from a big US customer, which we were able to win in the 1st quarter of this year. Additional orders from smaller and medium-sized customers indicate that the market expects sustained growth of the DVD. The further penetration
New Mastering System CRYSTALLINE
in Eastern Europe, China, Africa and other regions should increase the total volume of globally sold DVDs to about 7.6 billion discs in 2007 (source: Understanding & Solutions).
In March, SINGULUS concluded a cooperation agreement with Sony DADC for the further development of the production technology for the mass production of dual layer Blu-ray discs with a storage capacity of 50 GB. It is the goal of the cooperation to offer independent disc producers inline production equipment for dual layer Blu-ray discs shortly and to build up sufficient capacities for the production of the new disc generation. Sony DADC provides SINGULUS with the necessary production expertise. The newly developed production line will be introduced in this year's summer.
At the international trade fair MEDIA-TECH Expo in the US SINGULUS MASTERING will present its newly developed inline mastering system named CRYSTALLINE, which applies PTM (phase transition mastering) principles. Besides Sony, SINGULUS MASTERING is the only company in the world able to offer an inline mastering system for all HD DVD and Blu-ray formats.
SINGULUS achieved a breakthrough in 2006 with several orders for the business area TIMARIS coating technology. In the meantime the first machines have been delivered. In the 1st quarter 2007 two TIMARIS systems overall were technically accepted by customers and recognized as sales. Due to the broad scope of application of this technology, we have combined this work area in a segment called "Nano Deposition Technologies".
At the MIDO in Milan from May 4 - 7, 2007, one of the world's biggest trade fairs for eyeglass optics, for the first time the ophthalmic glass coating machine OPTICUS was presented in operation and received a high level of interest by the trade show visitors. The company had achieved an important milestone with this machine concept last December, when the first OPTICUS coating machine for plastic ophthalmic lenses was qualified for production and technically accepted by a customer. In total, three machines were delivered in 2006, which are employed in the pilot production and the daily mass production for eyeglass lenses following extensive testing.
SINGULUS decided to continue and to further expand the activities in the segment Advanced Process Equipment (APE) on its own. The business activities of this division were transferred to an independent GmbH under the name HamaTech APE as of November 1, 2006. HamaTech APE was able to further expand its leading role for equipment for the cleaning of photo masks. Its global market share in this subsegment is currently amounting to more than 30 %.
APE was able to continue its favorable trend initiated in 2006. The level of order intake also remained high in the 1st quarter at € 7.6 million (previous year: € 3.9 million). We expect the good business trend to continue.
On January 23, 2007 SINGULUS announced a cooperation with the Balda AG, Bad Oeynhausen, for the development of a production line for the finishing of plastic covers for mobile phones and portable gaming consoles. On the basis of the SINGULUS 3DS metallization machine a product line is being developed, which integrates in the production cycle additional processing steps from the injection molding machine to the metallization and the application of anti-scratch finishes. All production processes are completely automated. The delivery of the first machine has taken place beginning of May 2007.
Compared to traditional production methods, such as the vaporization, where only batch processes are possible, this revolutionary technology with integrated preand post-processing offers huge savings in the production cycle and the logistics.
New coating line DECOLINE for plastic parts
On February 8, 2007 the HamaTech AG, a company in the SINGULUS Group, sold 100 % of the STEAG ETA-Optik GmbH, Heinsberg, to the exchange-listed Swedish company AudioDev AB, Malmo. A selling price of € 3.25 million was realized. With the sale of the shares the company with its approximately 40 employees will no longer be included in the scope of the consolidation of the SINGULUS Group in 2007. ETA-Optik achieved sales of € 4.85 million in 2006.
The quarterly statement was drawn up pursuant to the International Financial Reporting Standards (IFRS).
With earnings before interest and taxes (EBIT) of € 0.2 million in the 1st quarter of the current business year (previous year: € 7.0 million) SINGULUS posted a positive operating result. The earnings before interest and taxes in the previous year included extraordinary effects in connection with the first time consolidation of HamaTech. On the one hand the results of the 1st quarter 2006 included one-off restructuring charges in the amount of € 20.1 million, on the other hand extraordinary income totaling € 34.1 million (badwill) resulting from the purchase price accounting were recognized in the course of the HamaTech acquisition. Overall, the 1st quarter 2006 included a positive extraordinary effect in the net amount of € 14.0 million. Adjusted for the extraordinary effect the operating earnings situation was significantly improved in particular due to the implemented cost reduction programs in the past two years.
The gross margin came to 29.2 % of net sales overall (previous year: 21.8 %). This increase mainly resulted from the first-time sales realization in the Nano Deposition Technologies (NDT) segment as well as generell margin improvement in prerecorded CD and DVD.
In the 1st quarter 2007 sales amounted to € 49.8 million, above previous year's level (€ 48.8 million). Adjusting previous year's figures for the sales contributions of sold segments, an increase in sales of 9.5 % was realized. The sales in the quarter under review for the first time included revenues from the sales of two TIMARIS machines.
The regional split of sales in the 1st quarter was as follows:
Asia 23.5 % (previous year: 35.1 %), North and South America 26.1 % (previous year: 20.9 %), Europe 47.6 % (previous year: 43.0 %), Africa and Australia 2.8 % (previous year: 1.0 %).
In Q1/2007, the company realized revenues of approx. 58 % (2006: 65 %) through the manufacture and sale of systems for the production of optical discs. The revenue share for other machines, spare parts, upgrades and service totaled 42 % (2006: 35 %).
In the 1st quarter 2007 the operating cash flow of the Group of € 1.0 million was lower than in the previous year (previous year: € 3.1 million). This decline mainly results from the lower net result compared with the previous quarter.
The order intake in the 1st quarter of 2007 amounted to € 60.4 million and was thus slightly below previous year's level of € 64.9 million. On the basis of the continuing operations at HamaTech (excluding Manufacturing Services and ETA-Optik) a comparable amount for the 1st quarter 2006 comes to € 55.6 million in total.
The order backlog of € 92.1 million as of March 31, 2007 was below previous year's level (previous year: € 119.5 million). The comparable figure for the 1st quarter 2006 includes the order backlog in the amount of € 42.6 million obtained in connection with the HamaTech acquisition.
Eye glass coating system OPTICUS at MIDO in Milano
Gross Capital expenditures in Q1/2007 totaled € 0.3 million (2006: € 0.3 million). These figures reflect replacement expanditures.
Prices and expenses in 1st quarter 2007 developed as planned. Cost for material and employees also developed as planned.
Changes in Executive Management and Supervisory Bodies No changes in 1st quarter 2007 in executive management and supervisory bodies.
The number of employees in the SINGULUS Group continued to decline and dropped from 1,240 employees as of March 31, 2006 to 699 as of March 31, 2007. Adjusted for the discontinued operations at HamaTech, the comparable figure for previous year's quarter amounts to 860 employees.
At € 4.8 million in total the expenses for R&D were slightly below previous year's level (previous year: € 5.0 million).
In its core work area, machines for the production of optical discs, SINGULUS strongly focuses on the completion of the new developments of the inline mastering system CRYSTALLINE and the new production system for dual layer Blu-ray discs with 50 GB storage capacity. Furthermore, in the first quarter 2007 the advancement of the successful line SKYLINE II with the applications CD and DVD 5 towards an inexpensive replication line for single layer HD DVD was completed. The new line named SKYLINE II Duplex HD was launched at the beginning of May.
In the new work areas the company predominantly works on new process variations for the eyeglass coating to open the coating machine OPTICUS for additional application groups.
Since the prototype of the new production line for mobile phone covers named DECOLINE was set up in the 1st quarter 2007, the production tests in Kahl are currently being completed and the machine is being prepared for delivery to the key customer BALDA.
In 2007, SINGULUS will focus on the following goals:
Yours sincerely,
SINGULUS TECHNOLOGIES The Executive Board
| March 31, 2007 | Dec. 31, 2006 | ||
|---|---|---|---|
| ASSETS | [in K€] | [in K€] | |
| Cash and cash equivalents | 50,573 | 56,216 | |
| Trade receivables | 65,667 | 69,881 | |
| Other receivables and assets | 28,669 | 24,394 | |
| Total receivables | 94,336 | 94,275 | |
| Raw materials, consumables and supplies | 36,999 | 46,181 | |
| Work in process | 71,478 | 59,501 | |
| Total inventories | 108,477 | 105,682 | |
| Total current assets | 253,386 | 256,173 | |
| Non-current trade receivables | 9,693 | 11,031 | |
| Property, plant and equipment | 20,829 | 22,326 | |
| Investment property | 9,046 | 8,770 | |
| Capitalized development costs | 39,872 | 38,949 | |
| Goodwill | 31,249 | 31,249 | |
| Other intangible assets | 14,480 | 13,330 | |
| Deferred tax assets | 10,928 | 10,545 | |
| Total non-current assets | 136,097 | 136,200 | |
| Non-current assets classified | |||
| as held for sale | 0 | 5,224 | |
| Total assets | 389,483 | 397,597 | |
| March 31, 2007 | Dec. 31, 2006 | ||
| LIABILITIES | [in K€] | [in K€] | |
| Trade payables | 19,099 | 20,042 | |
| Current bank liabilities | 9,243 | 9,850 | |
| Other current liabilities | 25,534 | 22,940 | |
| Prepayments received | 21,780 | 21,493 | |
| Tax provisions | 1,208 | 3,645 | |
| Other provisions | 5,642 | 6,492 | |
| Total current liabilities | 82,506 | 84,462 | |
| Non-current bank liabilities | 7,626 | 10,352 | |
| Other non-current liabilities | 1,120 | 3,069 | |
| Pension provisions | 6,190 | 6,115 | |
| Deferred tax liabilities | 16,712 | 17,376 | |
| Total non-current liabilities | 31,648 | 36,912 | |
| Liabilities in connection with assets held for sale |
0 | 1,479 | |
| Total liabilities | 114,154 | 122,853 | |
| Subscribed capital | 34,942 | 34,942 | |
| Capital reserve | 30,058 | 29,879 | |
| Other reserves | – 2,222 | – 2,514 | |
| Accumulated profit | 206,282 | 205,538 | |
| Total equity related to the shareholder's of SINGULUS TECHOLOGIES AG |
269,060 | 267,845 | |
| Minority interests | 6,269 | 6,899 | |
| Total equity | 275,329 | 274,744 | |
| Total liabilities and equity | 389,483 | 397,597 |
| 3 Months | ||||
|---|---|---|---|---|
| 2007 | 2006 | |||
| K€ | K€ | |||
| Revenues (gross) | 49,797 | 48,844 | ||
| Sales deductions and direct selling costs | – 1,286 | – 1,952 | ||
| Revenues (net) | 48,511 | 46,892 | ||
| Cost of sales | – 34,344 | – 36,670 | ||
| Gross profit on sales | 14,168 | 10,222 | ||
| Research and development | – 3,806 | – 4,588 | ||
| Sales and customer service | – 4,765 | – 6,850 | ||
| General administration | – 5,270 | – 4,718 | ||
| Other Operating Income (+) / Expenses (-) | – 118 | – 1,018 | ||
| Restructuring Expenses | 0 | – 20,092 | ||
| Negative difference from the acquisition of HamaTech | 0 | 34,081 | ||
| Other operating expenses | – 13,959 | – 3,185 | ||
| EBIT | 209 | 7,037 | ||
| Interest income (+) / expenses (–) | 406 | 186 | ||
| EBT | 615 | 7,224 | ||
| Income taxes | 129 | 2,425 | ||
| Net income | 744 | 9,648 | ||
| there of | ||||
| Shareholders of the mother company | 648 | 10,509 | ||
| Minority interests | 96 | – 861 | ||
| Net income per share (basic), EUR | 0.02 | 0.28 | ||
| Net income per share (diluted), EUR | 0.02 | 0.28 | ||
| Weighted average shares outstanding (basic) |
34,941,929 | 34,941,929 | ||
| Weighted average shares outstanding (diluted) |
35,321,929 | 34,941,929 | ||
| First 3 Months | ||||
|---|---|---|---|---|
| 2007 | 2006 | |||
| K€ | K€ | |||
| Net Income | 744 | 9,648 | ||
| Depreciation on amortization | 4,687 | 11,757 | ||
| Change in pension accruals | 75 | 436 | ||
| Change in deferred taxes | – 1,047 | – 6,748 | ||
| Change in net working capital* | – 3,474 | – 11,952 | ||
| Net cash flow from operating activities | 985 | 3,141 | ||
| Change in property, plant & equipment | – 253 | – 17,657 | ||
| Change in financial assets | 3,469 | 4,644 | ||
| Change in intangible assets | – 5,010 | – 13,572 | ||
| Change in other long-term liabilities | – 1,949 | 1,608 | ||
| Long-term bank loans | – 2,726 | – 1,687 | ||
| Change in minority interests | – 630 | 8,044 | ||
| Capital increase, capital reduction | 179 | 484 | ||
| Currency translation | 292 | – 660 | ||
| Net change in cash & liquid funds | – 5,643 | – 15,655 | ||
| Cash & cash equivalents at beginning of period | 56,216 | 67,719 | ||
| Cash & cash equivalents at end of period | 50,573 | 52,064 | ||
* including long-term accounts receivable
| Share | Capital | Other | Accumulated | Minority | |||
|---|---|---|---|---|---|---|---|
| capital | reserves | reserves | profit | interests | Equity | ||
| K€ | K€ | K€ | K€ | K€ | K€ | ||
| Balance on December 31, 2006 | 34,942 | 29,879 | – 2,514 | 205,538 | 6,899 | 274,744 | |
| Minority interests | – 630 | – 630 | |||||
| Capital increase | 0 | ||||||
| Repayment of share capital | 0 | ||||||
| Share-based compensation | 179 | 179 | |||||
| Exchange rate related differences | 292 | 292 | |||||
| Net income | 744 | 744 | |||||
| Balance on March 31, 2007 | 34,942 | 30,058 | – 2,222 | 206,282 | 6,269 | 275,329 | |
| For comparison the figures of the same period the year before: |
|||||||
| Balance on December 31, 2005 | 34,942 | 29,398 | – 2,214 | 193,356 | 0 | 255,482 | |
| Purchase of minority interests | 8,044 | 8,044 | |||||
| Capital increase | 375 | 375 | |||||
| Repayment of share capital | 0 | ||||||
| Share-based compensation | 109 | 109 | |||||
| Exchange rate related differences | – 660 | – 660 | |||||
| Net income | 9,648 | 9,648 | |||||
| Balance on March 31, 2006 | 34,942 | 29,882 | – 2,874 | 203,004 | 8,044 | 272,998 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.