Singulus Technologies AG

Earnings Release • Nov 8, 2012

News Details

Corporate | 8 November 2012 07:30

SINGULUS TECHNOLOGIES Reports Key Financial Figures for the First Nine Months of 2012

SINGULUS TECHNOLOGIES AG / Key word(s): Quarter Results

08.11.2012 / 07:30

---

SINGULUS TECHNOLOGIES Reports Key Financial Figures for the First Nine Months of 2012

– Negative result of the first half-year impacts 9-month and full-year results

– Q3 positive before extraordinary charges

– Still solid balance sheet

– Liquid funds amount to EUR 65.4 million as September 30

– Positive earnings intended for the business year 2013

Kahl am Main, November 8, 2012. During the first nine months of the current business year SINGULUS TECHNOLOGIES (SINGULUS) recorded sales of EUR 83.5 million and is thus below the level of the prior-year period in the amount of EUR 121.8 million. The operating result EBIT (before extraordinary expenses) amounted to – EUR 10.9 million in the first nine months (previous year: EUR 6.3 million). Including extraordinary charges a negative EBIT in the amount of EUR -54.2 million and an EBITDA of EUR -29.9 million (previous year: EUR 14.7 million) was recorded for the period under review. The order intake in the first nine months of the business year 2012 amounted to EUR 110.6 million (previous year: EUR 137.0 million). As of September 30, 2012 the order backlog of EUR 53.9 million is slightly above the prior-year level of EUR 50.8 million.

Sales in the 3 rd quarter amounted to EUR 39.9 million (previous year: EUR 57.2 million). Including extraordinary charges totaling EUR 43.3 million the operating result stood at negative EUR 41.8 million. Accordingly in the quarter under review the result adjusted for extraordinary charges amounted to EUR 1.5 million.

Due to the disappointing development of the Optical Disc division as well as the still difficult situation on the market for equipment for the production of solar cells, SINGULUS had to implement a couple of measures, which had an additional negative impact on the key financial figures.

SINGULUS is gradually implementing a structural change from a pure supplier of machines in Optical Disc to a leading provider for vacuum technology in different segments such as Optical Disc, Solar and Semiconductor. On the one hand, capacities have to be adjusted accordingly. On the other hand, investments in industries of the future and expansions into new work areas are made. Due to the business situation the Executive Board resolved drastic measures for the segments to be structured. In the Optical Disc segment this mainly affects the foreign subsidiaries and the product segment Mastering. Furthermore, the work area of machines for wet-chemical production steps at the subsidiary SINGULUS STANGL SOLAR GmbH is affected by the decline in the market for silicon-based solar cells. Overall, in the Solar segment structures and capacities in the wet-chemical division as well as capitalized development expenses for traditional coating technology are therefore further adjusted. Accordingly, at the end of the business year 2012 the headcount at the Fürstenfeldbruck site will be reduced by about 40 %. The impairment review of all balance sheet items resulted in provisions, write-offs on inventories and on accounts receivable as well as write-downs in the amount of EUR 43.3 million for the current quarter 2012 ('Extraordinary charges'). The majority of these balance sheet adjustments do not result in additional cash outflows.

Dr.-Ing. Stefan Rinck, CEO SINGULUS TECHNOLOGIES AG: 'SINGULUS has good liquid funds and will use the funds in the coming years for internal and external growth.'

Overall, the liquid funds increased by EUR 47.6 million in the first nine months and amount to EUR 65.4 million as of September 30, 2012. The balance sheet continues to remain stable and is still very solid with an equity ratio of approximately 40 %.

The described measures will lead to an overall negative result including extraordinary charges in a range from EUR -54.0 to -56.0 million for 2012.

Outlook

SINGULUS TECHNOLOGIES solidly financed for the future – good prospects for breaking-even in Optical Disc, Solar and Semiconductor – growth through new business areas

In the business year 2011 SINGULUS completely repaid its liability owed to banks. Except for a loan from the KfW in the amount of EUR 4.8 million there are currently no more bank liabilities.

With the proceeds from the issue SINGULUS TECHNOLOGIES is able to finance larger projects in the Solar segment, the expansion of the system partnership with producers of thin-film solar cells, the development of new products in the Solar division and the development of manufacturing equipment for the next generation of Blu-ray Discs.

To strengthen SINGULUS' existing business segments the Executive Board has elaborated a detailed portfolio strategy and is currently reviewing several concrete acquisition opportunities. It goes without saying that the Executive Board is analyzing the potential targets with the required diligence.

The trends in the individual segments are projected as follows:

OPTICAL DISC

Since the market for Blu-ray Disc continues to grow at double-digit rates in 2012, we expect stable sales and earnings contributions again.

SOLAR

In the thin-film technology CIGS/CIS SINGULUS is excellently positioned. Larger investment projects have already been announced for 2013. If they are realized according to plan, SINGULUS will surely succeed in delivering a significant number of machines.

In a difficult market, crystalline solar cells we see us very well positioned technologically due to the good development efforts in the past years. The upgrade business in the area of crystalline solar cells to the PERC standard promises new demand for this specialized production equipment in 2013.

Semiconductor

The Semiconductor division will make positive earnings contributions this year. The potential of the various application areas for the machines suggests a further uptrend in the coming business years.

SINGULUS' Executive Board sees a good chance for the existing segments Optical Disc, Solar and Semiconductor to generate positive earnings in the next year again.

Consolidated key figures SINGULUS pursuant to IFRS (unaudited)

9-month figures		2011	2012
Sales (gross)	in million EUR	121,8	83,5
Order intake	in million EUR	137,0	110.6
Order backlog (Sept. 30)	in million EUR	50,8	53,9
EBIT	in million EUR	6,3	-54,2
EBITDA	in million EUR	14,7	-29,9
Earnings before taxes	in million EUR	4,9	-56,6
Net profit/loss	in million EUR	3,7	-53,8
Employees (Sept. 30)		465	420
Earnings per share, basic	EUR	0,09	-1,1

3rd quarter		2011	2012
Sales (gross)	in million EUR	57,2	39,9
Order intake	in million EUR	22,0	23,6
EBIT	in million EUR	6,5	-41,8
EBITDA	in million EUR	9,3	-23,5
Earnings before taxes	in million EUR	6,5	-42,7
Net profit/loss	in million EUR	6,4	-41,5
Expenses research & development	in million EUR	1,5	2,4

Contact:

SINGULUS TECHNOLOGIES AG, Hanauer Landstraße 103,

D-63796 Kahl/Main, ISIN: DE0007238909, WKN: 723890

Contact:

Maren Schuster, Investor Relations,

Tel.: + 49 (0) 6188 440 612,

Bernhard Krause, Corporate Communications,

Tel.: + 49 (0) 6181 98280 20 / +49 (0) 170 9202924

End of Corporate News

---

08.11.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language:	English
Company:	SINGULUS TECHNOLOGIES AG
	Hanauer Landstrasse 103
	63796 Kahl am Main
	Germany
Phone:	+49 (0)1709202924
Fax:	+49 (0)6188 440-110
E-mail:	bernhard.krause@go-metacom.de
Internet:	www.singulus.de
ISIN:	DE0007238909
WKN:	723890
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of News	DGAP News-Service

- - -
192107  08.11.2012