AIXTRON SE

Earnings Release • Jul 30, 2009

News Details

Corporate | 30 July 2009 07:30

AIXTRON AG: Increased Full-Year Guidance as LED Market Recovery Continues

AIXTRON AG / Half Year Results/Change in Forecast

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Increased Full-Year Guidance as LED Market Recovery Continues
Significant sequential quarter improvement in Order Intake and Revenues
Second Half Outlook remains positive
Revenues down 20% YoY
Gross margin up 4pp YoY to 43% for the first half year
EBIT margin down 2pp YoY to 12%

Aachen, Germany, July 30, 2009 - AIXTRON AG, a leading global provider of
deposition equipment to the semiconductor industry, today announced their
consolidated financial results for the first half of 2009.

Key Financials

Key Financials 2009 2008 +/- 2009 2008 +/-
(million EUR) H1 H1 % Q2 Q2 %
Revenues 102.9 128.2 -20% 56.7 65.6 -14%
Gross profit 44.5 50.3 -12% 23.5 25.8 -9%
Gross margin 43% 39% 4pp 41% 39% 2pp
Operating result (EBIT) 12.3 17.6 -30% 4.7 8.9 -47%
EBIT-margin 12% 14% -2pp 8% 14% -6pp
Net result 8.8 13.3 -34% 3.3 7.4 -55%
Net result margin 9% 10% -1pp 6% 11% -5pp
Net result per share - basic 0.10 0.15 -33% 0.04 0.08 -50%
(EUR)
Net result per share - diluted 0.10 0.15 -33% 0.04 0.08 -50%
(EUR)
Free cash flow* 18.4 16.5 12% 8.0 3.7 116%
Equipment Order Intake 89.1 158.0 -44% 57.9 72.5 -20%
Equipment Order Backlog(end of 109.4 165.1 -34% 109.4 165.1 -34%
period)

* Operating CF + Investing CF + Changes in Cash Deposits

Financial Highlights
AIXTRON recorded total revenues of EUR 102.9m during the first half of
2009, 20% lower than the same period last year, largely driven by weaker
sales of compound deposition equipment, especially in the first quarter of
2009. This situation has significantly improved in Q2/2009, evidenced by a
23% increase in sequential quarterly revenues from EUR 46.2m in the
previous quarter to EUR 56.7m and a 85% sequential increase in system order
intake from EUR 31.2m to EUR 57.9m.

The 43% Gross margin reported for H1/2009 is 4pp up from H1/2008. Operating
result (EBIT) decreased by 30% to EUR 12.3m with a 12% margin in H1/2009
(H1/2008: EUR 17.6m, 14%). Without two specific events recorded in
Q1/2009, totaling EUR 3.8m, the EBIT in H1/2009 would have been EUR 8.5m or
8% of revenues and exactly in line with previously published expectations.

Sequential quarterly order intake picked up significantly by 85% in
Q2/2009, mainly due to a rising demand for TV backlighting, but was down
44% YoY to EUR 89.1m in H1/2009 compared to EUR 158.0m in H1/2008. The
improved Q2 performance confirms the company's previous prediction that
Q1/2009 would be the low point in orders of this current LED investment
cycle.

As a result of weaker YoY order intake, equipment order backlog decreased
by 34% from EUR 165.1m in H1/2008 to EUR 109.4m in the first half of 2009,
of which Management believes EUR 96m can be converted into revenue in 2009.

Even after the payment of a EUR 8.2m dividend payment to shareholders in
Q2, AIXTRON's cash position, including cash deposits, continues to be very
strong at EUR 84.4m compared to EUR 87.9m in H1/2008. Free cash flow of EUR
18.4m was up 12% YoY from EUR 16.5m in H1/2008.

Management Review
Paul Hyland, President & Chief Executive Officer at AIXTRON, comments: 'I
am happy to be able to announce, that as we predicted in May, Q1 did mark
the bottom of the five quarter run of declining order intake following the
industry's 2008 inventory de-stocking activities and consequent low
utilization rates.

Q2 not only marked the return of market demand driven orders but was also
notable for investments being made by significant strategic investors,
reflecting the rising attraction of the LED market potential.

Our decision to increase our guidance to EUR 230-250m of total revenues and
an EBIT margin of 12-13% for the full year reflects not only the quicker
than generally expected LED-market recovery we have seen over the last
three months, but also the positive customer sentiment towards the second
half outlook.

We will, of course, keep our feet on the ground at this exciting time, but
we continue to see ample opportunities to leverage the strong technology
position and flexible operations model we have developed to support the
growth our customers are looking for'.

Outlook
AIXTRON Management increases the company's full-year 2009 guidance to total
revenues of EUR 230-250m and an EBIT margin of 12-13% from the previous
guidance on revenues of EUR 200-220 and EBIT 10-11%.

Financial Tables
The consolidated interim financial statements (balance sheet, income
statement, cash flow statement, statement of changes in equity) relating to
this press release are available on www.aixtron.com, section 'Investors',
subsection 'Financial Data', subsection 'Reports', as part of AIXTRON's
Group half-year financial report for the first half of 2009.

Investor Conference Call
AIXTRON will host a financial analyst and investor conference call on
Thursday, July 30th, 2009, 3:00 p.m. CEST (6:00 a.m. PDT, 9:00 a.m. EDT) to
review the first half 2009 results. From 2:45 p.m. CEST (5:45 a.m. PDT,
8:45 a.m. EDT) you may dial in to the call at +49 (69) 247 501 891 or +1
(212) 444-0297. Both a conference call audio replay and a transcript of the
conference call will be available at http://www.aixtron.com, section
'investors', following the conference call.

Contact:
Guido Pickert
Investor Relations and Corporate Communications:
T: +49 (241) 8909 444
F: +49 (241) 8909 445
invest@aixtron.com

For further information on AIXTRON AG (FSE: AIXA, ISIN DE000A0WMPJ6;
NASDAQ: AIXG, ISIN US0096061041) please consult our website at:
www.aixtron.com.

Forward-Looking Statements
This news release may contain forward-looking statements about the
business, financial condition, results of operations and earnings outlook
of AIXTRON within the meaning of the 'safe harbor' provisions of the United
States Private Securities Litigation Reform Act of 1995. Words such as
'may', 'will', 'expect', 'anticipate', 'contemplate', 'intend', 'plan',
'believe', 'continue' and 'estimate', and variations of these words and
similar expressions, identify these forward-looking statements. The
forward-looking statements reflect our current views and assumptions and
are subject to risks and uncertainties. You should not place undue reliance
on the forward-looking statements. The following factors, and others which
are discussed in AIXTRON's public filings and submissions with the U.S.
Securities and Exchange Commission, are among those that may cause actual
and future results and trends to differ materially from our forward-looking
statements: actual customer orders received by AIXTRON; the extent to which
chemical vapor deposition, or CVD, technology is demanded by the market
place; the timing of final acceptance of products by customers; the
financial climate and accessibility of financing; general conditions in the
thin film equipment market and in the macro-economy; cancellations,
rescheduling or delays in product shipments; manufacturing capacity
constraints; lengthy sales and qualification cycles; difficulties in the
production process; changes in semiconductor industry growth; increased
competition; exchange rate fluctuations; availability of government
funding; variability and availability of interest rates; delays in
developing and commercializing new products; general economic conditions
being less favorable than expected; and other factors. The forward-looking
statements contained in this news release are made as of the date hereof
and AIXTRON does not assume any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by law.

Contact:
Investor Relations and Corporate Communications
AIXTRON AG, Kaiserstr. 98, 52134 Herzogenrath, Germany
Phone: +49 241 8909 444, Fax: +49 241 8909 445, invest@aixtron.com
www.aixtron.com

30.07.2009 Financial News transmitted by DGAP

Language: English
Issuer: AIXTRON AG
Kaiserstr. 98
52134 Herzogenrath
Deutschland
Phone: +49 (241) 8909-444
Fax: +49 (241) 8909-445
E-mail: invest@aixtron.com
Internet: www.aixtron.com
ISIN: DE000A0WMPJ6, US0096061041
WKN: A0WMPJ
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart; Terminbörse
EUREX; Foreign Exchange(s) Nasdaq

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