AIXTRON SE

Earnings Release • Nov 2, 2006

News Details

Corporate | 2 November 2006 07:30

AIXTRON Reports Financial Results For The First Nine Months Of 2006

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— AIXTRON Reports Financial Results For The First Nine Months Of 2006 — Equipment Order Intake Up 76% Year Over Year – — Gross Margin Up 7 Percentage Points Year Over Year to 38% — — Third Quarter 2006 Profitable — — FY 2006 Guidance Raised — Aachen, Germany – November 2, 2006 – AIXTRON AG (FSE: AIX, ISIN DE0005066203; NASDAQ: AIXG, ISIN US0005066203), a leading provider of deposition equipment to the semiconductor industry, today announced financial results for the nine months of 2006, ended September 30, 2006. Key Financial Figures Q1-Q3 Q1-Q3 (million €) 2006 2005 Q3 2006 Q2 2006 Q3 2005 Sales revenues 108.6 95.7 40.9 35.7 29.1 Gross profit 41.5 30.1 16.1 13.3 10.0 Gross margin, % 38% 31% 39% 37% 34% revenues Operating result (2.4) (14.4) 1.8 (1.1) (8.4) Net result (2.4) (11.7) 1.9 (1.2) (8.0) Net result per share (0.03) (0.15) 0.02 (0.01) (0.09) – basic (€) Net result per share (0.03) (0.15) 0.02 (0.01) (0.09) – diluted (€) Cash and cash 52.5 31.5 52.5 37.7 31.5 equivalents (end of period) Operating cash flow 23.2 (9.7) 15.2 3.0 (9.5) Equipment Order 133.5 76.0 52.3 49.5 24.9 Intake Equipment Order 98.3 56.0 98.3 81.2 56.0 Backlog (end of period) Highlights In The First Nine Months of 2006 Order Intake: Due to improved market confidence, the value of equipment orders received in the first nine months of 2006 rose substantially, by 76 percent, compared to the first nine months of 2005. The continued year-over-year increase was supported by a 6 percent sequential increase in equipment order intake, to € 52.3 million in the third quarter of 2006. Reflecting a significant rise in demand for semiconductor equipment, especially from the LED end application markets, order intake for compound semiconductor equipment rose year-over-year by 89 percent to € 101.9 million in the first nine months of 2006 and, based on robust demand for CVD equipment, the value of orders received for silicon semiconductor equipment in the first nine months of 2006 rose by 44 percent year over year, to € 31.6 million. Revenues: Revenues in the first nine months of 2006 were € 108.6 million, a year-over-year increase of 14 percent. The largest element of the nine-month 2006 revenue (49 percent; comparable prior-year period: 57 percent) was generated from the sale of compound semiconductor equipment, which in turn was driven by LED system demand, especially from Asia (81 percent of total nine-month 2006 revenue; comparable prior-year period 72 percent). The share of revenues related to the sale of silicon semiconductor equipment rose from 24 percent in the first nine months of 2005 to 31 percent in the first nine months of 2006. Gross Margin: Due to both a reduction in the cost of sales relative to revenue and higher revenue in the first nine months of 2006, as compared to the first nine months of 2005, the Company’s gross profit increased by 38 percent year over year to € 41.5 million in the first nine months of 2006. Consequently, the gross margin rose from 31 percent in the first nine months of 2005 to 38 percent in the first nine months of 2006. Net Result: The Company’s net loss after tax decreased from € 11.7 million (net loss after tax per share: € 0.15) in the first nine months of 2005 to a net loss of € 2.4 million (net loss after tax per share: € 0.03) in the first nine months of 2006. AIXTRON’s net loss after tax in the first nine months of 2005 included beneficial allocations to deferred tax assets which did not occur in the first nine months of 2006. Cash: Despite a € 19.8 million increase in the value of inventories as of September 30, 2006 compared with year-end 2005, cash and cash equivalents increased by € 21.1 million, from € 31.4 million as of December 31, 2005 to € 52.5 million as of September 30, 2006. The increase in cash and cash equivalents was largely due to cash inflows from operating activities totaling € 23.2 million. Management Review Paul Hyland, President and Chief Executive Officer at AIXTRON, commented: ‘We are particularly pleased at being able to present yet another quarter of improving profit, increased cash, growing order intake, reduced costs, better margins and stable market conditions, all of which, bar the market environment, are a reflection of a more consistent and focused internal performance across the AIXTRON group.” Hyland continued: ‘Looking forward over the next three months, although we have a very busy and challenging time ahead of us, we expect to continue to make good progress with our own internal operational performance, and to make further progress towards extending both our technology and our market reach.” Outlook Based on the positive business development in the first nine months of 2006, the Company raises its current 2006 full year guidance to approximately € 160 million in revenue (previous guidance given on August 3, 2006: approximately € 150 million in revenue), with net income after tax for fiscal year 2006 estimated to be approximately € 3 million (previous guidance given on August 3, 2006: breakeven on a net result basis). Investor Conference Call AIXTRON will host a financial analyst and investor conference call on November 2, 2006 at 08:30 CET (02:30 EST) to review the first nine months 2006 results. From 08:15 CET (02:15 EST) you may listen to the call live at +49 (0) 69 9897-1079 (Germany) / +44 (0) 20-7365-1828 (United Kingdom) / +1 (718) 354-1357 (United States). 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. Financial Tables The complete 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 interim report for the nine months ended September 30, 2006. Genus was consolidated into the AIXTRON Group only from March 14, 2005 onwards. AIXTRON Group Consolidated Income Statement (IFRS) * In EUR thousands, except per share amounts and amount of shares Q1-Q3 Q1–Q3 2005 Q3 2005 2006 Q3 2006 * ** Revenues 108,635 40,934 95,683 29,060 Cost of Sales 67,183 24,801 65,567 19,041 Gross profit 41,452 16,133 30,116 10,019 Selling expenses 15,862 5,568 18,757 7,900 General administration expenses 13,164 3,818 12,217 4,397 Research and development costs 18,650 6,126 19,188 7,017 Other operating income 3,812 1,208 5,620 911 Operating results (2,412) 1,829 (14,426) (8,384) Interest income 474 215 515 133 Interest expense 23 15 147 36 Net interest 451 200 368 97 Result before taxes (1,961) 2,029 (14,058) (8,287) Taxes on income 442 90 (2,360) (244) Net income loss/income for the period (after taxes) (2,403) 1,939 (11,698) (8,043) Basic earnings per share (EUR) (0.03) 0.02 (0.15) (0.09) Diluted earnings per share (EUR) (0.03) 0.02 (0.15) (0.09) Weighted average number of shares used in computing per share amounts: Basic 87,820,345 87,836,124 80,138,724 86,561,606 Diluted 87,820,345 87,925,885 80,138,724 86,561,606 Consolidated Statements of Comprehensive Income (Loss) TEUR TEUR TEUR TEUR Net loss/income for the period (2,403) 1,939 (11,698) (8,043) Foreign currency translation adjustments (5,083) 438 9,403 (425) Loss on derivate financial instruments 385 (49) (2,115) 191 Comprehensive loss/income (7,101) 2,328 (4,410) (8,277) * unaudited** comparative figures for 2005 after conversion to IFRS AIXTRON Group Consolidated Balance Sheet (IFRS) September 30, December 31, In EUR thousands 2006 * 2005 ASSETS Property, plant and equipment 38,645 42,179 Goodwill 67,409 71,002 Other intangible assets 16,351 19,766 Investment Property 4,908 4,908 Other non-current assets 750 499 Deferred tax assets 6,165 6,331 Total non-current assets 134,228 144,685 Inventories 52,867 33,113 Trade receivables 16,711 24,209 less allowance of kEUR 499 (last year: kEUR 445) Other current assets 4,906 3,875 Cash and cash equivalents 52,457 31,435 Total current assets 126,941 92,632 TOTAL ASSETS 261,169 237,317 LIABILITIES AND SHARHOLDERS´ EQUITY Subscribed capital 87,836 87,797 No. of shares: 87,836,124 (previous year: 87,796,614) Additional paid-in capital 97,096 95,951 Retained earnings (11,666) (9,264) Accumulated other comprehensive income 4,417 9,115 TOTAL SHAREHOLDERS´ EQUITY 177,683 183,599 Provisions for pensions 1,082 978 Other non-current liabilities 74 176 Other non-current accruals and provisions 2,280 3,122 Total non-current liabilities 3,436 4,276 Trade payables 25,395 17,479 Advanced payments from customers 36,913 11,845 Other current provisions and accruals 14,188 14,032 Other current liabilities 1,908 3,949 Current tax liabilities 503 1,404 Convertible bonds 3 3 Deferred revenues 1,140 730 Total current liabilities 80,050 49,442 TOTAL LIABILITIES 83,486 53,718 TOTAL LIABILITIES AND SHAREHOLDERS´ EQUITY 261,169 237,317 * unaudited Further Information For further information on AIXTRON (FSE: AIX, ISIN: DE0005066203; 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, Kackertstr. 15–17, 52072 Aachen, Germany Phone: +49 241 8909 444, Fax: +49 241 8909 445, invest@aixtron.com www.aixtron.com (c)DGAP 02.11.2006 ————————————————————————— Language: English Issuer: AIXTRON AG Kackertstr. 15-17 52072 Aachen Deutschland Phone: +49 (0)241 8909-444 Fax: +49 (0)241 8909-445 E-mail: invest@aixtron.com WWW: www.aixtron.com ISIN: DE0005066203 WKN: 506620 Indices: TecDAX Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, München, Hamburg, Düsseldorf, Stuttgart; Terminbörse EUREX; Foreign Exchange(s) Nasdaq End of News DGAP News-Service —————————————————————————