AIXTRON SE

Earnings Release • Aug 3, 2006

News Details

Corporate | 3 August 2006 07:30

Aixtron AG: AIXTRON Reports Financial Results For The First Six 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 Six Months Of 2006 — Equipment Order Intake Up 59% Year Over Year – — Gross Margin Up 7 Percentage Points Year Over Year to 37% — — FY 2006 Guidance Reiterated — — Cash Up 20% Year To Date — Aachen, Germany – August 3, 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 first six months of 2006, ended June 30, 2006. Key Financial Figures Q1-Q2 Q1-Q2 (million €) 2006 2005 Q2 2006 Q1 2006 Q2 2005 Sales revenues 67.7 66.6 35.7 32.0 44.4 Gross profit 25.3 20.1 13.3 12.0 11.5 Gross margin, % 37% 30% 37% 38% 26% revenues Operating result (4.2) (6.0) (1.1) (3.1) (4.4) Net result (4.3) (3.7) (1.2) (3.1) (2.6) Net result per share (0.05) (0.04) (0.01) (0.04) (0.03) – basic (€) Net result per share (0.05) (0.04) (0.01) (0.04) (0.03) – diluted (€) Cash and cash 37.7 41.5 37.7 35.5 41.5 equivalents (end of period) Operating cash flow 8.0 (0.2) 3.0 5.0 (4.1) Equipment Order 81.2 51.1 49.5 31.7 28.4 Intake Equipment Order 81.2 52.5 81.2 61.8 52.5 Backlog (end of period) Highlights In The First Six Months of 2006 – Order Intake: Due to improved market confidence, equipment order intake increased substantially year-over-year, by 59% percent, to € 81.2 million in the first six months of 2006 and included € 19.2 million in orders received for silicon semiconductor equipment, or 24 percent of total equipment order intake, for the reported period. Order intake for compound semiconductor equipment rose significantly, by 62%, year over year, to € 62.0 million in the first six months of 2006, or 76% of total equipment order intake for the reported period. – Revenues: In an improved capital spending environment, AIXTRON achieved a 2 percent year-over-year increase in revenues, to € 67.7 million in the first six months of 2006, (second quarter 2006: € 35.7 million). In the first six months of 2006, revenues from the sale of silicon semiconductor equipment totalled € 22.9 million, or 34 percent of total first six months 2006 revenues (second quarter 2006: € 12.2 million, or 34 percent of total second quarter 2006 revenues). This figure compares to € 14.2 million, or 21 percent, in the first six months of 2005. The year-over-year increase in revenues from the sale of silicon semiconductor equipment largely reflects additional revenues generated by Genus which was acquired by AIXTRON in March of 2005. – Gross Margin: Due to significantly lower cost of sales in the first six months of 2006 as compared to the first six months of 2005, the Company’s gross profit increased by 26 percent year over year to € 25.3 million in the first six months of 2006. Consequently, the gross margin rose from 30 percent in the first six months of 2005 to 37 percent in the first six months of 2006. – Net Result: The Company’s net loss after tax increased from € 3.7 million in the first six months of 2005 (or a net loss after tax per share of € 0.04) to a net loss of € 4.3 million in the first six months of 2006 (or a net loss after tax per share of € 0.05). The year-over-year increase in AIXTRON’s net loss after tax was largely due to allocations to deferred tax assets in the first half of 2005, which did not occur in the first half of 2006. On a quarterly basis, AIXTRON’s net loss after tax decreased from € 2.6 million in the second quarter of 2005 to € 1.2 million in the second quarter of 2006. Against that backdrop, the Company continues to believe it is on track to achieve breakeven on a net result basis for the full year 2006. – Cash: Despite a € 4.5 million increase in the value of inventories as of June 30, 2006 compared with year-end 2005, cash and cash equivalents rose from € 31.4 million as of December 31, 2005 to € 37.7 million as of June 30, 2006 (€ 35.5 million as of March 31, 2006). The increase in cash and cash equivalents was largely due to an increase in advanced payments from customers. Management Review Paul Hyland, Chief Executive Officer at AIXTRON, commented: ‘At the end of the first quarter of 2006, we said the cautious growth in industry confidence, first witnessed in the latter half of 2005, had continued into the first quarter of 2006. I am very pleased to tell you that this improvement in sentiment has continued, and perhaps even strengthened in the second quarter of 2006, and that our customers have shown more confidence and exhibited less demand volatility than before, the latter being particularly true in the silicon space, where we had seen considerable turbulence in the first quarter of 2006.” ‘Equipment order intake in the second quarter of 2006, at € 49.5 million, is the highest recorded equipment order intake figure for 5 years and is 74 percent higher than in the second quarter of 2005. At € 81.2 million as of June 30, 2006, our equipment order backlog has risen by 55 percent year-over-year and is at its highest level since the third quarter of 2004.” Hyland continued: ‘I am also pleased to see a continued stabilization of our gross margin which continues to move towards the targeted 40 percent mark, reaching 37 percent in the first half of 2006. This is seven percentage points higher than for the same period last year. Nevertheless, for the remainder of the year, we will continue to focus on resource efficiency improvements and cost reduction.” ‘Genus has been fully integrated into the AIXTRON Group since the beginning of the year and is now making a pleasingly consistent contribution to AIXTRON’s business development.” ‘We can reconfirm our full year 2006 guidance of Euro 150 million in total revenues and a break even on a net result basis.’ Outlook The Company remains confident it will achieve its current 2006 full year guidance of approximately € 150 million in revenue. Supported by ongoing cost reductions from operational efficiency gains, the Company continues to expect to break even on a net result basis in 2006 at this revenue level. Investor Conference Call AIXTRON will host a financial analyst and investor conference call on August 3, 2006 at 08:30 CEST (02:30 EDT) to review the first six months 2006 results. From 08:15 CEST (02:15 EDT) you may listen to the call live at +49 (0) 69 2222-2218 (Germany) / +44 (0) 20-7365-1847 (United Kingdom) / +1(718) 354-1360 (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 six months ended June 30, 2006. AIXTRON GROUP Consolidated Income Statement (IFRS) * in EUR thousands, except per share amounts and Q1 – Q2 Q1 – Q2 Q2 2005 amount of shares 2006 Q2 2006 2005 ** ** Revenues 67,701 35,693 66,623 44,375 Cost of sales 42,382 22,396 46,526 32,866 Gross profit 25,319 13,297 20,097 11,509 Selling expenses 10,294 5,420 10,857 6,971 General administration expenses 9,346 5,091 7,820 4,532 Research and development costs 12,524 6,250 12,171 7,069 Other operating income 3,057 2,358 6,550 3,574 Other operating expenses 452 29 1,841 933 Operating result (4,240) (1,135) (6,042) (4,422) Interest income 259 143 382 198 Interest expense 8 5 111 80 Net interest 251 138 271 118 Result before taxes (3,989) (997) (5,771) (4,304) Taxes on income 352 200 (2,116) (1,746) Net income loss/income for the period (after taxes) (4,341) (1,197) (3,655) (2,558) Basic earnings per share (EUR) (0.05) (0.01) (0.04) (0.03) Diluted earnings per share (EUR) (0.05) (0.01) (0.04) (0.03) Weighted average number of shares used in computing per share amounts: Basic 87,820,822 87,821,230 81,719,920 81,719,920 Diluted 87,820,822 87,821,230 81,719,920 81,719,920 Consolidated Statements of Comprehensive Income (Loss) TEUR TEUR TEUR TEUR Net loss/income for the period (4,341) (1,197) (3,655) (2,558) Foreign currency translation adjustments (5,521) (3,705) (9,828) (6,715) Loss on derivate financial instruments 434 208 (2,306) (1,139) Comprehesive loss/income (9,428) (4,694) 3,867 3,018 * unaudited ** comparative figures for 2005 after conversion to IFRS AIXTRON GROUP Consolidated Balance Sheet (IFRS) June 30, 2006* December 31, in EUR thousands 2005 ASSETS Property, plant and equipment 39,881 42,179 Goodwill 66,968 71,002 Other intangible assets 17,091 19,766 Investment property 4,908 4,908 Other non-current assets 591 499 Deferred tax assets 6,042 6,331 Total non-current assets 135,481 144,685 Inventories 37,650 33,113 Trade receivables 21,140 24,209 less allowance of kEUR 499 (last year: kEUR 445) Other current assets 8,128 3,875 Cash and cash equivalents 37,705 31,435 Total current assets 104,623 92,632 TOTAL ASSETS 240,104 237,317 LIABILITIES AND SHAREHOLDERS´ EQUITY Subscribed capital 87,836 87,797 No. of shares: 87,836,124 (previous year: 87,796,614) Additional paid-in capital 96,616 95,951 Retained earnings (13,604) (9,264) Accumulated other comprehensive income 4,028 9,115 TOTAL SHAREHOLDERS´ EQUITY 174,876 183,599 Provisions for pensions 1,044 978 Other non-current liabilities 79 176 Other non-current accruals and provisions 2,952 3,122 Total non-current liabilities 4,075 4,276 Trade payables 20,434 17,479 Advanced payments from customers 22,253 11,845 Other current provisions and accruals 12,033 14,032 Other current liabilities 2,710 3,949 Current tax liabilities 1,043 1,404 Convertible bonds 3 3 Deferred revenues 2,677 730 Total current liabilities 61,153 49,442 TOTAL LIABILITIES 65,228 53,718 TOTAL LIABILITIES AND SHAREHOLDERS´ EQUITY 240,104 237,317 * unaudited Further Information For further information on AIXTRON (FSE: AIX, ISIN: DE0005066203; NASDAQ: AIXG, ISIN: US0096061041) please consult our website at: www.aixtron.com 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 03.08.2006 ————————————————————————— 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, Stuttgart, München, Hamburg, Düsseldorf; Foreign Exchange(s) Nasdaq End of News DGAP News-Service —————————————————————————