AIXTRON SE

Earnings Release • May 4, 2006

News Details

Corporate | 4 May 2006 07:30

Aixtron AG: AIXTRON Reports Financial Results For the First Quarter 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 Quarter Of 2006 — Equipment Order Intake Up 40% Year Over Year — — Total Revenues Up 44% Year Over Year — — Gross Margin Stable at 38% — — FY 2006 Guidance Reiterated — Aachen, Germany – May 4, 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 quarter of 2006, ended March 31, 2006. Key Financial Figures (million €) Q1 2006 Q1 2005 Sales revenues 32.0 22.2 Gross profit 12.0 8.6 Gross margin, % revenues 38% 39% Operating result (3.1) (1.6) Net result (3.1) (1.1) Net result per share – basic (0.04) (0.01) Net result per share – diluted (0.04) (0.01) Operating cash flow 5.0 3.9 Equipment Order Intake 31.7 22.7 Equipment Order Backlog (March 31) 61.8 55.9 Operational Highlights in the first quarter of 2006 – Total equipment order intake increased 40% year-over-year, to Euro 31.7 million in the first quarter of 2006. Included in total equipment order intake were orders received for compound semiconductor equipment totaling Euro 26.6 million, representing a year-over-year increase of 17%. – Since its consolidation into the AIXTRON Group, Genus, Inc.’s silicon business made a significant contribution to AIXTRON’s total revenues: 33% of total revenues was attributable to silicon business in the first quarter of 2006 vs. 1% in the first quarter of 2005. – AIXTRON’s gross margin remains stable at 38% in the first quarter of 2006, compared to 39% in the first quarter of 2005. – AIXTRON’s cost structure in the first quarter of 2006 was stable relative to revenues. However, the Company’s operating result and net result in the first quarter of 2006 were negatively affected by lower other operating income received from lower currency exchange gains compared to the first quarter of 2005. – The Company continued to focus on resource efficiency and cost reduction: headcount reduction by 9% post Genus, Inc. acquisition from 624 employees as of March 31, 2005 to 566 employees as of March 31,2006). – Cash and cash equivalents rose from Euro 31.4 million as of December 31, 2005 to Euro 35.5 million as of March 31, 2006. Management Review Paul Hyland, Chief Executive Officer at AIXTRON, commented: ‘In the first quarter of 2006, there were indications of a continued improvement in market confidence, and we are pleased that AIXTRON has achieved a 44% year-over-year increase in total revenues, and a 40% year-over-year increase in equipment order intake.’ Hyland continued: ‘Our gross margin remained stable year over year, at 38% in the first quarter of 2006, and for the remainder of the year, we will continue to focus on resource efficiency and cost reduction. We also reiterate our total revenue target of Euro 150 million and our aim to break even on a net result basis for the full year 2006.’ Outlook In spite of the currently challenging environment, the Company continues to be confident it will generate total revenues in 2006 of approximately € 150 million. Driven by further cost reductions both from the realization of cost synergies with Genus, Inc. and from operational efficiency gains, the Company continues to expect to break even on a net result basis in 2006. 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 interim report for the three months ended March 31, 2006. Investor Conference Call AIXTRON will host a financial analyst and investor conference call on May 4, 2006 at 08:30 CEST (02:30 EDT) to review the first quarter 2006 results. From 08:15 CEST (02:15 EDT) you may listen to the call live at +49-(0) 69-2222-2247. 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. 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 04.05.2006 ————————————————————————— language: English emitter: AIXTRON AG Kackertstr. 15-17 52072 Aachen Deutschland phone: +49 (0)241 8909-444 fax: +49 (0)241 8909-445 email: invest@aixtron.com WWW: www.aixtron.com ISIN: DE0005066203 WKN: 506620 indexes: TecDAX stockmarkets: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf; Foreign Exchange(s) Nasdaq End of News DGAP News-Service —————————————————————————