Earnings Release • Mar 25, 2022
Earnings Release
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RESILIENCE OF THE GROUP IN THE CONTEXT OF THE COVID-19 PANDEMIC Consolidated revenue at EUR 11.4 million for FY 2021, up +3% in euros and +6% in dollars
Positive annual EBITDA at +EUR 1.0 million
Operating loss at -EUR 0.2 million – Net loss at -EUR 0.3 million
Consolidated available cash at EUR 5.3 million as of December 31, 2021, up +1.1 million vs. December31, 2020
MEMSCAP (NYSE Euronext: MEMS), the leading provider of innovative solutions based on MEMS (micro-electro-mechanical systems) technology, today announced its earnings for the 2021 financial year ending December 31, 2021.
In line with the previous quarterly press releases, MEMSCAP reported an audited revenue of EUR 11.4 million for FY 2021 (US\$ 13.5 million) compared to EUR 11.1 million for FY 2020 (US\$ 12.7 million).
| Market segments / Revenue (In million euros) | FY 2021 | % | FY 2020 | % |
|---|---|---|---|---|
| Aerospace | 5.4 | 47% | 4.6 | 41% |
| Medical / Biomedical | 3.3 | 29% | 3.5 | 32% |
Optical communications / Adaptive optics 2.0 18% 2.4 22% Others 0.7 6% 0.5 5% Total 11.4 100% 11.1 100%
Consolidated revenue distribution by market segment, over FY 2021, is as follows:
(Any apparent discrepancies in totals are due to rounding.)
Revenue for FY 2021 increased by +2.5% in euros and +6.4% in US dollars compared to FY 2020. It is to be noted that sales made in US dollars represented approximately 69% of the consolidated revenue for FY 2021 (2020: 66%).
Sales of the Standard Products division (+EUR 0.5 million / +6.2% vs. 2020) benefited from the recovery of the avionics segment (+EUR 0.8 million / +17.2% vs. 2020) despite the context of the Covid-19 pandemic. Sales of medical segment of the division decreased by EUR 0.3 million compared to FY 2020, this previous financial year having been marked by high volumes of activity. The growth rate of the medical segment was +98.2% vs. FY 2019 and +59.7% vs. FY 2018. On the other side, the avionics business remains the Group's leading market segment, representing 47.3% of the consolidated revenue (2020: 41.3%), with annual sales of EUR 5.4 million (2020: EUR 4.6 million).
The unavailability of industrial equipment at the US site during the first half of 2021, due to a technical incident at the end of FY 2020 year, impacted the sales of the Custom Products division (including the Optical Communications / Adaptive optics segment). The division's sales were thus down -EUR 0.2 million / -7.3% compared to FY 2020.
* * *
MEMSCAP's consolidated earnings for FY 2021 are given within the following table:
| In million euros | FY 2021 | FY 2020 |
|---|---|---|
| Revenue | 11.4 | 11.1 |
| Standard products* Custom products |
8.5 2.9 |
8.0 3.1 |
| Cost of revenue | (8.1) | (8.0) |
| Gross margin | 3.3 | 3.1 |
| % of revenue | 29% | 28% |
| Operating expenses** | (3.5) | (3.4) |
| Operating profit / (loss) | (0.2) | (0.3) |
| Financial profit / (loss) | (0.0) | (0.2) |
| Income tax expense | (0.1) | (0.1) |
| Net profit / (loss) | (0.3) | (0.5) |
(Financial data were subject to an audit by the Group's statutory auditors who will issue their reports at a later date. On March 24th , 2022, the MEMSCAP's board of directors authorized the release of the FY 2021 consolidated financial statements. Any apparent discrepancies in totals are due to rounding.)
* Including the royalties from the dermo-cosmetics segment.
** Net of research & development grants.
The positive volume effect related to the activities of the Standard Products division, due to the increase of the avionics business, impacted the Group's gross margin rate which stood at 28.9% compared to 28.2% for the previous year. The consolidated gross margin thus amounted to EUR 3.3 million compared to EUR 3.1 million for FY 2020.
Operating expenses, net of research and development grants, amounted to EUR 3.5 million compared to EUR 3.4 million for FY 2020, i.e. an annual increase of 3.5%. It is recalled that selling and administrative expenses were subject to specific cost reduction programs during 2020 in the context of the Covid-19 pandemic. Research and development expenses, net of grants, amounted to EUR 1.2 million for FY 2021 and represented 11.3% of consolidated sales (FY 2020: EUR 1.3 million / 11.3% of consolidated sales). In addition, the total number of full-time equivalent employees in the Group was 58.6 in FY 2021 compared to 63.7 in FY 2020.
For FY 2021, the Group posted an operating loss of EUR 0.2 million compared to an operating loss of EUR 0.3 million for FY 2020. The net financial loss was non-significant in FY 2021 (including a net foreign exchange gain of EUR 0.1 million) compared with a net financial loss amounted to EUR 0.2 million for FY 2020 (including a net foreign exchange loss of EUR 0.1 million). The tax expense recognized over FY 2021 and FY 2020 corresponded to the change in deferred tax assets. This tax expense had no impact on the Group's cash position.
The Group therefore reported a net loss of EUR 0.3 million for FY 2021 compared to a net loss of EUR 0.5 million for FY 2020.
For FY 2021, the Group posted a positive EBITDA at EUR 1.0 million compared to EUR 0.8 million for the previous year. Including the EUR 0.7 million reduction in the working capital requirement, the positive cash flow from operating activities amounted to EUR 1.6 million against a cash generation of EUR 1,5 million for FY 2020.
* * *
On December 31, 2021, the Group reported available cash at EUR 5.3 million (December 31, 2020: EUR 4.2 million) including cash investments (Corporate bonds / investment securities) recorded under non-current financial assets. In addition to this amount, the available unused credit lines amounted to EUR 0.4 million on December 31, 2021.
MEMSCAP shareholders' equity totalled EUR 15.8 million on December 31, 2021 (December 31, 2020: EUR 15.6 million).
* * *
The 2021 financial year was marked by the growth of the avionics business, the Group's leading market segment, despite the context of the Covid 19 pandemic. As the previous financial year, the diversity of its businesses allows MEMSCAP to face the effects of such a major health and economic crisis.
MEMSCAP pursues its strategy focused on avionics, medical and optical communications segments, backed by its own intellectual property, as well as the development of an increased flexibility of its production capacities.
* * *
Annual meeting of shareholders: May 31, 2022
MEMSCAP is the leading provider of innovative microelectro-mechanical systems (MEMS)-based solutions. MEMSCAP's products and solutions include components, component designs (IP), manufacturing and related services.
Contacts Yann Cousinet
Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00 [email protected]
For more information, visit our website at: www.memscap.com.
MEMSCAP is listed on Euronext Paris ™ - Segment C - ISIN: FR0010298620 - MEMS.
| 31 December 2021 |
31 December 2020 |
||
|---|---|---|---|
| €000 | €000 | ||
| Assets Non-current assets |
|||
| Property, plant and equipment | 1 662 | 1 693 | |
| Goodwill and intangible assets | 7 238 | 7 305 | |
| Right-of-use assets | 5 224 | 5 486 | |
| Other non-current financial assets | 1 385 | 1 217 | |
| Employee benefit net asset | 35 | -- | |
| Deferred tax asset | 229 | 284 | |
| 15 773 | 15 985 | ||
| Current assets | |||
| Inventories | 2 493 | 2 604 | |
| Trade and other receivables | 2 824 | 2 558 | |
| Prepayments | 426 | 306 | |
| Other current financial assets | -- | 58 | |
| Cash and short-term deposits | 3 919 | 2 952 | |
| 9 662 | 8 478 | ||
| Total assets | 25 435 | 24 463 | |
| Equity and liabilities Equity |
|||
| Issued capital | 1 869 | 1 869 | |
| Share premium | 17 972 | 18 783 | |
| Treasury shares | (144) | (133) | |
| Retained earnings | (1 130) | (1 752) | |
| Foreign currency translation | (2 779) | (3 178) | |
| 15 788 | 15 589 | ||
| Non-current liabilities | |||
| Lease liabilities | 4 989 | 5 126 | |
| Interest-bearing loans and borrowings | 229 | 348 | |
| Employee benefit liability | 67 | 35 | |
| 5 285 | 5 509 | ||
| Current liabilities | |||
| Trade and other payables | 3 375 | 2 317 | |
| Lease liabilities | 577 | 582 | |
| Interest-bearing loans and borrowings | 390 | 447 | |
| Provisions | 20 | 19 | |
| 4 362 | 3 365 | ||
| Total liabilities | 9 647 | 8 874 | |
| Total equity and liabilities | 25 435 | 24 463 |
| 2021 | 2020 | |
|---|---|---|
| €000 | €000 | |
| Continuing operations | ||
| Sales of goods and services | 11 396 | 11 121 |
| Revenue | 11 396 | 11 121 |
| Cost of sales | (8 101) | (7 989) |
| Gross profit | 3 295 | 3 132 |
| Other income | 474 | 326 |
| Research and development expenses | (1 721) | (1 586) |
| Selling and distribution costs | (662) | (658) |
| Administrative expenses | (1 611) | (1 482) |
| Operating profit / (loss) | (225) | (268) |
| Finance costs | (144) | (212) |
| Finance income | 98 | 35 |
| Profit / (loss) for the year from continuing operations before tax | (271) | (445) |
| Income tax expense | (57) | (100) |
| Profit / (loss) for the year from continuing operations | (328) | (545) |
| Profit / (loss) for the year | (328) | (545) |
| Earnings per share: | ||
| - Basic, for profit / (loss) for the year attributable to ordinary equity holders of the parent (in euros) |
€ (0.044) | € (0.073) |
| - Diluted, for profit / (loss) for the year attributable to ordinary equity holders of the parent (in euros) |
€ (0.044) | € (0.073) |
| 2021 | 2020 | |
|---|---|---|
| €000 | €000 | |
| Profit / (loss) for the year | (328) | (545) |
| Items that will not be reclassified subsequently to profit or loss | ||
| Actuarial gains / (losses) | 8 | 2 |
| Income tax on items that will not be reclassified to profit or loss | -- | -- |
| Total items that will not be reclassified to profit or loss | 8 | 2 |
| Items that may be reclassified subsequently to profit or loss | ||
| Net gain / (loss) on available-for-sale financial assets | 131 | (5) |
| Exchange differences on translation of foreign operations | 399 | (577) |
| Income tax on items that may be reclassified to profit or loss | -- | -- |
| Total items that may be reclassified to profit or loss | 530 | (582) |
| Other comprehensive income for the year, net of tax | 538 | (580) |
| Total comprehensive income for the year, net of tax | 210 | (1 125) |
For the year ended 31 December 2021
| (In thousands of euros, except for number of shares) |
Number of shares |
Issued capital |
Share premium |
Treasury shares |
Retained earnings |
Foreign currency translation |
Total shareholders' equity |
|---|---|---|---|---|---|---|---|
| €000 | €000 | €000 | €000 | €000 | €000 | ||
| At 1 January 2020 | 7 468 340 |
1 867 |
18 775 |
(131) | (1 204) |
(2 601) |
16 706 |
| Loss for the year |
-- | -- | -- | -- | (545) | -- | (545) |
| Other comprehensive income for the year, net of tax | -- | -- | -- | -- | (3) | (577) | (580) |
| Total comprehensive income |
-- | -- | -- | -- | (548) | (577) | (1 125) |
| Capital increase |
8 562 |
2 | 8 | -- | -- | -- | 10 |
| Treasury shares | -- | -- | -- | (2) | -- | -- | (2) |
| At 31 December 2020 |
7 476 902 |
1 869 |
18 783 |
(133) | (1 752) |
(3 178) |
15 589 |
| At 1 January 2021 | 7 476 902 |
1 869 |
18 783 |
(133) | (1 752) |
(3 178) |
15 589 |
| Loss for the year |
-- | -- | -- | -- | (328) | -- | (328) |
| Other comprehensive income for the year, net of tax | -- | -- | -- | -- | 139 | 399 | 538 |
| Total comprehensive income |
-- | -- | -- | -- | (189) | 399 | 210 |
| Retained earnings offset with share premium | -- | -- | (811) | -- | 811 | -- | -- |
| Treasury shares | -- | -- | -- | (11) | -- | -- | (11) |
| At 31 December 2021 |
7 476 902 |
1 869 |
17 972 |
(144) | (1 130) |
(2 779) |
15 788 |
| 2021 | 2020 | |
|---|---|---|
| €000 | €000 | |
| Cash flows from operating activities: | ||
| Net profit / (loss) for the year | (328) | (545) |
| Non-cash items written back: | ||
| Amortization and depreciation | 1 191 | 1 166 |
| Loss / (capital gain) on disposal of fixed assets | 40 | 24 |
| Other non-financial activities | 31 | 83 |
| Accounts receivable | (135) | 149 |
| Inventories | 252 | 325 |
| Other debtors | (279) | (30) |
| Accounts payable | 851 | 259 |
| Other liabilities | (28) | 31 |
| Total net cash flows from operating activities | 1 595 | 1 462 |
| Cash flows from investing activities: | ||
| Purchase of fixed assets | (146) | (497) |
| Proceeds from sale / (purchase) of financial assets | (46) | (2) |
| Total net cash flows from investing activities | (192) | (499) |
| Cash flows from financing activities: | ||
| Proceeds from borrowings | -- | 734 |
| Repayment of borrowings | (205) | (183) |
| Payment of lease liabilities | (580) | (563) |
| Sale / (purchase) of treasury shares | (11) | (2) |
| Change in restricted cash | 58 | -- |
| Proceeds from issue of shares | -- | 10 |
| Total net cash flows from financing activities | (738) | (4) |
| Net foreign exchange difference | 55 | (21) |
| Increase / (decrease) in net cash and cash equivalents | 720 | 938 |
| Opening cash and cash equivalents balance | 2 928 | 1 990 |
| Closing cash and cash equivalents balance | 3 648 | 2 928 |
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