AI Terminal
Memscap
Earnings Release • Jul 29, 2024
1516_iss_2024-07-29_5a149f75-03b3-4f4f-833a-85c1ea42d7df.pdf
Earnings Release
Open in ViewerOpens in native device viewer
MEMSCAP – Q2 2024:
DOUBLE-DIGIT GROWTH IN AEROSPACE AND OPTICAL COMMUNICATIONS
GROWTH IN CONSOLIDATED REVENUE DESPITE THE SIGNIFICANT DECREASE IN IMPLANTABLE SOLUTIONS REVENUE IN MEDICAL
MEMSCAP CONFIRMS ITS TRAJECTORY AND DRIVERS FOR PROFITABLE GROWTH
- Strong growth in aerospace activities, the Group's largest market, up by +11%
- Quarterly consolidated revenue of EUR 3,442 thousand, up by +1%, despite the decrease in implantable solutions revenue affecting medical activities (-29%)
- Robust performance in optical communications activities, up by +36%
- Quarterly adjusted EBITDA1 of EUR 582 thousand (17% of consolidated revenue)
- Quarterly operating profit of EUR 390 thousand euros (11% of consolidated revenue)
- Quarterly net profit of the consolidated entity of EUR 384 thousand euros (11% of consolidated revenue)
- Intensification of efforts related to the "Engine Control" development and industrialization program
- Planned emphasis on the Group's technical programs reflected in operating expenses expected to decrease over the coming quarter
Grenoble (France) – July 29, 2024 – 06:30 p.m.
MEMSCAP (Euronext Paris: MEMS), leading provider of high-accuracy, high-stability pressure sensor solutions for the aerospace and medical markets using MEMS technology (Micro Electro Mechanical Systems), today announced its earnings for the second quarter of 2024 ending June 30, 2024.
Analysis of consolidated revenue
Consolidated revenue from continuing operations (non-audited) for the second quarter of 2024 was EUR 3,442 thousand compared to EUR 3,421 thousand for the second quarter of 2023, thus a growth of 1%.
Over the second quarter of 2024, the distribution of consolidated revenue from continuing operations by market segment is as follows:
| Market segments / Revenue (In thousands of euros) – Non-audited |
Q1 2023 (3 months) |
Q2 2023 (3 months) |
Q2 2023 (%) |
H1 2023 (6 months) |
Q1 2024 (3 months) |
Q2 2024 (3 months) |
Q2 2024 (%) |
H1 2024 (6 months) |
|---|---|---|---|---|---|---|---|---|
| Aerospace | 2,389 | 2,126 | 62% | 4,515 | 2,536 | 2,363 | 69% | 4,899 |
| Medical | 681 | 1,028 | 30% | 1,709 | 929 | 735 | 21% | 1,664 |
| Optical communications | 558 | 240 | 7% | 798 | 341 | 326 | 9% | 667 |
| Others (Royalties from licensed trademarks) | 40 | 27 | 1% | 67 | 27 | 18 | 1% | 45 |
| Total revenue from continuing operations | 3,668 | 3,421 | 100% | 7,089 | 3,832 | 3,442 | 100% | 7,275 |
(Any apparent discrepancies in totals are due to rounding.)
Consolidated sales for the second quarter of 2024 remain driven by the strong dynamism of aerospace activities, which grew by 11% compared to the second quarter of 2023. Representing 69% of the consolidated revenue from continuing operations for the second quarter of 2024, the Aerospace activity is the Group's leading market segment.
The significant growth in aerospace sales in the second quarter of 2024 offsets the decrease in revenue from the Medical sector (-29% compared to the second quarter of 2023) impacted by the drop in sales in the implantable solutions segment (-225 thousand euros compared to the second quarter of 2023).
Furthermore, sales from the Optical communications activity demonstrated solid performance, with a 36% increase compared to the second quarter of 2023.
Analysis of consolidated income statement
MEMSCAP's consolidated earnings for the second quarter of 2024 are given within the following table:
| In thousands of euros – Non-audited | Q1 2023 (3 months) |
Q2 2023 (3 months) |
H1 2023 (6 months) |
Q1 2024 (3 months) |
Q2 2024 (3 months) |
H1 2024 (6 months) |
|---|---|---|---|---|---|---|
| Revenue from continuing operations | 3,668 | 3,421 | 7,089 | 3,832 | 3,442 | 7,275 |
| Cost of revenue | (2,146) | (1,884) | (4,030) | (2,298) | (2,041) | (4,339) |
| Gross margin | 1,522 | 1,536 | 3,059 | 1,534 | 1,402 | 2,936 |
| % of revenue | 41.5% | 44.9% | 43.2% | 40.0% | 40.7% | 40.4% |
| Operating expenses* | (1,017) | (883) | (1,901) | (1,026) | (1,011) | (2,037) |
| Operating profit / (loss) | 505 | 653 | 1,158 | 508 | 390 | 899 |
| Financial profit / (loss) | (1) | 24 | 23 | 109 | 2 | 110 |
| Income tax expense | (34) | (13) | (47) | (9) | (9) | (17) |
| Net profit / (loss) | 470 | 664 | 1,134 | 608 | 384 | 992 |
* Net of research & development grants.
(Any apparent discrepancies in totals are due to rounding.)
The gross margin rate was 40.7% of consolidated revenue compared to 44.9% in the second quarter of 2023. It is noted that the gross margin rate for the second quarter of 2023 benefited from a particularly favourable product mix. The gross margin increased by 0.7 percentage points compared to the first quarter of 2024, amounting to EUR 1,402 thousand versus EUR 1,536 thousand for the second quarter of 2023.
Operating expenses, net of research and development grants, amounted to EUR 1,011 thousand compared to EUR 883 thousand for the second quarter of 2023. In the second quarter of 2024, these expenses reflected the emphasis on the Group's technical programs. The Group anticipates a decrease in operating costs over the coming quarter following the non-recurrence of some of these expenses linked to this significant effort during the first half.
For the second quarter of 2024, the Group posted an operating profit from continuing operations of EUR 390 thousand (11% of consolidated revenue) compared to an operating profit of EUR 653 thousand for the second quarter of 2023. The tax expense recognized over the second quarters of 2023 and 2024 corresponded to the change in deferred tax assets. This tax expense is a noncash item.
The Group therefore reported a net profit of EUR 384 thousand in the second quarter of 2024 (11% of consolidated revenue) compared to a net profit of EUR 664 thousand in the second quarter of 2023.
Perspectives
Recording a quarterly adjusted EBITDA1 of EUR 582 thousand in the second quarter of 2024, representing 17% of the consolidated revenue (compared to EUR 936 thousand in the second quarter of 2023), and a quarterly net profit of EUR 384 thousand, MEMSCAP continues to steadily implement its 4C plan, demonstrating the strength of its business model.
With a recognized expertise and driven by promising and high-visibility markets, MEMSCAP reaffirms its trajectory through 2026, focused on achieving an average annual hyper-growth rate of 20%. 4G stands for consistent growth, competitive growth, profitable growth, and responsible growth. The Company is now concentrating on finalizing its "Engine Control" development and industrialization program, which is expected to accelerate growth in the coming years and propel MEMSCAP beyond 2026.
1 Adjusted EBITDA means operating profit before depreciation, amortisation, and share-based payment charge (IFRS 2) and including foreign exchange gains/losses related to ordinary activities.
Individual shareholder webinar: Tuesday, July 30, 2024 – 10:00 a.m.
Thank you for registering and sending your questions in advance using the following link: https://memscap.com/fr/visio/
Half-year 2024 revenue and earnings (including statement of financial position and cash flow): September 2, 2024.
MEMSCAP is a leading provider MEMS based pressure sensors, best-in-class in term of precision and stability (very low drift) for two market segments: aerospace and medical.
MEMSCAP also provides variable optical attenuators (VOA) for the optical communications market.
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 (Euronext Paris - Memscap - ISIN code: FR0010298620 - Ticker symbol: MEMS)
