AIXTRON SE

Earnings Release • Nov 6, 2007

News Details

Corporate | 6 November 2007 07:30

AIXTRON AG: AIXTRON with Record Order Intake in Q3/2007

AIXTRON AG / Quarter Results/Results Forecast

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AIXTRON with Record Order Intake in Q3/2007

Strong nine months Revenues of EUR 160.7m (up 48% yoy)
EUR 16.4m EBIT, 10% EBIT-Margin achieved for 9M/2007
Largest ever quarterly Order Intake: EUR 70.0m for Q3/2007
Increased Guidance for 2007: EUR 215m Revenues, EUR 20m EBIT

Aachen, Germany, November 6th, 2007 – AIXTRON AG, worldwide leading
provider of deposition equipment to the semiconductor industry, today
announced financial results for the nine months, ended September 30, 2007.

Key Financials
Key Financials 2007 2006 Change
(million €) Q1-Q3 Q1-Q3
Revenues 160.7 108.6 48%
Gross profit 62.4 41.5 50%
Gross margin, % revenues 39% 38% 1pp
EBIT 16.4 -2.4 n.c.
EBIT, % revenues 10% n.c. n.c.
Net result 14.8 -2.4 n.c.
Net result, % revenues 9% n.c. n.c.
Net result per share - basic (€) 0.17 -0.03 n.c.
Net result per share - diluted (€) 0.17 -0.03 n.c.
Free cash flow 5.0 21.3 -76%
Equipment Order Intake 160.8 133.5 20%
Equipment Order Backlog (End of Period) 102.8 98.3 5%

Operative Highlights
In the first nine months of 2007, AIXTRON delivered total revenues of
EUR 160.7m, a 48 percent increase year over year (9M/2006: EUR 108.6m).
Reflecting the increasing percentage of new common platform system
revenues, paired with a favorable product mix, the gross margin slightly
improved by 1 percentage point year over year, culminating in a 39 percent
gross margin performance by the end of 9M/2007. AIXTRON’s 9M/2007 EBIT
figure is a positive EUR 16.4m (compared to a EUR -2.4m loss in 9M/2006),
leading to a positive net result of EUR 14.8m in 9M/2007 (compared to a
EUR -2.4m loss in 9M/2006). The free cash flow of EUR 5.0m in 9M/2007
compares to EUR 21.3m in 9M/2006, the decrease being largely due both to
the timing of payments to suppliers after high production levels and to
high volume trade receivables for deliveries at quarter end in September.
With the record equipment order intake figure of EUR 70.0m in Q3/2007,
leading to a nine months 2007 order intake of EUR 160.8m, the Company is
able to report a significant increase in equipment order intake year over
year (9M/2006:EUR 133.5m) of 20 percent. Order backlog stood at EUR 102.8m
by the end of the first nine months of 2007, a 5 percent increase compared
with 9M/2006(EUR 98.3m).

Management Review
Paul Hyland, Chief Executive Officer at AIXTRON, comments:
'Q3 is now the 6th consecutive quarter in which we have received more than
EUR 40m of system orders and also marks the highest ever order intake
quarter the company has ever had. Coupled with the continuously improving
profitability during the year we are just beginning to reap the benefits of
the very focused approach the business has taken over the last few years.
The record level of deposition equipment demand, we experienced in Q3,
reflects the increasing appearance of the first generation consumer LED
backlighting products appearing in the market. At this early stage, these
initial commercial products are predominantly small and medium-sized
backlighting units utilizing white LEDs, and we have not yet seen the
impact of full RGB backlighting technology, which should become more
evident in the next year. Another interesting market development is the
degree to which the 'premium-player' LED-producers have recently increased
the frequency of announcements on new efficiency records for their LEDs,
suggesting that they believe they are ahead of the generally accepted
roadmaps and that Solid State Lighting may become commercially viable
earlier than previously envisaged. These factors, along with a greater
level of activity in e.g. LED automotive applications leave us with a more
promising short to medium term outlook than I can recall over the last five
years and we are very well placed to meet the challenges these
opportunities bring with them'.

Outlook
Following the continued positive revenue and EBIT development, AIXTRON
management has raised the full year 2007 revenue guidance to EUR 215m and
expects an EBIT of EUR 20m for the calendar year.

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 nine months ended September 30, 2007.

Investor Conference Call
AIXTRON will host a financial analyst and investor conference call on
Tuesday, November 6th, 2007, 3:00 p.m. CET (6:00 a.m. PST, 9:00 a.m. EST)
to review the nine months 2007 results. From 2:45 p.m. CET (5:45 a.m. PST,
8:45 a.m. EST) you may dial in to the call at +49 (30) 86871–799 or
+1 (212) 444-0296. 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.

For further information on AIXTRON AG (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:
Guido Pickert
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

06.11.2007 Financial News transmitted by DGAP

Language: English
Issuer: AIXTRON AG
Kackertstr. 15-17
52072 Aachen
Deutschland
Phone: +49 (0)241 8909-0
Fax: +49 (0)241 8909-40
E-mail: invest@aixtron.com
Internet: www.aixtron.com
ISIN: DE0005066203
WKN: 506620
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Hamburg, Düsseldorf, Stuttgart;
Terminbörse EUREX; Foreign Exchange(s) Nasdaq

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