Earnings Release • Jan 10, 2019
Earnings Release
Open in ViewerOpens in native device viewer
Excellent performance of HTCC ceramic sales at Egide USA
Confirmation of the stabilization of the activity at Santier as order intake rebounded in the Q4
Bollène, 10th January 2019 - 7:00 pm - Egide Group's unaudited consolidated revenue grew by 2.6% to € 31.69 million in 2018, in line with the forecast published at the time of the publication of the S1 results of € 31.60 million. On a like-for-like basis and constant currency effects, revenue in 2018 was stable. Sales of US entities now represent 55% of the group's total turnover.
Fourth-quarter sales amounted to € 7.79 million, which was a 1.8% increase over the previous quarter. Compared to Q4 - 2017, there was -6.3% at real exchange rate (-8.1% at constant exchange rate).
| Thousand of euros | Q4 2017 | Q4 2018* | Var. % | Change on a CB** | FY 2017 | FY 2018* | Var. % | Change on a CB*** |
|---|---|---|---|---|---|---|---|---|
| Egide SA Egide USA Santier |
4,587.5 1,697.6 2,021.6 |
3,445.9 2,443.8 1,896.4 |
-24.9% 44.0% -6.2% |
-24.9% 41.0% -11.3% |
15,563.6 7,246.2 8,081.6 |
14,305.1 8,454.2 8,931.2 |
-8.1% 16.7% 10.5% |
-8.1% 22.1% -4.1% |
| Group | 8,306.8 | 7,786.1 | -6.3% | -8.1% | 30,891.4 | 31,690.5 | 2.6% | 0.0% |
* Unaudited ** Change on a comparative basis (At constant exchange rates) *** Change on a comparative basis (At constant perimeter and exchange rates)
As expected, the difficult environment in which Egide SA operates has temporarily impacted the group's turnover in the second half of 2018, as well as the competitive environment of Santier's heat sink market. Egide SA has faced a drop in demand from one of its main customers. The very good level of revenue of Santier in the first half does not compensate for the deceleration in revenue at the end of the year. However, Santier realized a rebound in the order intake in Q4, suggesting a rapid stabilization of business for the beginning of 2019.
Egide USA's HTCC ceramic product sales have contributed positively to the overall growth of the Group in 2018 with over \$1.4 million added during the year (combined sales of Egide USA and Santier's orders manufactured at Cambridge).
For information, the average euro / dollar parity in 2018 was 1.18143 against 1.12929 in 2017.
| Thousand of euros | Q4 2017 | Q4 2018* | Var. % | Change on a CB** | FY 2017 | FY 2018* | Var. % | Change on a CB*** |
|---|---|---|---|---|---|---|---|---|
| Power | 1,588.6 | 1,530.8 | -3.6% | -6.7% | 6,540.7 | 6,045.0 | -7.6% | -5.2% |
| RF/MW | 1,742.8 | 1,422.9 | -18.4% | -21.0% | 5,973.3 | 6,152.4 | 3.0% | -10.5% |
| Optronics | 968.2 | 1,394.9 | 44.1% | 39.9% | 4,162.1 | 5,624.7 | 35.1% | 28.3% |
| Thermal Imaging | 3,258.5 | 2,590.9 | -20.5% | -20.4% | 10,949.0 | 10,438.1 | -4.7% | -3.2% |
| Others | 748.6 | 846.5 | 13.1% | 10.3% | 3,266.3 | 3,430.3 | 5.0% | 4.6% |
| Group | 8,306.8 | 7,786.1 | -6.3% | -8.1% | 30,891.4 | 31,690.5 | 2.6% | 0.0% |
* Unaudited ** Change on a comparative basis (At constant exchange rates) *** Change on a comparative basis (At constant perimeter and exchange rates)
Thermal Imaging: The downturn in activity of the Thermal Imaging market segment in EU was partially offset by market share gains in the US by both Egide USA and Santier. The increases were primarily due to the HTCC ceramic activity in Cambridge, which supported both Egide USA and Santier, and is expected to increase in 2019.
RF/Microwave: The downturn in activity in the EU in this market segment was offset by increases in market share in the US, primarily at Santier. Santier was awarded a large contract by a major defense contractor, which allowed for a 45% increase in revenue within this segment.
Power: Completion of a transfer of product line from Bollène to Cambridge for an aerospace company, indicates the ability of our group to serve similar customers from either the EU or US. The group still has majority market share in the power conversion business.
Optronics: All business units experienced growth as more complex hermetic package requirements find demand in specific applications.
The increase in the miscellaneous segment comes mainly from Santier sales in the medical field, which accounts for 10% of the subsidiary's sales. There is also demand from clients seeking specific services, such as plating activity.
For 2019, the group expects growth at all three business units. The difficult market in the EU and a more complex geopolitical environment especially regarding China-US relations will slow the increase in H1. Based on expectations from our customer base, this situation should be rectified by the end of H1, and we should see improvement in H2 demand. The HTCC ceramic operations in Cambridge will continue to support increases in revenue streams for both Egide USA and Santier, primarily in the thermal imaging market segment. The Bollène team continues to work with key clients in China, India and Israel which are considered growth markets in 2019.
End of March 2019: 2018 financial results
Egide is a group with an international dimension, specialized in the manufacture of hermetic packages and heat dissipation solutions for sensitive electronic components. It operates in cutting edge markets with strong technology barriers to entry in all critical industry segments (Thermal Imaging, Optronics, High-Frequency, Power Units...). Egide is the only pure player in this market niche with manufacturing bases in France and the United States.
EGIDE - Finance Department: Philippe Lussiez +33 1 30 68 81 00 - [email protected]
INBOUND CAPITAL - Investor Relations: Frédéric Portier +44 7802 533333 - [email protected]
FIN'EXTENSO - Press Relations: Isabelle Aprile +33 1 39 97 61 22 - [email protected]
Egide's eligibility for tax efficient French innovation-focused mutual funds (FCPI) was renewed on May 14, 2018
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.