Melexis N.V. — Earnings Release 2011

Oct 20, 2011

Press release: Melexis Q3 2011 results – Steady sailing

Intermediate declaration by the Board of Directors.

Ieper, Belgium – October 20th, 2011, 07.00 hrs CET

Sales for the third quarter were 56.8 million EUR, a decrease of 4% compared to the same quarter of the previous year and a decrease of 2% versus the previous quarter.

The EUR/USD exchange rate evolution had no impact compared to the previous quarter.

Gross margin was 26.3 million EUR, an decrease of 8% compared to the same quarter last year and a decrease of 1% versus the previous quarter.

The operating result was at 13 million EUR, compared to 16.9 million EUR in the same quarter of 2010 and 12.8 million EUR in the previous quarter.

Net income was 10.6 million EUR, 25 cent per share, down from 35 cent per share in the third quarter of 2010 and equal to 25 cent in the previous quarter.

R&D expenses were 15% of sales, Selling remains stable at 3% of sales and G&A was at 5% of sales.

Melexis purchased 233.795 own shares during the third quarter of 2011 at an average price of 9.66 EUR. As a result, the total number of treasury shares amounts to 2.682.499 at the end of the third quarter of 2011, representing 6.20% of shares outstanding.

Françoise Chombar, CEO of Melexis comments:

"Inventories are well filled at this point in time and customers seem cautious to order too much in view of the current uncertainties in the financial markets. This being said, Melexis products continue to be designed in steadily in all geographies as they cover our customers' needs for better energy efficiency, higher safety, and legislation compliance."

Karen van Griensven, CFO of Melexis adds:

"In view of the current share price levels, the Board of Directors decided to increase the daily volume of our share buy back program."

Outlook Q4 2011

Melexis expects sales for the fourth quarter of 2011 to be at the same level as the third quarter.

Outlook 2012

For 2012, Melexis expects mid to high single digit growth in sales. Taking into account a EUR/USD exchange rate of 1.40, we expect our gross profit and operating margin as percentage of sales to be around the same level as 2011.

Financial Calendar

• Publication FY 2011 Results: February 9, 2012

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The company's results will be discussed in a conference call on Thursday, October 20th, 2011 at 17 hrs CET. The conference call will be in English. You have to register for this conference call in advance. You can register by clicking on the following link and filling out the requested information:

https://eventreg1.conferencing.com/webportal3/reg.html?Acc=184341&Conf=180219

Conference ID: 904848.

After registration, you will receive the conference call number, a participant user pin, conference pin and instructions on how to join the conference call. For security purposes all participants must register individually if they wish to join the call.

A replay number for this call is available for 7 days after the end of the conference call. The replay number for this call is +32 2 290 17 05, access code: 904848.

For further information: Investor Relations Phone: +32 13 67 07 79 Fax: +32 13 67 21 34 Email: investor@melexis.com

About Melexis

Melexis Microelectronic Integrated Systems N.V. (Euronext Brussels: MELE) is a mixed signal semiconductor manufacturer. Melexis designs, develops, tests and markets advanced integrated semiconductor devices for the automotive industry. Our core experience supplying ICs for automotive electronics sustains the expansion into Application Specific Standard Products for industrial and consumer product applications. Melexis enthusiastically pursues its role as a component supplier whose innovations, while physically small, are the essential element in nearly every one of our customers' extraordinary systems. At Melexis we believe that "Small things make a big difference". Melexis' products include sensor, communication, actuator ICs and Application Specific Integrated Circuits (ASICs). Further information about Melexis can be found at http://www.melexis.com.

Disclaimer

Except for those statements that report the Company's historical results, the statements being made are forward looking statements. Actual results could differ materially from those projected in the forwardlooking statements. Factors which could cause actual results to differ from expectations include the following: volatility in supply and demand affecting revenues and market prices, price and availability of silicon foundry, assembly and test prices, assembly and test subcontract capacity required to meet financial targets and/or meet backlog requirements, risks and delays associated with bringing up new production capabilities or with deliveries from subcontractors, timing and market acceptance of new products, increased expenses associated with new product acceptance of new products, increased expenses associated with new product introductions of process changes, delays in developing or achieving volume production of new products, which can result in delays or failure to contribute to revenues and profits, ability of the Company to maintain its customer and vendor base and delays in and/or inability in raising additional capital.

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Consolidated Profit & Loss

CONFORM IAS	Quarter ended 30/09/2011	Quarter ended 30/09/2010	Nine months 30/09/2011	Nine months 30/09/2010	Year ended 31/12/2010
in k EUR					audited
Sales	56,762	59,091	173,354	161,315	219,427
Cost of sales	-30,473	-30,560	-93,305	-86,453	-117,176
Gross Margin	26,288	28,531	80,049	74,862	102,251
R&D	-8,601	-7,371	-25,740	-21,671	-29,701
G&A	-3,046	-2,699	-9,119	-7,573	-10,519
Selling	-1,634	-1,516	-5,172	-4,246	-5,741
Other operating result
Operating result	13,008	16,946	40,017	41,372	56,290
Other expenses (net)	-19	-831	-1,189	-1,781	-2,126
Income before taxes	12,989	16,115	38,828	39,590	54,163
Income taxes	-2,349	-879	-5,893	-4,134	-5,551
Net income	10,640	15,236	32,935	35,456	48,612
Net income per share in EURO	0.25	0.35	0.76	0.82	1.12

Consolidated Balance Sheet

CONFORM IAS	Nine months 30/09/2011	Nine months 30/09/2010	Year ended 31/12/2010
in k EUR			audited
Current Assets : Cash and cash equivalents	36,750	32,153	21,180
Current investments	4,009	4,688	5,729
A/R Trade	35,489	28,756	27,933
A/R from related parties	870	7,237	8,796
Advance related parties
Other current assets	5,403	6,767	7,504
Inventories	35,516	34,557	39,217
Total current assets	118,038	114,159	110,359
Non current assets :
Costs of incorporation
Property, plant and equipment	51,174	46,388	48,760
Financial assets	30	30	30
Intangible fixed assets	1,982	1,773	1,750
A/R directors
Other non-current assets	5,537	4,229	4,344
Deferred tax assets	15,471	14,566	15,235
Total non current assets	74,194	66,985	70,120
Total assets	192,232	181,144	180,479

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CONFORM IAS	Nine months	Nine months	Year ended
in k EUR	30/09/2011	30/09/2010	31/12/2010 audited
Liabilities and shareholders Equity
Current liabilities :
Bank loans and overdrafts
Derivative financial instruments	1,014	2,218	1,599
Current portion of LT debt	4,648	19,578	19,647
A/P trade	8,141	7,843	7,274
Affiliated companies	4,824	5,733	6,603
Accrued expenses, payroll and taxes	10,527	9,364	7,159
Other current liabilities	1,609	944	1,707
Provisions Deferred income	573	665	793
Total current liabilities	31,337	46,344	44,782
Non current liabilities :
LT debt less current portion	37,002	37,327	37,115
Deferred tax liabilities	382	285	382
Other non-current liabilities	2,811	1,263	2,746
Total non current liabilities	40,195	38,875	40,242
Shareholders' equity :
Shareholders' capital	565	565	565
Share premium
Treasury shares	-28,711	-19,010	-21,886
Revaluation reserve Hedge	-540	-1,202	-896
Revaluation reserve Fair value	-90	432	1,378
Legal reserve	57	57	57
Retained earnings	116,535	80,310	67,923
Current period's profit	32,935	35,456	48,612
Cumulative translation adjustment	-60	-692	-308
Equity attributable to company owners	120,690	95,915	95,445
Non controlling interests	10	10	10
Total shareholders equity	120,700	95,925	95,455
Total liabilities, shareholders' equity	192,232	181,144	180,479
and minority interests

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Consolidated Statements of Cash Flow

CONFORM IAS/IFRS	Quarter ended 30/09/2011	Quarter ended 30/09/2010	Nine months 30/09/2011
(in k EUR)
Cash flow from operating activities
Net income	10,640	15,236	32,935
Adjustments for :
Operating activities	4,074	3,045	10,967
- Deferred taxes	-53	189	-236
- Capital grants	134	225	815
- Depreciation and amortisation	3,123	2,781	9,374
- Unrealized exchange results	1,425	-1,218	1,255
- Financial result	-555	1,069	-241
Operating profit before working capital changes :	14,714	18,281	43,902
- A/R, Trade	-4,728	99	-7,555
- A/R, affiliates	8,424	-709	7,926
- Other current assets	-1,521	770	173
- Other non current assets	-443 515	-537 -1,867	-1,193 3,087
- Inventories	219	422	864
- A/P - A/P affiliates	-204	-77	-1,780
- Accrued expenses	1,829	1,002	5,417
- Other current liabilities	583	-598	-98
- Other non current liabilities	143		-739
- Interest paid	-465	-878	-1,715
- Income tax	-1,195		-2,049
Cash flow from operating activities	17,871	15,910	46,240
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired
Financial fixed assets		-1,132
Purchase of PPE and intangible assets (netted)	-2,476	-4,005	-11,403
Interest received	38	383	949
Investments/proceeds/ from current investments	1,917	-576	1,721
(incl. financial instruments)
Cash provided from investing activities	-522	-5,330	-8,734
Cash flows from financing activities
Payment to acquire own shares	-2,223		-6,826
Proceeds/Repayment of long-and short-term debt	-3,029	-4,546	-15,111
Proceeds/Repayment of bank loans and overdrafts
Proceeds from (repayment of) related party financing
Proceeds from (repayment of) A/P to directors
Dividend payment
Capital Decrease
Non controlling interest
Cash provided from financing activities	-5,252	-4,546	-21,937
CTA	1
Increase/decrease in cash and	12,099	6,033	15,570
cash equivalents
Cash at beginning of the period	24,651	26,120	21,180
Cash at the end of the period	36,750	32,153	36,750

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Sales per Geography Q3 2011

Turnover per Business Unit

(in k EUR)	Q3/11	Q3/10	% CHANGE (Y-O-Y)
Sensors	32,484	32,791	-1%
Wireless	3,617	3,565	1%
Actuators	16,400	16,831	-3%
Opto	3,605	5,144	-30%
Other	656	761	-14%
TOTAL	56,762	59,092	-4%

(in k EUR)	Nine months/11	Nine months/10	% CHANGE (Y-O-Y)
Sensors	98,719	87,135	13%
Wireless	10,753	9,829	9%
Actuators	49,083	46,803	5%
Opto	12,802	15,239	-16%
Other	1,800	2,310	-22%
TOTAL	173,157	161,316	7%

(in k EUR)	Q3/11	Q2/11	% CHANGE (Q-O-Q)
Sensors	32,484	32,609	0%
Wireless	3,617	3,274	10%
Actuators	16,400	16,318	1%
Opto	3,605	4,626	-22%
Other	656	828	-21%
TOTAL	56,762	57,654	-2%

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