SÜSS MicroTec SE

Earnings Release • Nov 7, 2006

News Details

Ad-hoc | 7 November 2006 20:05

Süss MicroTec’s positive trend continues

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Third quarter Order Entry remains at a very high level: EUR 37.5 million – Final components of C4NP high volume tool scheduled for delivery to IBM in Q2/2007 – 9M/06 Sales: Plus 51.1% to EUR 113.5 million – Further C4NP orders expected in 2007 – 9M/06 EBIT at 14.3 million Euro (9M/05: -7.0 million Euro) – EBIT-Margin 2006 expected to reach at least 10% of Sales Munich, November 7, 2006 – The third quarter 2006 continued the positive trend for SUSS MicroTec (ISIN DE0007226706). Order entry again exceeded the target of EUR 35 million. The recent quarter’s earnings development therefore again confirmed the efficiency of the company’s streamlined cost structure. Third quarter group sales reached EUR 31.3 million (PY: 27.1 million). A gross profit margin of 44.7% (PY: 43.8%) was achieved. The third quarter was again profitable with earnings before interest and taxes (EBIT) of EUR 1.7 million (PY: minus 0.9 million) and earnings after taxes (EAT) of EUR 1.4 (PY: minus 1.4) million. Order entry for the quarter amounted EUR 37.5 million (PY: EUR 32.3 million), thanks in particular to the developments in the Substrate Bonder division. Overall the MEMS market developed very well during the third quarter, especially in Europe and Japan. The order backlog end of September 2006 was EUR 82.8 million. Compared to 2005, sales in the first 9 months went up from EUR 75.1 million to EUR 113.5 million. Order entry grew from EUR 84.2 million to EUR 115.0 million. Most importantly, EBIT reached EUR 14.3 million after minus EUR 7.0 million. Free cash Flow reached 5.8 million in this quarter (Q3/2005: 3.0 million) and was driven on the one hand by reduced accounts receivable and increased customer deposits. Inventory on the other hand rose significantly, mainly due to scheduled shipments for the fourth quarter 2006 and the dynamics in the Substrate Bonder segment. SUSS MicroTec continues to make good progress towards the delivery of the C4NP high volume manufacturing line to the initial customer, IBM. As SUSS has collaborated with IBM on the ultimate configuration of the line, the scope of work has expanded to included additional components not contemplated in the original contract. SUSS is currently in discussions to revise the existing agreement to reflect the now anticipated final configuration and expects to favorably conclude these talks within 2006. To date, several components of the high volume manufacturing line are installed and operational at our customer’s facility with the final tools scheduled for delivery in Q2/2007. The management anticipates further orders for our C4NP product line during 2007. For the full year 2006 the management expects sales in the range of at least EUR 150 million. Based on the current performance of gross margins, especially the margin improvements in the Substrate Bonder Division, the EBIT margin is now expected to achieve at least 10% of sales. Segment Overview: LITHOGRAPHY: Although orders declined, they are still at a very satisfying level. A shift towards MEMS applications can be observed, also reflected in the order development by regions. Segment revenues were low mainly due to the very strong second quarter. Fourth quarter sales and results are expected to be comparable with the performance shown in the first and second quarter 2006. Lithography 9M/06 9M/05 Y-o-Y Q3/06 Q3/05 Q-o-Q % % Order Entry 64.5 45.5 +42% 17.2 16.6 +3% Sales 67.5 41.0 +65% 15.9 14.9 +7% Segment result 15.2 -2.1 — 1.5 0.9 +64% SUBSTRATE BONDER: The Segment continued its positive development. Very promising order development, along with improvements in the manufacturing learning curve, has lead to noticeable gross profit margin improvements. Currently the focus is on R&D activities to round off the Product Portfolio. Another focal point is strengthening the worldwide presence. Substrate Bonder 9M/06 9M/05 Y-o-Y Q3/06 Q3/05 Q-o-Q % % Order Entry 13.6 4.9 >100% 7.2 2.7 >100% Sales 11.8 3.6 >100% 3.2 0.7 >100% Segment result 0.2 -3.1 — 0.3 -0.9 — DEVICE BONDER: The third quarter was a stable business environment for Device Bonders. Although sales were low, thanks to special items a positive segment result was achieved. Device Bonder 9M/06 9M/05 Y-o-Y Q3/06 Q3/05 Q-o-Q % % Order Entry 7.0 2.4 >100% 3.0 0.4 >100% Sales 4.0 3.6 +11% 1.2 0.3 >100% Segment result 0.7 -0.4 — 0.3 -0.5 — TEST SYSTEMS: The segment keeps to the expected pace. Compared to last year, numbers for sales and orders are in a similar range. Sales in the fourth quarter are anticipated to be below previous year’s level, leading to a slight decline in sales for the full year. Test Systems 9M/06 9M/05 Y-o-Y Q3/06 Q3/05 Q-o-Q % % Order Entry 20.8 21.4 -3% 7.6 7.2 +5% Sales 20.7 19.9 +4% 8.1 8.5 -5% Segment result 1.9 0.8 >100% 1.0 1.2 -16% OTHERS: The main drivers for growing Sales were the Micro Optics and the Mask business. Compared to 2005, the segment result 2006 contains higher R&D expenses for C4NP and start up costs for the separation of the remanufacturing business. Others 9M/06 9M/05 Y-o-Y Q3/06 Q3/05 Q-o-Q % % Order Entry 9.1 10.0 -9% 2.5 5.4 -50% Sales 9.5 7.0 +37% 2.9 2.7 +10% Segment result -2.8 -3.4 +18% -1.3 -1.5 +15% Key Figures: %Chan %Chan Q3/06 Q3/05 ge 9M/ 06 9M/ 05 ge Order Entry 37.5 32.3 16.1% 115.0 84.2 36.6% Order Backlog as of 09/30/06 – – – 82.8 74.7 13.4% Sales 31.3 27.1 15.7% 113.5 75.1 51.1% Gross Profit 14.0 11.9 17.9% 52.5 29.3 79.0% Gross Profit Margin 44.7% 43.8% – 46.2% 39.0% – EBITDA 3.1 0.8 >100% 19.1 -1.7 >100% EBITDA Margin 10.0% 2.8% 16.8% -2.3% – EBIT 1.7 -0.9 >100% 14.3 -7.0 >100% EBIT Margin 5.4% -3.2% 12.6% -9.3% – Earnings after Taxes 1.4 -1.4 >100% 11.3 -8.8 >100% Earnings per Share, diluted 0.08 -0.09 >100% 0.65 -0.57 >100% Net Cash – – – 14.1 6.0 >100% Free Cash Flow 5.8 3.0 89.9% 6.9 0.3 >100% Employees as of 09/30/06 – – – 741 662 11.9% The Nine-month report is available for download at www.suss.com (c)DGAP 07.11.2006 ————————————————————————— Language: English Issuer: Süss MicroTec AG Schleissheimer Strasse 90 85748 Garching b. München Deutschland Phone: +49 (0)89 32007-314 Fax: +49 (0)89 32007-450 E-mail: ir@suss.de WWW: www.suss.de ISIN: DE0007226706 WKN: 722670 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————