SÜSS MicroTec SE

Earnings Release • Mar 28, 2006

News Details

Ad-hoc | 28 March 2006 21:07

Süss MicroTec AG: Audited 2005 financials

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— – For the first time since 2001 clearly positive EBITDA with EUR 5.8m – EBIT of minus EUR 4.2m mainly due to extraordinary charges – Positive business development at the beginning of the current fiscal year Munich, Mar 28, 2006 – SUSS MicroTec’s financial statements for the fiscal year 2005 were approved and adopted by the Supervisory Board. In particular the favorable business development in the 4th quarter contributed to the increase in sales (EUR 117.5m vs. EUR 111.3m; +6%) and order entry (EUR 135.6m vs. 122.4m; +11%) compared to 2004. Gross Profit went down from EUR 47.2m to EUR 47.0m. The Gross Profit margin decreased from 42.4% to 40.0%. Increasing price pressure in the Test Systems segment as well as extraordinary charges in the Device Bonder segment mainly accounted for this development. Thanks to significantly decreased overhead costs for selling, general and administrative (EUR 43.4m vs. EUR 47.9m; -9%) as well as positive currency effects SUSS achieved the turnaround at the EBITDA-level. EBITDA improved in 2005 to plus EUR 5.8m compared to minus EUR 1.5m in the previous year. However, EBIT with minus EUR 4.2m (2004: minus EUR 8.8m) was still negative. This includes the extraordinary items in the Device Bonder segment (EUR 3.7m) as well as costs for restructuring (EUR 2.5m). Without these items, the EBIT would have already been positive in 2005. The Free Cash Flow was also positive and reached EUR 1.9m (2004: minus EUR 1.5m). Progress was made in the last year, especially in reducing the inventory level. Segment Overview: LITHOGRAPHY: The most important segment of the Group (57% of group revenue) performed very well in all categories: sales (EUR 66.6m vs. EUR 61.8m; +8%), order entry (EUR 75.5m vs. EUR 74.0m; +2%) and segment results (EUR 4.6m vs. EUR 1.6m; +190%). Above all, the strong demand for production equipment during the 4th quarter 2005 built a solid groundwork for continuing the positive trend in 2006. SUBSTRATE BONDER: Sales declined from EUR 7.7m to EUR 6.1m (-21%). In contrast, order entry developed well and increased from EUR 7.0m to EUR 9.5m (+36%). Segment results remained negative (minus EUR 4.0m in 2005 vs. minus EUR 3.5m in 2004). In 2006 we expect a sustainable improvement in both sales and segment results. Most notably the long-term potential for Wafer Bonding applications looks very promising. DEVICE BONDER: Sales in 2005 with EUR 6.1m were almost on par with 2004 (EUR 6.0m; +2%). Extraordinary write-offs amounting to EUR 2.8m, EUR 1.8m thereof related to goodwill and EUR 1.1m related to real estate, were charged in 2005. Furthermore, segment results were further burdened by one-off allowances on inventories totaling EUR 0.8m. Due to these charges, segment results with EUR minus 3.9m were significantly below the 2004 results (EUR minus 0.7m). The considerable increase in order entry (EUR 6.3m vs. EUR 2.9m; +114%) however led to a high order backlog at the end of 2005. Taking into account the capacity reductions performed in 2005, we expect an improved financial performance in 2006. TEST SYSTEMS: The second largest segment, representing 24% of group sales, continued to show a solid development in 2005. Sales (EUR 28.8m vs. EUR 27.0m;+7%) and order entry (EUR 29.3m vs. EUR 28.7m; +2%) evolved positively. The segment results improved remarkably from EUR 1.5m to EUR 2.1m (+37%). For 2006 we expect sales and segment results on a comparable level. OTHERS: The segment “Others” includes the business fields Photomasks, MicroOptics and Holding functions as well as C4NP. Sales increased from EUR 8.9m to EUR 10.0m (+12%), mainly driven by the positive development in the Photomask business. Order Entries totaled EUR 15.0m (2004: EUR 9.8m; +52%) with C4NP having been the main reason for the increase. The negative segment results of EUR minus 4.5m (2004: EUR minus 7.2m), are caused by the structure of the segment. The Holding costs are not allocated to the other product-related segments and therefore represent a main part of this segment’s losses. A key element is the progress of C4NP, although we do not expect nameable revenue recognition in 2006. The main focus for C4NP in 2006, besides finishing the tool development, will be the acquisition of further orders for this new product line. The Executive Board has a positive view on the current year. In addition to the high order backlog of EUR 85.1m (2004: EUR 65.6m; +30%) at the beginning of the year, business has also kept its solid momentum in the first months of 2006. We recognize ongoing demand for production equipment for Advanced Packaging and the MEMS industries. In Advanced Packaging in particular, we believe that the phase of capacity enlargements is not yet finished. Overall, we are confident of achieving the turnaround in 2006 with clearly positive results. 2005 Key figures at a glance: EUR millions FY 2005 FY 2004 Order Entries 135.6 122.4 Order Backlog 85.1 65.6 Sales 117.5 111.3 Equity 84.2 83.4 Equity Ratio % 53.5% 49.5% Free Cash Flow +1.9 -1.5 Gross Profit 47.0 47.2 Gross Profit Margin % 40.0% 42.4% EBITDA 5.8 -1.5 EBITDA –Margin % 4.9% -1.4% EAT(Earnings after taxes) -8.2 -16.4 EPS(Earnings per Share EUR) -0.52 -1.08 Employees 674 731 The annual report is available at www.suss.com (pdf download) For more information please contact: SÜSS MicroTec AG Investor Relations Barbara v. Frankenberg Tel.: +49 (0) 89 / 320 07-314 Fax: +49 (0) 89/ 320 07-450 E-Mail: b.frankenberg@suss.de (c)DGAP 28.03.2006 ————————————————————————— language: English emitter: Süss MicroTec AG Schleissheimer Strasse 90 85748 Garching b. München Deutschland phone: +49 (0)89 32007-314 fax: +49 (0)89 32007-450 email: ir@suss.de WWW: www.suss.de ISIN: DE0007226706 WKN: 722670 indexes: stockmarkets: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————