23.02.2017
AIXTRON SE DE000A0WMPJ6
DGAP-News: AIXTRON SE: Financial targets achieved in 2016 / Positive net income in Q4/2016 / Full year negative due to ongoing high research and development costs / Order Intake and Equipment Order Backlog increase significantly
DGAP-News: AIXTRON SE / Key word(s): Final Results/Forecast
AIXTRON SE: Financial targets achieved in 2016 / Positive net income in
Q4/2016 / Full year negative due to ongoing high research and development
costs / Order Intake and Equipment Order Backlog increase significantly
23.02.2017 / 07:30
The issuer is solely responsible for the content of this announcement.
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AIXTRON SE: Financial targets achieved in 2016
Positive net income in Q4/2016 / Full year negative due to ongoing high
research and development costs / Order Intake and Equipment Order Backlog
increase significantly
Herzogenrath/Germany, February 23, 2017 - AIXTRON SE (FSE: AIXA; OTC:
AIXNY), a leading provider of deposition equipment to the semiconductor
industry, today announced its financial results for fiscal year 2016 and
the fourth quarter 2016.
Following a strong second half, AIXTRON met its guidance published at the
beginning of the year. At EUR 196.5 million, total revenues for 2016
virtually matched the previous year's figure (2015: EUR 197.8m), while
Q4/2016 revenues came to EUR 89.8m (Q3/2016: EUR 51.2m). This figure, which
represents the highest quarterly revenues since 2011, was due to a high
volume of planned system shipments. The largest contributions came from
production systems for LED, telecom and optoelectronics, as well as for the
silicon industry.
EBITDA in 2016 rose year-on-year by 52% (2016: EUR -7.9m; 2015: EUR
-16.4m). This development was driven by the strong fourth quarter of 2016
(Q4/2016: EUR 12.5m; Q3/2016: EUR -0.4m) for which a positive EBIT and net
result of EUR 7.9m and EUR 6.4m respectively were also posted. As expected,
overall EBITDA in H2/2016 came in positive at EUR 12.1m.
The free cash flow of EUR -42.9m in 2016 improved by EUR 14.4m, or 25%, on
the previous year (2015: EUR -57.3m). The negative free cash flow of EUR
-4.9m in the fourth quarter of 2016 (Q3/2016: EUR 3.0m) was mainly due to
high shipment volumes at the end of the year. A large part of the resultant
increase in outstanding receivables has converted into cash in Q1/2017.
Total order intake in 2016 came to EUR 225.1m, 35% higher than in the
previous year (2015: EUR 167.1m) and the highest figure in five years. In
Q4/2016, total order intake of EUR 60.5m was slightly down on the previous
quarter but significantly higher than in the previous year (Q3/2016: EUR
69.0m, Q4/2015: EUR 31.3m). This was due to consistently high demand for
LED, telecom and optoelectronic applications, including the sale of AIX R6
inventories.
As of December 31, 2016, the equipment order backlog totaled EUR 78.1m, a
67% increase on the figure of EUR 46.7m at the beginning of the year
(December 31, 2015: EUR 42.9m; September 30, 2016: EUR 104.0m).
Key Financials
2016 2015 +/- 2016 2016 +/-
(in EUR million) FY FY Q4 Q3
Revenues 196.5 197.8 -1% 89.8 51.2 75%
Gross profit 56.3 49.8 13% 29.4 16.9 74%
Gross margin 29% 25% 4pp 33% 33% 0pp
Earnings before interest, tax, -7.9 -16.4 52% 12.5 -0.4 n/a
depreciation and amortization
(EBITDA)
Operating result (EBIT) -21.4 -26.7 20% 7.9 -3.4 n/a
EBIT margin -11% -14% 3pp 7% -7% 14pp
Net result -24.0 -29.2 18% 6.4 -3.8 n/a
Net result margin -12% -15% 3pp 7% -7% 14pp
Net result per share - basic (EUR) -0.22 -0.26 15% 0.05 -0.04 n/a
Net result per share - diluted (EUR) -0.22 -0.26 15% 0.05 -0.04 n/a
Free cash flow (FCF)* -42.9 -57.3 25% -4.9 3.0 n/a
Total order intake 225.1 167.1 35% 60.5 69.0 -12%
Equipment order backlog (end of 78.1 42.9 82% 78.1 104.0 -25%
period)
*Operating CF + investing CF + changes in cash deposits, adjusted for
acquisition effects (upfront payments and loans)
Business Development
Revenues developed in line with expectations in the year as a whole and in
Q4/2016. The key driver for the development in revenues and the order
intake in the fourth quarter 2016 was demand for production systems for
LED, telecom and optoelectronics, as well as for the silicon industry. This
in turn was mainly attributable to technology trends, such as big data,
cloud computing, electro mobility, and the upcoming 5G mobile communication
standard.
Cost of sales for 2016 fell year-on-year to EUR 140.2m, equivalent to 71%
of revenues (2015: EUR 147.9m, or 75% of revenues). This was mainly due to
enhanced production and service efficiency, a development which also led to
lower write-downs on inventories. Compared to the previous quarter, cost of
sales in Q4/2016 remained stable in relation to revenues (Q4/2016: EUR
60.5m or 67% of revenues; Q3/2016: EUR 34.2m or 67% of revenues).
The gross profit and gross margin showed correspondingly positive
developments in 2016, improving to EUR 56.3 million and 29% respectively
(2015: EUR 49.8m, 25% gross margin). The same applies for the quarterly
comparison (Q4/2016: EUR 29.4m, 33% gross margin; Q4/2015: EUR 19.6m, 31%
gross margin; Q3/2016: EUR 16.9m, 33% gross margin).
At EUR 77.7m, operating expenses in 2016 were almost unchanged on the
previous year (2015: EUR 76.5m). This was mainly due to consistent cost
control, which also enabled operating expenses to be kept within the annual
limit of around EUR 80m. Operating expenses corresponded to almost 40% of
revenues in 2016 (2015: 39%). Compared to the previous quarter, operating
expenses rose to EUR 21.4m (Q3/2016: EUR 20.4m).
The operating result (EBIT) improved year-on-year by EUR 5.3m to EUR -21.4m
(2015: EUR -26.7m). The operating result for Q4/2016 increased to EUR 7.9m,
significantly higher than in the previous quarter (Q3/2016: EUR -3.4m).
The net result for 2016 amounted to EUR -24.0m and thus improved by 18% on
the previous year (2015: EUR -29.2m). In Q4/2016, the Company generated a
net profit of EUR 6.4m (Q3/2016: EUR -3.8m).
Cash and cash equivalents (including cash deposits with a maturity of more
than 90 days) came to EUR 160.1m as of December 31, 2016, as against EUR
209.4m as of December 31, 2015. The difference is chiefly due to the
negative net result, payment of the second installment of the agreed refund
of EUR 17.2 million in advance payments to a Chinese customer, and an
agreed milestone payment of EUR 4.1m for the purchase of PlasmaSi (acquired
in 2015) in Q1/2016. Due to high shipment volumes at the end of 2016,
receivables rose at the end of 2016. A large part of these receivables
were paid in early 2017.
Management Review
"The dominant topic in fiscal year 2016 was certainly the planned takeover
by Grand Chip Investment, which was intended to secure the company's access
to the major Chinese market while also ensuring that all of AIXTRON's
product portfolio could be brought to market maturity. Following the US
President's order prohibiting the bidder's acquisition of AIXTRON's US
business and the investor's subsequent withdrawal, AIXTRON acted to realign
its corporate strategy targeting a sustainable return to profitability and
to report a positive EBIT for full year 2018. Now it is a matter of
implementing this strategy", comments Martin Goetzeler, CEO of AIXTRON SE.
"Operationally, we made major progress in numerous areas in fiscal year
2016 and met the financial targets communicated at the beginning of the
year. The strong performance in the second half, and especially in the
fourth quarter of 2016, enabled us to further improve the company's full-
year results, even if we did not yet return to profitability due to ongoing
high research and development costs.
It was important that we continued to press ahead with diversifying our
technology and product portfolio last year. That is also one of the reasons
why, based on our own calculations, we were once again the global market
leader for MOCVD systems in 2016. The strong reported equipment order
backlog gives us reason to be confident in our outlook for 2017, in
particular with regard to opto- and power electronics as well as to the
silicon business. We took a decisive step forward by supplying a Beta
system with Gen1 (200 x 200 mm) configurations to a major display
manufacturer to demonstrate our production processes on site. This way, we
have moved significantly closer to obtaining the first order initially
targeted for 2016.
With the strategy it has taken, the innovative products it can offer to
numerous key markets of the future, the processes and structures it has put
in place in recent years, and its clear results focus, AIXTRON is on the
road towards sustainable profitability."
Guidance
Following the termination of the planned takeover transaction by a Chinese
investor in December 2016, AIXTRON is now focusing on the optimal structure
of its technology portfolio as part of its corporate strategy. Against this
background, AIXTRON is currently pursuing different options in order to
successfully reduce required upfront expenses for the development of future
technologies. These options include looking for partners, joint ventures or
other alternatives. All these measures are targeted to enable a sustainable
return to profitability and to report a positive EBIT for full year 2018.
Based on the existing business structure and the assessment on AIXTRON's
current order situation with the internal budget rate of USD/EUR 1.10,
Management expects for fiscal year 2017 to achieve revenues and an order
intake between EUR 180 million and 210 million.
Due to planned additional upfront expenses for development of future
technologies and based on the existing structure, AIXTRON expects to
achieve lower EBITDA, EBIT and net result for fiscal year 2017. As
previously discussed, AIXTRON is pursuing the options mentioned above in
order to return to sustainable profitability. Depending on the execution of
above mentioned strategy with its various options and due to the
uncertainty of its impact on earnings, Management is currently not in the
position to offer guidance on EBITDA, EBIT and net result for fiscal year
2017. Management will provide an update on the 2017 earnings outlook as the
above mentioned plans materialize.
Influenced by the significant reimbursement of an advance payment in
Q1/2016 which will not repeat, Management expects a further improvement of
the free cash flow in 2017.
In addition to above mentioned activities, Management will continue to
focus on costs, margin contributions and the allocation of funds and will
continuously review the performance and prospects of the Companies' product
portfolio.
As in previous years, Management expects that the Company does not require
any external bank debt financing in 2017. Furthermore, the Company will
retain its strong equity base also in the foreseeable future.
Financial Tables
The full year 2016 results presentation is available at http://
www.aixtron.com/en/investors/ir-presentation. The consolidated financial
statements (income statement, statement of comprehensive income, balance
sheet, cash flow statement, statement of changes in equity) relating to
this press release are part of AIXTRON's Annual Report 2016 and are
available at http://www.aixtron.com/en/investors/financial-reports/.
AIXTRON's interactive online Annual Report 2016 is available at http://
annualreport2016.aixtron.com.
Investor Conference Call
AIXTRON will host a financial analyst and investor conference call on
Thursday, February 23, 2017, 3.00 p.m. CET (6.00 a.m. PST, 9.00 a.m. EST)
to review its 2016 results. You can dial into the call at +49 (69) 247501-
899 or +1 (212) 444-0297 From 2.45 p.m. CET (5.45 a.m. PST, 8.45 a.m. EST).
An audio replay or transcript will be available after the conference call
at http://www.aixtron.com/en/investors/events/conference-call/.
Contact:
Guido Pickert
Investor Relations and Corporate Communications
T: +49 (2407) 9030-444
F: +49 (2407) 9030-445
[email protected]
For further information on AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6; OTC:
AIXNY) please consult our website at: www.aixtron.com.
Forward-Looking Statements
This document may contain forward-looking statements regarding the
business, results of operations, financial condition and earnings outlook
of AIXTRON. These statements may be identified by words such as "may",
"will", "expect", "anticipate", "contemplate", "intend", "plan", "believe",
"continue" and "estimate" and variations of such words or similar
expressions. These forward-looking statements are based on our current
assessments, expectations and assumptions, of which many are beyond control
of AIXTRON, and are subject to risks and uncertainties. You should not
place undue reliance on these forward-looking statements. Should these
risks or uncertainties materialize, or should underlying expectations not
occur or assumptions prove incorrect, actual results, performance or
achievements of AIXTRON may materially vary from those described explicitly
or implicitly in the relevant forward-looking statement. This could result
from a variety of factors, such as actual customer orders received by
AIXTRON, the level of demand for deposition technology in the market, the
timing of final acceptance of products by customers, the condition of
financial markets and access to financing for AIXTRON, general conditions
in the market for deposition plants and macroeconomic conditions,
cancellations, rescheduling or delays in product shipments, production
capacity constraints, extended sales and qualification cycles, difficulties
in the production process, the general development in the semi-conductor
industry, increased competition, fluctuations in exchange rates,
availability of public funding, fluctuations and/or changes in interest
rates, delays in developing and marketing new products, a deterioration of
the general economic situation and any other factors discussed in any
reports or other announcements , in particular in the chapter Risks in the
Annual Report, filed by AIXTRON. Any forward-looking statements contained
in this document are based on current expectations and projections of the
executive board based on information available the date hereof. AIXTRON
undertakes no obligation to revise or update any forward-looking statements
as a result of new information, future events or otherwise, unless
expressly required to do so by law.
This document is an English language translation of a document in German
language. In case of discrepancies, the German language document shall
prevail and shall be the valid version.
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23.02.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: AIXTRON SE
Dornkaulstraße 2
52134 Herzogenrath
Germany
Phone: +49 (2407) 9030-0
Fax: +49 (2407) 9030-40
E-mail: [email protected]
Internet: www.aixtron.com
ISIN: DE000A0WMPJ6
WKN: A0WMPJ
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart,
Tradegate Exchange; Nasdaq
End of News DGAP News Service
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546913 23.02.2017
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