DGAP-News: LPKF Laser & Electronics Aktiengesellschaft / Key word(s): Final Results LPKF: Weak LDS business puts strain on performance in 2015 23.03.2016 / 08:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Garbsen, 23 March 2016 - LPKF today announced that the weakness of its laser direct structuring (LDS) business again put a considerable strain on the LPKF Group's overall business performance in the fourth quarter of 2015. Generating revenue of EUR 87.3 million, LPKF at least met its most recent guidance (EUR 85 million - EUR 90 million) at the end of the year. Although the numerous cost reduction measures were clearly effective, the laser specialist company was unable to finish the year with a profit. LPKF posted an operating result (EBIT) of EUR -3.7 million. The LDS systems business significantly underperformed compared to the previous year, declining by 74%. Even the growing business with laser systems for cutting printed circuit boards was unable to compensate for this decrease in revenue. Overall, revenue in the Electronics Production Equipment segment was down 42% year on year. At a decrease of 28%, the Other Production Equipment segment also generated lower revenue compared with the previous year. The increase in revenue in the plastic welding business was unable to compensate for the expected revenue decline with solar systems. The Electronics Development Equipment segment performed well and increased revenue and EBIT. "The negative result is particularly frustrating for us," said CEO Dr. Ingo Bretthauer. According to the CEO, 2015 again showed that LPKF as a high-tech company is active in what are at times ex-tremely volatile markets. That LPKF will also have ups and downs in the future is something the company must accept. Bretthauer pointed out that LPKF's longterm business performance is critical to success. The CEO believes that the LDS business "has by no means reached the end of the road". But due to the extremely low visibility in the LDS market, Bretthauer has shifted his growth expectations to other product groups for the time being. For example, LPKF expanded its range of services for 2016 by adding two completely new product lines. At the beginning of this year, the first machine for the new Through Glass Via (TGV) process - used to create ultrafine holes in glass - was supplied to a key customer in Asia. In 2016, the first system for the digital printing of pastes (LTP: Laser Transfer Printing) is scheduled to be delivered to a European customer. According to the CEO, both product lines have similar medium-term potential for growth as the LDS business. However, LPKF projects only moderate revenue for these products in 2016. The main growth drivers for the current year are the Welding Equipment, Solar Module Equipment, PCB Production Equipment and Electronics Development Equipment product groups. Solid growth is expected for all these product groups, which is why LPKF forecasts revenue in the range of EUR 100 million to EUR 120 million for 2016. This in turn would lead to positive, single-digit percentage EBIT. "The key to our future success lies in continuous innovation. Only if we succeed in developing new markets again and again with entirely new laser-based methods will we be able to grow profitably in the long term," said Bretthauer. For this reason, LPKF fired on all cylinders in the area of development in 2015 - in spite of all of the cost-cutting measures. The Management Board is therefore looking into the medium-term future with more confidence. From 2017, LPKF will once again aim for targets of average annual revenue growth of at least 10% and a double-digit EBIT margin. The full annual report is available in English at www.lpkf.com/investor-relations/financial-reports/index.htm. About LPKF LPKF Laser & Electronics AG specializes in the production of laser systems for micro material processing and is the world leader in several sectors. Founded in 1976, the Group has its headquarters in Garbsen near Hannover in Germany and does business around the world through subsidiaries and representatives. LPKF has 778 employees. The shares in LPKF Laser & Electronics AG are traded on the Prime Standard of Deutsche Börse (ISIN 0006450000). --------------------------------------------------------------------------- 23.03.2016 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. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: LPKF Laser & Electronics Aktiengesellschaft Osteriede 7 30827 Garbsen Germany Phone: +49 (0) 5131 7095-0 Fax: +49 (0) 5131 7095-95 E-mail: [email protected] Internet: www.lpkf.com ISIN: DE0006450000 WKN: 645000 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart; Terminbörse EUREX End of News DGAP News Service --------------------------------------------------------------------------- 447881 23.03.2016