News Article
Aixtron hit by lower equipment spending in first quarter
German deposition equipment vendor Aixtron has reported a steep fall in revenues for the first quarter of 2005. Sales were down to euro 22.2 million from euro 50 million in the fourth quarter and euro 26.6 million in the same period last year.
German deposition equipment vendor Aixtron has reported a steep fall in revenues for the first quarter of 2005. Sales were down to euro 22.2 million from euro 50 million in the fourth quarter and euro 26.6 million in the same period last year.
As a result of the slump in demand, the company incurred a net loss after tax of euro 0.9 million in the first quarter. This compares with net income of euro 3.4 million in the previous quarter of 2004 and euro 0.5 million in the first quarter 2004.
The company blamed the weak first quarter figures on "lower equipment spending" in the second half of last year and "accelerated order conversion" in the fourth quarter of 2004.
Although revenues and income both fell sharply, the company appears in good shape to take advantage of any revival in the equipment market.
Positive indicators include a rise in gross margins to 38% in the first quarter, compared with 33% in the previous quarter and 36% in the comparable period last year.
Due to significant capacity buys among LED manufacturers, Aixtron's order intake in the first quarter of 2005 grew by 23% sequentially to Euro 22.7 million, but, as expected, was 25% down on first quarter of 2004.
The company also managed to increase its cash and cash equivalents to euro 53.7 million in the first quarter, up from euro 45.5 million in the previous quarter, although the rise was largely due to cash and cash equivalents from Genus, a deposition system supplier acquired by Aixtron in the first quarter of 2005.
As a result of the slump in demand, the company incurred a net loss after tax of euro 0.9 million in the first quarter. This compares with net income of euro 3.4 million in the previous quarter of 2004 and euro 0.5 million in the first quarter 2004.
The company blamed the weak first quarter figures on "lower equipment spending" in the second half of last year and "accelerated order conversion" in the fourth quarter of 2004.
Although revenues and income both fell sharply, the company appears in good shape to take advantage of any revival in the equipment market.
Positive indicators include a rise in gross margins to 38% in the first quarter, compared with 33% in the previous quarter and 36% in the comparable period last year.
Due to significant capacity buys among LED manufacturers, Aixtron's order intake in the first quarter of 2005 grew by 23% sequentially to Euro 22.7 million, but, as expected, was 25% down on first quarter of 2004.
The company also managed to increase its cash and cash equivalents to euro 53.7 million in the first quarter, up from euro 45.5 million in the previous quarter, although the rise was largely due to cash and cash equivalents from Genus, a deposition system supplier acquired by Aixtron in the first quarter of 2005.
