News Article
Tronics Microsystems achieves annual net profit of 1.3 million Euros
Solid profit underscores Tronics’ success and efficiency in executing end to end development and high yield manufacturing services for custom products; revenue grows 56 percent to 10.5 million Euros
Tronics Microsystems SA, a manufacturer of high value add and highly differentiated custom MEMS components and microsystems, announced that it achieved a 56 percent increase in annual revenue, to 10.5 million Euros ($15.4 million) in its fiscal year ended Dec. 31, 2007, and posted a net profit of 1.3 million Euros ($1.9 million) representing 12 percent of total revenue. In releasing its full year results, the privately held company confirmed the forecast it presented to the press last October, when it said 2007 revenue would exceed 2006 revenue by 50 percent. The full year and fourth quarter results also extend Tronics’ net profitability to six consecutive quarters.
Eighty percent of its 2007 revenue stemmed from production of custom components for a select customer base, an unusually high ratio for the still emerging MEMS industry. In an industry driven by yield and characterised by high infrastructure costs, the results reflect both Tronics’ proven ability to produce high yield MEMS devices and its cost efficient operations.
“Tronics’ performance once again underscores the effectiveness of our business model and the quality of our complete design-to-manufacturing services that our customers rely on to integrate MEMS based solutions in their products,” said Tronics CEO Peter Pfluger. “We are committed to building on this momentum and I expect 2008 to be another year of steady, managed growth. It will be fuelled in part by our increased value add in products now ranging from custom MEMS chips to smart microsystems and our expansion in the U.S. market and the medical field.”
Tronics’ 56 percent growth in revenue is almost twice the rate of the overall MEMS contract manufacturing and foundry business, which achieved an estimated CAGR of 30 percent in 2007, according to YOLE Development, the French based market research company in the MEMS market analysis. The French MEMS manufacturer attributed its growth in part to increased penetration of its MEMS based geophones for the seismic oil exploration industry and a growing number of projects involving other inertial MEMS devices.
“Tronics’ revenue growth clearly signals that the industry is maturing and we foresee a further 30 percent CAGR for the industry in 2008 and a stronger growth after 2009,” said Jean-Christophe Eloy, general manager and founder of YOLE Development. “But profitability of the majority of independent MEMS manufacturers and MEMS units of IC manufacturers is yet to be proven. Tronics’ consistently profitable performance underscores its leadership in manufacturing specialised high performance products with high yield, while maintaining a lean and efficient business.
For the past four years, Tronics has been recognised as one of the fastest growing technology companies in Europe, the Middle East and Africa in the Deloitte Technology Fast 500 EMEA. The awards are based on five year average percentage revenue growth.
Eighty percent of its 2007 revenue stemmed from production of custom components for a select customer base, an unusually high ratio for the still emerging MEMS industry. In an industry driven by yield and characterised by high infrastructure costs, the results reflect both Tronics’ proven ability to produce high yield MEMS devices and its cost efficient operations.
“Tronics’ performance once again underscores the effectiveness of our business model and the quality of our complete design-to-manufacturing services that our customers rely on to integrate MEMS based solutions in their products,” said Tronics CEO Peter Pfluger. “We are committed to building on this momentum and I expect 2008 to be another year of steady, managed growth. It will be fuelled in part by our increased value add in products now ranging from custom MEMS chips to smart microsystems and our expansion in the U.S. market and the medical field.”
Tronics’ 56 percent growth in revenue is almost twice the rate of the overall MEMS contract manufacturing and foundry business, which achieved an estimated CAGR of 30 percent in 2007, according to YOLE Development, the French based market research company in the MEMS market analysis. The French MEMS manufacturer attributed its growth in part to increased penetration of its MEMS based geophones for the seismic oil exploration industry and a growing number of projects involving other inertial MEMS devices.
“Tronics’ revenue growth clearly signals that the industry is maturing and we foresee a further 30 percent CAGR for the industry in 2008 and a stronger growth after 2009,” said Jean-Christophe Eloy, general manager and founder of YOLE Development. “But profitability of the majority of independent MEMS manufacturers and MEMS units of IC manufacturers is yet to be proven. Tronics’ consistently profitable performance underscores its leadership in manufacturing specialised high performance products with high yield, while maintaining a lean and efficient business.
For the past four years, Tronics has been recognised as one of the fastest growing technology companies in Europe, the Middle East and Africa in the Deloitte Technology Fast 500 EMEA. The awards are based on five year average percentage revenue growth.
