News Article
AIXTRON on track for 2008 targets
Full Year guidance confirmed, compound common platform systems dominate demand, continued silicon weakness in line with market conditions.
AIXTRON, a provider of deposition equipment to the semiconductor industry, announced the company’s financial results for the first nine months of 2008.
During the first nine months of 2008, despite a considerably weaker average US Dollar rate than in the same period 2007, AIXTRON recorded Revenues of €192.1m, an increase of 20% compared with the same period last year. The increase in revenues was largely driven by strong sales of higher margin compound semiconductor deposition equipment to the LED industry.
Gross profit rose by 24% to €77.3m during the period, yielding a slightly improved gross margin of 40% (vs. 39% during 9M/2007). EBIT rose 53% to €25.0m, leading to an operating margin of 13%; EBT increased 58% to €27.6m, and net income came in at €18.9m, up 28%.
In line with the predicted “digestion” phase of the current investment cycle, total equipment order intake declined 25% sequentially in the third quarter. However, management still takes a positive view of the €52.2m in new orders generated in Q3/2008 and the 31% year on year increase in cumulative nine months orders, given the current economic environment.
AIXTRON’s cash position continues to be strong: Cash and cash equivalents (incl. cash deposits) remained virtually unchanged (compared with year end 2007) at €77.2m as of September 30, 2008, and the company recorded no bank borrowings.
Paul Hyland, president & chief executive officer of AIXTRON, comments: “In the increasingly difficult macroeconomic environment, our strategic focus and financial and operational flexibility are crucially important assets that we are striving to improve further. We believe that our ‘pure play’ market led developments and the flexible manufacturing strategies are exactly the focused approach required in the volatile market environment we are having to contend with. Our order intake recognition policy remains conservative and consequently we have not recorded any order cancellations to date. We continue to have a strong cash position and a debt free balance sheet. Operationally, we have worked very hard in recent years not only to raise the competitiveness of our products, but also to enhance our manufacturing processes. We continue to see and are pursuing very real opportunities to further improve our manufacturing profitability in the coming year. All of this stands us in good stead for the current challenge, and will allow us to continue to lead the field when conditions improve. I am also pleased to be able to say that AIXTRON will deliver on its original full year guidance.”
During the first nine months of 2008, despite a considerably weaker average US Dollar rate than in the same period 2007, AIXTRON recorded Revenues of €192.1m, an increase of 20% compared with the same period last year. The increase in revenues was largely driven by strong sales of higher margin compound semiconductor deposition equipment to the LED industry.
Gross profit rose by 24% to €77.3m during the period, yielding a slightly improved gross margin of 40% (vs. 39% during 9M/2007). EBIT rose 53% to €25.0m, leading to an operating margin of 13%; EBT increased 58% to €27.6m, and net income came in at €18.9m, up 28%.
In line with the predicted “digestion” phase of the current investment cycle, total equipment order intake declined 25% sequentially in the third quarter. However, management still takes a positive view of the €52.2m in new orders generated in Q3/2008 and the 31% year on year increase in cumulative nine months orders, given the current economic environment.
AIXTRON’s cash position continues to be strong: Cash and cash equivalents (incl. cash deposits) remained virtually unchanged (compared with year end 2007) at €77.2m as of September 30, 2008, and the company recorded no bank borrowings.
Paul Hyland, president & chief executive officer of AIXTRON, comments: “In the increasingly difficult macroeconomic environment, our strategic focus and financial and operational flexibility are crucially important assets that we are striving to improve further. We believe that our ‘pure play’ market led developments and the flexible manufacturing strategies are exactly the focused approach required in the volatile market environment we are having to contend with. Our order intake recognition policy remains conservative and consequently we have not recorded any order cancellations to date. We continue to have a strong cash position and a debt free balance sheet. Operationally, we have worked very hard in recent years not only to raise the competitiveness of our products, but also to enhance our manufacturing processes. We continue to see and are pursuing very real opportunities to further improve our manufacturing profitability in the coming year. All of this stands us in good stead for the current challenge, and will allow us to continue to lead the field when conditions improve. I am also pleased to be able to say that AIXTRON will deliver on its original full year guidance.”
