Equipment and Materials ♦ news digest
quarter of 2013. This represents a quarterly sequential increase of 13 percent compared to € 40.2 million in Q1 2013. Aixtron also recorded improvements in its gross profit and operating result (EBIT).
This development reflects first positive impacts from the 5-Point-Program, which was started in Q1 2013. Efficiency improvements and cost cutting measures resulted in reductions in both cost of sales and operating expenses.
Key Financials
Investment demand from LED manufacturers remained subdued despite a continued reduction of production overcapacities in the market. This was also reflected in the development of order intake (Q2 2013: € 30.5 million; Q1 2013: € 29.9 million).
Gross profit in Q2 2013 amounted to € 12.3 million and thus came in significantly better than the previous quarter which had been affected by inventory write-downs (Q1 2013: € 47.7million; Q2 2012: € 14.7 million; H1 2013: € 35.4 million; H1 2012: € 25.0 million). The Q2 2013 gross profit also benefitted from a favourable product mix.
This program, presented by the CEO in May 2013, consists of a number of targeted individual projects, which are all designed to address the following five topics: 1) focus on customer benefits; 2) utilisation of technology and product portfolio; 3) processes; 4) attention to financial targets; 5) strengthening of Aixtron’s corporate culture.
The program consists of a series of different projects. After planning and implementing an improved product development process, a specific initiative for the optimization of the Aixtron supply chain has been started. The aim is to increase efficiency on a global scale in procurement, logistics and inventory- management. In addition, Aixtron continues customer-specific measures, e.g. to increase output and yield of the installed base. Another major objective of the Company program is to reduce operating expenses by 20 percent.
Management Review
Martin Goetzeler, President & Chief Executive Officer at Aixtron SE since March 1st, 2013, firmly believes in the success of the transformation measures. He said, “With our 5-Point-Program we are on track to regain sustainable profitability. Our main focus is on innovative technology solutions, increasing the production efficiency of our customers as well as the efficiency of our own core process flows. This is valid for all of our targeted growth markets, including applications beyond LED, such as next generation memory chips. Our Q2 figures show first positive results of the successful implementation of our 5-point-program.”
The rising rates of capacity utilisation at leading LED manufacturers give reason to believe that the overcapacity in the market for MOCVD equipment for the production of LEDs continues to diminish. However, it remains difficult to predict, when and to what extent this will translate into significant new equipment orders. Due to this continuing low visibility, Management remains unable to give precise guidance on the company’s revenues and EBIT margin for the current financial year.
The Q2 2013 EBIT of € -9.8 million improved against both the previous year’s and the last quarter’s results (Q2 2012: € -16.5 million; Q1 2013: € -76.3 million; H1 2013: € -86.1 million; H1 2012: € -34.7 million). As mentioned above, this sequential development also reflects the initial success of the 5-Point- Program which began in Q1 2013.
The net result for Q2 2013 amounted to € -11.8 million, representing a significant improvement over the € -76.0 million in Q1 2013 (Q2 2012: -11.6 million; H1 2013: € -87.8 million; H1 2012: €-23.9 million).
Free cash flow in the first half of 2013 amounted to € 5.6 million, despite a net cash outflow of € -3.7 million in Q2 2013. As of June 30th, 2013, Aixtron recorded cash and cash equivalents, including bank deposits with a maturity of more than three months, of € 215.9 million (€ 219.9 million as of March 31st, 2013; € 209.5 million as of December 31st, 2012).
H1 2012 financials, however were much better than for the first half of 2013, as incomes and profits plummeted as shown below.
5-Point-Program August/September 2013
www.compoundsemiconductor.net 159
BluGlass in the money with
$3 million grant The company now hopes to increase efforts into gallium nitride (GaN) on silicon substrates R&D for LEDs
Australian firm BluGlass Ltd. has received a major vote of confidence in its technology by being awarded a (AUS)$3 million (US$2.75 million) grant.
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