Ad hoc Announcement: SÜSS MicroTec AG discloses audited 2005 financials

SÜSS MicroTec AG discloses audited 2005 financials

  • For the first time since 2001 clearly positive EBITDA with EUR 5.8m
  • EBIT of minus EUR 4.2m mainly due to extraordinary charges
  • Positive business development at the beginning of the current fiscal year

Munich, Mar 28, 2006: SUSS MicroTec's financial statements for the fiscal year 2005 were approved and adopted by the Supervisory Board. In particular the  favorable business development in the 4th quarter contributed to the increase in sales (EUR 117.5m vs. EUR 111.3m; +6%) and order entry (EUR 135.6m vs. 122.4m; +11%) compared to 2004. Gross Profit went down from EUR 47.2m to EUR 47.0m. The Gross Profit margin decreased from  42.4% to 40.0%. Increasing price pressure in the Test Systems segment as well as extraordinary charges in the Device Bonder segment mainly accounted for this development. Thanks to significantly decreased overhead costs for selling, general and administrative (EUR 43.4m vs. EUR 47.9m; -9%) as well as positive currency effects SUSS achieved the turnaround at the EBITDA-level. EBITDA improved in 2005 to plus EUR 5.8m compared to minus EUR 1.5m in the previous year. However, EBIT with minus EUR 4.2m (2004: minus EUR 8.8m) was still negative. This includes the  extraordinary items in the Device Bonder segment (EUR 3.7m) as well as costs for restructuring (EUR 2.5m). Without these items, the EBIT would have already been positive in 2005. The Free Cash Flow was also positive and reached EUR 1.9m (2004: minus EUR 1.5m). Progress was made in the last year, especially in reducing the inventory level. Segment Overview: LITHOGRAPHY: The most important segment of the Group (57% of group revenue) performed very well in all categories: sales (EUR 66.6m vs. EUR 61.8m; +8%), order entry (EUR 75.5m vs. EUR 74.0m; +2%) and segment results (EUR 4.6m vs. EUR 1.6m; +190%). Above all, the strong demand for production equipment during the 4th quarter 2005 built a solid groundwork for continuing the positive trend in 2006. SUBSTRATE BONDER: Sales declined from EUR 7.7m to EUR 6.1m (-21%). In contrast, order entry developed well and increased from EUR 7.0m to EUR 9.5m (+36%). Segment results remained negative (minus EUR 4.0m in 2005 vs. minus EUR 3.5m in 2004). In 2006 we expect a sustainable improvement in both sales and segment results. Most notably the long-term potential for Wafer Bonding applications looks very promising. DEVICE BONDER: Sales in 2005 with EUR 6.1m were almost on par with 2004 (EUR 6.0m; +2%). Extraordinary write-offs amounting to EUR 2.8m, EUR 1.8m thereof related to goodwill and EUR 1.1m related to real estate, were charged in 2005. Furthermore, segment results were further burdened by one-off allowances on inventories  totaling EUR 0.8m. Due to these charges, segment results with EUR minus 3.9m were significantly below the 2004 results (EUR minus 0.7m). The considerable increase in order entry (EUR 6.3m vs. EUR 2.9m; +114%) however led to a high order backlog at the end of 2005. Taking into account the capacity reductions performed in 2005, we expect an improved financial performance in 2006. TEST SYSTEMS: The second largest segment, representing 24% of group  sales, continued to show a solid  development in 2005. Sales (EUR 28.8m vs. EUR 27.0m;+7%) and order entry (EUR 29.3m vs. EUR 28.7m; +2%)  evolved positively. The segment results improved remarkably from EUR 1.5m to EUR 2.1m (+37%). For 2006 we expect sales and segment results on a comparable level. OTHERS: The segment "Others" includes the business fields Photomasks, MicroOptics and Holding functions as well as C4NP. Sales increased from EUR 8.9m to EUR 10.0m (+12%), mainly driven by the positive development in the Photomask business. Order Entries  totaled EUR 15.0m (2004: EUR 9.8m; +52%) with C4NP having been the main reason for the increase. The negative segment results of EUR minus 4.5m (2004: EUR minus 7.2m), are  caused by the structure of the segment. The Holding costs are not allocated to the other product-related segments and therefore represent a main part of this segment's losses.  A key element is the progress of C4NP,  although we do not expect nameable revenue recognition in 2006. The main focus for C4NP in 2006, besides finishing the tool development,  will be the acquisition of further orders for this new product line. The Executive Board has a positive view on the current year. In addition to the high order backlog of EUR 85.1m (2004: EUR 65.6m; +30%) at the beginning of the year, business has also kept its solid momentum in the first months of 2006. We recognize ongoing demand for production equipment for Advanced Packaging and the MEMS industries. In Advanced Packaging in particular, we believe that the phase of capacity enlargements is not yet finished. Overall, we are confident  of achieving the turnaround in 2006 with clearly positive results.

2005 Key figures at a glance:

In million Euro GJ 2005 GJ 2004
Order entry 135.6 122.4
Order backlog 85.1 65.6
Sales 117.5 111.3
Equity 84.2 83.4
Equity ratio % 53.5% 49.5%
Free cash flow +1.9 -1.5
Gross profit 47.0 47.2
Gross profit margin % 40.0% 42.4%
EBITDA 5.8 -1.5
EBITDA Margin % 4.9% -1.4%
EAT -8.2 -16.4
EPS -0.52 -1.08
Employees 674 731