SUSS MicroTec AG: Q2 2010 Results Exceed Expectations

Ad Hoc Announcement According to § 15 German Securities Trading Law (WpHG)

  • Strong Growth in Order Entry of 112% to € 50.6 Million in Q2 (Q2 2009: € 23.9 Million)
  • Sales in Q2 Rise by 53% to € 37.7 Million (Q2 2009: € 24.6 Million)
  • EBIT in the First Six Months Totals € 3.5 Million (H1 2009: € 0.2 Million)
  • Annual Forecast Raised Significantly to € 140 Million

Garching near Munich, Germany, August 5, 2010 – SUSS MicroTec AG (business address: Schleissheimer Strasse 90, 85748 Garching, Germany; ISIN: DE0007226706), which is listed in the Prime Standard of Deutsche Börse AG, published its financial figures for the second quarter and first half of the 2010 fiscal year today. According to the results, the rising demand for SUSS MicroTec equipment, which was already evident in the first quarter of 2010, has remained encouragingly strong in the second quarter as well. Order entry increased in the months from April to June 2010 by approximately 112% to € 50.6 million after € 23.9 million in the same period of the previous year. Sales in the second quarter totaled € 37.7 million, exceeding the previous year's quarterly figure by approximately 53% (Q2 2009: € 24.6 million). 

A mid-year review paints just as encouraging a picture: in the first six months of 2010, order entry of € 82.9 million surpassed the € 39.9 million total for the same period of the previous year by approximately 108%. The strong demand in the first half of 2010 was primarily driven by Asian customers, particularly in Taiwan, China, and Malaysia. Compared with the first half of 2009, sales increased by approximately 27% from € 47.1 million to € 59.6 million. The order backlog as of June 30, 2010 amounted to € 89.9 million (June 30, 2009: € 57.7 million).

Gross profit in the first half of 2010 improved by approximately 6% to € 20.1 million compared with the previous year's period (H1 2009: € 18.9 million). However, the gross profit margin fell from 40.1% to its current figure of 33.7%, reflecting relatively low-margin individual Bonder systems, which generated revenues in the second quarter of 2010 as part of strategic R&D cooperative agreements. Including extraordinary effects of € 1.5 million, earnings before interest and taxes (EBIT) improved significantly to € 3.5 million (H1 2009: € 0.2 million). Extraordinary effects in the first half of the year primarily consisted of the following:

  • Gain of bargain purchase of € 2.7 million resulting from the initial consolidation of HamaTech APE
  • Restructuring expenses of € -0.3 million resulting from the amalgamation of the production sites in Vaihingen and Sternenfels 
  • Restructuring expenses of € -0.9 million related to the relocation of the Substrate Bonder division from the USA to Germany

Excluding these extraordinary effects, EBIT came to € 2.0 million. Earnings after taxes (EAT) amounted to € 1.1 million, compared with € -0.3 million in the corresponding period of the previous year. Basic earnings per share (EPS) therefore totaled € 0.06 (H1 2009: € -0.02).

Free cash flow before the inclusion of securities and extraordinary effects from M&A activities came to € 6.0 million at the end of the first half-year after € 4.0 million in the same period of the previous year. As of June 30, 2010, the SUSS MicroTec Group therefore had cash and interest-bearing securities of € 37.1 million (December 31, 2009: € 31.1 million). The net cash position grew significantly in comparison to the end of the 2009 fiscal year from € 18.4 million to € 25.6 million (H1 2009: € 13.8 million).

Outlook

In view of the strong order entry in the second quarter, the annual forecast for the full year 2010 is being raised. For the current year the Company expects sales of approximately € 140 million instead of € 120 million, as assumed until now. In addition, the Company continues to anticipate positive earnings before interest and taxes (EBIT) despite one-off restructuring expenses of approximately € 7.5 million. Its estimation that it will be able to generate positive free cash flow in the 2010 fiscal year remains unchanged.