Ad-hoc Announcement
SUSS MicroTec AG: Results 2004 and further cost savings initiatives
- Results 2004 in line with preliminary outlook
- Further initiatives decided to reduce Break Even - Point
- Joint Development with IBM on time; unchanged high interest from potential customers
Munich, Mar 22, 2005 - In today's Meeting the Supervisory Board approved and ascertained the financial accounts for 2004. In addition, further cost savings initiatives to optimize the cost structure were approved.
Order entries (+18%) and sales (+22%) increased significantly. Besides a positive business development of the new Substrate Bonder, especially the demand for 300mm production equipment for advanced packaging contributed to the growth. Thanks to a gross profit raised by 26% the operating loss on basis EBITDA could be reduced by 70%, already including the extraordinary charges as previously announced. Net loss amounted to EUR 16.7 million due to non cash-effective valuation allowance on deferred tax assets. Operating cash flow with minus EUR 42 thousands was almost balanced, whereby the liquidity of the company with liquid funds of EUR 20 million at the end of the year remained firm. Key figures for the fiscal year and the 4th quarter at a glance (EUR million):
| EUR million | 2004 | 2003 | Q4/2004 | Q4/2003 |
| Order Entry | 119.1(*) | 101.0 | 30.1 | 24.6 |
| Net Sales | 112.9 | 92.6 | 35.4 | 32.0 |
| EBITDA | -3.2 | -11.0 | -1.9 | -0.5 |
| EBIT | -8.8 | -17.1 | -3.5 | -1.9 |
| Net Loss | -16.7 | -14.6 | -10.5 | -4.4 |
| Loss per Share (EUR) | -1.10 | -0.97 | -0.69 | -0.29 |
After the shutdown of the A�lar facility today further cost savings initiatives especially in the areas administration and sales support were approved. In consequence the cost basis for 2005 will be further reduced by EUR 3.3 million. Together with the A�lar shutdown, particularly in the 2nd half year 2005 more than EUR 3.5 million cost savings compared to 2004 will be realized whilst for the first and second quarter of the current year with regards to consulting services and A�lar relocation, we expect charges up to EUR 2 million.
The sustainable break even point on basis EBIT is expected to be at sales of approx. EUR 110 million in 2005 and approx. EUR 105 million in 2006, respectively. Additional savings activities are currently prepared and will be implemented already this year, depending on the market development of certain product lines in the first half year.
Flanking activities, especially concerning a reduction of inventories, should release further liquidity.
The current Business shows no signs for a major change compared to the prior year, whereas the break even point could already be achieved with only a slight increase in sales.
The joint development with IBM is on time. During July the related Equipment will be delivered to IBM in East Fishkill/U.S. and is then prepared to process test wafers. Current talks to potential customers confirm the unchanged high interest in the C4NP technology.
From 2006 on, the Board expects that the optimized cost structure as well as the product introduction related to the C4NP program will significantly improve the company's earnings performance.
The results 2004 at a glance:
| EUR million | 2004 | 2003 | Q4/2004 | Q4/2003 |
| Net Order Entry | 119.1(*) | 101.0 | 30.1 | 24.6 |
| Net Order Backlog | 38.7 | 33.9 | -- | -- |
| Net Sales | 112.9 | 92.6 | 35.4 | 32.0 |
| Equity | 88.6 | 102.4 | -- | -- |
| Equity Ratio | 62% | 64% | -- | -- |
| Liquid Funds | 20.0 | 23.6 | -- | -- |
| Free Cash Flow | -1.3 | 4.6 | 3.8 | 4.4 |
| Gross Profit | 45.9 | 36.4 | 14.8 | 13.2 |
| Gross Profit Margin | 40.7% | 39.4% | 41.8% | 41.4% |
| EBITDA | -3.2 | -11.0 | -1.9 | -0.5 |
| EBITDA Margin | -2.9% | -11.9% | -5.4% | -1.7% |
| EAT | -16.7 | -14.6 | -10.5 | -4.4 |
| EPS (Earnings per share in EURO) | -1.10 | -0.97 | -0.69 | -0.29 |
| Employees | 731 | 716 | -- | -- |
* includes deduction of 3.8 Mio. EUR due to allowance on doubtful backlog to be delivered in 2005
