Süss MicroTec’s positive trend continues

Süss MicroTec’s positive trend continues

Süss MicroTec AG / Quarter Results



Ad hoc announcement according to § 15 WpHG transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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  - Third quarter Order Entry remains at a very high level: EUR 37.5
    million
  - Final components of C4NP high volume tool scheduled for delivery to IBM
    in Q2/2007
  - 9M/06 Sales: Plus 51.1% to EUR 113.5 million
  - Further C4NP orders expected in 2007 
  - 9M/06 EBIT at 14.3 million Euro (9M/05: -7.0 million Euro)
  - EBIT-Margin 2006 expected to reach at least 10% of Sales

Munich, November 7, 2006 – The third quarter 2006 continued the positive
trend for SUSS MicroTec (ISIN DE0007226706). Order entry again exceeded the
target of EUR 35 million. The recent quarter’s earnings development
therefore again confirmed the efficiency of the company’s streamlined cost
structure.

Third quarter group sales  reached EUR 31.3 million (PY: 27.1 million). A
gross profit margin of 44.7% (PY: 43.8%) was achieved. The third quarter
was again profitable with earnings before interest and taxes (EBIT) of EUR
1.7 million (PY: minus 0.9 million) and earnings after taxes (EAT) of EUR
1.4 (PY: minus 1.4) million. Order entry for the quarter amounted EUR 37.5
million (PY: EUR 32.3 million), thanks in particular to the developments in
the Substrate Bonder division. Overall the MEMS market developed very well
during the third quarter, especially in Europe and Japan. The order backlog
end of September 2006 was EUR 82.8 million.

Compared to 2005, sales in the first 9 months went up from EUR 75.1 million
to EUR 113.5 million. Order entry grew from EUR 84.2 million to EUR 115.0
million. Most importantly, EBIT  reached EUR 14.3 million after minus EUR
7.0 million.

Free cash Flow reached 5.8 million in this quarter (Q3/2005: 3.0 million)
and was driven on the one hand by reduced accounts receivable and increased
customer deposits. Inventory on the other hand rose significantly, mainly
due to scheduled shipments for the fourth quarter 2006 and the dynamics in
the Substrate Bonder segment.

SUSS MicroTec continues to make good progress towards the delivery of the
C4NP high volume manufacturing line to the initial customer, IBM. As SUSS
has collaborated with IBM  on the ultimate configuration of the line, the
scope of work has expanded to included additional components not
contemplated in the original contract. SUSS is currently in discussions to
revise the existing agreement to reflect the now anticipated final
configuration and expects to favorably conclude these talks within 2006. To
date, several components of the high volume manufacturing line are
installed and operational at our customer’s facility with the final tools
scheduled for delivery in Q2/2007. The management anticipates further
orders for our C4NP product line during 2007.

For the full year 2006 the management expects sales in the range of at
least EUR 150 million. Based on the current performance of gross margins,
especially the margin improvements in the Substrate Bonder Division, the
EBIT margin is now expected to achieve at least 10% of sales.

Segment Overview:

LITHOGRAPHY: Although orders declined, they are still at a very satisfying
level. A shift towards MEMS applications can be observed, also reflected in
the order development by regions. Segment revenues were low mainly due to
the very strong second quarter. Fourth quarter sales and results are
expected to be comparable with the performance shown in the first and
second quarter 2006.

Lithography        9M/06    9M/05    Y-o-Y    Q3/06    Q3/05    Q-o-Q
                                     %                          %
Order Entry        64.5     45.5     +42%     17.2     16.6     +3%
Sales              67.5     41.0     +65%     15.9     14.9     +7%
Segment result     15.2     -2.1     ---      1.5      0.9      +64%


SUBSTRATE BONDER: The Segment continued its positive development. Very
promising order development,  along with improvements in the manufacturing
learning curve, has lead to noticeable gross profit margin improvements.
Currently the focus is on R&D activities to round off the Product
Portfolio. Another focal point is strengthening the worldwide presence.

Substrate Bonder   9M/06    9M/05    Y-o-Y    Q3/06    Q3/05    Q-o-Q
                                     %                          %
Order Entry        13.6     4.9      >100%    7.2      2.7      >100%
Sales              11.8     3.6      >100%    3.2      0.7      >100%
Segment result     0.2      -3.1     ---      0.3      -0.9     ---


DEVICE BONDER: The third quarter was a stable business environment for
Device Bonders. Although sales were low, thanks to special items a positive
segment result was achieved.

Device Bonder      9M/06    9M/05    Y-o-Y    Q3/06    Q3/05    Q-o-Q
                                     %                          %
Order Entry        7.0      2.4      >100%    3.0      0.4      >100%
Sales              4.0      3.6      +11%     1.2      0.3      >100%
Segment result     0.7      -0.4     ---      0.3      -0.5     ---


TEST SYSTEMS: The segment keeps to the expected pace. Compared to last
year, numbers for sales and orders are in a similar range. Sales in the
fourth quarter are anticipated to be below previous year’s level, leading
to a slight decline in sales for the full year.

Test Systems       9M/06    9M/05    Y-o-Y    Q3/06    Q3/05    Q-o-Q
                                     %                          %
Order Entry        20.8     21.4     -3%      7.6      7.2      +5%
Sales              20.7     19.9     +4%      8.1      8.5      -5%
Segment result     1.9      0.8      >100%    1.0      1.2      -16%


OTHERS: The main drivers for growing Sales were the Micro Optics and the
Mask business. Compared to 2005, the segment result 2006 contains higher
R&D expenses for C4NP and start up costs for the separation of the
remanufacturing business.

Others             9M/06    9M/05    Y-o-Y    Q3/06    Q3/05    Q-o-Q
                                     %                          %
Order Entry        9.1      10.0     -9%      2.5      5.4      -50%
Sales              9.5      7.0      +37%     2.9      2.7      +10%
Segment result     -2.8     -3.4     +18%     -1.3     -1.5     +15%

Key Figures:
                                     %Chan                      %Chan
                   Q3/06    Q3/05    ge       9M/ 06   9M/ 05   ge
Order Entry         37.5     32.3    16.1%    115.0     84.2    36.6%
Order Backlog as
of 09/30/06            -        -        -     82.8     74.7    13.4%
Sales               31.3     27.1    15.7%    113.5     75.1    51.1%
Gross Profit        14.0     11.9    17.9%     52.5     29.3    79.0%
Gross Profit
Margin             44.7%    43.8%        -    46.2%    39.0%        -
EBITDA               3.1      0.8    >100%     19.1     -1.7    >100%
EBITDA Margin      10.0%     2.8%             16.8%    -2.3%        -
EBIT                 1.7     -0.9    >100%     14.3     -7.0    >100%
EBIT Margin         5.4%    -3.2%             12.6%    -9.3%        -
Earnings after
Taxes                1.4     -1.4    >100%     11.3     -8.8    >100%
Earnings per
Share, diluted      0.08    -0.09    >100%     0.65    -0.57    >100%
Net Cash               -        -        -     14.1      6.0    >100%
Free Cash Flow       5.8      3.0    89.9%      6.9      0.3    >100%
Employees as of
09/30/06               -        -        -      741      662    11.9%

The Nine-month report is available for download at www.suss.com






DGAP 07.11.2006 
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Language:     English
Issuer:       Süss MicroTec AG
              Schleissheimer Strasse 90
              85748 Garching b. München Deutschland
Phone:        +49 (0)89 32007-314
Fax:          +49 (0)89 32007-450
E-mail:       ir@suss.de
WWW:          www.suss.de
ISIN:         DE0007226706
WKN:          722670
Indices:      
Listed:       Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
 
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