Süss MicroTec AG: EAT EUR 14.9 Million in 2006 - New Board Member
Süss MicroTec AG / Final Results/Change of Personnel
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SUSS MicroTec AG: Earnings After Tax EUR 14.9 Million in 2006 – New Board
- Positive EBIT of EUR 16.0 million for the first time since 2001
- After-tax earnings of EUR 14.9 million (2005: EUR -8.2 million)
- Sales up by 32.3% to EUR 155.5 million (2005: EUR 117.5 million)
- EBIT margin expected to reach again at least 10% of sales in 2007
- Dr. Stefan Reineck appointed to the Management Board
Munich, March 30, 2007 – At a meeting held today the Supervisory Board
approved and confirmed the financial statements for 2006.
As previously announced, SUSS MicroTec was able to substantially increase
order entry, sales and earnings in 2006. The very strong second and third
quarters contributed to growth in sales (EUR 155.5 million, compared to EUR
117.5 million: +32.3%) and in order entry (EUR 153.8 million, compared to
EUR 135.6 million: +13.5%).
Gross profit rose from EUR 47.0 million to EUR 69.6 million in the
reporting period, representing growth of 48.3%. The gross profit margin
improved from 40.0% to 44.8%, due to higher capacity utilization and a
correspondingly lower fixed cost ratio, but also due to high-margin orders
for advanced packaging tools and better gross earnings in Substrate Bonders
resulting from higher sales and more mature products.
While 2005 was the turnaround year on an EBITDA basis, 2006 was the year
that SUSS MicroTec finally also realized a profit after tax for the first
time in five years. EBITDA increased in 2006 to EUR 22.2 million, following
EUR 5.8 million in the previous year and EBIT to EUR 16.0 million from EUR
-4.2 million in 2005, resulting in an EBIT margin of 10.3%. After-tax
earnings rose from a loss of EUR -8.2 million in 2005 to EUR 14.9 million
Free cash flow was EUR 7.2 million (previous year: EUR 1.9 million).
Liquidity in 2006 was characterized by positive cash flow from operations
but also primarily by repayments on financial liabilities.
Exchange rate differences in revenues and order entry did not significantly
affect earnings. However, book losses of EUR 1.5 million were incurred on
intra-group foreign currency credits, resulting from the weaker US-Dollar.
LITHOGRAPHY: The most important segment in the group (revenue share: 59%)
made excellent progress on sales (EUR 92.1 million compared with EUR 66.6
million: +38%), order entry (EUR 86.1 million compared to EUR 75.5 million:
+14%) and earnings (EUR 18.5 million compared to EUR 4.6 million). Mask
Aligners were primarily responsible for the strong growth in order
entry,whilst in realized sales it was the Coater tools. In 2007, due to
expected lower capital expenditure of major clients, we anticipate a slight
decline in Lithography sales.
SUBSTRATE BONDER: Strategic investments in product development and sales
optimization are beginning to pay dividends. Sales rose from EUR 6.1
million in 2005 by 133% to EUR 14.1 million and order entry by 75% to EUR
16.6 million (2005: 9.5 million). Segment earnings improved from EUR -4.0
million to EUR -0.5 million in 2006. We expect our traditional target
markets to remain robust in 2007. Numerous MEMS projects (Micro
Electro-Mechanical Systems) will progress from the development phase to
serial production. There are also indications that substrate bonding, also
known as wafer bonding, is increasingly being used in many non-traditional
markets such as 3-D device integration and silicon-on-insulator (SOI). This
means that the mid to long-term prospects for this segment are very good.
DEVICE BONDER: Thanks to improved orders and a reduced cost structure this
segment is performing much better in 2006. In this small market sales
increased from EUR 6.1 million to EUR 7.1 million (+16%) and the segment
generated positive earnings (EUR 1.0 million compared to EUR -3.9 million,
including one-off expenses of EUR 3.6 million in 2005). Order entry
amounted to EUR 9.2 million (2005: EUR 6.3 million: +46%).
TEST SYSTEMS: The second largest segment with around one fifth of total
sales is relatively non-cyclical and remained stable in 2006. There was a
slight decline in order entry from EUR 29.3 million to EUR 26.9 million
(-8%), while an increase in sales to EUR 30.2 million from EUR 28.8 million
(+5%) was realized. Segment earnings rose from EUR 2.1 million in 2005 to
EUR 3.3 million in 2006, essentially due to a further recovery in gross
profit margins. We currently anticipate similar sales and earnings for
OTHERS: This segment includes the photomask business (Palo Alto, CA),
micro-optics (Neuchâtel, Switzerland), holding functions and C4NP. Segment
sales increased in 2006 from EUR 9.9 million to EUR 12.0 million, above all
due to a doubling of sales in micro-optics to EUR 3.0 million. Order entry
remained constant at EUR 15.0 million, as did segment earnings at EUR minus
4.5 million. This loss has structural causes, as it includes holding costs
not allocated to the other segments. For 2007 production using the C4NP
tools will start at IBM, once delivery of the systems is complete. This
will impact sales in that period.
The Management Board is currently positive about the business this year.
Due to the current order backlog, business development and the investment
climate at the beginning of 2007, we expect sales to remain at roughly the
same level as the previous year. We again intend to achieve an EBIT margin
of more than 10%. Break even sales on an EBIT basis are currently about EUR
Overview of 2006 Results:
Euro million 2006 2005
Order entry 153.8 135.6
Order backlog 78.5 85.1
Sales 155.5 117.5
Shareholders’ equity 99.2 84.2
Equity ratio % 63.0% 53.5%
Free cash flow +7.2 +1.9
Gross profit 69.6 47.0
Gross profit margin % 44.8% 40.0%
EBITDA 22.2 5.8
EBITDA margin % 14.3% 4.9%
(Earnings after tax) 14.9 -8.2
(Earnings per share in Euro) 0.88 -0.52
Staff 760 674
The 2006 Annual Report is available for download as PDF at www.suss.com
New Board Member Appointed
At a meeting held today, the Supervisory Board of SUSS MicroTec AG
appointed Dr. Stefan Reineck to the Management Board with effect from April
1st 2007. Dr. Reineck will take on the duties of the Chief Financial
Officer Stephan Schulak, who is leaving the company on March 31st 2007,
until a permanent replacement is appointed. The company is taking this step
to comply with SUSS MicroTec AG’s articles of association, which stipulate
that the Management Board must consist of at least two members.
Dr. Reineck brings with him broad experiences from throughout the
semiconductor equipment industry. He was previously CEO of STEAG HamaTech
AG, a manufacturer of optical data storage and semiconductor equipment.
Prior to this he was the owner and CEO of KVG Quartz Crystal Technology
GmbH, a component manufacturer for the telecommunications industry. In his
twelve years at LEYBOLD AG up to 1991 he also gained valuable experience in
semiconductor technology and x-ray lithography.
Dr. Guenter Kast
Head of Investor Relations and Corporate Communications
Tel.: +49 (0)89 32007-454, email: email@example.com
Issuer: Süss MicroTec AG
Schleissheimer Strasse 90
85748 Garching b. München Deutschland
Phone: +49 (0)89 32007-454
Fax: +49 (0)89 32007-450
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
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