Süss MicroTec AG: High Sales, Positive Result in Q1

Süss MicroTec AG: High Sales, Positive Result in Q1

Süss MicroTec AG / Quarter Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.

High Sales, Positive Result in Q1

- Sales of EUR 39.4 million, EBIT margin of 9.9%

- After-tax earnings of EUR 3.5 million clearly positive 

- Incoming orders decrease as expected 

Munich, May 3, 2007 – SUSS MicroTec (ISIN DE0007226706) has started the new
year successfully following the turnaround in 2006. Sales of EUR 39.4
million were achieved in the first three months, inching slightly ahead of
the level attained in the 1st quarter of 2006 (EUR 39.1 million, +1%).

The operating results (EBIT) totaling EUR 3.9 million turned out to be
slightly lower than in the 1st quarter of 2006, which showed an EBIT of EUR
4.8 million (minus 19%). This can be attributed largely to higher
manufacturing costs, which cut the gross earnings (gross earnings from
sales) from EUR 17.6 million to EUR 16.6 million (minus 5%) and contributed
to an EBIT margin of 9.9% (Q1 2006: 12.3%). Earnings after taxes (EAT) were
positive; however, at EUR 3.5 million, they were almost as high as in the
1st quarter of 2006, when the after-tax earnings amounted to EUR 3.7
million (minus 5%). The reasons for this include lower interest expenses as
a result of significant repayment of financial obligations during the
previous year, coupled with higher interest income and lower income taxes
than in the same period the previous year.

The gross profit margin declined from 45% to 42%. This can be generally
attributed to the temporarily weaker industry. The lower investment
activity on the part of customers makes it more likely for them to demand
price reductions while in 2006 the promise of fast machine deliveries was
the decisive factor for entering agreements. This was already indicated in
the 4th quarter of 2006, when the gross profit margin was 40.8%. The sold
product mix also had a negative effect, as it included lower margin
products as in Q1/06.

The free cash flow declined from EUR 6.7 to EUR 0.5 million (minus 93%).
This was mainly due to delayed advance payments from customers, which is
characteristic of a temporary cooling off of demand.

The fact that the semiconductor manufacturers are initially holding back on
orders following the sharp investment activity in equipment in 2006 is
evident in the incoming orders. At EUR 26.7 million, this figure was 34%
below the EUR 40.6 million of the previous year. In Asia in particular,
where major customers had placed large orders the previous year, there was
a slow-down with respect to new business. Industry associations such as
Semiconductor Equipment and Materials International (SEMI) had anticipated
this lull in investment, however. As early as the second half of 2007, or
in 2008 at the latest, SEMI feels that investment activity of the
semiconductor manufactures will pick up again and even exceed the high
level of the year 2006.

Segment overview -  first quarter of 2007 in a year-on-year comparison

LITHOGRAPHY: as expected, the largest and most important segment of the
Group developed more sluggishly following the boom year 2006. Sales
declined from EUR 25.7 million to EUR 21.6 million (minus 16%), incoming
orders went from EUR 25.3 million to EUR 12.7 million (minus 50%) and
segment results fell from EUR 5.6 million to EUR 4.5 million (minus 19%).

In great demand were newly developed machines such as the MA200Compact Mask
Aligner and the fully-automatic Spin Coater, which have meanwhile become
established as standard equipment for micro-structuring. This also applies
to the Spray Coater, which is being developed based on internal SUSS

SUBSTRATE BONDER: this business, based in the U.S., has met expectations as
a growth engine: SUSS achieved significant growth in sales (EUR 6.3
compared to EUR 3.3 million, +93%) with earnings also moving into positive
territory (EUR +0.1 compared to minus 0.1 million, >+100%). Incoming orders
of EUR 3.2 million were EUR 1.5 million below the volume during the same
period of the previous year (minus 32%).

DEVICE BONDER: this segment, located in France, traditionally experiences
rather large fluctuations in sales and earnings. In the first quarter of
2006, sales of only EUR 0.3 million were achieved, while now – in the 1st
quarter of the current year – this figure was EUR 1.5 million (> +100%).
Segment results saw a similar improvement, from minus EUR 0.3 to minus 0.1
million (+47%). Incoming orders declined during the 1st quarter of 2007
compared to the 1st quarter of the previous year, from EUR 1.6 to EUR 1.1
million (minus 33%).

TEST SYSTEMS: the second largest segment, 'Test Systems', developed very
strongly in the 1st quarter of 2007: sales increased from EUR 6.5 to EUR
6.8 million (+4%). However, earnings of EUR 0.3 million were behind those
of the same quarter the previous year (EUR 0.6 million, minus 60%), due to
a strategy that was aimed specifically at stronger penetration of the 300
millimeter market in Asia. Incoming orders saw positive development,
increasing slightly from EUR 5.7 to EUR 6.2 million (+10%); in Japan these
figures were EUR 1.7 million compared to EUR 0.2 million in the first
quarter of 2006.

MISCELLANEOUS: in addition to the Photomask and Microoptics business
segments as well as holding functions, this segment also includes C4NP. In
a year-on-year comparison, sales remained constant at EUR 3.3 million
during the first quarter of 2007, while order entry increased by EUR 0.2
million to EUR 3.5 million (+3%). The loss – structurally caused, since the
costs of the holding company not allocated to the segments are also
included in the results – remained almost constant at EUR 0.7 million (1st
quarter of 2006: minus EUR 0.8 million, +24%).

The C4NP project continues to make good progress. Delivery and installation
of the 'High Volume Production Tool' at IBM in East Fishkill, USA is
proceeding according to plan. In the meantime, IBM has already installed
some of the facilities required for the C4NP process and commenced
production qualification for the lead-free C4NP bumping process. IBM,
positioned better than ever as the technology leader in the semiconductor
production sector, continues to focus on C4NP as the lead-free backend
technology and trusts in SUSS MicroTec as the leading provider of Advanced
Packaging solutions. Therefore, it is anticipated that the semiconductor
industry will continue to be very interested in this technology and that
its interest will also increase.

SUSS MicroTec is also confident that sales and an EBIT margin at
approximately the same level as the previous year will be achieved again in

An overview of Q1/2007 results: 

All figures are in EUR millions                     Q1/2007     Q1/2006
Incoming orders                                     26.7        40.6
Order backlog as of March 31st                      65.1        85.5
Sales revenue                                       39.4        39.1
Shareholders’ equity                                102.6       87.7
Equity ratio                                        66.7%       55.4%
Free cash flow                                      0.5         6.7
Gross earnings                                      16.6        17.6
Gross profit margin                                 42.1%       45.0%
(Earnings before interest & taxes)                  3.9         4.8
EBIT margin                                         9.9%        12.3%
(Earnings after taxes)                              3.5         3.7
EPS, undiluted
(Earnings per share in EUR)                         0.21        0.22
Employees as of March 31st                          771         689

The Q1/2007 quarterly report can be found at www.suss.com (available for
download as a PDF)

Additional information can be obtained from: 

SUSS MicroTec AG, Investor Relations, Dr. Günter Kast

Phone: +49 89 320 07 454, Fax: +49 89 320 07 336, Email:

Dr. Guenter Kast
Head of Investor Relations and Corportate Communications
Tel.: +49 (0)89 32007-454, email: guenter.kast@suss.com

DGAP 03.05.2007 
Language:     English
Issuer:       Süss MicroTec AG
              Schleissheimer Strasse 90
              85748 Garching b. München Deutschland
Phone:        +49 (0)89 32007-454
Fax:          +49 (0)89 32007-450
E-mail:       ir@suss.de
www:          www.suss.de
ISIN:         DE0007226706
WKN:          722670
Listed:       Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service