Süss MicroTec AG: Business Development in Third Quarter Subdued

Süss MicroTec AG: Business Development in Third Quarter Subdued

Süss MicroTec AG / Quarter Results

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- EUR 31.3 Million New Business – Customers Hold Back on Orders
- Q3 Sales EUR 22.3 Million, EBIT EUR -4.9 Million
- High Order Entry in October

Munich, Germany, November 6, 2007 – The SUSS MicroTec Group (ISIN
DE0007226706) faced investment restraint by key customers in the third
quarter of 2007. Order entry fell to EUR 31.3 million (Q3/06: EUR 37.5
million) which was lower than forecast. Sales at EUR 22.3 million (Q3/06:
EUR 31.3 million) were also below expectations due to delayed final
acceptance of delivered machinery primarily in the Test Systems and
Substrate Bonder divisions. Earnings before interest and taxes were EUR
-4.9 million (Q3/06: EUR 1.7 million). One reason was the relatively low
gross profit (EUR 9.2 million compared with EUR 14.0 million in Q3/06) as a
result of the unsatisfactory sales level. Another was a foreign exchange
related burden of EUR 1.2 million arising from an inter-company loan to the
Group’s US subsidiary and a EUR 0.9 million revaluation on deferred tax
positions. This additional one-off expense without effect on payments was
necessitated by the terms of Germany’s 2008 Corporate Tax Reform Act.

Sales in the first nine months of 2007 amounted to EUR 98.7 million (2006:
EUR 113.5 million), order entry to EUR 95.5 million (2006: EUR 115.0
million), order backlog as of September 30 to EUR 72.0 million (2006: EUR
82.8 million) and EBIT to EUR 1.3 million (2006: EUR 14.3 million).
Nine-month earnings after taxes were down this year from EUR 11.3 million
to EUR 0.2 million. Due to a negative free cash flow in the second and
third quarters, the net cash position was down from EUR 14.1 million to EUR
8.3 million, while the nine-month gross profit margin was down from 46.2%
in 2006 to 43.8% in 2007. The main reason was heavy ongoing pressure on
prices exerted especially by Asian customers.

As reported on October 29, SUSS MicroTec now anticipates sales of
approximately EUR 140 million for the full year and an operating result of
between EUR 6 million and EUR 7 million. The guidance adjustment was made
primarily in response to poorer than expected key figures for the third
quarter and partly reduced expectations for the fourth quarter.

The fourth quarter, however, shows signs of a significant improvement in
new business. The most important indicator is a strong October order entry
of at least EUR 22 million. SUSS MicroTec assumes that at least EUR 40
million in new orders can be booked in the last three months of the year.

Division Overview:

LITHOGRAPHY: Nine-month sales in the SUSS MicroTec Group’s most important
business division totaled EUR 54.0 million compared with the previous
year’s EUR 67.5 million (-20%). The division result was down in the
reporting period from EUR 15.2 million to EUR 6.0 million, and order entry
from EUR 64.5 million to EUR 51.3 million due to a subdued first half
within the advanced packaging market. The third quarter brought the
expected upturn in new business, which at EUR 21.3 million was up 23%
compared to the Q2/2007 figure of EUR 17.2 million and 25% compared to the
Q3/2006 figure of EUR 17.2 million. The recovery was due primarily to
advanced packaging customers in Asia and it will continue and extend to
Micro Electro Mechanical Systems (MEMS) business in the fourth quarter. In
addition, the solid order backlog will lead to a significant sales increase
in the fourth quarter and thereby contribute toward a much more positive
division result for the full year.

The service initiative launched last year, with a considerably wider range
of service and training offerings, has achieved significant successes, such
as the conclusion of long-term maintenance agreements with important
manufacturing customers in the third quarter. Continuous development of
service offerings in this area is a key component in establishing SUSS
MicroTec even more strongly among manufacturing customers.

SUBSTRATE BONDERS: Sales from January to September 2007 amounted to EUR
11.5 million, down 3% compared to the corresponding period last year when
they totaled EUR 11.8 million. Order entry was EUR 13.1 million, 4% lower
than the 2006 figure of EUR 13.6 million. The order backlog as of September
30 was EUR 11.4 million, so it seems realistic to assume that division
sales will show a further significant increase compared to 2006 at the end
of this year. The nine-month result, however, continued to be weighed down
by investment in R&D, marketing and distribution. This burden amounted to
EUR -0.9 million.
Order entry in the third quarter was lower than planned as key customers
postponed orders to the fourth quarter. On the product side, SUSS MicroTec
was able to include a first 300-millimeter bonder, the CBC300SOI, in its
portfolio and thereby succeed in gaining entry to the highly promising
Silicon-On-Insulator series production market. Further product launches are
planned that will soon enable SUSS MicroTec to be well equipped for the
highly promising 3D integration market.

TEST SYSTEMS: January to September sales in this division totaled EUR 18.9
million after EUR 20.7 million in the previous year. Order entry was almost
unchanged this year at EUR 20.3 million (previous year: EUR 20.8 million).
The result for the period was a EUR 0.1 million loss after a profit of EUR
1.9 million in 2006, with the third-quarter result in balance.
The newly developed 300-millimeter ProbeShield device characterization
system’s market launch at SEMICON West in San Francisco in July marked a
milestone on the products side. SUSS MicroTec anticipates strong customer
interest in the system as it delivers high-precision measurement of new
types of circuits on the smallest structures and, at the same time,
provides optimal support for the operator. The benefits of the new
ProbeShield were demonstrated to measurement engineers during a road show
in five Asian countries. In addition, new orders were placed primarily in
the opto and Micro Electro Mechanical Systems (MEMS) applications field,
with demand for our Blue Ray and Cryo/Vacuum test systems.

OTHERS: This division includes Photomasks and Microoptics business, C4NP
(Controlled Collapse Chip Connection New Process) and the holding
functions. Sales in the first nine months of 2007 were unchanged this year
at EUR 9.5 million, as was the result (EUR -2.8 million). Order entry was
down from EUR 9.1 million to EUR 7.9 million.
The Photomask business was not quite as promising as in the previous year.
From January to September 2007, order entry and sales both fell from EUR
6.9 million to EUR 5.0 million. The Microoptics business, in contrast,
improved – from EUR 2.2 million to EUR 2.9 million in order entry and from
EUR 2.5 million to EUR 3.0 million in sales.

Overview of Key 2nd Q3 and 9M Figures:


                           Q3/    Q3/            9M/      9M/
                           07     06     Change  1.HY07   1.HY06   Change
Order Entry                31.3   37.5   -16.5%    95.5    115.0   -17.0%
Order Backlog as of 09/
30/2007                       -      -       -     72.0     82.8   -13.0%
Sales                      22.3   31.3   -28.8%    98.7    113.5   -13.0%
Gross Profit                9.2   14.0   -34.3%    43.2     52.5   -17.7%
Gross Profit Margin        41.4%  44.7%      -    43.8%    46.2%       -
                                             
EBITDA                     -3.9    3.1   -225.8%     5.1     19.1   -73.3%
                              
EBITDA Margin              -17.3%  10.0%            5.1%    16.8%      -
                                             
EBIT                       -4.9    1.7   -388.2%     1.3     14.3   -90.9%
                              
EBIT Margin                -21.8%  5.4%             1.3%    12.6%      -
                                             
Earnings After Taxes       -5.3    1.4   -478.6%     0.2     11.3   -98.2%
Earnings Per Share                           
(Undiluted)                -0.31  0.08   -487.5%    0.01     0.67   -98.5%
Net Cash                      -      -       -      8.3     14.1   -41.1%
                                                                      
Free Cash Flow             -3.1    5.8   -153.4%    -7.2     6.9   -204.3%
Number of Employees as of
09/30/2007                    -      -       -      732      741   -1.2%



The 2007 Nine-Month Report is available as a PDF file to download at
www.suss.com.

For more information please contact: 

SUSS MicroTec AG, Investor Relations, Dr. Günter Kast

Phone: +49 89 3200 7454, Fax: +49 89 3200 7336, Email:
guenter.kast@suss.com



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


06.11.2007  Financial News transmitted by DGAP
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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.com
Internet:     www.suss.com
ISIN:         DE0007226706
WKN:          722670
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
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