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Süss MicroTec AG / Profit Warning Release of an 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. ---------------------------------------------------------------------- SUSS MicroTec AG: Preliminary Figures for the 3rd Quarter of 2008 - Extraordinary Expenses of EUR 18.3 Million Lead to Lowering of Annual Result Expectations - Positive EBIT of EUR 1.8 Million (before Extraordinary Expenses) after First Nine Months of 2008 - 2008 Sales Target between EUR 142–145 Million Munich, Germany, October 22, 2008. Based on preliminary figures from the first nine months of 2008, SUSS MicroTec (business address: Schleissheimer Straße 90, 85748 Garching, Germany; ISIN: DE0007226706), listed in the Prime Standard of Deutsche Börse AG, has shown strong sales and order entry figures, asserting itself against the negative industry trend. However, both nine months result as well as annual result expectations were affected by extraordinary expenses totaling EUR 18.3 million, particularly related to write-downs to intangible assets. After nine months, sales of EUR 104.3 million exceeded the previous year’s value of EUR 98.7 million by approximately 5%. Sales of EUR 34.6 million in the third quarter were even approximately 55% over the previous year’s total of EUR 22.3 million. SUSS MicroTec was therefore able to develop better than the market, but the Company also profited from the high order backlog from previous quarters. Despite the troubled industry and economic environment, operating growth is sound. After nine months, the preliminary operating result (EBIT) – without the extraordinary expenses – amounted to EUR 1.8 million. However, including the extraordinary expenses, it came to EUR -16.5 million. Extraordinary Expenses The reason for the loss was extraordinary expenses totaling EUR 18.3 million, of which only EUR 0.7 million affected cash flow. These primarily consisted of: - Write-downs on capitalized development costs for C4NP amounting to EUR 8 million - Amortization of the goodwill of the subsidiary Image Technology Inc. calculated at EUR 4.4 million - Depreciation on inventories coming to EUR 2.7 million - Restructuring costs consisting of EUR 0.8 million - Value adjustment on a customer-specific project equaling EUR 1.9 million - Others comprising EUR 0.5 million Due to external and internal factors, Management Board and Supervisory Board were convinced that the business prospects for the internally developed C4NP technology and the subsidiary Image Technology Inc. should be reassessed. Although the Management Board still believes in the C4NP technology, aside from the initial installation at IBM, it will most likely not be possible to acquire any additional customers this year. With this in mind, a performed impairment test resulted in the writing-down of EUR 8 million in capitalized development costs, in addition to the planned write-down of EUR 0.4 million. The valuation of the US subsidiary Image Technology Inc. also needed to be adjusted based on a changed sales and earnings situation. The reason for the considerably slower development is problems experienced with a key customer. These issues have negatively affected the entire business outlook and are on top of the already difficult market conditions in the mask industry. With the cost reduction measures already implemented at the subsidiary, the Management Board believes that the foundation for a successful future development – even at a strongly reduced sales level – has been laid. Based on this, a corresponding correction of EUR 4.4 million to the balance sheet value of the goodwill was necessary. Cost Reduction In consideration of the economic downturn, the Management Board has begun implementing comprehensive cost reduction and restructuring measures. Within the framework of the partially initiated restructuring measures in the last weeks, the number of employees has been reduced from 732 (June 30, 2008) to 705 as of September 30, 2008, and will be further reduced to approximately 690 by the end of the year. Order Entry The acute cost reduction measures will also be introduced due to a potential reduction in spending within the semiconductor industry. After three successive strong quarters, the SUSS MicroTec Group recorded an expected lower level of new orders of EUR 24.7 million (Q3 2007: EUR 31.3 million). After the first nine months of 2008, the order entry of SUSS MicroTec AG totaled EUR 111.1 million, up from EUR 95.5 million recorded during the same period in the previous year. The order backlog as of September 30, 2008 climbed to EUR 85.7 million, a 19% increase over the same period in the previous year (September 30, 2007: EUR 72 million). Liquidity As of September 30, 2008, SUSS MicroTec Group possesses liquid assets of EUR 15.3 million. The net cash position was EUR 1.5 million as of September 30, 2008. Due to an increase in working capital – in order to address the higher order backlog – the operating cash flow was slightly negative in the first nine months of 2008. A positive free cash flow is expected for the fourth quarter of 2008. Up until now, the SUSS MicroTec Group could rely on an extension of its long-standing domestic credit line. The credit line, which had been granted by a consortium of three banks, expired on September 30, 2008. It had been primarily used as security for down payment guarantees and has not yet been renewed by the bank consortium. The Management will continue discussions in order to secure a similar credit line and, in particular, to comprehensively use the liquidity of prepayments received. The Company’s current liquidity position is definitely sufficient to entirely cover all of its operational needs. 2008 Outlook In the fourth quarter, the Company expects improved sales figures in comparison to the previous quarter. The basis for this is formed by the good order backlog of EUR 85.7 million. For 2008, SUSS MicroTec is calculating sales to reach between EUR 142–145 million by the end of the year with a positive EBIT (before extraordinary expenses) of between EUR 5–6 million. Taking the extraordinary expenses into account, EBIT is expected to be between EUR -12.3 and -13.3 million. End of the ad hoc disclosure Contact: SÜSS MicroTec AG Investor Relations/PR Julia Hartmann Tel.: +49 (0)89 32007-161, Email: email@example.com 22.10.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Süss MicroTec AG Schleissheimer Strasse 90 85748 Garching b. München Deutschland Phone: +49 (0)89 32007-161 Fax: +49 (0)89 32007-336 E-mail: firstname.lastname@example.org Internet: www.suss.com ISIN: DE0007226706 WKN: 722670 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------