AIXTRON: Q3 2014 Orders and Revenues Stable

AIXTRON SE announced financial results for the third quarter 2014 and first nine months of 2014.

Q3/2014 Revenues amounting to €45.6 million were broadly stable both against the previous year and sequentially (Q3/2013: €46.2 million; Q2/2014: €46.2 million).

Q3/2014 Gross Profit amounted to €6.5 million and was down year-on-year and sequentially, due to lower revenues and below mentioned higher cost of sales (Q3/2013: €10.6 million; Q2/2014: €12.6 million).

At the end of September, AIXTRON received its largest ever multiple tool order from Chinese manufacturer San’an Optoelectronics Co., Ltd. for 50 next generation Showerhead MOCVD tools. The order is being processed and the equipment will be delivered starting in Q4/2014 and will have an impact on the company’s order intake, revenue and earnings development in future quarters.

Due to the application of internal criteria before reporting an order as order intake, AIXTRON’s Q3/2014 Order Intake was not yet affected and at €37.6 million was 5% up year-on-year and stable sequentially (Q3/2013: €35.7 million; Q2/2014: €38.2 million).

“We have received this important order for our newly developed MOCVD tool from one of the world’s leading LED manufacturers and the ramp-up of our production is in full swing,” said Martin Goetzeler, president and CEO of AIXTRON SE. “In the OLED area, we have recently received the crucial hardware for our Gen8 demonstration tool for the cost efficient production of large area OLEDs. Additionally, we are experiencing a pick-up in customer interest for our non-LED technologies and applications. These developments are positive examples of the progress we are making in the markets we choose to address. On the other hand, we need to acknowledge that our customers are facing very competitive industry dynamics, which could lead to further consolidation and also to continued requirements for lower total cost of ownership of MOCVD equipment. Therefore it is extremely important for us to execute our 5-Point-Program to further reduce COGS and OPEX in order to secure healthy margins and to support our dedication to return to profitability in the foreseeable future”.

Management reiterates its original guidance for fiscal year 2014 made at the end of February, for revenues to be in line with those of last year. Concurrently, the company is not expected to be profitable on an EBIT basis over the course of this year. Nevertheless, Management continues to expect a year-on-year improvement in earnings due to progress made in cost savings and restructuring.