RoodMicrotec N.V. POSITIVE OPERATING RESULT HY2 2012; ANTICIPATES TENTATIVE MARKET RECOVERY

Zwolle, 26 February 2013 2012 HIGHLIGHTS Commercial/operational * Strengthening of our position in Supply Chain Management by introducing eXtended Supply Chain Management. * Strengthening of our sales organisation by recruiting an additional Sales & Marketing Manager. * Extension of our engineering capabilities by establishing a design support department. * Optimisation of our critical installed equipment base...

Zwolle, 26 February 2013

 

2012 HIGHLIGHTS

 

Commercial/operational

• Strengthening of our position in Supply Chain Management by introducing eXtended Supply Chain Management.
• Strengthening of our sales organisation by recruiting an additional Sales & Marketing Manager.
• Extension of our engineering capabilities by establishing a design support department.
• Optimisation of our critical installed equipment base.
• Increase in the number of applications and orders in SCM.

 

Financials

• Sales in 2012 of EUR 12 million fell by 24 % compared to 2011 (EUR 15.7 million).
• Operating expenses fell by approx. EUR 1.5 million compared to 2011.
• EBITDA: EUR 0.7 million; strong recovery in the second half of 272%
• EBIT (operating result): EUR 181,000 negative; but recovery in second half to EUR 97,000
• EBT: EUR 507,000 negative; recovery in second half to EUR 85,000 negative
• Net income EUR 82,000 negative
• Solvency remained stable with 48% (2011: 48%)

 

Key figures

(EUR x 1,000 unless stated otherwise)

		2012		2011		approx. change
Net sales		11,971		15,717		-24%
Gross margin		9,688		12,342		-22%
Operating result/EBIT		-181		709		NA
EBITDA		703		1,865		-62%
Net profit		-82		588		NA
Net result per share		0.00**		0.02**

 

	Equity & debt position
			31-12-12		31-12-11
Balance sheet total			13,135		12,857				+2.2%
Shareholders' equity			6,352		6,138				+3.5%
Equity/balance sheet total			48.4%		47.7%				+1.5%
Net interest-bearing debts			2,716		2,686				+1.1%
Net interest-bearing debts/balance sheet total			20.7%		20.9%				-0.1%
Net interest-bearing debts/EBITDA			3.9		1.44				171%
	Assets
Tangible fixed assets			6,344		5,732				+10.7%
Investments in tangible fixed assets			1,475		1,024				+44.2%
Depreciation of tangible fixed assets			856		1,128				-24.1%

 

Financial key figures second half of 2012 vs. first half of 2012

(EUR x 1,000 unless stated otherwise)

		HY2*		HY1*		approx. change
Net sales		6,283		5,688		10%
Gross margin		5,001		4,688		7%
Operating result/EBIT		97		-278		NA
EBITDA		514		189		272%
Net profit		340		-422		NA

 

* The half-year figures have not been audited.

** In euros

 

Sales by market segment 2012 vs. 2011
(EUR x 1,000 unless stated otherwise)
		2012		2011		approx. change
Automotive		3,870		6,417		-40%
Telecom		277		405		-32%
Industrial/Medical		5,659		5,968		-5%
Electr. Data Proc.		765		1,090		-30%
Consumer		563		598		-6%
Hi-Rel/Space		838		1,239		-32%
Total		11,972		15,717		-24%

 

The fall in automotive was caused mainly by the products we tested for an IDM coming to the end of their lifecycle. The share of the automotive segment decreased to 32% (2011: +41%) of total sales.

The Industrial/Medical market segment concerns complex activities, which largely remained stable. These are for example the conversion of 'translation' data into digital signals. We have strengthened our market position as a high-quality service provider. 

Sales by business units in 2012 vs. 2011
(EUR x 1,000 unless stated otherwise)
		2012		2011		approx. change
Test		4,547		7,264		-37%
Supply Chain Management		2,457		3,556		-31%
Failure & Technology Analysis		1,917		1,667		+15%
Test Engineering		705		887		-21%
Qualification & Reliability		2,346		2,343		0%
Total		11,972		15,717		-24%

Test, Test Engineering and Supply Chain Management decreased by 37%, 21% and 31% respectively, while Failure & Technology Analyses showed significant growth of 15%. Qualification & Reliability remained stable.

The sales decrease in Supply Chain Management has two different aspects. There was a fall in market volume, but we also saw a rise in the number of customers. Unfortunately, this could not set off the decline of business. We did, however, strengthen our position in the market.

 

Sales by market segment in the second half of 2012 vs. first half
(EUR x 1,000 unless stated otherwise)
		HY2*		HY1*		approx. change
Automotive		2,109		1,761		+20%
Telecom		143		133		+8%
Industrial/Medical		2,986		2,674		+12%
Electr. Data Proc.		359		406		-12%
Consumer		334		229		+46%
Hi-Rel/Space		353		485		-27%
Total		6,284		5,688		+11%

The recovery in the second half of 2012 was driven by both the industrial/medical and the automotive market segments. The increase in the automotive market was caused mainly by the increasing prevalence of electronics in cars, while the car production output as far as relevant for us did not show any increase.

Sales by business unit in the second half of 2012 vs. first half of 2012
(EUR x 1,000 unless stated otherwise)
		HY2*		HY1*		approx. change
Test		2,187		2,360		-7%
Supply Chain Management		1,465		992		+48%
Failure & Technology Analysis		1,139		778		+46%
Test Engineering		352		353		0%
Qualification & Reliability		1,141		1,205		-5%
Total		6,284		5,688		+11%

 

* The half-year figures have not been audited.

 

Our total sales of EUR 6.3 million in the second half of 2012 represented an 11% increase compared to our sales in the first half of 2012 (approx. EUR 5.7 million). There was a significant decrease in the second quarter in particular. But the third and fourth saw the beginning of a recovery.

 

'We are experiencing a recovery especially in the countries in which we directly or indirectly realise our sales, and this is being reflected in increasing sales activities. For this reason, we anticipate our business to recover in 2013, and expect it to occur in the second half of 2013 in particular.' Philip Nijenhuis, RoodMicrotec CEO.

 

 

Finance

The gross margin increased to 81%. 

The operating expenses excluding depreciation decreased by 14% (EUR 1,492,000) compared to 2011. The decrease in operating expenses was partly due to the positive results of the restructuring of our test business unit in 2011.

 

RoodMicrotec's equity increased by EUR 0.2 million, mainly due to issuance of an additional Mezzanine capital (EUR 0.5 million). The EUR 0.2 million in compensation paid for the Mezzanine capital was included directly in equity. The balance sheet total increased to EUR 13.135 million (2011: EUR 12.857 million). 

 

On balance our solvency remained stable with 48% in 2012 (2011: 48%).

 

Taxation

 

The deferred tax asset on the carry forward losses shows a positive effect, which results inter alia from the estimated forecasts of the company and from the alignment of the estimation period with her German subsidiaries. For the next few years, the company's forecasted results and related deferred tax asset have been reassessed, and the outcome has been included fully in the 2012 result.

Personnel and organisation

At year-end 2012, RoodMicrotec had 103 employees on permanent staff (FTE), a decrease of 3 employees (-3%) compared to year-end 2011 (106). The average workforce was 103 (2011: 106).

 

Sales by FTE decreased by 22% from EUR 142,000 in 2011 to EUR 116,000 in 2012.

Our strategy remains focused on strictly limiting the increase of fixed employee labour costs relative to sales growth. 

 

 

Strategy

We aim to position ourselves at the first class one-stop-shop supply chain provider to OEMs (Original Equipment Manufacturers) and Fabless Companies in Europe. We will continue to focus on innovative, high-tech markets, which we support with our services in developing high-quality reliable products.  With our powerful solutions we have built up a strong position in Europe. We wish to grow further by inter alia strengthening, broadening and expanding our high-quality engineering capabilities, supplemented with management support for our customers by means of project management.

The company does not rule out partnerships and/or mergers with other companies, especially if it reduces the company's risk exposure. This would benefit all stakeholders, especially if such a partnership or merger was formed with a profitable industry party, as we would be able to effect tax losses to be realised more quickly.

 

 

Outlook for 2013

 

After disappointing market developments in 2012, in 2013 4.5% growth of the global market is being forecast and 5.2% in 2014, according to the World Semiconductor Trade Statistics (WSTS). However, these figures are still below the multi-year average of 6%. Analogous to the forecasts of the WSTS for 2013 and beyond, RoodMicrotec anticipates a recovery of its business and the realisation of its growth objectives. We aim to grow at least at a faster rate than the global market, which we have done almost without fail in the last 9 years.

The ongoing increase of the number of applications backs up our confidence that in 2013 we will once again grow more strongly than the market.

However, the macroeconomic developments force us to remain cautious. For this reason, we do not pronounce any concrete predictions for 2013.

Long-term (as from 2014) we aim to maintain our growth at least at the same level as the global semiconductor market.

 

 

Financial agenda

14 March 2013	Publication annual report 2012
25 April 2013	Annual general meeting of shareholders
14 May 2013	Publication trading update
9 July 2013	Publication sales figures first half 2013
29 August 2013	Publication interim report 2013
29 August 2013	Conference call for press and analysts
14 November 2013	Publication trading update
9 January 2014	Publication annual sales figures 2013
27 February 2014	Publication annual figures 2013
27 February 2014	Conference call for press and analysts
13 March 2014	Publication annual report 2013
24 April 2014	Annual general meeting of shareholders
13 May 2014	Publication trading update
10 July 2014	Publication trading figures
28 August 2014	Publication interim report 2014
28 August 2014	Conference call for press and analysts
13 November 2014	Publication trading update

 

 

Audit

The audit of the financial statements 2012 has not been finalized yet.

 

 

Forward-looking statements

This press release contains a number of forward-looking statements. These statements are based on current expectations, estimates and prognoses of the board of management and on the information currently available to the company. The statements are subject to certain risks and uncertainties which are hard to evaluate, such as the general economic conditions, interest rates, exchange rates and amendments to statutory laws and regulations. The board of management of RoodMicrotec cannot guarantee that its expectations will materialise. Furthermore, RoodMicrotec does not accept any obligation to update the statements made in this press release.

 

 

About RoodMicrotec

With 40 years' experience as an independent value-added microelectronics and optoelectronics service provider, RoodMicrotec offers a one-stop shopping proposition to fabless companies, OEMs and other business partners.

 

RoodMicrotec has built up a strong position in Europe with its powerful solutions. Its services comply with the highest industrial and quality requirements as demanded by the high-reliability/aerospace, automotive, telecommunications, medical, IT and electronics sectors.

 

'Certified by RoodMicrotec' concerns certification of products inter alia to the stringent ISO/TS 16949 standard for suppliers to the automotive industry. The company has an accredited laboratory for testing and calibration activities in accordance with the ISO/IEC 17025 standard.

 

The value-added services include Extended Supply Chain Management Failure & Technology Analysis, Qualification & Monitoring Burn-In, Test- & Product engineering, Production Test (including device programming and end-of-line service), ESD/ESDFOS assessment & training, quality & reliability consulting, supply chain management and total manufacturing solutions with partners.

 

RoodMicrotec has facilities in Germany (Dresden, Nördlingen, Stuttgart), UK (Bath) and in the Netherlands (Zwolle).

 

 

Further information:

Philip Nijenhuis, CEO

Telephone         +31 (0) 38 4215216

Email:              [email protected]

Website:           www.roodmicrotec.com

 

Consolidated income statement

 

	(x EUR 1,000)		Year ended 31 December,
			2012		2011
	Net sales		11,971		15,717
	Cost of sales		-2,283		-3,375
	GROSS MARGIN		9,688		12,342
	Personnel expenses		6,401		7,215
	Other operating expenses		2,584		3,262
	OPERATING EXPENSES		8,985		10,477
	EBITDA		703		1,865
	Depreciation and amortisation		884		1,156
	EBIT		-181		709
	Financial expenses		-326		-301
	RESULT BEFORE TAXATION		-507		408
	Taxation		425		180
	NET RESULT		-82		588
	Earnings per share for profit attributable to the equity holders of the company during the year
	- basic		0.00		0.02
	- diluted		0.00		0.02

 

 

Consolidated balance sheet (before appropriation of net result)

 

(x EUR 1,000)			31 December, 2012	31 December, 2011
ASSETS
Property, plant and equipment			6,344	5,732
Intangible assets			1,755	1,783
Deferred income tax assets			869	444
Retirement benefit assets			301	-
Financial assets			949	1,720
Non-current assets			10,218	9,679
Inventories			305	402
Trade and other receivables			2,093	2,431
Cash and cash equivalents			519	345
Current assets			2,917	3,178
TOTAL ASSETS			13,135	12,857
EQUITY AND LIABILITIES
Issued capital			3,935	3,935
Share premium			17,751	17,723
Revaluation reserve			1,890	1,885
Retained earnings			-19,718	-19,399
Mezzanine capital			2,494	1,994
Equity, attributable to share- holders			6,352	6,138
Interest-bearing loans and borrowings			1,399	1,077
Retirement benefit obligations			1,550	1,633
Non-current liabilities			2,949	2,710
Bank overdrafts			1,381	1,115
Current portion of long-term debt			455	839
Trade account and other payables			1,976	1,846
Current income tax liabilities			22	209
Current liabilities			3,834	4,009
TOTAL EQUITY AND LIABILITIES			13,135	12,857

 

                       

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