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RoodMicrotec - Interim Report 2014(Thomson Reuters ONE Via Acquire Media NewsEdge) INTERIM REPORT 2014 Summary HY1 2014 (x EUR 1,000) HY1 2014 HY1 2013 -------------------------------------------------- Sales 4,770 5,504 Gross margin as % of sales 84% 82% EBITDA -112 202 EBITDA as % of sales -2% 4% EBIT -526 -265 EBIT as % of sales -11% -5% Net result -594 -386 Net result as % of sales -12% -7% Highlights HY1 2014 compared to HY1 2013 * In the first half year, RoodMicrotec has made significant investments in future projects. That has had a major impact on our result. The related costs have not been capitalised. * Strategic adjustment in response to changing market conditions. Our new approach involves longer lead times. * Longer lead times and postponement of some big orders resulted in sales of € 4.770 million, 13% down on the first half of 2013 (HY1 2013: € 5.504 million). * Sales in all business units except for Test decreased between 4% and 29%. * Lower sales and seizing new market opportunities have resulted in a net result of € 0.594 million in the first half of 2014 (HY1 2013: € -0.386 million). * Improvement of the net debt position compared to the first half of 2013 by € 1.813 million to € 0.923 million. * Solvency is at 44% (H1 2013: 45%). * Issue of € 2.500 million bond loan and repayment of bank loans; all short- term loans, except the finance lease, were redeemed using the proceeds from the bond loan. This form of financing has greatly reduced RoodMicrotec's dependence on banks. * As a result of the refinancing, the short-term loans fell by € 0.545 million compared to the first half of 2013, the net-cash position increased by € 2.671 million and the long-term loans increased by € 1.403 million. * The working capital position improved strongly by € 2.711 million. * The share capital was € 5.285 million and € 5.863 million respectively in the first half of 2014 and 2013. Shares totalling € 0.614 million were issued during the first half of 2014. Philip Nijenhuis, RoodMicrotec CEO: 'In the first half of 2014, we have seen the number of applications increase enormously, as stated before, and correspondingly the number of offers made. In view of our stable and relatively high hit rate (offers that result in an actual order), this gives us a great deal of confidence for the future. Our focus on new customers and projects with longer running times and recurring sales by definition strengthens our market position. But here, too, costs come before benefits, as the results for the first half show. ' Financial Performance Indicators (x EUR 1,000) HY1 2014 HY1 2013 Change ---------------------------------------------------------------------------- Result Net sales 4,770 5,504 -734 Gross margin 4,008 4,532 -524 Gross margin as % of net sales 84% 82% 2% EBIT -526 -265 -260 EBIT as % of net sales -11% -5% -6% EBITDA -112 201 -313 EBITDA as % of net sales -2% 4% -6% Net cash flow 2,360 -275 2,635 Cash flow operational 475 152 323 Net result -594 -386 -207 Net result as % of net sales -12% -7% -5% Financing costs -68 -121 53 Capital, debt & liquidity ratios Total assets 11,881 13,111 -1,230 Group equity 5,285 5,863 -578 Net debt 923 2,736 -1,813 Capital (net debt + group equity) 6,208 8,599 -2,391 Gearing ratio (net debt/capital) 15% 32% -17% Solvency (group equity/ liabilities + group equity) 44% 45% -1% Debt ratio (net debt /EBITDA) -4.16 6.80 -11 Net working capital 1,319 -1,391 2,711 Working capital ratio 1.63 0.70 0.93 Assets Tangible fixed assets 5,273 6,084 -811 Investment in tangible fixed assets 239 271 -32 Depreciation of tangible fixed assets 414 466 -52 Ordinary shares issued 42,902 35,769 7,133 Data per share (x EUR 1) Capital and reserves 0.07 0.09 -0.02 EBIT -0.02 -0.01 -0.01 Cash flow 0.11 -0.02 0.13 Net result -0.03 -0.02 -0.01 Number of FTEs (Permanent) At month-end 97 100 -3 Average 97 102 -5 Sales/ Average FTEs (Permanent) 98 108 -10 Report of the board of management 1. General Our strategy aims to realise increasing amounts of recurring sales by means of Extended Supply Chain Management. This is different from before, when RoodMicrotec was far more focused on offering individual services that were unconnected and tended to be one-off projects. Now, we are increasingly offering integrated services in the form of a complete product for the entire lifetime of the product/chip. This leads to longer-term projects with more stable, more predictable and less cyclic sales. However, these projects have longer lead times, because we first do engineering work and invest before we start generating significant sales. This means that the anticipated sales growth will not materialise until the second half of 2014 and into 2015. The successful issue of bonds with mortgage cover and the strengthening of our equity have had a very positive impact on our balance sheet ratios and on our financial position in general and we will be able to roll out our strategy better. This improved position enables us to contribute more actively to the development of new products, generating recurring sales. Our new strategy involves that we co-invest in new promising projects and also invest in additional sales capacity, the latter mainly in order to compensate for the decline in sales with our 'traditional' product portfolio. By co- investing in promising projects, we aim to try to break through the continuing lending restraint in the financial markets, which often frustrates our customers, many of which are Fabless Companies (FCs) in their development. With our approach, we aim both to boost the development of FCs and also increase our sales and our position in this market segment. In the first half year, we have made significant investments in projects that offer attractive future perspectives. These are currently over seven highly promising projects, which will give a major boost to our sales. 1.1 Developments by business unit (product /service group) RoodMicrotec net sales HY1 2014 vs HY1 2013 (x EUR 1,000) HY1 2014 HY1 2013 Change --------------------------------------------------------------------------- Test 2,190 2,165 1% Supply Chain Management 847 1,194 -29% Failure & Technology Analysis 675 703 -4% Test Engineering 221 293 -25% Qualification & Reliability Investigation 837 1,149 -27% --------------------------------------------------------------------------- Total 4,770 5,504 -13% --------------------------------------------------------------------------- The previously mentioned postponement of some major orders to the second half of the year in combination with longer lead times has resulted in sales in the first half of 2014 of € 4.770 million, a decrease of 13% compared to the first half of 2013 (HY1 2013: € 5.504 million). We feel our decline in sales is temporary in a fluctuating, but generally rising market. This is also offset by the fact that the majority of the record number of applications earlier this year have led to a sharp increase in the number of offers we have made. At a total amount of between € 9 million and € 10 million, this is an increase of between 80% and 90% compared to the first half of 2013. In this context it is important that we raise the number of offers that we make, for at least two reasons: firstly, at an equal hit rate (ratio of offers leading to actual orders) orders will significantly rise in the future, and secondly, an increasing number of offers by definition strengthens our market position. 1.2 Personnel The strategy change mentioned above has obviously impacted the organisation, leading to a different composition and management of our staff. The number of permanent employees decreased to 97 FTEs, approximately 3% down on June 2013 (100 FTEs). 1.3 Communication with shareholders and bondholders High on the agenda for this year and the next few years is intensifying the communication with our shareholders and bondholders. This is partly in view of our bond loan issue earlier this year, which has raised the number of stakeholders in RoodMicrotec greatly. In this context, we are organising an informative meeting for our shareholders and bondholders in Amsterdam on 25 September, with a 4pm start. We will shortly publish more information about the programme. 1.4 Risk management The various risks the company is exposed to are listed in RoodMicrotec's 2013 annual report. We strive to limit the risks, inter alia by periodical and systematic risk reviews of selected aspects. These reviews are conducted approx. 8 times every year. Where necessary, corrective measures are taken. In view of the negative developments in the financial markets, the management is devoting additional attention to cash management. Otherwise, the management does not currently foresee any material changes in the risks in 2014. 2. NOTES TO THE FINANCIAL RESULTS 2.1 Sales and result Sales in the first half of 2014 were € 4.770 million, a decrease of 13% compared to the first half of 2013 (HY1 2013: € 5.504 million). EBITDA was € -0.112 million (HY1 2013: € 0.201 million), or -2% of sales. EBIT was € -0.526 million (HY1 2013: € -0. 265 million), which equates to -11% of sales. Net financing costs were € 0.068 million, 44% down on the first half of 2013. 2.2 Cash flow In the first half year of 2014, the realised cash flow from operating activities was € 551,000 (HY1 2013: € 273,000). Net cash flow from operating activities improved compared to the same period in 2013 to € 475,000 (HY1 2013: € 152,000). 3. Events after balance sheet date 4. Outlook for 2014 The semiconductor industry is showing positive growth. Based on the record number of offers, we expect, in line with our earlier prognoses, to realise significant sales growth in the second half of 2014 and beyond. We expect our results to recover accordingly. At present, we cannot anticipate the impact of the economic boycott of Russia. 5. Financial Agenda 2014 and 2015 13 November 2014 Publication trading update 8 January 2015 Publication annual sales figures 2014 26 February 2015 Publication annual figures 2014 26 February 2015 Conference call for press and analysts 12 March 2015 Publication annual report 2014 23 April 2015 Annual general meeting of shareholders 14 May 2015 Publication trading update 9 July 2015 Publication sales figures first half 2015 27 August 2015 Publication interim report 2015 27 August 2015 Conference call for press and analysts 12 November 2015 Publication trading update About RoodMicrotec With 40 years' experience as an independent value-added service provider in the area of micro and optoelectronics, RoodMicrotec offers Fabless Companies, OEMs and other companies a one-stop shopping proposition. With its powerful solutions RoodMicrotec has built up a strong position in Europe. Our services comply with the industrial and quality requirements of the high reliability/space, automotive, telecommunications, medical, IT and electronics sectors. Certified by RoodMicrotec concerns inter alia certification of products to the stringent ISO/TS 16949 standard that applies to suppliers to the automotive industry. The company also has an accredited laboratory for test activities and calibration to the ISO/IEC 17025 standard. Its value-added services include failure & technology analysis, qualification & 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 branches in Germany (Dresden, Nördlingen, Stuttgart), United Kingdom (Bath) and the Netherlands (Zwolle). Further information: Philip Nijenhuis, CEO Telephone +31 38 4215216 Fax: +31 38 4216410 Postal address: RoodMicrotec N.V., PO Box 1042, 8001 BA Zwolle E-mail: [email protected] Website: www.roodmicrotec.com RoooMicrotec Interim Report 2014: http://hugin.info/130789/R/1851690/646915.pdf This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: RoodMicrotec N.V. via GlobeNewswire [HUG#1851690] |