Elmos: A record start to the year 2014

Compared to the previous year, sales went up 14.4% to 49.4 million Euro (Q1 2013: 43.1 million Euro). The disproportionate growth of the Asian market (+2.0 million Euro or 20.4%), again, and the growing European market (+2.4 million Euro or 8.6%) both contributed to this result. In comparison with the fourth quarter of 2013 (52.7 million Euro), sales were slightly down. However, it must be taken into consideration that the fourth quarter of 2013 was positively affected by catch-up effects and that price reductions particularly take effect at the beginning of the year. The gross margin increased to 41.6% in the first quarter of 2014 as compared to 39.0% in the prior-year period. Operating expenses declined considerably in relation to sales (Q1 2014: 35.9% vs. Q1 2013: 40.6%). The EBIT climbed to 3.2 million Euro (Q1 2013: 0.2 million Euro). The EBIT margin comes to 6.5% (Q1 2013: 0.6%). Due to positive one-off effects, the consolidated net income amounted to 4.0 million Euro (Q1 2013: 0.4 million Euro) or 8.2% of sales (Q1 2013: 0.9%). This corresponds to basic earnings per share (EPS) of 0.21 Euro (Q1 2013: 0.02 Euro). Owing to the high operating cash flow of 11.6 million Euro in the first quarter of 2014 (Q1 2013: 5.9 million Euro), a positive adjusted free cash flow in the amount of 3.6 million Euro was generated (Q1 2013: 3.0 million Euro) in spite of considerable capital expenditures for property, plant and equipment. “The year 2014 has started as expected. The receipt of orders and the progress in the modernization of production make me feel optimistic that we will reach our targets for 2014,” says Dr. Anton Mindl, CEO of Elmos Semiconductor AG. “The upbeat mood throughout the industry even seems to continue with a positive trend, unaffected by political and economic risks.” Elmos anticipates sales growth and EBIT margin to turn out in the upper single-digit percentage range respectively in 2014. Capital expenditures for intangible assets and property, plant and equipment are budgeted to amount to no more than 15% of sales in 2014. Management also assumes that Elmos will generate a positive adjusted free cash flow once again.