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SMT & Inspection | May 11, 2009

SMT market down 70 percent

The trend in the global market for surface-mounting machines remained weak in the first quarter of 2009, according to MYDATA which sales shrank by 32 percent in the quarter.
The total market for surface-mounting machines declined by slightly more than 70 percent in the first quarter compared with the year-earlier period and nearly halved compared with the fourth quarter of 2008, according to a statement in the latest report from Sweden based SMT specialist MYDATA. The company was also affected by the poorer market climate and the beginning of the first quarter was very weak. However, the rate of market activity increased in the latter part of the quarter.

During the quarter, MYDATA launched new models in the MY100 product family; MY100SX and MY100LX. Accordingly, MYDATA has launched entirely new generations of the MY100 (surface mounting) and MY500 (jet printing) product platforms in the past 12-month period. The products were well received in the market.

As a result of the continued weak market, MYDATA is implementing further cost-saving actions in addition to the actions initiated in the second half of 2008. This involves personnel reductions and a continued review of all costs in the MYDATA Group. Due to this, nonrecurring costs of SEK 8 m are expected to be charged against profit for the second quarter of 2009. The combined effects, including actions from the second half of 2008, are expected to reduce the cost base by about SEK 80 m annually, with full effect at the end of 2009.

In the first quarter of 2009, net sales amounted to SEK 105 m (155), down 32 percent. Excluding currency effects, sales declined by 44 percent compared with the year-earlier period. Order bookings during the quarter totaled SEK 110 m (130), a decline of 16 percent. Excluding currency effects, order booking decreased by 30 percent compared with the year-earlier period. During the quarter, order bookings for MY500 amounted to SEK 12 m (3), and totaled SEK 34 m during the past 12-month period.

An operating loss of SEK 42 m (profit: 1) was reported for the period. The operating loss was significantly impacted by negative currency effects of SEK 29 m, of which SEK 25 m pertained to costs in conjunction with the company’s currency hedging. An operating loss of SEK 17 m was reported for the quarter, excluding currency hedging losses. The cost-reduction program approved during 2008 was completed and had a positive impact on operating profit in the quarter. R&D amounted to 19 percent (17) of sales. R&D costs of SEK 20 m (26) were charged against the quarter.

Cash flow from operating activities amounted to a negative SEK 19 m (negative: 34) during the quarter. The negative cash flow was primarily due to currency hedging effects. Adjusted for cash-flow-impacting effects from currency hedges, cash flow totaled SEK 0 m for the quarter. Work on adjusting inventory levels to the prevailing market situation continues.

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