Melexis reports solid growth

Gross margin was 27.1 million EUR, an increase of 33% compared to the same quarter last year. The operating result was at 14.2 million EUR, compared to 9.6 million EUR in the same quarter of 2010, an increase of 48%. Net income was 11.6 million EUR, 27 cent per share, up from 19 cent per share in the first quarter of 2010. R&D expenses were 14% of sales, Selling remains stable at 3% of sales and G&A was at 5% of sales. Melexis purchased 243.324 own shares during the first quarter of 2011 at an average price of 12.50 EUR. As a result, the total number of treasury shares amounts 2.318.869 at the end of the first quarter of 2011, representing 5.36% of shares outstanding. Outlook Melexis expects sales for the second quarter of 2011 to be at the same level of the first quarter. For the full year, we expect high single digit growth in sales, our gross margin to solidify above 45% and operating margin to remain above 23%, taking into account a EUR/USD exchange rate of 1.40. Françoise Chombar, CEO of Melexis comments: "The worldwide automotive sector in general, and the automotive semiconductor in particular, prove to be very resilient. Melexis feels at home in this niche but steady growth market, consolidating its market position by posting a top line growth of 27% year-on-year for the first quarter of 2011, after the 2010 record year. Our customers are pleased with the Melexis integrated micro-electronics and sensors, which solve many of their challenges, for example enabling fuel efficiency gains and reduced emission levels."