Aixtron increases guidance for order intake

Dr. Bernd Schulte, Executive Board Member of AIXTRON SE, comments: "The positive development in order intake continued in the second quarter of this year, so we have decided to raise our order intake guidance for fiscal year 2018. The slightly lower revenues in Q2/2018 are solely attributable to the scheduled shipments agreed with customers. Revenues in the second half of the year will be correspondingly higher than in the first half, so that we will achieve our revenue guidance as planned". This positive development is driven primarily by continued demand for MOCVD systems for the production of red, orange and yellow (ROY) LEDs and especially for MOCVD systems for laser applications such as vertical cavity surface emitting lasers (VCSEL) or edge emitting lasers (EEL) for applications in 3D sensor technology or optical data transmission, writes the equipment manufacturer in a fiscal update. Equipment order backlog increased to EUR 138.3m as of June 30, 2018, an increase of 48% year-on-year and 20% compared to March 31, 2018. Revenues rose by 3% year-on-year to EUR 117.6m in H1/2018. Sequentially, they fell to EUR 55.2m in Q2/2018 due to the scheduled shipments agreed with customers. Gross profit and gross margin in H1/2018 improved to EUR 50.6m and 43% respectively compared to the previous year. Compared to the previous quarter, gross profit decreased to EUR 23.8m in Q2/2018 which is in line with revenue development, while the gross margin remained stable at 43%. This was mainly due to a favorable product and regional mix with a benefit from a positive USD/EUR exchange rate in the second quarter. Operating result (EBIT) in H1/2018 improved to EUR 12.0m year-on-year. Compared to the previous quarter, EBIT in Q2/2018 fell to EUR 4.1m. Net profit in H1/2018 rose to EUR 16.0m compared to the previous year and was positively influenced by the capitalization of deferred taxes in the amount of EUR 5m in the first quarter of 2018, resulting from the transition from losses in the past to expected profits in 2018. "We continue to benefit from the stable global demand for MOCVD systems for laser applications such as VCSEL or EEL, which are particularly in demand in the field of 3D sensors or optical data transmission. Our MOCVD systems for the production of red, orange and yellow (ROY) LEDs are also in high demand, as they are indispensable for the market penetration of display technologies based on fine pitch, mini and in the future also micro LEDs," adds Dr. Felix Grawert, Executive Board member of Aixtron. Guidance Based on the results for the first six months of the fiscal year 2018 and the internal assessment of the development of demand, Axtron Management updates its 2018 full year guidance given in February 2018. Accordingly, Aixtron Management now expects to book total orders between EUR 260 and 290 million (up from EUR 230 to 260 million previously) during 2018. Revenues are expected to be around EUR 260 million (Previous range: EUR 230 to 260 million). Gross margin is expected to be around 40% of revenues (previous range: 35% to 40%) and EBIT margin to be around 10% of revenues (previous range: 5% to 10%). The operating cash flow for the year is expected to be positive