© LPKF Business | March 25, 2021
LPKF: Looking back on successful 2020 in spite of COVID-19
In spite of a revenue drop due to delays of customer projects in this challenging year, LPKF has delivered earnings, has continued to invest in new technologies as planned, and has further developed the company in line with its strategic growth plan.
With revenue for the year of EUR 96.2 million (- 31%), LPKF has reached the lower end of its own forecast (EUR 96 - 102 million). Earnings before interest and taxes (EBIT) has decreased to EUR 7.5 million, a press release states. The EBIT margin was 7.8% after 13.7% in 2019. At EUR 102.2 million in 2020, incoming orders were 10.3% below the prior year figure, while order backlog on December 31, 2020 was EUR 38.3 million, up EUR 6 million (18.3%) from the prior year figure of EUR 32.3 million. The revenue drop was largely due to major projects with two key customers which were postponed beyond 2020 or suspended due to the impact of the COVID-19 pandemic. LPKF has generated a profit in three of its four segments in 2020, with only the Welding segment which has been affected by the automotive sector weakness in addition to the pandemic reporting a loss. Overall, operating cash flow remained positive in 2020 at EUR 4.0 million. At the same time, and regardless of the pandemic, the company has invested close to EUR 10 million in future technologies, compared to almost EUR 6 million in the year before. LPKF continues to be (net) debt-free and has an adequate net cash reserve. "Today, LPKF is a stronger and better-performing company - in spite of the difficulties we have faced since the start of the COVID-19 pandemic," says CEO Goetz M. Bendele. "Our learnings since then - how we serve our customers; how we design, manufacture, deliver and install our systems; and how we work with each other - will continue to help us grow and succeed going forward." That said, LPKF did not meet its growth targets in 2020. "Much remains to be done for 2021 and subsequent years - especially once the pandemic recedes", said Bendele. For CFO Christian Witt, the company has shown that it has sufficient financial resources to invest in research & development even during a severe economic crisis. "During the pandemic, we were able to reduce our fixed cost base and have reached a reasonable operating result, considering the size of our revenue drop. At the same time, we have invested more in the expansion of our future technologies than we did in previous years, and we have started to work closely with customers on both pilot and initial volume manufacturing solutions in the LIDE area." Witt and Bendele expect that LPKF will resume growth in 2021. However, the timing and speed of the expected macroeconomic recovery in the markets is still uncertain. This limits the ability to forecast the current financial year 2021. For subsequent years, the company continues to expect sustainable, profitable growth in each business unit. The innovative LIDE (Laser Induced Deep Etching) technology will add to this growth, and LPKF continues to assess its sales and earnings potential as high. Together with the sales and earnings contribution from LIDE, LPKF continues to expect consolidated revenue of more than EUR 360 million, and an EBIT margin of more than 25 % in 2024, with further growth after that. The fact that Bendele will leave LPKF at the end of April 2021 when his contract expires does not change the company's confidence. "LPKF is financially stable, has a broad and growing portfolio of innovative technologies, and is on an attractive growth path despite the impact of the pandemic," says Witt. "The high level of commitment of our employees, their experience, know-how and creativity are key to our continued success in this regard." The Supervisory Board has started the search for a new CEO.
H. K. Wentworth Group has been acquired MacDermid Alpha Electronics Solutions, a supplier of specialty chemicals and materials used in the semiconductor and PCB markets, has acquired H.K. Wentworth Group, the owner of the Electrolube & AF brands.
EMS Electronics opens new centre of excellence EMD Electronics, a business of Merck KGaA, has inaugurated its new centre of excellence for atomic engineering at Intermolecular's San Jose facility.
Sponsored content by Shenzen Kinwong ElectronicThe development trend of printed circuit board products and Kinwong's solution With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
Infineon: "The semiconductor market is booming" "The semiconductor market is booming; electronics that help accelerate the energy transition and make work and home life easier remain in high demand. The push for digitalization continues unabated. Infineon is firmly on course to meet its targets for the current fiscal year," says Dr. Reinhard Ploss, CEO of Infineon in the company's quarterly report.
Intel to invest $3.5 billion to expand New Mexico operations The US chipmaker is sinking USD 3.5 billion into its Rio Rancho, New Mexico manufacturing operations to increase its capacity of advanced packaging technologies.
Mobix Labs and Richardson RFPD ink distribution agreement Mobix Labs Inc., a fabless RF (radio frequency) component company focused on next-generation wireless technologies, and Richardson RFPD, an Arrow Electronics company, have entered into a global distribution agreement.
Hprobe receives order for wafer-level magnetic tester Hprobe, a provider of Automatic Test Equipment (ATE) for magnetic devices, today announced a significant order from a tier-1 semiconductor manufacturer for a wafer-level magnetic tester.
Sponsored content by congatec AGRugged four-legged robot with three brains ANYbotics provides solutions for robot applications with the most advanced mobility and autonomy requirements in challenging terrains. The massive embedded computing performance for the key tasks – situational awareness, motion control and mission fulfillment – is delivered by three COM Express Computer-on-Modules from congatec.
Sony starts operations at new fab expansion Sony Semiconductor Solutions Corporation has begun operations on the production lines at the new fab built on the premises of Nagasaki Technology Center in Japan, a production center owned by Sony Semiconductor Manufacturing Corporation.
Optimized power supply measurement setup Question: How can I make sure I’m testing my switching regulator as efficiently as possible?
Vanguard to acquire AU Optronics facility Taiwanese contract chipmaker Vanguard International Semiconductor Corp. has agreed to purchase an 8-inch semiconductor fab (around 48'400sqm) at Hsinchu Science Park for USD 32.5 million.
Mouser adds record 31 new manufacturers to line card The first quarter of 2021 proved to be fruitful start to the year for Mouser Electronics as it bolstered its line card by adding 31 new manufacturers during the first three months of the year.
Sponsored content by CMLPCB Manufacturer with Global Sales Network Starteam, CML and CIA Join Forces CML Group and CIA Group Holdings, both global leaders in Printed Circuit Board (PCB) manufacturing, sourcing and supply solutions, announce the completion of a merger agreement effective April 30th, 2021.
UMC to expand capacity at its 300mm Fab 12A P6 in Tainan Taiwanese semiconductor foundry, United Microelectronics Corporation (UMC), is planning to expand capacity at its 300mm Fab 12A Phase 6 (P6) in Taiwan’s Tainan Science Park through a collaboration model with several of its global customers. In total NTD 100 billion (EUR 2.96 billion) will be invested to bump up production.
SK hynix is optimistic about the market condition The South Korean semiconductor says that it made better results both QoQ and YoY in the first quarter as the semiconductor market conditions improved earlier this year.
SiPearl launches recruitment plan – aiming for 1'000 by 2025 The Franco-German microprocessor specialist is launching its first recruitment campaign for its sites in Maisons-Laffitte and Sophia-Antipolis, both in France; as well as its German site in Duisburg. The company says it's recruiting 10 engineers per month in France & Germany.
NXP sees its 1Q revenues soar 27% YoY Semiconductor manufacturer NXP delivered first quarter revenues of USD 2.6 billion, an increase of 27% from 2,02 billion during the same period last year.
Sponsored content by ICAPE GroupICAPE Group Service Office in Asia In a context where traveling can be difficult, finding a good partner for your production of electronics parts can be a real challenge. With its unique organization and a Headquarters in China where all the key services are located close to the factories and fully operational, ICAPE Group provides a global solution.
Semiconductor fab inaugurated on the African continent On the 26th of April, Kenyan president Uhuru Kenyatta officially inaugurated a nanotechnology and semiconductor manufacturing facility – the first one in Kenya.
GlobalFoundries moves HQ to Fab 8 in New York Semiconductor manufacturer GlobalFoundries says it will relocate its headquarters to Malta, New York, the site of Fab 8 — as the company positions itself for growth, strengthens partnerships with customers and recruits new talent.
Neonode tech to make self-checkout kiosk contactless Neonode Inc. says that Japan Aerospace Corporation, a Neonode value-added reseller, has been selected by a major Japanese retail chain to retrofit the chain’s self-checkout kiosks with Neonode contactless touch technology.
$1 billion for every chip maker that wants to “Make in India” India has under the banner “Make in India” been encouraging companies to manufacture in the country and incentivised dedicated investments into manufacturing.
Silicon Labs sells infrastructure & auto unit to Skyworks Analog semiconductor specialist Skyworks Solutions, has entered into a definitive agreement with Silicon Laboratories Inc., under which Skyworks will acquire the Infrastructure & Automotive business of Silicon Labs in an all-cash asset transaction valued at USD 2.75 billion.
Home on the range: Getting multiple gain ranges with instrumentation amplifiers Question: I have an instrumentation amplifier, but I need wider dynamic range than I can get with a single gain. Can I multiplex gain resistors to get programmable gain?
Tata Nordics opens shop in Gothenburg Earlier this year, Tata Technologies began operations in its wholly owned subsidiary in Gothenburg, Sweden. It also marks the completion of its acquisition deal with Escenda AB in 2017.
Kraken acquires Brazilian underwater robotics company Canadian marine technology company Kraken Robotics, announces that it has acquired Brazilian underwater robotics company 13 Robotics Ltda.
This round goes to Intel A U.S. jury has ruled in favour of Intel in a patent infringement lawsuit the chip maker filed against VLSI Technology LLC.
Trouble will not let go of Renesas Renesas confirmed the emission of smoke (late afternoon local time on April 21, 2021) from the power panel of a Rail Guided Vehicle (RGV) located on the basement of the N3 Building (300mm line) of Naka Factory.Load more news