© 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.
Broadcom to acquire VMware for $61 billion
Semiconductor design company Broadcom Inc. will acquire all of the outstanding shares in VMware, in a transaction that values the enterprise software company at approximately USD 61 billion.
GlobalFoundries launches GF Labs
At its annual GF Technology Summit (GTS), GlobalFoundries announced the launch of GF Labs, a new program that extends the development horizon of differentiated semiconductor technology.
Sunway partners with BMF to develop next-gen antennas
Sunway Communication has partnered with Boston Micro Fabrication (BMF) to develop next generation antennas. The companies have opened a joint development lab in San Diego, California.
InnovationLab acquires flexible printed battery technology from Evonik
German printed electronics specialist, InnovationLab, has acquired the TAeTTOOz printable battery technology from Evonik.
Sponsored content by Fusion
Manufacturers Reassess their Supply Chains
Prevailing obstacles since the COVID-19 Pandemic in 2020 have manufacturers reassessing their supply chain strategies. The following major disruptions that occurred entering 2022 added to existing setbacks, or created new ones altogether:
Motorola secures chip supply with GlobalFoundries deal
The US semiconductor foundry has entered into a long-term agreement to safeguard the supply of chip solutions for Motorola Solutions' radios, which are widely used by public safety, critical infrastructure and enterprise organisations.
Nexperia and Kyocera to develop GaN automotive power modules
Nexperia and Kyocera AVX Components (Salzburg) GmbH, have entered into a partnership with a focus on power components – the companies aims to jointly developing GaN applications for electric vehicles.
Intel invests $700 million in new Oregon mega lab
The US chipmaker plans to invest more than USD 700 million for a 200,000 square-foot, research and development mega lab focused on data center technologies and addressing areas such as heating, cooling and water usage.
Obsolescence management cannot be an afterthought
“Obsolescence has always existed. However, it usually only becomes really critical for companies when the exception mutates into the norm. And in recent years we have unfortunately experienced this unwanted development not only with semiconductor chips, but increasingly with many other components, materials and raw materials,” says IIOM President and COGD Chairman Dr Wolfgang Heinbach.
Tower record 1Q22 revenues of $421 Million, a 21% YoY
Tower Semiconductor reported first quarter 2022 revenue of USD 421 million, an increase of 21% compared to USD 347 million in the first quarter of 2021.
Gallium Semiconductor opens its Nijmegen R&D center
Gallium Semiconductor has officially held the grand opening of its European R&D center in a ceremony in Nijmegen, the Netherlands.
Ferrotec to add manufacturing capacity with new plant in Malaysia
Ferrotec, a global supplier of materials, components, and precision system solutions, is establishing a new manufacturing facility at Kulim Hi-Tech Park, Kedah, facilitated by the Malaysian Investment Development Authority (MIDA).
Sponsored content by Proval Service
Since 25 years your partner for SMT stencils and solder pallets.
25 years of experience makes Proval Service not just a supplier but your trustful and grounded partner to support you with SMT stencils and solder pallets. A qualified and unite team can satisfy every customer's need during the whole process.
Skeleton targets the Polish market – teams up with ZPUE
Supercapacitor specialist, Skeleton Technologies, and ZPUE, a Polish manufacturer of electrical devices for electrical power distribution utilities, have entered into a commercial agreement to provide energy storage solutions to the Polish market.
ERP partners with Flip to fulfill EOL and Obsolete component solutions
Flip Electronics has signed a franchised distributor partnership agreement with ERP Power (ERP) to distribute its End-of Life (EOL) semiconductor products.
Foxconn and DNeX build and operate wafer fab in Malaysia
Dagang NeXchange Berhad (DNeX) and Foxconn subsidiary Big Innovation Holdings (BIH), plan to set up a joint venture company to build and operate a new 300mm wafer fab in Malaysia.
Imec and semiconductor partners target greener chip manufacturing
Nanoelectronics research and innovation center, imec, says that it has managed to pool together stakeholders from the semiconductor value chain – from companies such as Apple and Microsoft, to suppliers, including ASM, Kurita, SCREEN and Tokyo Electron – to participate in its Sustainable Semiconductor Technologies and Systems (SSTS) research program.
SiPearl reaches milestone – 100 employees
The European chip designer has exceeded 100 employees across its six sites in France (Maisons-Laffitte, Grenoble, Massy, Sophia Antipolis), Germany (Duisburg) and Spain (Barcelona).
Arrow names Jörg Strughold as president EMEA components
Arrow Electronics announces that Jörg Strughold will take over as president of its components business in EMEA. He succeeds Martin Bielesch who has decided to leave the company.
€14 billion to attract semiconductor players to Germany
EUR 14 billion in state support is the German governments new strategy to attract more chipmakers to the country.
10 different companies have expressed interest in Toshiba
Back in April 2022, Toshiba Corporation announced that it had resolved to solicit proposals on strategic alternatives from potential investors and sponsors. The Japanese company is seeking to enhance its corporate value and has since the announcement been holding discussions with the potential partners.
Avnet breaks ground on German expansion
In order to better serve its customers’ local and global needs, Avnet is expanding in two locations in Germany. Avnet Embedded broke ground on a new manufacturing site in Eschbach and Avnet EMEA plans to build its third European logistics centre in Bernburg.
Load more news