Strong improvement for RoodMicrotec
Semiconductor supplier RoodMicrotec's total income during the first half of 2021 amounted to EUR 7.3 million, which is 36% above the total income of the same period 2020 and 12% higher than the total income reported for the second half of 2020.
The company says that the growth is driven by an overall strong delivery level, as well as an exceptional high level of usage of raw materials and consumables for SCM project preparations. In the first half of 2021, the company has ordered and received wafers for one of its SCM customers to manage the supply chain during a planned change of an assembly house. About EUR 0.4 million has been realised for these wafers as total income and approximately the same amount has been accounted for in the cost for raw materials and consumables. This results in a higher total income and a higher cost of materials in the first half of 2021 without an impact on the net profit. RoodMicrotec says that the parts will be delivered during the coming twelve months where only part of the selling price will be recognised in the total income. The total income will therefore be reduced but the impact on the net profit will be positive. The profit after taxes for the first half year of 2021 was EUR 0.4 million which is EUR 1.2 million above the first half year of 2020. The lower cost of raw materials together with good cost control have continued to reduce the overall costs in the first half year of 2021. The cash flow from operating activities for the first half year of 2021 was positive with EUR 0.9 million and the net cash flow was positive with EUR 0.6 million. During the first half of 2021, the investments in new equipment have been minimal, but with the forecasted increase in demand the company says that it intends to invest in additional capacity and capability in the second half of the year. “It is very encouraging to see the strong improvement in total income and net profit in the first half year of 2021 which was possible thanks to the dedication of our employees and the good relationships with our customers and suppliers. The global shortage of semiconductor supplies and logistic challenges have not impacted us during the first half year, but we are monitoring it closely to be able to act if necessary”, says Martin Sallenhag, CEO of RoodMicrotec in the press release. RoodMicrotec expects the total income in 2021 to be in the range of EUR 13.2 million to EUR 13.6 million. The profit before tax in 2021 is expected to be in the range of 4% to 5% of the total income.