Melexis with 70% sales increase YoY

Gross margin was EUR 102.3 million, an increase of 112% compared to 2009. The operating result was EUR 56.3 million, up from EUR 7.0 million last year. Net income was EUR 48.6 million, compared to a net loss of EUR 4.0 million in 2009. Sales in the 4th quarter of 2010 were EUR 58.1 million, an increase of 37% year-over-year and a decrease of 2% compared to the previous quarter. On a constant currency basis, sales increased by 2% compared to the previous quarter. In absolute figures, both sales in EUR and USD increased slightly compared to the previous quarter. Gross margin was EUR 27.4 million, an increase of 62% compared to the same quarter of 2009. Operating result was EUR 14.9 million or 26% of total sales. R&D expenses were at 14% of sales, while SG&A expenses were at 8% of sales. Net income was EUR 13.2 million, up from EUR 6.1 million net profit the same quarter last year. Melexis purchased 349'602 shares during 2010 at an average price of 11.47 EUR. As a result, the total number of treasury shares at the end of 2010 was 2'075'545, representing 4.80% of shares outstanding. Effective February 14th, Françoise Chombar will take up the role as single CEO for Melexis, allowing Rudi De Winter to pursue another responsibility in the Xtrion n.v. holding. Rudi De Winter will remain a member of the Melexis Board of Directors and in this role he will hence continue to participate in setting the strategic direction for Melexis. Karen van Griensven, CFO of Melexis commented: We are proud that Melexis broke multiple records in 2010: we achieved the highest ever annual sales and reached a record gross margin and operating margin. Also, in absolute figures, we were able to set new records in operating and net result. Asia is now our top market, representing 93 million euro in sales. Rudi De Winter, CEO of Melexis stated: It has been one of the founders' credos that we must work towards making ourselves dispensable in the long-term interest of the company. Melexis has meanwhile built an effective management team that has the necessary complementary competencies to make Melexis thrive further under the leadership of Françoise Chombar. Françoise Chombar, CEO of Melexis added: Melexis' past year results validate that the company has come out of the crisis more robust than before. Our year-long strategy to focus on innovation in the automotive sector proves more valid than ever before. Melexis products enable our customers to reduce their vehicles' energy consumption and at the same time increase both safety and comfort of driver and passengers. Thus Melexis is helping to resolve one of the greatest challenges our world is facing today and tomorrow. Outlook The company expects sales in the first quarter of 2011 to be at about the same level as Q4 2010. For 2011, a high single digit growth in sales is expected, with the gross profit margin to solidify above 45% and operating margin to remain above 23% taking into account a EUR/USD exchange rate of 1.40.