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2 November 2006


Aixtron raises full year guidance after profitable Q3

Aixtron AG of Aachen, Germany has posted its financial results for the first nine months of 2006 (ended September 30). Revenues for the period reached €108.6m, up 14% year-over-year. The company says that 49% of the revenue was generated by compound semiconductor equipment sales, compared with 57% for the same period of 2005. Driven by strong LED system demand, 81% of compound semiconductor equipment sales revenue came from Asia in the period, compared with 72% in the first nine-months of 2005. Silicon semiconductor equipment sales revenue increased to 31% in the period, from 24% for the same period in 2005.

The value of equipment orders in the period increased by 76% compared with the same period of 2005. This was supported by a 6% sequential increase in equipment order intake, to €52.3m in Q3/2006. Order intake for compound semiconductor equipment rose year-over-year by 89%, to €101.9m for the period, and order intake for silicon semiconductor equipment increased 44% (to €31.6m) year-over-year.

Gross profit for the period increased by 38% year-over-year to €41.5m, and consequently gross margin rose from 31% in the first nine months of 2005 to 38% in the first nine months of 2006. 

Aixtron’s net loss after tax decreased from €11.7m (net loss after tax per share: €0.15) in the first nine months of 2005 to a net loss of €2.4m (net loss after tax per share: €0.03) in the first nine months of 2006. Its net loss after tax in the first nine months of 2005 included beneficial allocations to deferred tax assets, which did not occur in the first nine months of 2006.

“We are particularly pleased at being able to present yet another quarter of improving profit, increased cash, growing order intake, reduced costs, better margins and stable market conditions, all of which, bar the market environment, are a reflection of a more consistent and focused internal performance across the Aixtron group,” said Paul Hyland, Aixtron’s president and CEO. “Looking forward over the next three months, although we have a very busy and challenging time ahead of us, we expect to continue to make good progress with our own internal operational performance, and to make further progress towards extending both our technology and our market reach.” 

Following the results, Aixtron raised its 2006 full year guidance to approximately €160m in revenue (previous guidance given on August 3, 2006: approximately €150m in revenue), with net income after tax for fiscal year 2006 estimated to be approximately €3m (previous guidance given on August 3, 2006: breakeven on a net result basis).

See related item.