Singulus Technologies announced financial results for the third quarter of 2012.
For more information visit: www.singulus.de
Unedited press release follows:
SINGULUS TECHNOLOGIES Reports Key Financial Figures for the First Nine Months of 2012
• Negative result of the first half-year impacts 9-month and full-year results
• Q3 positive before extraordinary charges
• Still solid balance sheet
• Liquid funds amount to € 65.4 million as September 30
• Positive earnings intended for the business year 2013
Kahl am Main, November 8, 2012. During the first nine months of the current business year SINGULUS TECHNOLOGIES (SINGULUS) recorded sales of € 83.5 million and is thus below the level of the prior-year period in the amount of € 121.8 million. The operating result EBIT (before extraordinary expenses) amounted to – € 10.9 million in the first nine months (previous year: € 6.3 million). Including extraordinary charges a negative EBIT in the amount of € -54.2 million and an EBITDA of € -29.9 million (previous year: € 14.7 million) was recorded for the period under review. The order intake in the first nine months of the business year 2012 amounted to € 110.6 million (previous year: € 137.0 million). As of September 30, 2012 the order backlog of € 53.9 million is slightly above the prior-year level of € 50.8 million.
Sales in the 3rd quarter amounted to € 39.9 million (previous year: € 57.2 million). Including extraordinary charges totaling € 43.3 million the operating result stood at negative € 41.8 million. Accordingly in the quarter under review the result adjusted for extraordinary charges amounted to € 1.5 million.
Due to the disappointing development of the Optical Disc division as well as the still difficult situation on the market for equipment for the production of solar cells, SINGULUS had to implement a couple of measures, which had an additional negative impact on the key financial figures.
SINGULUS is gradually implementing a structural change from a pure supplier of machines in Optical Disc to a leading provider for vacuum technology in different segments such as Optical Disc, Solar and Semiconductor. On the one hand, capacities have to be adjusted accordingly. On the other hand, investments in industries of the future and expansions into new work areas are made. Due to the business situation the Executive Board resolved drastic measures for the segments to be structured. In the Optical Disc segment this mainly affects the foreign subsidiaries and the product segment Mastering. Furthermore, the work area of machines for wet-chemical production steps at the subsidiary SINGULUS STANGL SOLAR GmbH is affected by the decline in the market for silicon-based solar cells. Overall, in the Solar segment structures and capacities in the wet-chemical division as well as capitalized development expenses for traditional coating technology are therefore further adjusted. Accordingly, at the end of the business year 2012 the headcount at the Fürstenfeldbruck site will be reduced by about 40 %. The impairment review of all balance sheet items resulted in provisions, write-offs on inventories and on accounts receivable as well as write-downs in the amount of € 43.3 million for the current quarter 2012 (“Extraordinary charges”). The majority of these balance sheet adjustments do not result in additional cash outflows.
Dr.-Ing. Stefan Rinck, CEO SINGULUS TECHNOLOGIES AG: “SINGULUS has good liquid funds and will use the funds in the coming years for internal and external growth.”
Overall, the liquid funds increased by € 47.6 million in the first nine months and amount to € 65.4 million as of September 30, 2012. The balance sheet continues to remain stable and is still very solid with an equity ratio of approximately 40 %.
The described measures will lead to an overall negative result including extraordinary charges in a range from € -54.0 to -56.0 million for 2012.
Outlook
SINGULUS TECHNOLOGIES solidly financed for the future – good prospects for breaking-even in Optical Disc, Solar and Semiconductor – growth through new business areas
In the business year 2011 SINGULUS completely repaid its liability owed to banks. Except for a loan from the KfW in the amount of € 4.8 million there are currently no more bank liabilities.
With the proceeds from the issue SINGULUS TECHNOLOGIES is able to finance larger projects in the Solar segment, the expansion of the system partnership with producers of thin-film solar cells, the development of new products in the Solar division and the development of manufacturing equipment for the next generation of Blu-ray Discs.
To strengthen SINGULUS’ existing business segments the Executive Board has elaborated a detailed portfolio strategy and is currently reviewing several concrete acquisition opportunities. It goes without saying that the Executive Board is analyzing the potential targets with the required diligence.
The trends in the individual segments are projected as follows:
OPTICAL DISC
Since the market for Blu-ray Disc continues to grow at double-digit rates in 2012, we expect stable sales and earnings contributions again.
SOLAR
In the thin-film technology CIGS/CIS SINGULUS is excellently positioned. Larger investment projects have already been announced for 2013. If they are realized according to plan, SINGULUS will surely succeed in delivering a significant number of machines.
In a difficult market, crystalline solar cells we see us very well positioned technologically due to the good development efforts in the past years. The upgrade business in the area of crystalline solar cells to the PERC standard promises new demand for this specialized production equipment in 2013.
Semiconductor
The Semiconductor division will make positive earnings contributions this year. The potential of the various application areas for the machines suggests a further uptrend in the coming business years.
SINGULUS’ Executive Board sees a good chance for the existing segments Optical Disc, Solar and Semiconductor to generate positive earnings in the next year again.
