Singulus Technologies announced financial results for its full 2014 business year.

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Unedited press release follows:

SINGULUS TECHNOLOGIES Reports Consolidated Annual Results for 2014

• Sales at € 66.8 million as expected significantly below prior-year level of € 134.9 million

• Earnings before interest and taxes at € -49.1 million in 2014

• Sufficient liquidity to finance operating activities

• Important order intake in the Solar segment in Q1 2015

• Additional market potential from new work areas

Kahl am Main, March 31, 2015 – The SINGULUS TECHNOLOGIES AG (SINGULUS TECHNOLOGIES) reports sales in the amount of € 66.8 million for the business year 2014. Accordingly, sales came in significantly below the prior-year level of € 134.9 million. The decline mainly resulted from lower sales in the Optical Disc division. In the third quarter the company had considerably lowered the full-year forecast due to a decline in the order volumes in particular for the area of the Blu-ray Disc replication line BLULINE II. Sales in the Solar segment once again remained at a low level due to the generally weak demand for photovoltaic machines. The order intake came to € 60.6 million in the year under review (previous year: € 115.1 million) and was substantially below previous year’s level. The order backlog amounted to € 14.0 million as of December 31, 2014 (previous year: € 20.3 million).

The earnings before interest and taxes (EBIT) amounted to € -49.1 million (previous year: € 2.2 million). Excluding the impairment and restructuring charges an EBIT in the amount of € -27.8 million (previous year: € 0.6 million) was realized. The financial result was negative at € -2.6 million and therefore slightly above the previous year’s level (previous year: € -3.2 million). The net result in the business year 2014 amounted to € -51.6 million (previous year: € -0.7 million). Excluding the impairment and restructuring charges an adjusted net result in the amount of € -30.3 million (previous year: € -2.3 million) was realized. The impairment and restructuring charges include the revaluation of the goodwill in Solar of € 15.0 million as well as € 4.9 million of complete write-offs on the customer base from the acquisition of the Blu-ray Disc activities of the Oerlikon Balzers AG in the business year 2008. Furthermore, restructuring charges in the area of global marketing and sales activities in the amount of € 1.7 million were incurred. Provisions for restructurings in the amount of € 0.3 million formed in the previous periods were reversed.

The Group had a liquidity in the amount of € 35.8 million as of December 31, 2014. Therefore, according to the corporate planning the company currently has sufficient liquid funds to honor its obligations from operating business activities.

Outlook for the business year 2015
For the business year 2015 SINGULUS TECHNOLOGIES plans to double its sales compared with the previous year, in particular due to the projections for the Solar division. This will correspond to nearly breaking even on an EBIT basis and thus a significant improvement of this key figure.

To achieve the financial full-year targets for 2015 it will be decisive how the product mix of sales will develop and whether the individual segmental targets will be achieved. This holds particularly true for the segments Solar and Optical Disc.

The current financing structure of the company via the issued bond will also result in an interest expense in 2015, which will impact the results and lead to a negative net profit of the Group pursuant to IFRS after all.

In the first quarter of the new business year, the company already received an order intake of more than € 60 million and thus reached an important milestone for its budgets.

In the past couple of years, SINGULUS TECHNOLOGIES has continuously expanded the technologic know-how on the basis of the core competencies vacuum thin-film technology, surface processing technology as well as thermal and wet-chemical process technology. Several new machines and equipment for this were developed with target customers and are currently being tested. SINGULUS TECHNOLOGIES will work extensively on the market introduction of these products in the business year 2015. Initial success shows that this path is correct and continues to be promising.

Key financial figures 2013/2014

Profile SINGULUS TECHNOLOGIES
SINGULUS TECHNOLOGIES develops innovative technologies for economic and resource-efficient production processes. SINGULUS TECHNOLOGIES’ strategy targets the use and expansion of its existing core competencies. This includes process technology and scientific solutions combined with mechanical and plant engineering. The core competence of SINGULUS TECHNOLOGIES rests on vacuum thin-film and plasma technology, wet-chemical processing as well as thermal process technology.

SINGULUS TECHNOLOGIES is expanding this expertise in its core segments and to transfer the know-how to new application areas: consumer goods, entertainment, energy, mobility and semiconductors.