Singulus Technologies announced financial results for the second quarter of 2014.

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Unedited press release follows:

Business Trend and Situation of the SINGULUS TECHNOLOGIES Group for the 1st Half 2014

• Delays in the Optical Disc segment

• Half-year results impacted

• First projects in the Solar division successfully realized, additional projects pending

• Achievement of full-year forecast very challenging

Kahl am Main, August 14, 2014 – The key financial results for the 1st half 2014 of the SINGULUS TECHNOLOGIES AG (SINGULUS TECHNOLOGIES) were weaker than in the previous year due to up to date restrained order activities for Blu-ray Disc production machines. Sales in the 1st half of 2014 amounted to € 30.1 million (previous year: € 49.2 million). In the 2nd quarter sales in the amount of € 13.4 million (previous year: € 26.4 million) were realized. The order intake in the 1st half of the business year 2014 stood at € 25.2 million (previous year: € 48.8 million). The order intake in the 2nd quarter amounted to € 11.1 million (previous year: € 33.2 million).

Due to still low order intake for Blu-ray equipment and the continuing delays in order intake in the Solar division the order backlog stood at € 15.4 million as of June 30, 2014 compared with € 39.7 million in the prior-year period. In the 1st half of 2014 earnings before interest and taxes (EBIT) came to € -12.5 million (previous year: € -6.5 million). The EBIT in the quarter under review was also negative at € 7.4 million (previous year: € -1.6 million). The headcount within the SINGULUS TECHNOLOGIES Group of 361 permanent employees remained at the level of the end of the business year 2013 (December 31, 2013: 362).

In its forecast for the business year 2014 SINGULUS TECHNOLOGIES assumed a slight increase in sales as well as in operating earnings (EBIT). A negative result was projected pursuant to IFRS.

The respective development in the three segments formed the foundation for this forecast. For the Optical Disc segment the Executive Board had already cautiously budgeted in fall 2013 and expected lower sales and earnings (EBIT). This expectation was also published in the Annual Report 2013. Currently, the delays in the Optical Disc division with respect to orders and call-offs by our customers for Blu-ray machines are more substantial than anticipated.

The worldwide penetration of Blu-ray Discs continues to grow. Market research institutes project a nearly 10 % growth for the Blu-ray Disc market in 2014 and following this growth, capital spending for new production equipment is also forecast.

Dr.-Ing. Stefan Rinck, CEO of SINGULUS TECHNOLOGIES, comments: “We expect that this year’s order period will only be concluded by the end of September or beginning of October, which will then provide us a complete overview of the Optical Disc segment.”

Dr. Rinck adds: “Although the course of business in the Solar division is still cautious, not all of the expected order decisions have been made this year so far. Here, we are well positioned for several investment projects with our products and we expect additional, larger order intake in the 2nd half, which together with the existing orders should still make earnings contributions in the current year.”

In the Semiconductor division the business activities in the current business year are in-line with expectations.

The described uncertainties cause the Executive Board to deem the achievement of breaking even on an operating basis as very challenging for the current business year 2014.

Dr.-Ing. Stefan Rinck remarks: “We do not yet have clear visibility over the development in all three segments for the 2nd half of 2014 and will specify our forecast for the full-year at the end of September or beginning of October.”

Consolidated key figures SINGULUS pursuant to IFRS (unaudited)

Profile SINGULUS TECHNOLOGIES
In the past couple of years SINGULUS TECHNOLOGIES has continuously further developed its technologic know-how on the basis of the core competencies nano- and vacuum-coating as well as thermal and wet-chemical process technology and is currently opening new markets with innovative products.

SINGULUS TECHNOLOGIES takes advantage of its technologic know-how in the areas vacuum technology, automation, process technology as well as the integration of production steps in order to open further, attractive work areas. In this context, internal growth resulting from the development of proprietary solutions as well as acquisition opportunities for the generation of external growth are analyzed with respect to their feasible implementation. reasonable impoizato their reasonable realizatng, automation, process technology and integrarti In this process SINGULUS TECHNOLOGIES focuses on solutions that are not only economically viable, but also sustainable and resource-efficient.