Order intake plus 90% / Revenues increased again / Significantly improved profitability / Doubling of EBIT / Order intake guidance raised again
Herzogenrath, July 29, 2021 - AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6) reports a very strong business performance in the first half of 2021, with order intake for the leading provider of deposition equipment to the semiconductor industry reaching EUR 263.3 million in this period, the highest level in the past ten years. Customer orders almost doubled (plus 90%) compared with the corresponding prior-year period (EUR 138.4 million).
Highest order intake and equipment order backlog in ten years
In the second quarter of 2021, the order volume of EUR 139.0 million exceeded the already strong first quarter of the year (EUR 124.4 million) by a further 12%. Customers particularly requested AIXTRON equipment for gallium nitride power electronics applications. Optoelectronics applications for optical data transmission as well as LEDs for fine pitch displays were also in high demand.
At the end of the quarter (June 30, 2021) the equipment order backlog reached EUR 295.0 million, the highest volume in the past decade. It was 88% higher than in the same period of the previous year (EUR 156.6 million); at the end of the first quarter (March 31, 2021), AIXTRON still had an order backlog of EUR 223.5 million.
High revenue growth in the second quarter of 2021
AIXTRON also strongly increased revenues and profits in the first half of 2021 and significantly improved profitability. At EUR 117.2 million, revenues (including service and spare parts) exceeded the corresponding prior year figure (EUR 97.0 million) by 21%. In the second quarter, revenues rose to EUR 67.7 million, 37% higher than in the opening quarter of the year (EUR 49.5 million).
61% of the revenues in the second quarter of 2021 were generated with systems for optoelectronics. Another high share of sales was contributed by equipment for power electronics (30%), in particular systems for gallium nitride applications. 7% of the revenues were attributable to the
LED area.
At EUR 45.2 million, gross profit in the first half of 2021 exceeded the gross profit of the prior-year period (EUR 37.5 million) by 21%. In the second quarter, growth momentum was very high compared to the previous quarter, with gross profit in the second quarter increasing by 61% from EUR 17.3 million to EUR 27.9 million compared to the previous quarter. AIXTRON achieved a gross margin of 39% in the first six months. In the second quarter, the deposition specialist's gross margin was 41%, compared to 35% in the previous quarter.
Doubling of EBIT
Operating expenses rose by 14% in the first half of the year from EUR 35.3 million in the previous year to EUR 40.2 million. Operating expenses in the first half of 2021 include the one-time expenses for the realignment of the business activities of the subsidiary APEVA in the amount of EUR 3.2 million. In the second quarter, operating expenses including the one-time expenses for APEVA, amounted to EUR 22.3 million, compared with EUR 18.0 million in the first quarter of this year.
AIXTRON was also able to strongly increase its operating result due to the high revenue growth. In the first half of the year, the equipment specialist more than doubled its earnings before interest and taxes (EBIT) from EUR 2.2 million to EUR 4.9 million. After EBIT in the first quarter was still slightly in the red at EUR -0.7 million, EBIT in the second quarter amounted to EUR 5.6 million. In the first half of 2021, the EBIT margin doubled to 4% from 2% in the first half of the previous year; in the second quarter it was 8%.
In addition, the capitalization of deferred taxes on loss carryforwards amounting to EUR 3.4 million in the second quarter of 2021 had a positive impact on net profit which improved significantly to EUR 11.5 million in the first half of the year, compared with EUR 2.5 million in the corresponding prior-year period. In the second quarter, net profit doubled from EUR 3.8 million in the previous quarter to EUR 7.7 million.
Strong financial foundation
The leading deposition equipment supplier has a solid financial foundation. Due to the significant increase in customer prepayments reflecting the positive order situation, AIXTRON reported a decrease in the equity ratio as of June 30, 2021. It was 73% at the end of the first half year (June 30, 2021), compared to 84% as of December 31, 2020. Due to the positive business development, AIXTRON SE had distributed a dividend to its shareholders for the first time in ten years for fiscal year 2020. Free cash flow increased to EUR 46.1 million in the first half of the year, compared to EUR -8.4 million in the same period of the previous year, mainly due to high order prepayments.
Executive Board once again raises forecast for order intake
The Executive Board confirms its guidance for the full year 2021, which was increased at the beginning of June due to the very dynamic order development, and raises the order intake guidance once more. Accordingly, AIXTRON expects for fiscal year 2021
- Order intake in the range of EUR 440 million to EUR 480 million (previously: EUR 420 million to EUR 460 million)
- Revenues from EUR 400 million to EUR 440 million
- a Gross margin of approximately 40% of revenues and
- an EBIT margin of 20% to 22% of revenues.
Expectations for 2021 are based on the assumption that the COVID-19 pandemic continues to have no significant impact on the development of the business.
"Customer demand is very high in all end markets relevant to us. In particular, AIXTRON's equipment for the production of gallium nitride power electronics, for the production of components for 5G network expansion and for high-speed optical data transmission is in high demand. This trend is unbroken, and we expect to continue to see very dynamic revenue growth in the second half of the year," said Dr. Felix Grawert, President and CEO of AIXTRON SE.
"The gallium nitride material system in particular opens up competitive advantages for our customers in terms of performance, but also with regard to energy consumption and the associated CO2 emissions. Our customers are increasingly taking advantage of gallium nitride in devices," adds Dr. Felix Grawert.
Financial Tables
Investor Conference Call
In conjunction with the announcement of the first half 2021 results, AIXTRON will hold a conference call for analysts and investors on Thursday, July 29, 2021, 3.00 p.m. CEST (6.00 a.m. PDT, 9.00 a.m. EDT) to review the first half 2021 results. You can dial into the conference starting at 2.45 a.m. CEST (5.45 a.m. PDT, 8.45 a.m. EDT) by calling +49 (69) 24 747 18 33 or +1 (646) 712-9911. An audio recording or transcript will be available after the conference at
New Technology Display Cost Analysis
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