- 31 March 2005 -

Aixtron recovers cautiously

Aixtron's 2004 financial results for fiscal year 2004, ended December 31, 2004 missed the Ides and beat the Easter rabbit with its 2004 revenues rising by 55% year over year, from E90.4m in 2003 to E140m in 2004. Gross margin on sales improved from 20% in 2003 to 36% in 2004.

Net income of E7.1m in 2004, represented an 11c/share net income compares to a net loss of E17.8m in 2003, representing a net loss per share of 28c/share.

Cash and cash equivalents amounted to E45.5m as of December, 2004, compared to E45.3m as of December, 2003. No bank borrowings were undertaken at year end 2004. Equity ratio as of December 2004 was 77%, compared to 78% for the previous December.

Equipment orders received rose by 40% year on year, from E79.3m at December 2003, to E111.4m as of December 2004. However he equipment order backlog as of December 31, 2004 was E36.6m , as compared to E59.4m the previous December.The revenue value of orders, not yet recognised, at customer locations awaiting acceptance totaled E15.6m million as of December 2004.

US generated 13% of total revenue in 2004, 77% out of Asia, and 10% from Europe. Comparable figures for 2003 were 16% US, 73% Asia, and 11% Europe. Equipment sales generated 83% of consolidated total revenues in 2004, as compared to 78% in 2003. The balance is provided by spare parts sales and service.

R&D expenses in 2004 were E20.1m,14% of total revenues compared to E14.2m or 16% of total revenue in 2003. Employee numbers in December 2004 had grown 95 more than the 385 of December 2003.

CEO Paul Hyland was "delighted" to report that Aixtron's business improved significantly in 2004, with the company returning to profit. Gross margin on sales rose to 36%, from 20% in the previous year, and order intake increased 40% year on year.

Hyland said: "Clearly the most significant corporate issue in 2004 was the company's decision to acquire the business of Genus Inc in Sunnyvale, California, an established deposition system supplier to the silicon semiconductor industry.

Refering to "the complementary set of skills and technology of Genus' fiting comfortably with "our strategy of diversifying our technology into three end customer groups: compound semiconductors, silicon semiconductors, and organic semiconductors," Hyland continued: "As being predicted by many market watchers, we believe that the business climate may remain difficult for the next twelve months.

"But we expect to maintain our very strong position in the compound semiconductor MOCVD system market and remain positive about our ability to build a much stronger position in both the OVPD Display and the silicon semiconductor arenas in the coming year."