ROODMICROTEC N.V. - Sharp increase in quotations
July 10, 2014 - London
Zwolle - 10 July 2014
ROODMICROTEC N.V. - Sharp increase in quotations
The successful issue of bonds with mortgage cover and the strengthening of our equity have had a very positive impact on our balance sheet ratios and on our financial position in general. This improved position enables us to contribute more actively to the development of new products, generating recurring sales. In the longer term, this will mean stabler, more predictable and less cyclic turnover development. However, this approach will take a little time to bear fruit: sales growth will not occur until the second half of 2014, extending into 2015.
This, in combination with the postponement of some major orders to the second half of the year, has resulted in provisional sales in the first half of 2014 of EUR 4.771 million, 13% down on the first half of 2013 (EUR 5.505 million).
Things are looking brighter, however, as the record number of applications we received earlier in the year has translated into a sharp rise in the number of quotations given. At a total value of between EUR 9 and 10 million, this represents a 80%-90% increase on the first half of 2013. In view of this increase, we maintain our sales objectives for 2014.
Sales by business unit in the first half of 2014 vs first half of 2013
|(x EUR 1,000)||HY1 2014||HY1 2013||Change|
|Supply Chain Management||839||1,194||-30%|
|Failure & Technology Analysis||675||703||-4%|
|Qualification & Reliability Investigation||837||1,149||-27%|
Due to the strengthening of our working capital we can now also contribute to the continuity of our customers' operations, especially Fabless Companies (FCs). They are often frustrated in their development by continuing lending restraint among banks. We are now better able to offer solutions in collaboration with our partners. With this approach, we aim to boost the development of FCs and to improve our sales and market position.
'I would like to reiterate the two examples of collaboration/co-financing that we mentioned in the brochure for the bond loan, because they illustrate so well how we are working towards stabler sales development.
An aeronautical and aerospace customer with a good track record, a leading market party, is contracted by an end-customer to develop an innovative detector. This work requires special equipment/tooling. By co-investing in the development phase of this innovative detector on the strict condition that RoodMicrotec will later be hired to handle mass production, RoodMicrotec can generate recurring business. This provides a solid basis for significant additional sales, while also recouping the original investment.
Another customer who is active in radio frequency, and who also has a good track record, is looking for a partner to market a new product. RoodMicrotec is prepared to invest in future business in partnership with this customer. In this way RoodMicrotec will strengthen its market position and realise additional sales', Philip Nijenhuis, RoodMicrotec CEO commented.
In order to profit maximally from the development of new products and the considerable number of attractive projects in the market, strengthening our sales team remains one of our priorities.
The semiconductor industry is showing positive growth. Based on the record number of quotations, we expect, in line with our earlier prognoses, to realise significant sales growth in the second half of 2014 and beyond.
Financial agenda 2014/2015
|28 August 2014||Publication interim report 2014|
|28 August 2014||Conference call for press and analysts|
|13 November 2014||Publication trading update|
|8 January 2015||Publication annual sales figures 2014|
|26 February 2015||Publication annual figures 2014|
|26 February 2015||Conference call for press and analysts|
|12 March 2015||Publication annual report 2014|
|23 April 2015||Annual general meeting of shareholders|
|14 May 2015||Publication trading update|
|9 July 2015||Publication sales figures first half 2015|
|27 August 2015||Publication interim report 2015|
|27 August 2015||Conference call for press and analysts|
|12 November 2015||Publication trading update|
This press release contains a number of forward-looking statements. These statements are based on current expectations, estimates and prognoses of the board of management and on the information currently available to the company. The statements are subject to certain risks and uncertainties which are hard to evaluate, such as the general economic conditions, interest rates, exchange rates and amendments to statutory laws and regulations. The board of management of RoodMicrotec cannot guarantee that its expectations will materialise. Furthermore, RoodMicrotec does not accept any obligation to update the statements made in this press release.
With 40 years' experience as an independent value-added service provider in the area of micro and optoelectronics, RoodMicrotec offers fabless companies, OEMs and other companies a one-stop shopping proposition. With its powerful solutions RoodMicrotec has built up a strong position in Europe.
Our services comply with the industrial and quality requirements of the high reliability/space, automotive, telecommunications, medical, IT and electronics sectors.
'Certified by RoodMicrotec' concerns inter alia testing of products to the stringent ISO/TS 16949 standard that applies to suppliers to the automotive industry. The company also has an accredited laboratory for test activities and calibration to the ISO/IEC 17025 standard.
The value-added services comprise inter alia (eXtended) supply chain management, failure & technology analysis, qualification & burn-in, test- & product engineering, production test (including device programming and end-of-line service), ESD/ESDFOS assessment & training, quality & reliability consulting and total manufacturing solutions with partners.
RoodMicrotec has branches in Germany (Dresden, Nördlingen, Stuttgart), the UK (Bath) and the Netherlands (Zwolle).
Philip Nijenhuis, CEO
Telephone +31 (0) 38 4215216
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: RoodMicrotec N.V. via Globenewswire