Corporate | 5 November 2009 07:40
SINGULUS TECHNOLOGIES AG / Quarter Results
05.11.2009
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Press release
SINGULUS TECHNOLOGIES Reports 9-Month Figures and Adjusts Balance Sheet to
Economic Conditions
- Consolidation measures implemented
- Significant reduction of cost base
- New Blu-ray markets developed
- Mastering system for dual layer Blu-ray accepted
- First coating machine for silicon solar cells delivered
- New products give rise to optimism for solar market
Kahl am Main, November 05, 2009 - Since the beginning of the banking crisis
in the 3rd quarter of 2008 the global economy has remained in a deep
recession. Plant and machinery engineering shows the most negative trend in
new orders compared with the prior-year. The SINGULUS TECHNOLOGIES AG
(SINGULUS) is also impacted by these developments. The financial key
figures of SINGULUS in both the Optical Disc and the Solar segments
remained below previous year's levels.
SINGULUS generated sales in the amount of EUR 95.9 million during the first
nine months of 2009 (previous year: EUR 149.9 million). The order intake is
characterized by weak activities in the segments Optical Disc and Solar. It
totaled EUR 56.0 million after the first nine months of 2009 which is
significantly below the EUR 197.4 million reported in the prior-year
period. The order intake in the 3rd quarter 2009 also declined and dropped
to EUR 15.2 million (Q3 2008: EUR 42.2 million). The order backlog amounted
to EUR 30.3 million as of September 30, 2009 (previous year: EUR 103.4
million). On an operating basis (before extraordinary write-offs) the EBIT
was negative at EUR -13.9 million (previous year: EUR -11.7 million).
However, the gross margin improved to 31.6 % during the first nine months
of the business year 2009 (previous year: 28.1 %).
Additional consolidation measures required
The difficult situation in the optical disc sector has increasingly
deteriorated due to the global economic and financial crisis as well as due
to restrained investment spending in the past twelve months, while in
particular the creditworthiness of individual customers has declined. This
trend inevitably resulted in negative impacts on the recoverability of our
receivables and inventories.
Accordingly, the Executive Board of the SINGULUS TECHNOLOGIES AG once again
reviewed all positions in the company in detail with respect to necessary
adjustments and write-offs. In the course of the meeting on November 4,
2009 it was resolved to perform balance sheet-relevant write-offs of EUR
37.4 million in total.
Specifically, write-offs on inventories and receivables amount to EUR 19.3
million. The assets of HamaTech APE are reduced in the balance sheet due to
a revaluation of the business activities by EUR 8.6 million. The intangible
assets from the Oerlikon acquisition in spring 2008 are written off by
around 50 %, i.e. by EUR 9.5 million. This results in non-cash write-offs
in the total amount of EUR 37.4 million.
The restructuring charges incurred in the 3rd quarter 2009 amounted to EUR
3.3 million and will result in significant savings in personnel expenses
from 2010. Therefore, taking into account the extraordinary items a
negative EBIT in the amount of EUR -53.3 million results. In the 3rd
quarter the EBIT before one-time charges amounted to EUR -6.2 million.
Including the extraordinary expenses SINGULUS posted a negative EBIT
totaling EUR -42.7 million in the quarter under review (previous year: EUR
-39.0 million).
Optical Disc and Solar
The demand for new machines mainly concerns the third format generation
Blu-ray. With the exception of SONY, today all disc producers manufacture
this new format on SINGULUS machines.
So far, SINGULUS has delivered more than 65 Blu-ray production machines to
customers around the world. On a favorable note, an additional Blu-ray
mastering system CRYSTALLINE was also sold and accepted by the customer
following the technical acceptance for single and dual layer after a
short-period of commissioning.
The demand for the new format Blu-ray continues to grow overall worldwide.
Accordingly, the DEG (Digital Entertainment Group) reported an increase of
Blu-ray Disc sales in the US by 83 % compared with the first 9 months of
the prior-year period in 2008. For the medium-term this growth provides a
good base for our Blu-ray equipment business in the next couple of years.
SINGULUS succeeded in developing new regions for Blu-ray production
machines this year. Amongst others, BLULINE II systems were sold to Brazil
and Japan.
The first implementation of our SINGULAR coating machine in a production
line for silicon solar cells, a new handling system for silicon wafers as
well as the development of a new ion layer gas reaction (ILGAR) process for
new plant technology for thin-film solar cells are just a few examples of
our new developments.
Outlook and strategy
A pick-up in the overall business activities has not yet taken place in the
3rd quarter 2009 either. Accordingly, for the business year 2009 SINGULUS
therefore confirms sales in a range of EUR 115 to 125 million with
significantly negative earnings.
The overall economic situation is expected to improve once again in 2010.
In addition, the restructurings implemented in 2009 - together with the
completed adjustments and write-offs - will result in a significant
reduction of the cost base in the coming years.
The Blu-ray format has prevailed internationally and develops increasingly
towards a mass market. SINGULUS, as the market leader in the Optical Disc
industry with mastering and its replication line BLULINE II, is optimally
positioned for this trend and will benefit substantially from the growth in
the coming years.
SINGULUS and STANGL are closely cooperating with leading cell manufacturers
in the development of new technologies and new plant concepts for improved
cell concepts with higher efficiency and production technologies with
decreasing production costs. We will position ourselves up front in silicon
solar as well as in thin-film solar technology.
Roland Lacher, CEO of SINGULUS TECHNOLOGIES comments: 'Our goal is to offer
a broad product range of new machines for the photovoltaics industry, which
will offer manufacturers of both silicon and thin-film cells new production
technologies and therefore particular cost advantages. Especially now, in a
time of a global economical down-turn, we see a rising interest for new
plant concepts in the PV market'. Roland Lacher adds:' Due to the
technologies and personnel capabilities existing in both companies,
SINGULUS and STANGL will not only deliver individual machines and systems
in the future, but consistently transform itself towards a joint supplier
of systems and process know-how. This change of the business model was also
successful in the Optical Disc market some years ago. The same strategy
will also pave the way for the business field of photovoltaics.'
SINGULUS TECHNOLOGIES is sure that the company, as the market leader in the
Optical Disc segment and with new products in the Solar segment, will again
be able to stabilize its operations and to generate sustainable positive
earnings.
SINGULUS TECHNOLOGIES AG, Hanauer Landstraße 103,
D-63796 Kahl/Main, ISIN: DE0007238909, WKN: 723890
Contact:
Maren Schuster, Investor Relations, Tel.: + 49 (0) 6188 440 612,
Bernhard Krause, Corporate Communications, Tel.: + 49 (0) 6181 98280 20/
+491709202924
05.11.2009 Financial News transmitted by DGAP
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Language: English
Company: SINGULUS TECHNOLOGIES AG
Hanauer Landstrasse 103
63796 Kahl am Main
Deutschland
Phone: +49 (0)6188 440-105
Fax: +49 (0)6188 440-110
E-mail: bernhard.krause@go-metacom.de
Internet: www.singulus.de
ISIN: DE0007238909
WKN: 723890
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
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