EQS-News: AIXTRON delivers robust Q3 despite weak market environment

AIXTRON delivers robust Q3 despite weak market environment

Moderate demand for SiC and GaN power / Revenues at around the previous year's level / Order intake in Q3 significantly above previous year / Technological progress in GaN and SiC systems / First system in new Innovation Center / Guidance for 2024 confirmed
 

Herzogenrath, Germany, October 31, 2024 – AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6) has achieved a robust revenue level in the first nine months of the year compared to the previous year and thus performed strongly in a weak market environment. The company generated revenues of EUR 406.4 million (9M/2023: EUR 415.7 million). In the third quarter 2024, revenues were at EUR 156.3 million (Q3/2023: EUR 165.0 million), which is in the lower half of the guidance range of EUR 150.0 million to EUR 180.0 million, as the delivery of a major project was postponed from Q3 to Q4/2024 at the customer's request.
 

Order intake and backlog above previous year

The current momentum in demand for equipment for efficient power electronics based on gallium nitride (GaN) and silicon carbide (SiC) is continuing. The order intake in the third quarter 2024 reached EUR 143.5 million, up 21% on the same quarter of the previous year (Q3/2023: EUR 118.5 million). The order intake for the first nine months of 2024 was at EUR 439.5 million, a slight increase year-on-year (9M/2023: EUR 436.2 million). The equipment order backlog as of September 30, 2024 increased significantly year-on-year to EUR 384.5 million (September 30, 2023: EUR 368.0 million; June 30, 2024: EUR 400.6 million).
 

Technological progress in SiC

Significant improvements to the 200mm G10-SiC system were recently presented at the International Conference on Silicon Carbide and Related Materials (ICSCRM) in Raleigh, North Carolina: with a further increase in uniformity for layer thickness and doping across the entire wafer, the G10-SiC now achieves the top position in the market. At the same time, it achieves the lowest cost per wafer due to the high productivity of the multi-wafer tool. This leads to continued customer interest in AIXTRON's SiC technology and roadmap.
 

Next system generation: 300mm GaN

In the area of GaN, the next big trend is already on the horizon – the introduction of 300mm wafer technology.

"The potential of GaN-based efficient power electronics is enormous due to energy-intensive artificial intelligence and other applications. Based on the expected high volumes, the first customers are now planning to switch to the next wafer size and are using our first 300mm GaN prototype systems in their development and pilot lines. AIXTRON is transferring the wealth of experience and core elements of the proven 200mm technology to the next product generation," says Dr. Felix Grawert, CEO and President of AIXTRON SE.
 

First 300mm tool in new innovation center

Since fall 2023, AIXTRON is building a new Innovation Center for 300mm technology at its headquarters in Herzogenrath. Around EUR 100 million is currently being invested in a state-of-the-art research and development complex with over 1,000m² of cleanroom space to work together with customers on the next-generation systems. The first AIXTRON system has already recently moved into the new cleanroom. The official opening of the Innovation Center is scheduled for the end of 2024.
 

Gross profit and gross margin

In the first nine months of 2024, AIXTRON recorded a gross profit of EUR 160.0 million (9M/2023: EUR 180.8 million) with a gross margin of 39% (9M/2023: 43%). In the third quarter 2024, gross profit and gross margin amounted to EUR 67.1 million and 43% (Q3/2023: EUR 76.2 million, 46%). The change compared to the same period of the previous year is mainly due to a change in the product mix, which included a high proportion of lower-margin LED systems.
 

Investment in research and development remains high

Operating expenses decreased slightly in the third quarter 2024, totaling EUR 29.6 million, down 4% from the same quarter of the previous year (EUR 30.9 million). At the end of September, operating expenses for the year to date amounted to EUR 99.7 million, an increase of 14% compared to the same period in 2023 (EUR 87.4 million). The largest share of this continued to be investments in research and development. Accordingly, in the first nine months of 2024 R&D expenses increased by 15% to EUR 68.7 million (9M/2023: EUR 59.8 million). In Q3/2024, R&D expenses amounted to EUR 21.2 million, an increase of 2% (Q3/2023: EUR 20.8 million).

The operating result (EBIT) in the first nine months of 2024 was EUR 60.3 million, corresponding to an EBIT margin of 15% (9M/2023: EUR 93.4 million, 22%). In Q3/2024, AIXTRON achieved an operating result (EBIT) of EUR 37.5 million and an EBIT margin of 24% (Q3/2023: EUR 45.3 million; 27%). The year-on-year decline in the operating result (EBIT) is mainly due to the lower gross margin resulting from the less favorable product mix and the higher R&D expenses. The profit for the period in the first nine months of 2024 reached EUR 52.9 million (9M/2023: EUR 83.5 million; Q3/2024: EUR 30.9 million; Q3/2023: EUR 39.6 million).
 

Financial position

The cash flow from operating activities was significantly higher than in the same periods in the previous year: For Q3/2024, it amounted to EUR 15.4 million (Q3/2023: EUR 4.9 million) and in the first nine months of 2024 to EUR 28.2 million  (9M/2023: EUR -65.6 million). This was positively impacted by the incipient reduction in inventories. The free cash flow was EUR -1.5 million in Q3/2024 (Q3/2023: EUR -2.2 million) and EUR -58.0 million in the first nine months of 2024 (9M/2023: EUR -82.3 million), a significant improvement on the previous year despite the signficantly higher capital expenditure for the innovation center for 300mm technology and the expansion of production capacities in Italy.

As of September 30, 2024, AIXTRON reported cash and cash equivalents including other current financial assets of EUR 78.1 million (June 30, 2024: EUR 79.4 million; December 31, 2023: EUR 181.7 million). The high equity ratio of 79% at September 30, 2024 underscores AIXTRON's financial strength (December 31, 2023: 75%).

“The positive development of our operating cash flow, triggered by the optimization of our inventories, is particularly pleasing. The aim is to reduce inventories to a normal level within the next twelve months. In addition, we are continuing to focus on the technologies of tomorrow and are already making the necessary investments today, particularly in research and development. The best proof of this is our new innovation center, which we are financing from our own resources,” says Dr. Christian Danninger, CFO of AIXTRON SE.
 

2024 full year guidance confirmed

Based on the current market development, the Executive Board confirms the guidance for the fiscal year 2024 from July 4, 2024. The Executive Board expects revenues in a range of EUR 620 million to EUR 660 million, a gross margin of around 43% to 45% and an EBIT margin of around 22% to 25% for the 2024 fiscal year. For the fourth quarter of 2024, the Executive Board expects revenues in a range of around EUR 215 million to EUR 255 million.

Moderate demand expected for 2025

The medium and long-term drivers for AIXTRON's revenue growth remain intact: efficient power electronics for IT and AI applications, SiC technology for e-mobility, and Micro LEDs for next-generation displays. In the short term, however, momentum in the end markets remains slow, so that, as things stand today, revenues for fiscal year 2025 are likely to be at the level of fiscal year 2024 or slightly below.
 

 

Key Financials						+/-						+/-
in EUR million		9M/2024		9M/2023		%		Q3/2024		Q2/2023		%
Order intake		439.5		436.2		1		143.5		118.5		21
Order backlog (Equipment only)		384.5		368.0		4		384.5		368.0		4
Revenue		406.4		415.7		-2		156.3		165.0		-5
Gross profit		160.0		180.8		-12		67.1		76.2		-12
%		39%		43%		-4pp		43%		46%		-3pp
EBIT		60.3		93.4		-35		37.5		45.3		-17
%		15%		22%		-7pp		24%		27%		-3pp
Profit for the period		52.9		83.5		-37		30.9		39.6		-22
%		13%		20%		-7pp		20%		24%		-4pp
Net cash provided by operating activities		28.2		-65.6		n.m.*		15.4		4.9		n.m.*
Free cash flow		-58.0		-82.3		30		-1.5		-2.2		32
Earnings per share (EUR)		0.47		0.74		-36		0.27		0.35		-23

* not meaningful due to too high period fluctuations
 

Financial information

The presentation on the results for the first nine months of 2024 and the third quarter 2024 is available at: www.aixtron.com/en/investors/publications/ir-presentations.
 

The complete financial tables of the Group (income statement, other comprehensive income, balance sheet, cash flow statement and statement of changes in equity) related to this press release are available as part of the Group's Quarterly Statement Q3/2024 at:

www.aixtron.com/en/investors/publications.

 
Investor conference call

In conjunction with the release of the 9M/2024 results, AIXTRON will host a conference call (in English) for analysts and investors on Thursday, October 31, 2024 at 15:00 p.m. CET (06:00 a.m. PST, 09:00 a.m. EST).

 
Please register for the event online at https://webcast.meetyoo.de/reg/YXC1FPwvHsvw. You will then receive an email with your personal access details.

An audio recording or transcript can be found after the conference at:

www.aixtron.com/en/investors/events/conference-calls.

To download photos, please click here.

 

Contact

Investors:

Christian Ludwig
Vice President Investor Relations
fon +49 (2407) 9030-444
e-mail c.ludwig@aixtron.com

 

Media:

Ragah Dorenkamp
Director Corporate Communications
fon +49 (2407) 9030-1830
e-mail r.dorenkamp@aixtron.com

 

About AIXTRON

AIXTRON SE is a leading provider of deposition equipment to the semiconductor industry. The Company was founded in 1983 and is headquartered in Herzogenrath (near Aachen), Germany, with subsidiaries and sales offices in Asia, United States and in Europe. AIXTRON´s technology solutions are used by a diverse range of customers worldwide to build advanced components for electronic and optoelectronic applications based on compound semiconductor materials. Such components are used in a broad range of innovative applications, technologies, and industries. These include Laser and LED applications, display technologies, data transmission, SiC and GaN power management and conversion, communication, signaling and lighting as well as a range of other leading-edge applications.

 

Our registered trademarks: AIXACT®, AIXTRON®, Close Coupled Showerhead®, EXP®, EPISON®, Gas Foil Rotation®, Optacap®, OVPD®, Planetary Reactor®, PVPD®, STexS®, TriJet®

 

For further information on AIXTRON (FSE: AIXA, ISIN DE000A0WMPJ6) please visit our website at: www.aixtron.com

 

Forward-Looking Statements

This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON. These statements may be identified by words such as “may”, “will”, “expect”, “anticipate”, “contemplate”, “intend”, “plan”, “believe”, “continue” and “estimate” and variations of such words or similar expressions. These forward-looking statements are based on our current assessments, expectations and assumptions, of which many are beyond control of AIXTRON, and are subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Should these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of AIXTRON may materially vary from those described explicitly or implicitly in the relevant forward-looking statement. This could result from a variety of factors, such as actual customer orders received by AIXTRON, the level of demand for deposition technology in the market, the timing of final acceptance of products by customers, the condition of financial markets and access to financing for AIXTRON, general conditions in the market for deposition plants and macroeconomic conditions, cancellations, rescheduling or delays in product shipments, production capacity constraints, extended sales and qualification cycles, difficulties in the production process, the general development in the semi-conductor industry, increased competition, fluctuations in exchange rates, availability of public funding, fluctuations and/or changes in interest rates, delays in developing and marketing new products, a deterioration of the general economic situation and any other factors discussed in any reports or other announcements , in particular in the chapter Risks in the Annual Report, filed by AIXTRON. Any forward-looking statements contained in this document are based on current expectations and projections of the executive board based on information available the date hereof. AIXTRON undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law.

This document is an English language translation of a document in German language. In case of discrepancies, the German language document shall prevail and shall be the valid version.