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X-FAB Q2 2017 Results | 08/21/17


Regulatory News:


During the second quarter of 2017, X-FAB posted sales of
USD 139.3 million and net profit of USD 24.1 million or USD 0.18 per
current outstanding share.


Compared to the second quarter of 2016, sales show an increase of 18%.
Compared to the previous quarter sales were 6% lower due to lower
subcontracted revenue from consumer products. Gross profit was
USD 23.9 million, a decrease of 2% compared to the same quarter last
year and a decrease of 18% compared to the previous quarter. The
operating income was USD 9.2 million, a decrease of 24% compared to the
same quarter of last year and a decrease of 21% compared to the previous
quarter.


Net profit of the quarter was 87% higher compared to the same quarter
last year and increased by 115% compared to the previous quarter, mainly
due to the strong net financial result. The subcontracted business
represented USD 3.2 million for the second quarter 2017 with a
corresponding operating profit of USD 0.7 million.


Outlook


For the third quarter, X-FAB expects USD 138-143 million in revenue,
with an EBITDA at about 19%. For the rest of the year, the company
expects a further shift toward a higher share of automotive, industrial
and medical business and is currently forecasting the subcontracted
consumer business at zero. As a result, the company expects the EBITDA
margin of the fourth quarter to come in at around 20%.


Rudi De Winter, CEO of X-FAB, comments: “X-FAB further increased
utilization in its factories. The integration of X-FAB France is going
well. As planned, we have delivered products for product qualification
from X-FAB France on X-FAB’s proprietary technologies to selected
customers. We are planning first production starts this quarter.


The strong NRE revenue realized in the second quarter of 2017 in the
amount of USD 13.0 million shows the strong interest in our
technologies. It also is a good indicator for future production revenue.
Sales in our core markets automotive, industrial and medical totaled
USD 82.9 million, an increase of 24% compared to the same quarter last
year and 7% higher compared to the previous quarter. The share of
automotive, industrial and medical markets increased from 52.2% in the
previous quarter to 59.4% in the second quarter of 2017. A higher
exposure to our core end markets improves the overall visibility. Based
on the strong automotive, industrial and medical outlook for next year,
we have fine-tuned our CAPEX plan and pulled in a USD 40 million CAPEX
in our factory in Malaysia to expand capacity by 4,000 wafer starts per
month, which will become effective as of Q1 2018. Also our SiC activity
in our factory in Texas is developing according to plan and we delivered
wafers for product qualification. This will result in first SiC
production revenue in the second half of this year.


I am excited about the progress made with the products for molecular
biology applications. One of our customers, a major player in the field
of next generation DNA sequencing, has passed FDA approval for oncology
applications. As these tests identify biomarkers in tumor samples for a
growing amount of FDA approved therapies, the market for these
semiconductor-based test devices will exponentially increase for a
while. This is an example of the unique specialty processes X-FAB
develops with its customers for a wide range of applications and in
particular for the medical market.”


The Board of Directors noted the resignation of Mr. Matthias Bopp as
board member. The Board decided to fill the vacant mandate temporarily
with Ms. Chris Juliam until the actual nomination by the next
shareholder meeting.


X-FAB Quarterly Conference Call


X-FAB’s second quarter results will be discussed in a live conference
call on Monday, August 21st, 2017 at 5.00 pm CEST. The
conference call will be in English. Please register in advance of the
conference using the following link: http://emea.directeventreg.com/registration/68363770


Upon registering, you will be provided with participant dial-in numbers,
Direct Event passcode and a unique registrant ID. In the 10 minutes
prior to the call, you will need to use the conference access
information provided in the email received at the point of registering.


The conference call will be available for replay from August 21st
8 pm CEST until August 27th 8 pm CEST. The replay number will
be +44 (0)1452550000, conference ID 68363770.


The third quarter results will be communicated on November 7th,
2017.


About X-FAB


X-FAB is the leading analog/mixed-signal and MEMS foundry group
manufacturing silicon wafers for automotive, industrial, consumer,
medical and other applications. Its customers worldwide benefit from the
highest quality standards, manufacturing excellence and innovative
solutions by using X-FAB’s modular CMOS processes in geometries ranging
from 1.0 to 0.13 µm, and its special BCD, SOI and MEMS long-lifetime
processes. X-FAB’s analog-digital integrated circuits (mixed-signal
ICs), sensors and micro-electro-mechanical systems (MEMS) are
manufactured at six production facilities in Germany, France, Malaysia
and the U.S. X-FAB employs more than 3,800 people worldwide.


For more information, please visit www.xfab.com.


Forward-looking information


This press release may include forward-looking statements.
Forward-looking statements are statements regarding or based upon our
management’s current intentions, beliefs or expectations relating to,
among other things, X-FAB’s future results of operations, financial
condition, liquidity, prospects, growth, strategies or developments in
the industry in which we operate. By their nature, forward-looking
statements are subject to risks, uncertainties and assumptions that
could cause actual results or future events to differ materially from
those expressed or implied thereby. These risks, uncertainties and
assumptions could adversely affect the outcome and financial effects of
the plans and events described herein.


Forward-looking statements contained in this press release regarding
trends or current activities should not be taken as a report that such
trends or activities will continue in the future. We undertake no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. You should
not place undue reliance on any such forward-looking statements, which
speak only as of the date of this press release.


The information contained in this press release is subject to change
without notice. No re-report or warranty, express or implied, is made as
to the fairness, accuracy, reasonableness or completeness of the
information contained herein and no reliance should be placed on it.

























 


Consolidated Statement of Profit and Loss


 

 

 

 

 

 

 

 

 

 

in thousands of USD


Quarter


ended
30 Jun 2017


Quarter


ended
30 Jun 2016


Quarter


ended
31 Mar 2017


Half-year
ended
30 Jun 2017


Half-Year
ended
30 Jun 2016


Revenue

139,340

118,480

147,942

287,282

225,010

Cost of sales

-115,409

-94,153

-118,633

-234,042

-181,363

Gross Profit

23,931

24,327

29,309

53,240

43,647

Research and development expenses

-6,697

-5,479

-7,503

-14,200

-10,899

Selling expenses

-2,151

-1,847

-2,371

-4,522

-3,551

General and administrative expenses

-6,938

-4,671

-7,768

-14,707

-9,601

Rental income and expenses from investment properties

954

-444

56

1,010

-787

Other income and other expenses

73

230

-170

-98

145

Operating profit

9,171

12,116

11,553

20,723

18,954

Finance income

24,928

1,776

712

25,641

1,796

Finance costs

-10,127

-1,031

-947

-11,074

-4,559

Net financial result

14,802

745

-235

14,567

-2,763

 

Profit before taxes

23,972

12,861

11,318

35,290

16,191

Income tax

122

-8

-104

17

-95

Profit for the period

24,094

12,853

11,214

35,307

16,096

 

Income before interest and depreciation

 

 

23,144

 

 

24,403

 

 

25,088

 

 

48,233

 

 

43,117

 



















































 


Consolidated Statement of Financial Position


 

in thousands of USD

 

 


Half-Year ended
30 Jun 2017


 

 


Half-Year ended
30 Jun 2016


 

 


Year ended
31 Dec 2016


audited


ASSETS

Non-current assets

Property, plant and equipment

289,443

241,680

265,472

Investment properties

8,856

9,281

9,143

Intangible assets

6,789

6,928

7,874

Non-current investments

394

209

190

Other non-current assets

146

62

36

Deferred tax assets

23,454

14,663

19,904

Total non-current assets

329,082

272,824

302,619

 

Current assets

Inventories

97,408

70,996

88,972

Trade and other receivables

69,529

79,000

77,292

Other assets

25,941

30,421

18,881

Cash and cash equivalents

350,307

43,536

104,157

Total current assets

543,186

223,954

289,302

 

TOTAL ASSETS

872,268

496,777

591,921

 

EQUITY AND LIABILITIES

Equity

Share capital

432,745

265,231

265,231

Share premium

349,446

264,535

255,262

Retained earnings

-161,173

-226,329

-196,506

Cumulative translation adjustment

-574

-644

-879

Treasury shares

-770

-10,043

-770

Total equity attributable to equity holders of the parent

619,674

292,750

322,338

 

Non-controlling interests

365

368

400

 

Total equity

620,039

293,119

322,738

 

Non-current liabilities

Non-current loans and borrowings

124,151

93,003

132,407

Other non-current liabilities and provisions

8,376

1,584

8,481

Total non-current liabilities

132,527

94,587

140,888

 

Current liabilities

Trade payables

29,674

15,762

49,032

Current loans and borrowings

34,534

29,244

31,432

Other current liabilities and provisions

55,496

64,066

47,831

Total current liabilities

119,702

109,072

128,295

 

TOTAL EQUITY AND LIABILITIES

 

 

872,268

 

 

496,777

 

 

591,921

 






































 


Consolidated Statement of Cash Flow


 

in thousands of USD

 

 


Quarter


ended
30 Jun 2017


 

 


Half-Year


ended
30 Jun 2017


 

 


Half-year


ended
30 Jun 2016


 

 


Half-Year


ended


31 Dec 2016


Income before taxes

23,972

35,290

16,191

26,260

 

Reconciliation of net income to cash flow arising from operating
activities:

-3,507

12,461

26,146

25,236

Depreciation and amortization, before effect of grants and subsidies

13,973

27,509

24,162

25,995

Recognized investment grants and subsidies netted with depreciation
and amortization

-947

-1,862

-1,781

-1,077

Interest income and expenses (net)

817

1,649

2,166

2,268

Loss/(gain) on the sale of plant, property and equipment (net)

0

0

-215

-16

Loss/(gain) on the change in fair value of derivatives (net)

-7,573

-7,739

0

280

Other non-cash transactions (net)

-9,777

-7,096

1,814

-2,214

 

Changes in working capital:

4,589

-10,470

-34,001

17,642

Decrease/(increase) of trade receivables

18,787

8,877

-33,995

1,170

Decrease/(increase) of other receivables & prepaid expenses

3,039

-4,560

-20,065

10,236

Decrease/(increase) of inventories

-4,031

-7,205

-9,139

-7,179

(Decrease)/increase of trade payables

-9,950

-17,343

2,942

31,861

(Decrease)/increase of other liabilities

-3,257

9,761

26,256

-18,446

 

Income taxes (paid)/received

-48

-252

-130

-3,424

 

Cash Flow from operating activities

25,006

37,029

8,208

65,713

 

Cash Flow from investing activities:

Payments for property, plant, equipment & intangible assets

-29,358

-49,992

-32,945

-39,244

Payments for investments

0

0

-209

-80

Acquisition of subsidiary, net of cash acquired

0

0

0

-10,178

Payments for loan investments to related parties

-33

-62

-83

-5,611

Proceeds from loan investments related parties

40

81

70

5,670

Proceeds from sale of property, plant and equipment

0

1

717

19

Interest received

483

797

98

176

 

Cash Flow used in investing activities

-28,867

-49,175

-32,352

-49,249

 
























 


Consolidated Statement of Cash Flow – con’t


 

in thousands of USD

 

 


Quarter


ended
30 Jun 2017


 

 


Half-Year


ended
30 Jun 2017


 

 


Half-year


ended
30 Jun 2016


 

 


Half-Year


ended


31 Dec 2016


Cash Flow from (used in) financing activities:

Proceeds from loans and borrowings

-10,073

0

9,525

51,456

Repayment of loans and borrowings

-8,249

-15,204

-9,112

-10,262

Receipts from sale & leaseback arrangements

0

0

668

5,523

Payments of lease installments

-626

-1,239

-690

-869

Receipt of government grants and subsidies

0

47

2,433

99

Interest paid

-727

-1,389

-1,307

-1,536

Gross proceeds from capital increase

266,575

266,575

0

0

Direct cost related to capital increase

-7,389

-7,389

0

0

Distribution to non-controlling interests

0

-11

0

-11

 

Cash Flow from (used in) financing activities

239,512

241,390

1,517

44,400

 

Effect of changes in foreign currency exchange rates on cash

16,785

16,906

66

-243

Increase/(decrease) of cash and cash equivalents

235,651

229,243

-22,629

60,864

Cash and cash equivalents at the beginning of the period

97,871

104,157

66,098

43,536

Cash and cash equivalents at the end of the period

 

 

350,307

 

 

350,307

 

 

43,536

 

 

104,157

 

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