Singulus: Fiscal 2Q14 Financial Results

The key financial results for the 1st half 2014 of the Singulus Technologies AG were weaker than in the previous year due to up to date restrained order activities for Blu-ray Disc production machines.

Sales in the 1st half of 2014 amounted to €30.1 million (previous year: €49.2 million).

In the 2nd quarter sales in the amount of €13.4 million (previous year: €26.4 million) were realized.

The order intake in the 1st half of the business year 2014 stood at €25.2 million (previous year: €48.8 million). The order intake in the 2nd quarter amounted to €11.1 million (previous year: € 33.2 million).

Due to still low order intake for Blu-ray equipment and the continuing delays in order intake in the Solar division the order backlog stood at € 15.4 million as of June 30, 2014 compared with €39.7 million in the prior-year period.

In the 1st half of 2014 earnings before interest and taxes (EBIT) came to €-12.5 million (previous year: €-6.5 million). The EBIT in the quarter under review was also negative at €7.4 million (previous year: €-1.6 million).

The headcount within the Singulus Technologies Group of 361 permanent employees remained at the level of the end of the business year 2013 (December 31, 2013: 362).

In its forecast for the business year 2014, Singulus assumed a slight increase in sales as well as in operating earnings (EBIT). A negative result was projected pursuant to IFRS.

The respective development in the three segments formed the foundation for this forecast. For the Optical Disc segment the executive board had already cautiously budgeted in fall 2013 and expected lower sales and earnings (EBIT). This expectation was also published in the annual report 2013. Currently, the delays in the Optical Disc division with respect to orders and call-offs by our customers for Blu-ray machines are more substantial than anticipated.

The worldwide penetration of Blu-ray discs continues to grow. Market research institutes project a nearly 10% growth for market in 2014 and following this growth, capital spending for new production equipment is also forecast.

Dr.-Ing. Stefan Rinck, CEO, Singulus, comments: “We expect that this year’s order period will only be concluded by the end of September or beginning of October, which will then provide us a complete overview of the Optical Disc segment.”

Rinck adds: “Although the course of business in the Solar division is still cautious, not all of the expected order decisions have been made this year so far. Here, we are well positioned for several investment projects with our products and we expect additional, larger order intake in the 2nd half, which together with the existing orders should still make earnings contributions in the current year.”

In the Semiconductor division the business activities in the current business year are in-line with expectations.

The described uncertainties cause the executive board to deem the achievement of breaking even on an operating basis as very challenging for the current business year 2014.

Dr.-Ing. Stefan Rinck remarks: “We do not yet have clear visibility over the development in all three segments for the 2nd half of 2014 and will specify our forecast for the full-year at the end of September or beginning of October.”