Elmos Semiconductor AG (FSE: ELG) achieved sales growth of 8.1% to 75.0 million Euro in the third quarter of 2019 compared to the prior-year period. As a result of the sale of the subsidiary Silicon Microstructures Inc. (SMI) and the related other operating income of 61.9 million Euro in Q3 2019, EBIT grew to 72.9 million Euro. Excluding this special effect, operational EBIT amounted to 11.0 million Euro and the operational EBIT margin to 14.7%. The development of operational EBIT reflects, among other things, the effect of increased R&D expenses as well as consulting costs in the course of the SMI sales process. Capital expenditures in Q3 2019 amounted to 7.4 million Euro or 9.9% of revenues. The adjusted free cash flow was strongly positive at 88.3 million Euro due to the cash inflow from the disposal.
"We can be very satisfied with the course of the year to date. Our innovative products are gaining market share. We enable our customers to remain competitive even under difficult market conditions. We also regard the sale of SMI as a major success," says Dr. Anton Mindl, CEO of Elmos Semiconductor AG.
SMI, which fully represents the micromechanics segment, is only included in the sales and earnings presentation of Elmos in 2019 for the first nine months. The micromechanics segment will be discontinued in the future. Taking into account the above facts, the following forecast, which was given on the occasion of the closing of the SMI transaction on September 30, 2019, is hereby confirmed:
Sales growth will be 4-8%. The operational EBIT margin will be between 13% and 17%. Investments will account for less than 15% of sales. The adjusted free cash flow will be significantly positive due to the cash inflow from the transaction. The forecast is based on an exchange rate of 1.15 US dollars/Euro.
Overview of the financial figures
Figures in accordance with IFRS (in millions of euros or percent, unless otherwise stated):
|Gross profit margin in %||48.3%||47.0%||46.7%||43.7%|
|Research and development||12.0||9.2||30.3%||33.5||25.6||30.8%|
|EBIT margin* (operational) in %||14.7%||20.2%||15.6%||16.9%|
|Consolidated net income after non-controlling interests||67.4||9.8||>100%||83.5||23.3||>100%|
|Basic earnings per share (Euro)||3.43||0.50||>100%||4.24||1.18||>100%|
|Capital expenditures in %||9.9%||13.5%||14.9%||14.7%|
|Adjusted free cash flow||88.3||9.1||>100%||76.2||0.9||>100%|
* Less extraordinary income from the sale of the subsidiary SMI for a net debt-free enterprise value of 95 million USD as of September 30, 2019
Definitions of selected financial indicators
- Adjusted free cash flow: Cash flow from operating activities, less investments in/plus disposals of intangible assets and property, plant and equipment (including proceeds from disposals of consolidated companies)
- Capital expenditures: Capital expenditures in intangible assets and property, plant and equipment less capitalized development costs
- Further information on the key figures used can be found in the 2018 Annual Report of Elmos Semiconductor AG at www.elmos.com
Quarterly report Q3 2019
Further information on the third quarter 2019 and the first nine months 2019 of Elmos Semiconductor AG can be found in the quarterly report Q3 2019, which will be available on November 6, 2019 at www.elmos.com. Elmos will also hold a conference call (in English) for analysts and investors on November 6, 2019 at 11.00 a.m. (CET). The conference call will be available on the Elmos website at a later date.
Elmos develops, produces and markets semiconductors and sensors, primarily for use in the automotive industry. Our components communicate, measure, regulate and control safety, comfort, powertrain and network functions. For over 30 years, Elmos innovations have been bringing new functions to life and making mobility worldwide safer, more comfortable and more energy efficient.
This release contains forward-looking statements based on assumptions and estimates made by the management of Elmos. Although we assume that the expectations contained in these forward-looking statements are realistic, we cannot guarantee that they will prove to be correct. The assumptions may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause such differences include, among others, changes in the economic and business environment, fluctuations in exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products and changes in business strategy. Elmos does not plan to update the forward-looking statements, nor does it assume any obligation to do so.
Elmos Semiconductor AG
Mathias Kukla, Press Relations, Telephone: +49231-7549-199