Aixtron H1 Net Profit Down, EBIT Climbs; Sees FY Margins At Upper End Of View

(RTTNews) - Aixtron SE (AIXG), a provider of deposition equipment to the semiconductor industry, reported Thursday that its first-half net profit declined 1 percent to 15.8 million euros from last year's 16 million euros.

Earnings per share were 0.14 euro, same as last year.

Operating result or EBIT, however, climbed 59 percent to 19.1 million euros from 12 million euros a year ago, as operating expenses continued to decline.

Revenues increased 12 percent to 132.0 million euros from 117.6 million euros last year.

As expected, order intake including spare parts and service declined 36 percent year-on-year to 98.3 million euros, especially in the optoelectronics segment. The company cited customers' reluctance to invest in expanding their production capacities for the decline.

Equipment order backlog as of June 30, 2019 decreased 20 percent year-on-year to 110.1 million euros. The majority of the order backlog is scheduled for shipment in 2019.

Looking ahead for fiscal 2019, the company now expects improved profitability for 2019 with margins at the upper end of the previously forecast ranges.

Gross margin is now expected to be around 40 percent, compared to previous view of between 35 percent and 40 percent, and EBIT margin is now expected to be around 13 percent, compared to previous view of between 8 percent and 13 percent.

Further, AIXTRON confirmed its 2019 full year guidance for sales and orders. The company expects revenues in a range between 260 million euros and 290 million euros, and orders in a range between 220 million euros and 260 million euros.

The company expects a stable to growing revenue development compared to 2018.

For the second half of the year, an increase in demand is expected, particularly from Asia.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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