Mycronic AB - Interim Report January-September 2018

STOCKHOLM, Oct. 24, 2018 /PRNewswire/ --

Strong growth and increasing profitability

"Mycronic delivered a strong third quarter, while we see stable market development within the segments where we operate. We are demonstrating robust growth, we are improving our margins, and we have a healthy order intake with a number of significant orders added during the quarter. Net sales for Assembly Solutions grew 104 percent, with a 45 percent increase in orders. The consolidated order intake as a whole was affected by a challenging comparison because of a record order in Pattern Generators in mid-September last year," says Lena Olving, President and CEO.

Third quarter

• The order intake was SEK 813 (1,874) million where the decrease compared to the previous year is attributable to a record order for mask writers worth USD 90-100 million in September 2017

• Net sales increased 123 percent to SEK 1,096 (491) million and 111 percent based on constant exchange rates

• EBIT was SEK 436 (66) million, an increase of 560 percent. The EBIT margin was 40 (13) percent

• The underlying EBIT was SEK 409 (75) million, an increase of 444 percent. The underlying EBIT margin was 37 (15) percent

• Earnings per share were SEK 3.55 (0.45)

January-September

• The order intake was SEK 2,339 (2,995) million where the decrease compared to the previous year primarily is attributable to a record order for mask writers worth USD 90-100 million in September 2017

• Net sales increased 32 percent to SEK 2,729 (2,074) million and 30 percent based on constant exchange rates

• EBIT was SEK 869 (538) million, an increase of 61 percent. The EBIT margin was 32 (26) percent

• The underlying EBIT was SEK 890 (608) million, an increase of 46 percent. The underlying EBIT margin was 33 (29) percent

• Earnings per share were SEK 6.77 (4.04)

Events after the period ended

After the end of the period, an order for a Prexision-800 with limited functionality was received from a customer in Asia. The order is valued at between USD 30-35 million and also includes certain upgrades to the customer's existing system.

Outlook 2018

The Board's assessment remains that consolidated net sales for 2018 will be at a level of SEK 3,500 million, with the clarification that this excludes acquisitions already made in 2018 as well as possible additional acquisitions during the remainder of 2018.

CEO Comments

I am pleased to report that Mycronic delivered a strong third quarter, while we see stable market development within the segments where we operate. We are demonstrating robust growth, we are improving our margins, and we have a healthy order intake with a number of significant orders added during the quarter. Net sales for Assembly Solutions grew 104 percent, with a 45 percent increase in orders. The consolidated order intake as a whole was affected by a challenging comparison because of a record order set by Pattern Generators worth USD 90-100 million in mid-September last year.

Through the strategic focus of recent years, including investments in a series of acquisitions, we have created a strong platform for growth. As for the rest of the year, we have a good base of planned deliveries from our order backlog. However, we have a planned shipment of a Prexision-10 to a customer in Asia in the fourth quarter, where changes initiated by the customer to the delivery conditions entail a postponement of revenue recognition to early 2019, rather than before year-end 2018.

Even if the postponement will affect the product mix and EBIT margin negatively in the fourth quarter it will not affect our outlook for the full-year. Also when I include the impact that this postponement entails, I can repeat that I feel confident that we will achieve net sales excluding acquisitions at the level of SEK 3.5 billion for 2018.

We have also taken a further step in the implementation of our digital development through the establishment of a center in San Jose, California, for advanced machine learning within electronics manufacturing. It is a collaboration with NuFlare Technology, D2S and NVIDIA to exploit the potential of advanced machine learning. In practical terms, this means that we use digitalization and the advances that technology can entail to help our customers streamline and develop their businesses.

The stable, healthy development within Pattern Generators continues with increasing net sales and improved margins. During the quarter, orders for two multi-purpose systems, together with a major system upgrade, were received. After the end of the period, we also received an order for a Prexision-800 with limited functionality from a customer in Asia.

Assembly Solutions shows an underlying EBIT margin of 10 percent for the quarter and order growth reached 45 percent while net sales have more than doubled, largely driven by the strong performance of our dispensing business in Asia. The business area is continuing its marketing initiatives and investments in product development.

In total, our net sales grew 123 percent for the quarter and 32 percent for the first nine months of the year. This is growth based on healthy deliveries from within all parts of the Company and where our acquisitions play an important role.

With a constant focus on quality and innovation, we continue to improve our operations at all levels with a view to increasing our volumes and seizing new opportunities. We continue to invest in our organization and its development to ensure that we support our customers with the best and most efficient solutions for their businesses. This also secures our future growth and profitability.

Lena Olving
President and CEO

Financial information

Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap, MYCR. The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication, through the contact persons stated below October 24, 2018, at 8 am.

Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.

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