Mycronic AB Reports Strong First Half 2015 Results

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Mycronic Second quarter April-June 2015

• Order intake was SEK 311 (281) million
• Net sales were SEK 285 (238) million
• EBIT was SEK 1 (6) million
• Earnings per share were SEK 0.01 (0.03)

Interim period January-June 2015

• Order intake was SEK 782 (568) million
• Net sales were SEK 589 (481) million
• EBIT was SEK 27 (9) million
• Earnings per share were SEK 0.20 (0.04)

Outlook

The Board’s assessment remains that sales in 2015 will be in the span SEK 1,650-1,750 million.

Order backlog at record levels

“We can present a good first half year, with healthy demand for the Group's products, and we are enteringthe second half year with a record large order backlogof SEK 896 million,” says Lena Olving, CEO and President of Mycronic AB.

Mycronic's launches of solutions for efficient electronics production has led to an increase in demand and strengthened Mycronic's market position. During the first half year, Mycronic's launches included improved functionality within surface mounting, functionality for jet printing on larger circuit boards, and a new measuring system for quality assurance of advanced photomasks.

During the first half year, Mycronic received orders for four mask writers, one of which was the first order based on the replacement strategy for older mask writers for display manufacturing. Demand for photomasks remains good, which has led to a historically high degree of utilization on Mycronic's mask writers at customer sites. This can be an indication that there is room for additional investments in capacity as well as in new and more advanced equipment.

The electronics industry as a whole continues to grow. In 2014, the industry grew 3.5 percent and growth is expected to continue at that pace. The semiconductor industry also grew in 2014, which created an increased requirement for SMT equipment. The global market for SMT equipment has recovered after a two-year negative trend and grew 22 percent in 2014. During the first quarter of 2015, the market grew by 9 percent. Market data for the second quarter has not yet been released.

The beginning of 2015 shows continued growth within the semiconductor market, even if external analysts now indicate some uncertainty surrounding the rate of growth during the later part of the year.

“During the first half of the year sales increased 23 percent without any mask writers sales, compared with last year. During the second half-year, three mask writers will be delivered, two of which are advanced. Sales during the first half-year have been positively affected by exchange rates in the amount of SEK 86 million, mainly due to the American dollar. We are currently investing in development of new products for customers' changing needs within SMT, and in strengthening the organization, for instance preparing for growth in Asia. Taking these significant investments into consideration, the operating profit for the first half-year is really good,” concludes Lena Olving.