Mycronic Reports Strong First Half-year Results

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Mycronic reports a strong first half-year with regard to the order intake, sales and earnings. Sales increased 37%. EBIT reached SEK 137 million, which corresponds to an operating margin of 17%. The Group is entering the second half-year with a record high order backlog of SEK 1,828 million. Demand for mask writers is favorable for both production capacity and for advanced photomasks for future electronics products. At the same time, the Group has focused on future growth through product development, primarily within SMT, and through launches within both business areas.

Second quarter April-June 2016

• Order intake was SEK 775 (311) million
• Net sales were SEK 463 (285) million
• EBIT was SEK 106 (1) million
• Earnings per share was SEK 0.83 (0.01)

First half-year January-June 2016

• Order intake reached SEK 1,569 (782) million
• Net sales reached SEK 807 (589) million
• EBIT was SEK 137 (27) million
• Earnings per share was SEK 1.08 (0.20)

Outlook

The Board’s assessment remains, that sales in 2016 will be at the level of SEK 1,900 million.

CEO comments

During the first half of the year, Mycronic saw strong demand for the Group’s products within the electronics industry, primarily due to a good photomask market. The Group reports a strong first half-year with regard to order intake, sales and earnings. Sales increased 37% compared with the first half of 2015, and the operating margin reached 17%. We are now entering the second half year with a record high order backlog and we see continuing high levels of activity on the market and amongst our customers.

The global market for SMT equipment experienced a negative trend in 2015, while Mycronic maintained its volumes and margins. In 2016, the slowdown has affected us and demand for SMT equipment remains difficult to assess. Hence, it is essential that we invest in product development to secure our competitive edge. We have introduced equipment for dispensing of several different mounting fluids. Our Jet Dispenser builds on the unique jet printing platform and is considerably faster than other existing solutions. The equipment targets new segments within the surface mount market. We have broadened our product offering and created opportunities for a position shift. The first systems reached customers during the second quarter.

During the period, Mycronic acquired RoyoTech, the German company that developed the strategic storage solutions which have long been an integrated part of Mycronic’s offering for the smart factory, Mycronic 4.0.

During the first half-year, we received orders for eight mask writers for various applications, of which several were advanced systems. We received the first order for a measuring system for quality assurance of the most advanced photomasks, which is becoming increasingly important as more photomasks are produced for products where the display is central. Our replacement offering has proven to be in line with customers’ requirements to ensure long-term high productivity for photomask manufacturing. During the second quarter we launched the Prexision-800, a mask writer for the most complex photomasks, which ensures effective production of photomasks for the 4K phones and advanced AMOLED displays of the future.

In short, during the first half of 2016, we continued delivering results at a fast pace while simultaneously executing our strategy for growth.

About Mycronic

Mycronic AB is a high-tech Swedish company engaged in developing, manufacturing and marketing of production solutions to the electronics industry. Mycronic headquarters are located in Täby, north of Stockholm and the Group has subsidiaries in China, France, Germany, Japan, Singapore, South Korea, Taiwan, the Netherlands, United Kingdom and the US. For more information, see the company website.