Mycronic AB - Interim Report January-September 2019

STOCKHOLM, Oct. 24, 2019 /PRNewswire/ -- "Order intake increased by 52 percent, with strong contributions from both Assembly Solutions and Pattern Generators. The third quarter signaled the launch of Evo, Mycronic's new control platform, which will form a cornerstone of our mask writers and strengthen our customer offering. After the end of the quarter, SLX was launched, which is Mycronic's new mask writer for the semiconductor market," says Anders Lindqvist, President and CEO.

Third quarter

• Order intake increased 52 percent to SEK 1,238 (813) million
• Net sales decreased 18 percent to SEK 900 (1,096) million and 20 percent based on constant exchange rates
• EBIT was SEK 198 (436) million, a decline of 55 percent. The EBIT margin was 22 (40) percent
• The underlying EBIT was SEK 202 (409) million, a decline of 51 percent. The underlying EBIT margin was 22 (37) percent
• Earnings per share were SEK 1.52 (3.55)

January–September

• Order intake increased 22 percent to SEK 2,861 (2,339) million
• Net sales increased 15 percent to SEK 3,125 (2,729) million and 9 percent based on constant exchange rates
• EBIT was SEK 920 (869) million, an increase of 6 percent. The EBIT margin was 29 (32) percent
• The underlying EBIT was SEK 955 (890) million, an increase of 7 percent. The underlying EBIT margin was 31 (33) percent
• Earnings per share amounted to SEK 7.22 (6.77)

Outlook 2019

The Board's assessment remains that consolidated net sales for 2019 will be at a level of SEK 4 billion, excluding any acquisitions made in 2019.

Events after the end of the period

An order was received on October 10 for two Prexision Lite 8 Evo mask writers, which are Mycronic's first orders for this product. On October 18, an order was received for a Prexision 8 Evo mask writer. SLX was launched on October 23, and is Mycronic's new mask writer for the semiconductor industry.

CEO comments

These days, I am often asked how Mycronic has been affected by the trade dispute between the USA and China, and how the Assembly Solutions business area has been affected by the slowdown in the electronics industry. In fact, the impact on Mycronic has been limited so far, which is reflected in the 52 percent increase in order intake during the third quarter. In some cases, the effects in the short term may even be positive, for example when customers in China decide to take back previously outsourced production and therefore need to invest in new production equipment.

During the quarter, the Dispensing division in Assembly Solutions demonstrated a favourable performance in China and broadened its offering and customer base to new segments by adapting products to satisfy market demand. Net sales in the business area grew by 4 percent adjusted for currency effects. Assembly Solutions continues to focus on work to improve profitability and achieve an EBIT margin of above 10 percent. This is for example done by realizing synergies at various levels and by developing the aftermarket business.

Pattern Generators received an order during the third quarter for a limited Prexision 10 mask writer. During the quarter, one mask writer was delivered, compared with two mask writers during the corresponding quarter last year, which led to lower net sales and EBIT margin.

In April, the Prexision Lite 8 became available in the market, after which Evo was launched at the end of the third quarter, representing Mycronic's new control platform. Evo will form a cornerstone of our mask writers and strengthen our customer offering.

On October 23, SLX was launched, a new laser mask writer for the semiconductor industry, which means we are again supplying newly developed systems to this market. We expect good future growth based on long-term and stable trends and a growing need to replace and upgrade the installed base of laser mask writers. With its investments in recent years in the product portfolio for mask writers for displays, Mycronic has established technology and know-how that can be reused, which creates very favorable conditions to also leverage the opportunities in the semiconductor segment. With our existing installed base of semiconductor mask writers with the majority of our customers, we know the market very well and have in-depth expertise of the technical requirements that must be fulfilled. This launch has broadened our customer offering for Pattern Generators and further confirms our position in the market for mask writers.

It is gratifying to see that we are, in many ways, harvesting the fruits of our investments in product development. These investments will continue, even if the distribution between Assembly Solutions and Pattern Generators will shift over time.

Anders Lindqvist, 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 (page 8) on October 24, 2019, at 8:00 a.m.

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

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