- First quarter revenue is 10% lower compared to Q1-2018
- Book-to-bill ratio in the first quarter is maintained above one
- Three SCM projects booked and are now in the engineering phase
Zwolle, 17th May 2019 – RoodMicrotec N.V., a leading independent company for semiconductors supply and quality services, today released its Q1-2019 trading update, for the period ended 31 March 2019. The revenue decreased by 10% compared to the first quarter of 2018. This is better than the global semiconductor market which is down with 15.4% year-on-year according to SIA, so RoodMicrotec continues to outgrow the market as planned. The cyclical behaviour of the semiconductor market was not seen in 2018, but has been visible in 2019. Together with the cancelled project by a customer’s customer, these are the main reasons for the revenue development. The general market situation as well as a reduction in inventory by some of the customers also have had an impact on the sales revenue.
During the last quarter of 2018 and the first quarter of 2019 three out of four SCM projects under negotiation have been booked as projects and are now in the engineering phase. Production for these projects will be started in 2020 and 2021. Additionally, three new projects, two in the automotive market and one in the industrial market, are under negotiation with different customers. These projects range from full turnkey services, including design and wafer sourcing, to projects where RoodMicrotec will do test, packaging and logistics.
“The project that our customer’s customer cancelled has had a direct impact on the revenue of RoodMicrotec during the first quarter of 2019”, says Martin Sallenhag, CEO of RoodMicrotec. “It is however encouraging that the book-to-bill ratio is still above one which enables us to plan for the future. We have also worked hard to optimize our production flow and we see an improvement in the efficiency which will position us well for the planned growth in the coming years.”
Outlook
Based on several new engagements as well as an increasing number of ASIC supply chain projects in the pipeline, RoodMicrotec expects a continuing revenue increase over the next years and the company expects to report yearly improving positive net results. With a softer market and geopolitical uncertainties revenue for 2020 is expected to be in the range of EUR 16 million to EUR 18 million.
About RoodMicrotec
RoodMicrotec is a leading independent company for semiconductor supply and quality services. With 50 years of experience in the semiconductor and electronics industry, RoodMicrotec is well-established as a highly valued partner for many companies worldwide. The company provides full-turnkey ASIC services for complex microchips that are customized to handle specific applications for individual customers. In cooperation with strong partners, RoodMicrotec manages the entire development and production flow of ASICs in the target volume, ranging from low quantities up to multiple millions per year. The turnkey solution includes project management, wafer test, assembly, final test, qualification, failure analysis and logistics. All services comply with the industrial and quality requirements of the high reliability, aerospace, automotive, healthcare and industrial sectors. RoodMicrotec’s headquarter is located in Zwolle, Netherlands, with operational units in Nördlingen and Stuttgart, Germany.
For more information visit https://www.roodmicrotec.com
Further information
Martin Sallenhag - CEO, Reinhard Pusch - COO, Arvid Ladega - CFO
Telephone: +31 570 745623 Email: investor-relations@roodmicrotec.com Web: www.roodmicrotec.com
This press release is published in English, Dutch and German. In case of conflict between these versions the English version shall prevail.
This communication contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. The company’s managing director and CEO Martin Sallenhag, is responsible for arranging for the release of this document on behalf of RoodMicrotec.
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