Intermediate declaration by the Board of Directors
Ieper, Belgium - October 22nd, 2014, 07.00 hrs CET
Sales for the third quarter of 2014 were 86.6 million EUR, an increase of 22% compared to the same quarter of the previous year and an increase of 6% versus the previous quarter. The EUR/USD exchange rate evolution had a negative impact of 1% compared to the same quarter of the previous year and a positive impact of 1% compared to the previous quarter.
Gross margin was 43.0 million EUR, an increase of 29% compared to the same quarter of last year.
R&D expenses were at 12.7% of sales, G&A was at 4.6% and Selling was at 2.1% of sales. The operating result was 26.2 million EUR, an increase of 49% compared to the same quarter of 2013.
Net income was 24.7 million EUR, 61 cent per share, an increase of 64% compared to 15,0 million EUR or 37 cent per share in the third quarter of 2013.
Outlook
We expect in the fourth quarter of 2014 a low single digit sales decrease versus the third quarter of 2014, resulting in a full year sales growth at the high end of our previous guidance of 17% to 20%, a gross profit margin above 47% and an operating margin above 26%, all taking into account the current EUR/USD exchange rate.
Business comment - Françoise Chombar, CEO:
"During the first nine months of the year, the main contributors for growth were magnetic sensors, sensor interfaces and, outside of the sensor space, motor control drivers. In addition we saw an above average performance for temperature sensors in the third quarter.
Sales to automotive customers represented 88% of total sales. Year-to-date outside automotive sales growth stands now at 10% versus previous year.
The portion of ASSP sales in the third quarter of 2014 represented 55% versus 56% in the second quarter of 2014.
Demand in the third quarter continued to be strong. In the fourth quarter, we are expecting the usual inventory cramps, while we remain confident about the underlying demand."
Financial comment - Karen van Griensven, CFO:
"Robust Q3 sales growth currently not matched by increased operational costs resulted in a higher than expected margin expansion. Our mid-term target for R&D expenses compared to sales remains at 14% to 15%."
Financial Calendar
- Dividend pay date: October 23rd, 2014 (ex coupon on October 21st, 2014)
- Publication FY 2014 Results: February 4, 2015
The company's results will be discussed in a conference call on Wednesday, October 22nd, 2014 at 17 hrs CET. The conference call will be in English. You have to register for this conference call in advance. You can register by clicking on the following link and filling out the requested information:
https://eventreg1.conferencing.com/webportal3/reg.html?Acc=228198&Conf=191307
Conference ID: 948696
After registration, you will receive the conference call number, a participant user pin, conference pin and instructions on how to join the conference call. For security purposes all participants must register individually if they wish to join the call.
A replay number for this call is available for 7 days after the end of the conference call. The replay number for this call is +32 2 290 17 05, access code: 948696.
