AIXTRON Maintains Profitable in 1Q19 despite Low Seasonal Demands

AIXTRON, the Germany-based semiconductor equipment provider, announced its financial report for the first quarter of 2019 with an expected performance. The revenue of 1Q19 increased by 10% YoY to EUR 68.7 million (US$ 77 million). Although the gross margin decreased slightly to 39% YoY due to a change in the product mix, the gross profit of EUR 26.7 million (US$29.92 million) in the first quarter of 2019 was on a par with the previous year.

According to AIXTRON, the first quarter of 2019 was mainly influenced by the expected reluctance of customers to invest in the expansion of their production capacities. Therefore, order intake including spare parts and service declined by 32% YoY to EUR 53.6 million (US$60.07 million).However, the prospects for optoelectronics and power electronics business are intact.

AIXTRON continues to anticipate an increasing demand for lasers in these areas due to increasing applications in 3D sensor technology, security infrastructure or optical data transmission as well as the increasing use of LEDs and special LEDs in display and other applications. In addition, the company expects an increased use of GaN or SiC-based devices for energy-efficient communication and energy management in automobiles, consumer electronics and mobile devices.

Dr. Bernd Schulte, President of AIXTRON SE, commented, "Business development in the first quarter of 2019 was in line with our expectations. Against this background, we confirm the forecast for 2019 issued in February. While in terms of revenues Q1/2019 was the strongest first quarter in many years, order intake reflects the current reluctance of our customers to invest. Our continued productivity gains and lower costs, combined with a favorable USD/EUR exchange rate, are positive factors supporting both our gross margin and our results. "

For 2019, AIXTRON sees a stable on-year sale growth and expects incoming orders in a range between EUR 220 million and EUR 260 million including orders for OLED customer for a large-scale test system as part of the ongoing qualification process for OVPD technology for the OLED display industry.

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