AIXTRON Announces Further Stabilization of Results

AIXTRON SE today reported revenues of EUR 182.9m (2012: EUR 227.8m) and an EBIT of -95.7m (2012: EUR -132.3m) for the full fiscal year 2013. In the fourth quarter of 2013, revenues were up sequentially to EUR 51.5m (Q3/2013: EUR 46.2m). The Q4 EBIT (excluding unusual items) of EUR -8.3m (Q3/2013 excluding unusual items: EUR -9.2m) came in slightly above the previous quarter. In spite of a 20% decrease in revenues the Company's earnings benefited from positive cost effects and efficiency gains from the 5-Point-Program initiated in Q1/2013. Thereby, operating costs (excluding unusual items) were reduced in fiscal year 2013 to less than the previously targeted EUR 100m (operating costs 2012, excluding unusual items: EUR 124.9m).

Key Financials

	2013	2012	+/-	2013	2012	+/-
(in EUR million)	FY	FY		Q4	Q4
Revenues	182.9	227.8	-20%	51.1	77.5	-34%
Gross profit	-7.4	0.4	n. a.	17.4	17.7	-2%
Gross margin	-4%	0%	-4 pp	34%	23%	11 pp
Operating result (EBIT)	-95.7	-132.3	28%	-12.6	-19.3	35%
EBIT margin	-52%	-58%	6 pp	-25%	-25%	0 pp
Net result	-101.0	-145.4	30%	-14.8	-43.2	66%
Net result margin	-55%	-64%	9 pp	-29%	-56%	27 pp
Net result per share - basic (EUR)	-0.98	-1.44	32%	-0.13	-0.43	70%
Net result per share - diluted (EUR)	-0.98	-1.44	32%	-0.13	-0.43	70%
Free cash flow FCF*	-1.1	-61.6	+60.5	-0.2	1.8	-2.0
Dividend proposal/
dividend per share (EUR)	0	0	0%
Equipment order intake	133.2	131.4	1%	37.1	35.5	5%
Equipment order backlog
(end of period)	59.6	79.4	-25%	59.6	79.4	-25%

* Operating CF + Investing CF + Changes in Cash Deposits

Although capacity utilization rates in AIXTRON's target industries have increased significantly, for example at leading Taiwanese and Korean LED chip manufacturers, demand for AIXTRON's production equipment remained at a very low level throughout the fiscal year 2013. Consequently, equipment order intake at EUR 133.2m was broadly unchanged year-on-year compared to EUR 131.4m of the fiscal year 2012. The total equipment order backlog of EUR 59.6m at December 31, 2013 was 25% lower than the EUR 79.4m at the same point in time in 2012. This sustained weakness in demand was also reflected in the reduced revenues.

Influenced by several unusual items, the Company’s gross profit in 2013 decreased year-on- year from EUR 0.4m to EUR -7.4m, resulting in a negative gross margin of -4% (2012: 0%).

Decreased revenue-related costs were more than offset by lower selling prices for MOCVD equipment and the negative effect of EUR -5.1m from inventory destroyed in a fire.

The absolute operating result (EBIT) increased by EUR 36.6m year-on-year from EUR -132.3m and came in at EUR -95.7m for the fiscal year 2013. Write-downs and restructuring expenses recorded throughout the fiscal year were more than offset by insurance proceeds and cost reductions realized through the 5-Point-Program.

The 2013 after-tax result attributable to the equity holders of the AIXTRON SE was EUR -101.0m compared to EUR -145.4 million in 2012.

Throughout the fiscal year 2013, the AIXTRON Management has put a special focus on liquidity. Although the Company recorded an increased cash outflow from restructuring related payments, the significantly improved free cash flow of EUR -1.1m (2012: EUR -61.6m) underlines the successful liquidity management. As a result of the capital increase executed in October 2013, AIXTRON has further strengthened its financial position. With a total of EUR 306.3m in cash and cash equivalents (including cash deposits with a maturity of at least three months) at the end of the year, the Company maintains a sound capital base for its future business development.



Appropriation of Net Loss


AIXTRON’s Executive and Supervisory Boards will propose to the shareholders’ meeting that the 2013 loss amounting to EUR -1.1m should again be carried forward and consequently no dividend payment should be made for 2013.

5-Point-Program

At the Annual General Meeting on May 23, 2013, the President and CEO of AIXTRON, Mr. Martin Goetzeler (in office since March 1, 2013) introduced a 5-Point-Program to restore the Company's sustainable profitability even under difficult market conditions. A number of targeted individual projects were designed to address the following topics: 1) focus on customer benefits; 2) utilization of the Company's technology and product portfolio; 3) process structures; 4) attention to clearly defined financial targets; 5) strengthening of AIXTRON's management and corporate culture. A pivotal element of this program is to improve the Company's cost efficiency as well as proactively manage its assets.

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