Development pace of LDI slowed down due to delayed industry implementation

Täby, Sweden – 7 September, 2012 – Micronic Mydata AB (publ), listed on NASDAQ OMX Stockholm, Small Cap: MICR, today announces a slowdown in the LDI (Laser direct imaging) development. As a consequence Micronic Mydata puts a notice of staff reductions of 50-60 employees. These measures cut costs by SEK 60 million annually. At the same time, Micronic Mydata’s current operations develop well and the full year forecast is adjusted upwards.

The market for advanced packaging and substrates (micro circuit boards) is developing at a slower pace than previously predicted. A broader implementation is estimated to be delayed by two years.

“We believe that the interest from the electronics industry remains as strong, even though the  implementation of higher requirements on substrates is moving forward at a slower pace than previously predicted”, says Peter Uddfors, President and CEO of Micronic Mydata AB,
who adds:
“The acceptance of our technology is substantial, which has been further proven by the fact that one of our collaboration customers has now agreed to take delivery of their first tool. Micronic Mydata will recognize the revenue of this tool during the third quarter. The slowdown in the market however makes it hard to predict when the next order will come”.

Since 2010, Micronic Mydata has, in co-operation with the industry, developed a production solution that offers the electronics industry cost-effective manufacturing of advanced substrates to enable development of future electronics products. In late 2011, Micronic Mydata launched the LDI 5s series. Two of these systems are currently at two different customer sites in the US and in Asia for evaluation, with good technical results.

Since 2010 and up until the end of the first six months 2012, Micronic Mydata has expensed approximately SEK 390 million in the LDI development as incurred, while SEK 135 million have been accounted for in the balance sheet as finished goods, components, spare parts and test equipment. The 2012 results will be affected by write downs amounting to SEK 90 million. The write downs refer to evaluation tools, test equipment and components that have been used during development.These measures have no negative impact on cash flow.

Notice of 50-60 employees
Micronic Mydata is adapting to this situation by lowering its costs. The company puts a notice of staff reductions of 50-60 employees. The staff reductions will occur in the Swedish headquarters as well as in the global organization. These measures will lower the cost base by approximately SEK 60 million annually with full effect in 2013. Results for 2012 will be affected by one-time costs amounting to approximately SEK 30 million.

Underlying business stable and profitable
“Micronic Mydata’s financial position is still strong in spite of the delay in sales of the LDI technology”, says Peter Uddfors.
“Micronic Mydata maintains a sustainable and profitable business within existing product areas and aftermarket sales represent a stable and profitable base in operations. Both business areas, SMT (Surface Mount Technology) and PG (Pattern Generator) show stable sales with growing margins and sustainable profitability”.

Revised forecast for 2012
Sales for 2011 were SEK 1,198 million. The Board’s assessment has been that sales in 2012 will exceed that amount somewhat.

2012 has been a strong year for the Micronic Mydata operations within both business areas. SMT has continued to develop well after a very strong year in 2011. Sales have been stable and margins have developed positively. PG recently announced an order for a Prexison-8 mask writer for the most advanced display applications. This mask writer will be used in the production of flat panel displays and will be delivered during the current year. Also the first LDI tool will be invoiced during the current year.

The Board’s current assessment is that sales in 2012 will reach approximately SEK 1,300 million.



Contact at Micronic Mydata:       
Peter Uddfors
President and CEO
+46 8 - 638 52 00
peter.uddfors@micronic-mydata.com