Micronic presents fourth quarter and full year 2008

Täby, Sweden, January 28, 2009 - Micronic Laser Systems AB (listed on the NASDAQ OMX Nordic Exchange Stockholm, in the category Small cap, Information Technology: MICR) today presented the Group’s Interim Report for the fourth quarter of 2008 and year-end report for 2008. The information contained in this interim report is subject to the disclosure requirements of Micronic Laser Systems AB (publ.) pursuant to the Swedish Securities Market Act. The information was submitted for publication on January 28, 2009, 8:00 a.m.

* Order intake for 2008 was SEK 378 million (634), of which SEK 148 million (136)
was booked in the fourth quarter.

* Net sales for 2008 are reported at SEK 569 million (523), of which fourth quarter sales accounted for SEK 334 million (225).

* The operating loss for 2008 was SEK 37 million (291). For the fourth quarter, operating profit amounted to SEK 125 million (-42). Operating profit for the fourth quarter includes items affecting comparability, consisting of a capital gain of SEK 98 million on the sale of the property in Täby together with inventory write-downs and restructuring charges of SEK 83 million.

* The operating loss adjusted for capitalization and amortization of development costs was SEK 85 million (210). For the fourth quarter the corresponding figure was a profit of SEK 119 million (-35).

* The loss after tax for 2008 was SEK 31 million (207), equal to earnings per share of SEK -0.78 (-5.30). Profit (loss) after tax for the fourth quarter was SEK 85 (-30) million, equal to earnings per share of SEK 2.16 (-0.77).

* The order backlog excluding service at December 31, 2008, amounted to SEK 224 million. At year-end 2007 the order backlog was SEK 332 million.

* In view of the ongoing global financial crisis, it is impossible to predict when the market for pattern generators will revive. The Board of Directors expects the current order backlog for system sales of SEK 224 million to be delivered in the first half of 2009, and will wait to announce its guidance on sales for the full year at a later date.

“Fourth quarter sales reached a robust SEK 334 million, boosting net sales for the full year by 8 percent. This is positive, but far from satisfactory since we have posted a continued loss for the full year. Our underlying gross margin, adjusted for an inventory write-down of SEK 67 million, was 57 percent for the fourth quarter and 40 percent for the full year, which shows that we have retained our good earning ability. On the cost side we have implemented the planned measures, reducing the number of consultants by 40 and the number of employees by 56. In addition, the sale of our property in Täby in the fourth quarter provided net cash of SEK 95 million.

“The steps taken during 2008, together with an improved foreign exchange situation, have reinforced our margins in system sales, strengthened our liquidity and reduced our consulting and personnel-related costs by around SEK 95 million on an annual basis,” says Sven Löfquist, President and CEO of Micronic Laser Systems AB.

“In 2008 we completed development of the Prexision-10 and shipped the first system to a customer. The sale of several Sigma7500 tools is further proof of its status as the laser pattern generator of choice for semiconductor applications. In other words, we have attractive and fully developed products ready for sale when the market picks up again. This will enable us to scale back our R&D spending in 2009 by around SEK 50 million, at the same time that the reduced expenditure can also include continued investments in a new and growing area, Laser Direct Imaging (LDI) products for advanced electronic packaging. In 2008 we performed extensive market and technical studies and have identified good potential to develop competitive products for this market,” adds Sven Löfquist.

“Our business has naturally been hard hit by slowing in the global economy. In light of the drastically reduced forecasts for both the display and semiconductor markets, there is considerable uncertainty going forward. However, demand for photomask manufacturing equipment is not steered entirely by the same investment cycles as that for volume production equipment in these markets but by the under-lying demand for photomasks. This market is driven by the number of new designs, technological advances and the startup of new production facilities. This means that pattern generator investments appear early in a market upturn before the rest of the equipment industry recovers. We have delivery capacity and, not least, our most advanced display pattern generators have a significantly higher price level. Until the equipment market revives it is of the utmost importance that we continue cutting costs and safeguarding our strong liquidity. In scenario where new orders are being delayed, this will ensure our freedom of action through 2009 and beyond,” concludes Sven Löfquist.

Company contacts:
Sven Löfquist
President & CEO
+46 8 638 52 00
sven.lofquist@micronic.se

Carl-Johan Blomberg
CFO
+46 8 638 52 00
carl-johan.blomberg@micronic.se