Mycronic, interim report January-June 2017

Mycronic doubled net sales with favorable profitability

Mycronic’s net sales for the first half of 2017 increased 97 percent compared with last year. The underlying EBIT margin was 34 percent. ”A half year characterized by continuing growth with profitability, and with significant launches that improve customers’ productivity”, says Lena Olving, CEO and President.

Second quarter April-June 2017

• Order intake was SEK 469 (775) million
• Net sales were SEK 910 (463) million
• EBIT was SEK 314 (106) million
• Underlying EBIT was SEK 325 (106) million
• Earnings per share was SEK 2.46 (0.83)

First half-year January-June 2017

• Order intake was SEK 1,121 (1,569) million
• Net sales were SEK 1,586 (807) million
• EBIT was SEK 473 (137) million
• Underlying EBIT was SEK 534 (138) million
• Earnings per share was SEK 3.60 (1.08)

Outlook 2017
The Board’s assessment remains, that net sales in 2017 will be at the level SEK 2,800 million.

Events after the end of the second quarter
Mycronic has received two orders for mask writers replacing older systems for manufacturing of display photomasks. The systems are scheduled to be delivered during the first half and second half of 2018 respectively. These orders are not included in the reported order intake or order backlog for the first half year.

CEO comments
It is gratifying to be able to report today that the first half of 2017 was characterized by good demand for Mycronic's products. Consolidated net sales increased 97 percent, from both organic growth within Assembly Solutions and Pattern Generators, and from the acquired operations.

We can also report continued good profitability. Consoli-dated EBIT for the first half of the year reached 30 percent. EBIT was burdened by acquisition-related costs unrelated to operational activities. These costs will remain for some time, even if they are greatest during the current year. The underlying business, i.e. our operational activities exclud-ing acquisition-related costs, achieved an operating margin of 34 percent.

As we deliver growth with profitability, we are continuing our substantial investments into product development to ensure continued long-term growth.

During the first half of the year, our efforts resulted in the introduction of the MYPro product series for efficient electronics production. During April and May, we have successfully launched two new machine platforms within the MYPro series, the MY700 and MY300, for dispensing and component mounting. The response and ratings from customers tell us that we are doing the right things as we respond to manufacturers' challenges within advanced electronics production.

Mycronic has also commenced sales of Axxon’s products through all of the Group’s sales channels. Our combined broad product range offers good possibilities to solve the customers’ needs within many different application areas.We are now the fourth largest supplier of dispensing equipment worldwide.   

Market data shows that the global market for SMT equipment grew for full-year 2016, despite a sluggish first half-year. This positive trend continued during the first quarter of 2017, with growth of 10 percent compared to the same period in 2016.

Within the display industry, a shift toward a greater pro-portion of AMOLED displays is underway. This causes a temporary loss of production capacity during the recon-struction phase, and development activity decreases. This led to a decline in the photomask market in 2016. We now see that the degree of utilization on mask writers at customer sites is once again on the rise. Both our customers and their customers are showing increased activity. The assess-ment is that production capacity will increase in 2017 as reconstructed production lines are brought into operation. Through dialogue with our customers, we also understand that the proportion of large TV displays is growing, which creates an additional need for equipment for efficient photomask production. Hence, planning is now underway for new, so-called G10 fabs for production of these larger displays.

All in all, I look forward to a second half year with continuing good demand in all our product areas. 

Lena Olving, CEO and President

The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication, through the contact persons stated below, on 14 July 2017, at 8 am.

Contacts at Mycronic:                                                              

Lena Olving                                                                                                                               
CEO                                                                                               
+46 8 - 638 52 00                                                                    
lena.olving@mycronic.com                                                   

Torbjörn Wingårdh     
CFO
+46 8 - 638 52 00
torbjorn.wingardh@mycronic.com 

About Mycronic
Mycronic AB is a Swedish high-tech company engaged in the development, manufacture and marketing of production equipment with high precision och flexibility requirements for the electronics industry. Mycronic’s headquartes are located in Täby, north of Stockholm and the Group has subsidiaries in China, France, Germany, Japan, Singapore, South Korea, the Netherlands, Taiwan, United Kingdom and the United States. For more information, see our web site at: www.mycronic.com

Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap: MYCR.