Mycronic AB (publ), Interim report first quarter January-March 2016

First quarter – strong demand for mask writers but weaker start for SMT equipment

Mycronic reports today an increased order intake, increased sales, and a higher EBIT for the first quarter, a period which is typically characterized by lower activity within Mycronic’s segment of the electronics industry. The strong order intake during the quarter increased the order backlog to a record high of SEK 1,516 million, which provides a good basis for continuing favourable development during the current and next year.

First quarter January-March 2016

• Order intake reached SEK 794 (471) million
• Net sales reached SEK 344 (304) million
• EBIT was SEK 32 (26) million
• Profit per share was SEK 0.24 (0.19)

Outlook
The Board’s assessment is that sales in 2016 will be at the level of SEK 1,900 million.

CEO comments 
Thanks to a strong photomask market, Mycronic received orders for a total of five mask writers during the first quarter, a period normally characterized by lower levels of activity for our customers.

The global market for SMT equipment experienced a negative trend in 2015, while Mycronic maintained both its volumes and margins. This slowdown has now affected us as well. Therefore, it remains essential to continue investing in product development to secure our competitiveness.

In November 2015, we introduced equipment for dis-pensing a wide range of different fluids. Mycronic’s Jet Dispenser builds on the unique jet printing platform and is significantly faster than existing dispensing solutions. The equipment targets completely new segments on the SMT market. We have broadened our product offering, and in this way created opportunities for a position shift in line with our growth strategy. The global introduction continued during the first quarter.

The five received orders for mask writers are for various applications. We received the first order for a measuring system for quality assurance of the most advanced photomasks. Quality assurance is becoming increasingly important as more photomasks are produced for new products where the display is central. Our replacement offering, with two new orders this quarter bringing the total to five, has proven to be in line with what our customers need to ensure long-term high productivity for photomask manufacturing.

Despite a weak start to the year for SMT, the Group has a record large order backlog and a strong cash flow. Together with a good financial position, this gives us the prerequisites to maintain our strategy for product development for the electronics of the future, and we are on track to achieve our financial goals – long-term and sustainably.
 
Lena Olving

CEO and President