TESSENDERLO, Belgium--(BUSINESS WIRE)--Regulatory News:
Highlights for Q4 2017:
- Revenue of USD 154.1 million, down 3% year-on-year and up 10% quarter-on-quarter; above the guidance of USD 147-153 million
- EBITDA of USD 31.1 million, up 25% year-on-year and up 16% quarter-on-quarter
- EBIT of USD 16.9 million, up 44% year-on-year and up 32% quarter-on-quarter
- Net profit of USD 32.0 million, up 144% year-on-year and up 43% quarter-on-quarter
- Earnings per share of USD 0.25
Highlights for 2017:
- Revenue of USD 581.7 million, up 13% year-on-year
- EBITDA of USD 106.1 million, up 5% year-on-year
- EBIT of USD 50.5 million, flat year-on-year
- Net profit of USD 89.8 million, up 95% year-on-year
- Earnings per share of USD 0.73
Outlook:
- Q1 2018 revenue is expected in the range of USD 138-144 million with an EBITDA margin of about 12-14%. For the full year, revenue is expected in the range of USD 615-655 million with an EBIT in the range of USD 50 to 70million. For 2019, current planning foresees revenues in the range of USD 700-760 million and an EBIT in the range of USD 70-100 million. Our guidance is based on an average exchange rate of 1.20 USD/Euro.
Growth in the fourth quarter was driven by increased revenues in all of X-FAB’s key end markets, namely automotive, industrial and medial, each contributing to a strong overall growth in 2017. Year-on-year, the automotive business grew by 19% driven by the adoption of more electronics in cars with X-FAB manufacturing about 500 different products for the automotive market. Industrial sales, representing about 600 different products, grew by 32%, whereas medical sales increased by 75% with about 60 different products. Revenues relating to CCC products dropped by 11% compared to 2016, which was mainly caused by capacity constraints. As more technologies become available in the factory in France, X-FAB will be in a better position to support the demand going forward.
The expected revenue decrease in the first quarter of 2018 is due to weaker sales in RF-SOI as well as the lower amount of calendar days of the first quarter. The drop in RF-SOI is in line with the typical seasonality of the mobile market as seen in previous years. The RF-SOI business is expected to go up again in the second quarter of 2018. Over the year, X-FAB’s core business is also expected to increase further based on the strong demand in X-FAB’s key end markets. The capacity expansion currently being implemented at the Malaysian factory will support this growth and also help to reduce the amount of outstanding orders which could not be completed due to capacity constraints.
The integration of X-FAB France progressed well. In the fourth quarter, the first prototyping of automotive products based on X-FAB’s 180nm high-voltage process with embedded flash was launched. Automotive production is planned to start towards the end of 2018 after successful qualification and respective approvals.
The capacity expansion of the Malaysian fab is on track. All equipment is now installed and in the process of being qualified. The additional capacity of 4,000 wafer starts per month is expected to become fully effective in the second quarter of 2018.
In the fourth quarter, X-FAB Texas recorded its first SiC production revenues while working with eleven customers on implementing their proprietary version of SiC technologies and components.
At a constant USD/Euro currency exchange rate, fourth quarter revenues dropped by 4% year-on-year and grew by 10% quarter-on-quarter. Without X-FAB France as well as the subcontracted business, revenues increased by 17% year-on-year and by 10% compared to the previous quarter.
Revenue Breakdown per Quarter
| in millions of USD | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 |
Y-o-Y
Growth |
|||||||||
| Automotive | 46.2 | 52.9 | 55.9 | 56.0 | 54.5 | 59.3 | 66.5 | 70.2 | 19% | |||||||||
| Industrial | 11.8 | 11.3 | 14.9 | 12.7 | 15.2 | 16.5 | 16.7 | 18.5 | 32% | |||||||||
| Medical | 2.7 | 2.6 | 4.1 | 3.5 | 4.6 | 4.5 | 6.6 | 6.9 | 75% | |||||||||
| Subtotal core business1 |
60.6
56.9% |
66.8
56.4% |
74.8
58.2% |
72.2
45.3% |
74.3
50.2% |
80.3
57.6% |
89.8
64.0% |
95.6
62.0% |
24% | |||||||||
| CCC2 | 24.8 | 25.5 | 29.8 | 30.5 | 30.9 | 24.4 | 18.8 | 24.2 | -11% | |||||||||
| Others | 0.7 | 0.7 | 0.3 | 0.7 | 0.7 | 0.5 | 0.8 | 0.9 | ||||||||||
| Subtotal1 |
86.1
80.8% |
93.0
78.5% |
105.0
81.6% |
103.4
64.9% |
106.0
71.7% |
105.2
75.5% |
109.4
78.0% |
120.7
78.3% |
14% | |||||||||
| X-FAB France3 | 0.0 | 0.0 | 0.0 | 31.6 | 26.5 | 31.0 | 30.9 | 33.4 | ||||||||||
| Subcontracted business | 20.4 | 25.5 | 23.6 | 24.3 | 15.4 | 3.2 | 0.0 | 0.0 | ||||||||||
| Total revenues | 106.5 | 118.5 | 128.6 | 159.3 | 147.9 | 139.3 | 140.3 | 154.1 | 13% |
1 Without X-FAB France and Subcontracting Business
2
Consumer, Communications & Computer
3 X-FAB
France business is predominantly CCC with a small amount of Automotive
and Industrial business
In the fourth quarter of 2017, prototyping revenues as indicator for future business came in at USD 15.3 million. For the full year, prototyping revenues totaled USD 54.4 million, an increase of 28% compared to previous year. Prototyping revenues in the core market segments, i.e. automotive, industrial and medical, typically convert into production revenues within four to five years after initial prototyping.
Commenting on the development of X-FAB’s MEMS business, Rudi De Winter added: “I am delighted about our MEMS business, which is well on track for strong growth in 2018 based on various applications in all 4 of our end markets. In the fourth quarter, we launched production of a new generation MEMS microphone, setting new standards with respect to technical performance. The market for MEMS microphones is growing strongly due to the increased number of microphones per smartphone, the increased use of headphones with noise cancellation, as well as the wider adoption of voice input for various smart applications.”
FX Sensitivity
The weaker US-Dollar has created a headwind with respect to profitability. The average exchange rate for the fourth quarter 2017 deteriorated by 10 cents compared to the same quarter last year. Despite the effect, the operational result increased by 44%. Relating to the financials as per year-end 2017, an evolution of the USD/Euro exchange rate from 1.10 to 1.20 would translate into a net positive effect on the financial result by about USD 8 million, while on a yearly basis it would have a negative effect of USD 12 million on the operational result. At a constant USD/Euro exchange rate of 1.05, the EBITDA margin for 2017 would have come in at 20.2%, above the guidance of 19% as provided at the IPO. The actual exchange rate for 2017 is at 1.129 with a corresponding EBITDA margin of 18.2%.
Procedures of the independent auditor
The statutory auditor, KPMG Bedrijfsrevisoren - Réviseurs d’Entreprises, represented by Herwig Carmans, has confirmed that the audit procedures, which have been substantially completed, have not revealed any material adjustments which would have to be made to the condensed consolidated financial information included in this press release.
X-FAB Quarterly Conference Call
X-FAB’s fourth quarter results will be discussed in a live conference call on Monday, February 12th, 2018 at 6.30 pm CET. The conference call will be in English. Please register in advance of the conference using the following link: http://emea.directeventreg.com/registration/1859408
Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and a unique registrant ID. In the 10 minutes prior to the call, you will need to use the conference access information provided in the email received at the point of registering.
The conference call will be available for replay from February 12th 9.30 pm CET until February 19th 9.30 pm CET. The replay number will be +44 (0)1452550000, conference ID 1859408.
The first quarter 2018 results will be communicated on May 2nd, 2018.
About X-FAB
X-FAB is the leading analog/mixed-signal and MEMS foundry group manufacturing silicon wafers for automotive, industrial, consumer, medical and other applications. Its customers worldwide benefit from the highest quality standards, manufacturing excellence and innovative solutions by using X-FAB’s modular CMOS processes in geometries ranging from 1.0 to 0.13 µm, and its special BCD, SOI and MEMS long-lifetime processes. X-FAB’s analog-digital integrated circuits (mixed-signal ICs), sensors and micro-electro-mechanical systems (MEMS) are manufactured at six production facilities in Germany, France, Malaysia and the U.S. X-FAB employs about 4,000 people worldwide.
For more information, please visit www.xfab.com.
Forward-looking information
This press release may include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, X-FAB’s future results of operations, financial condition, liquidity, prospects, growth, strategies or developments in the industry in which we operate. By their nature, forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results or future events to differ materially from those expressed or implied thereby. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein.
Forward-looking statements contained in this press release regarding trends or current activities should not be taken as a report that such trends or activities will continue in the future. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any such forward-looking statements, which speak only as of the date of this press release.
The information contained in this press release is subject to change without notice. No re-report or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it.
Condensed Consolidated Statement of Profit and Loss
| in thousands of USD |
Quarter
ended |
Quarter
ended |
Quarter
ended |
Year
ended |
Year
ended audited |
|||||
| Revenue | 154,118 | 159,299 | 140,287 | 581,687 | 512,897 | |||||
| Revenues in USD in % | 83 | 89 | 81 | 84 | 87 | |||||
| Revenues in EUR in % | 16 | 11 | 19 | 16 | 13 | |||||
| Cost of sales | -119,826 | -131,365 | -112,081 | -465,948 | -407,831 | |||||
| Gross Profit | 34,293 | 27,933 | 28,206 | 115,739 | 105,066 | |||||
| Gross Profit margin in % | 22.3 | 17.5 | 20.1 | 19.9 | 20.5 | |||||
| Research and development expenses | -7,130 | -9,079 | -6,995 | -28,326 | -26,847 | |||||
| Selling expenses | -2,230 | -2,176 | -2,123 | -8,874 | -7,369 | |||||
| General and administrative expenses | -8,607 | -7,916 | -6,992 | -30,306 | -22,786 | |||||
| Rental income and expenses from investment properties | 514 | 2,865 | 628 | 2,152 | 1,897 | |||||
| Other income and other expenses | 100 | 135 | 103 | 105 | 496 | |||||
| Operating profit | 16,940 | 11,763 | 12,826 | 50,489 | 50,456 | |||||
| Finance income | 10,273 | 9,105 | 19,294 | 55,208 | 11,119 | |||||
| Finance costs | -5,179 | -11,917 | -9,857 | -26,109 | -19,123 | |||||
| Net financial result | 5,095 | -2,812 | 9,437 | 29,099 | -8,005 | |||||
| Profit before tax | 22,035 | 8,950 | 22,263 | 79,588 | 42,451 | |||||
| Income tax | 10,006 | 4,185 | 146 | 10,169 | 3,500 | |||||
| Profit for the period | 32,041 | 13,135 | 22,409 | 89,758 | 45,952 | |||||
| EBITDA | 31,139 | 24,958 | 26,742 | 106,114 | 100,614 | |||||
| EBITDA margin in % | 20.2 | 15.7 | 19.1 | 18.2 | 19.6 | |||||
| Earnings per share at the end of period | 0.25 | 0.13 | 0.17 | 0.73 | 0.46 | |||||
| Weighted average number of shares | 130,631,921 | 99,381,921 | 130,631,921 | 122,412,743 | 99,381,921 | |||||
| EUR/USD average exchange rate | 1.17748 | 1.07971 | 1.17442 | 1.12893 | 1.10696 |
Condensed Consolidated Statement of Financial Position
| in thousands of USD |
Year ended 31 Dec 2017 unaudited |
Year ended 31 Dec 2016 audited |
||
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 315,856 | 265,472 | ||
| Investment properties | 9,033 | 9,143 | ||
| Intangible assets | 7,060 | 7,874 | ||
| Non-current investments | 558 | 190 | ||
| Other non-current assets | 152 | 36 | ||
| Deferred tax assets | 32,959 | 19,904 | ||
| Total non-current assets | 365,618 | 302,618 | ||
| Current assets | ||||
| Inventories | 105,847 | 88,972 | ||
| Trade and other receivables | 82,008 | 77,292 | ||
| Other assets | 38,929 | 18,881 | ||
| Cash and cash equivalents | 319,235 | 104,157 | ||
| Total current assets | 546,018 | 289,303 | ||
| TOTAL ASSETS | 911,637 | 591,921 | ||
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 432,745 | 265,231 | ||
| Share premium | 348,709 | 255,262 | ||
| Retained earnings | -106,716 | -196,506 | ||
| Cumulative translation adjustment | -591 | -879 | ||
| Treasury shares | -770 | -770 | ||
| Total equity attributable to equity holders of the parent | 673,377 | 322,338 | ||
| Non-controlling interests | 357 | 400 | ||
| Total equity | 673,734 | 322,738 | ||
| Non-current liabilities | ||||
| Non-current loans and borrowings | 106,178 | 132,407 | ||
| Other non-current liabilities and provisions | 8,872 | 8,481 | ||
| Total non-current liabilities | 115,050 | 140,888 | ||
| Current liabilities | ||||
| Trade payables | 36,684 | 49,032 | ||
| Current loans and borrowings | 37,799 | 31,432 | ||
| Other current liabilities and provisions | 48,370 | 47,831 | ||
| Total current liabilities | 122,853 | 128,295 | ||
| TOTAL EQUITY AND LIABILITIES | 911,637 | 591,921 |
Condensed Consolidated Statement of Cash Flow
| in thousands of USD |
Quarter
ended unaudited |
Quarter
ended audited |
Quarter
Ended unaudited |
Year
ended unaudited |
Year
ended audited |
|||||
| Income before taxes | 22,035 | 8,950 | 22,263 | 79,588 | 42,451 | |||||
| Reconciliation of net income to cash flow arising from operating activities: | 8,000 | 9,435 | 4,871 | 25,332 | 51,381 | |||||
| Depreciation and amortization, before effect of grants and subsidies | 14,200 | 13,195 | 13,917 | 55,625 | 50,158 | |||||
| Recognized investment grants and subsidies netted with depreciation and amortization | -868 | -908 | -892 | -3,622 | -2,858 | |||||
| Interest income and expenses (net) | 483 | 1,222 | 803 | 2,935 | 4,434 | |||||
| Loss/(gain) on the sale of plant, property and equipment (net) | 72 | 1 | -64 | 8 | -232 | |||||
| Loss/(gain) on the change in fair value of derivatives (net) | -470 | 280 | -3,489 | -11,698 | 280 | |||||
| FX currency differences & other non-cash transactions (net) | -5,417 | -4,355 | -5,402 | -17,916 | -400 | |||||
| Changes in working capital: | -13,071 | -2,854 | -16,986 | -40,527 | -16,359 | |||||
| Decrease/(increase) of trade receivables | -9,059 | -6,255 | -2,754 | -2,936 | -32,825 | |||||
| Decrease/(increase) of other receivables & prepaid expenses | -2,891 | -7,462 | -6,779 | -14,231 | -9,828 | |||||
| Decrease/(increase) of inventories | -2,280 | -3,556 | -7,390 | -16,875 | -16,318 | |||||
| (Decrease)/increase of trade payables | 10,649 | 14,223 | -4,587 | -11,281 | 34,802 | |||||
| (Decrease)/increase of other liabilities | -9,489 | 196 | 4,525 | 4,797 | 7,810 | |||||
| Income taxes (paid)/received | -283 | -879 | -618 | -1,153 | -3,554 | |||||
| Cash Flow from operating activities | 16,681 | 14,652 | 9,530 | 63,240 | 73,920 | |||||
| Cash Flow from investing activities: | ||||||||||
| Payments for property, plant, equipment & intangible assets | -34,708 | -11,441 | -17,836 | -102,536 | -72,189 | |||||
| Payments for investments | 0 | -11 | 0 | 0 | -289 | |||||
| Acquisition of subsidiary, net of cash acquired | 0 | -10,178 | 0 | 0 | -10,178 | |||||
| Payments for loan investments to related parties | -35 | -56 | -33 | -131 | -5,694 | |||||
| Proceeds from loan investments related parties | 35 | 5,636 | 30 | 146 | 5,740 | |||||
| Proceeds from sale of property, plant and equipment | 25 | 1 | 66 | 91 | 735 | |||||
| Interest received | 609 | 137 | 495 | 1,901 | 275 | |||||
| Cash Flow used in investing activities | -34,075 | -15,912 | -17,277 | -100,528 | -81,600 |
Condensed Consolidated Statement of Cash Flow – con’t
| in thousands of USD |
Quarter
ended unaudited |
Quarter
ended audited |
Quarter
Ended unaudited |
Year
ended unaudited |
Year
ended audited |
|||||
| Cash Flow from (used in) financing activities: | ||||||||||
| Proceeds from loans and borrowings | 0 | 33,901 | 0 | 0 | 60,981 | |||||
| Repayment of loans and borrowings | -8,826 | -5,009 | -7,978 | -32,008 | -19,374 | |||||
| Receipts from sale & leaseback arrangements | -8 | 792 | 8 | 0 | 6,190 | |||||
| Payments of lease installments | -468 | -576 | -670 | -2,377 | -1,558 | |||||
| Receipt of government grants and subsidies | 0 | 725 | 329 | 375 | 2,532 | |||||
| Interest paid | -656 | -1,255 | -768 | -2,814 | -2,843 | |||||
| Gross proceeds from capital increase | 0 | 0 | 0 | 266,575 | 0 | |||||
| Direct cost related to capital increase | 0 | 0 | 0 | -7,389 | 0 | |||||
| Payment of preference dividend | -3,095 | 0 | 0 | -3,095 | 0 | |||||
| Distribution to non-controlling interests | 0 | -11 | 0 | -11 | -11 | |||||
| Cash Flow from (used in) financing activities | -13,055 | 28,566 | -9,079 | 219,257 | 45,917 | |||||
| Effect of changes in foreign currency exchange rates on cash | 6,296 | -228 | 9,907 | 33,109 | -177 | |||||
| Increase/(decrease) of cash and cash equivalents | -30,449 | 27,306 | -16,826 | 181,968 | 38,237 | |||||
| Cash and cash equivalents at the beginning of the period | 343,389 | 77,080 | 350,307 | 104,157 | 66,098 | |||||
| Cash and cash equivalents at the end of the period | 319,235 | 104,157 | 343,389 | 319,235 | 104,157 |
###
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