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Aixtron SE (AIXXF) Q2 2024 Earnings Call Highlights: Navigating Market Challenges with ...

In This Article:

  • Revenue: EUR172 million for Q2 2024, EUR250 million for H1 2024.

  • Gross Margin: 37% for Q2 2024, down from 42% in the previous year.

  • EBIT: EUR30 million for Q2 2024.

  • OpEx: EUR36 million for Q2 2024, driven by higher R&D spending.

  • Order Backlog: EUR401 million at the end of Q2 2024.

  • Operating Cash Flow: EUR20 million for Q2 2024, EUR13 million for H1 2024.

  • Free Cash Flow: Minus EUR56 million for H1 2024.

  • Cash Balance: EUR79 million as of June 30, 2024.

  • Guidance for FY 2024: Revenue expected between EUR620 million and EUR660 million; Gross Margin 43% to 45%; EBIT Margin 22% to 25%.

Release Date: July 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Aixtron SE (AIXXF) maintained a strong competitive position despite a softer market environment, with significant orders in Q2 2024 totaling EUR176 million, primarily driven by power electronics.

  • The company expanded its market position in silicon carbide, with SiC-based systems accounting for 57% of incoming equipment orders.

  • Aixtron SE (AIXXF) secured substantial volume orders from China and new customers for its G10-SiC tool, including several from Japan.

  • The company's equipment order backlog increased to EUR401 million, up almost EUR50 million from the end of fiscal 2023.

  • Aixtron SE (AIXXF) announced the acquisition of a production site in Turin, Italy, to address expected demand increases and enhance manufacturing capabilities.

Negative Points

  • The gross margin decreased to 37% from 42% the previous year, primarily due to a product mix with a larger share of lower-margin LED tools.

  • Revenues in Q2 2024 were EUR132 million, down from EUR174 million the previous year, due to shipment and revenue timing differences.

  • The softer end market for power devices impacted delivery schedules, leading to an adjusted fiscal year 2024 revenue guidance of EUR620 million to EUR660 million.

  • High inventory levels persisted, with inventories slightly increasing to EUR448 million, reflecting a strategy to secure on-time delivery despite supply chain challenges.

  • The cash balance decreased to EUR79 million from EUR182 million at the end of 2023, primarily due to CapEx projects and a EUR45 million dividend payment.

Q & A Highlights

Q: Can you comment on the order momentum and whether you expect similar orders in the coming quarters? A: Yes, we expect the momentum in Q3 and Q4 2024 to be similar to Q2. Our pipeline is strong, and we have a clear understanding of customer needs and lead times, indicating that the order levels will remain consistent.