In This Article:
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Revenue: Slightly above last year, in line with guidance for Q3.
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EBIT: Down by approximately EUR 2.1 million, impacted by EUR 1.1 million less in operating margin and restructuring costs.
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Operating Margin: Decreased due to increased spending on Alyse and light projects.
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Free Cash Flow: Less negative in Q3 compared to last year, improved working capital due to better receivables position.
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Order Intake: Slightly weaker in Q3, mainly due to weakness in the welding segment.
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Guidance for FY24: Revenue expected between EUR 125 to EUR 130 million; adjusted EBIT margin between 3.5% to 6.5%.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LPKF Laser & Electronics SE (LPKFF) reported a solid business performance with sales slightly above last year, despite challenging market conditions.
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The company is experiencing strong demand for its light products, driven by trends in artificial intelligence and changes in the semiconductor market.
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LPKF Laser & Electronics SE (LPKFF) has a robust pipeline, particularly in the electronics and solar segments, with expectations for improved order entry in the coming months.
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The company is implementing cost reduction measures to adapt to market conditions, with initial results already visible and full effects expected in FY25.
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LPKF Laser & Electronics SE (LPKFF) is well-positioned in the semiconductor sector, with its light technology gaining traction and being selected by major companies for advanced packaging applications.
Negative Points
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The automotive sector remains sluggish, impacting LPKF Laser & Electronics SE (LPKFF)'s welding segment and necessitating a slight adjustment in guidance.
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The company faces volatility in the EMS market, with customers closely monitoring their capital expenditures.
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LPKF Laser & Electronics SE (LPKFF) has experienced a decrease in operating margin due to increased spending on new projects and restructuring costs.
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The solar market in China is slow due to financing constraints, affecting the pace of deal closures.
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The company's biotech product, ARRALYZE, is still in the operational verification phase, with a longer-than-expected conversion cycle for order conversions.
Q & A Highlights
Q: Can you give us a feeling of the size of automotive in the welding business and details about the new product line introduced at the trade fair? A: In the current year, over 80% of our welding business is dominated by the automotive market, which has seen less business than anticipated. The new product line introduced at the trade fair is called "absorbent to absorbent," which allows welding of more diverse plastics, potentially increasing our addressable market beyond automotive to include consumer and medical markets. This technology is not expected to significantly impact FY25 but is a strategic move to broaden our market reach.