In This Article:
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Revenue Growth: Up 15% year-on-year for the first half of 2024.
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EBIT Improvement: Improved due to higher sales, though margin structure impacted by higher share of solar sales and additional investments.
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Employee Count: Slightly reduced compared to one year ago, despite increases in certain areas.
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Order Entry: Slower in electronics and prototyping, but picking up since June.
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Solar Segment: Strong demand and profitability due to improved pricing and market dynamics.
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Cash Flow: Higher net working capital due to strong June deliveries; expected reduction in Q3 and significant reduction in Q4.
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Guidance for Q3 2024: Revenue between EUR 26 million to EUR 31 million; EBIT between minus EUR 3 million to EUR 2 million.
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Q4 2024 Expectations: Revenue of EUR 45 million-plus, with EBIT similar to last year's Q4.
Release Date: July 25, 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 15% year-on-year increase in revenue for the first half of 2024, indicating solid business performance.
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The company is experiencing strong demand in the semiconductor market, particularly for its light products, driven by the shift towards glass as a substrate material.
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There is a robust demand in the solar segment, benefiting from the global carbon-neutral trend, with thin-film solar growing stronger than the overall solar market.
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LPKF Laser & Electronics SE (LPKFF) has initiated several measures to increase profitability, including external support to improve efficiency and cost structure.
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The company has a healthy order pipeline across various segments, with significant interest in its new biotech product, which is gaining traction in the market.
Negative Points
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There is a noticeable reluctance to invest in several target markets, leading to slower order conversion in electronics and prototyping.
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The automotive market is particularly weak, with a significant reluctance to invest in additional capacity, affecting the laser welding segment.
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The company's EBIT margin is impacted by a higher share of solar sales, which have a less favorable margin structure compared to other segments.
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LPKF Laser & Electronics SE (LPKFF) faces increased competition, particularly from China, in the thin-film solar market.
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The company has narrowed its financial forecast for 2024 due to economic uncertainties and slower market dynamics in some legacy areas.
Q & A Highlights
Q: Can you provide an update on the discussions with your customer regarding the leader in display technology? Are they keeping the existing process or changing to yours? A: Klaus Fiedler, CEO: The customer has qualified our technology and instructed their supply chain to include it in future models. We are now working with their contract manufacturers on samples and investment scenarios. While the electronics sector is cautious, we are positioned well and expect decisions soon, possibly this year.