X-FAB First Quarter 2024 Results
Intermediate declaration by the Board of Directors
TESSENDERLO,
X-FAB (BOURSE:XFAB):
Highlights Q1 2024:
-
Revenue was
USD 216.2 million , up 4% year-on-year (YoY) and down 9% quarter-on-quarter (QoQ), within the guidance ofUSD 215-225 million - Revenue in X-FAB’s key end markets – automotive, industrial, and medical – was up 9% YoY*
-
All-time high silicon carbide (SiC) revenue at
USD 26.3 million *, up 100% YoY -
All-time high bookings at
USD 271.5 million , up 20% YoY -
EBITDA at
USD 51.0 million , down 12% YoY - EBITDA margin of 23.6%; excluding IFRS 15 impact, EBITDA margin was 24.0%, compared to the guidance of 24-27%
-
EBIT was
USD 27.2 million , down 27% YoY
Outlook:
-
Q2 2024 revenue is expected to come in within a range of
USD 200-210 million with an EBITDA margin in the range of 20-23%. -
This guidance is based on an average exchange rate of
1.08 USD /Euro. -
Full-year 2024 guidance gets reiterated with revenue in a range of
USD 900-970 million and an EBITDA margin in the range of 25-29%
Revenue breakdown per quarter:
in millions of USD |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q1 y-o-y growth |
Automotive |
98.3 |
96.9 |
104.4 |
120.9 |
131.1 |
135.3 |
151.8 |
135.6 |
12% |
Industrial |
42.5 |
46.7 |
42.3 |
46.9 |
51.3 |
53.7 |
54.3 |
52.6 |
12% |
Medical |
13.9 |
13.5 |
14.6 |
17.6 |
16.2 |
17.0 |
16.4 |
14.5 |
-18% |
Subtotal core business |
154.7 |
157.0 |
161.3 |
185.4 |
198.7 |
206.1 |
222.5 |
202.6 |
9% |
81.9% |
83.4% |
87.9% |
89.1% |
90.8% |
92.2% |
92.8% |
92.6% |
|
|
CCC1 |
33.6 |
30.7 |
21.6 |
22.5 |
20.0 |
17.2 |
17.2 |
16.0 |
-29% |
Others |
0.6 |
0.6 |
0.7 |
0.2 |
0.2 |
0.2 |
0.1 |
0.1 |
|
Revenue* |
188.8 |
188.3 |
183.6 |
208.1 |
218.9 |
223.5 |
239.8 |
218.7 |
5% |
Impact from revenue recognized over time |
0 |
0 |
0 |
0 |
8.3 |
10.4 |
-2.0 |
-2.6 |
|
Total revenue |
188.8 |
188.3 |
183.6 |
208.1 |
227.1 |
233.8 |
237.7 |
216.2 |
4% |
1Consumer, Communications & Computer |
in millions of USD |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q1 y-o-y growth |
CMOS |
156.3 |
152.6 |
151.9 |
172.8 |
180.7 |
180.5 |
188.4 |
168.3 |
-3% |
Microsystems |
19.8 |
18.4 |
19.5 |
22.2 |
20.8 |
24.4 |
27.9 |
24.1 |
9% |
Silicon carbide |
12.8 |
17.4 |
12.2 |
13.2 |
17.3 |
18.6 |
23.5 |
26.3 |
100% |
Revenue* |
188.8 |
188.3 |
183.6 |
208.1 |
218.9 |
223.5 |
239.8 |
218.7 |
5% |
Impact from revenue recognized over time |
0 |
0 |
0 |
0 |
8.3 |
10.4 |
-2.0 |
-2.6 |
|
Total revenue |
188.8 |
188.3 |
183.6 |
208.1 |
227.1 |
233.8 |
237.7 |
216.2 |
4% |
Business development
In the first quarter of 2024, X‑FAB recorded revenues of
Revenues in X‑FAB’s core markets – automotive, industrial, and medical – amounted to
The first quarter was characterized by continued strong demand for X-FAB's 200mm CMOS technologies, in particular the 180nm process, and microsystems technologies, resulting in record quarterly bookings of
In the first quarter, automotive revenue came in at
The long-term fundamentals for the automotive and industrial end markets remain strong. The megatrend of "electrification of everything" to mitigate climate change drives the structural demand for X-FAB's specialty technologies that enable energy-efficient and climate-friendly solutions for a wide range of applications. Apart from silicon carbide, X‑FAB's 180nm HV CMOS technology is in high demand and one of the key technologies used. Its growth will be supported by the ongoing capacity conversion and debottlenecking at
In the first quarter of 2024, medical revenues were
In the first quarter, X-FAB’s CCC (Consumer, Communication & Computer) business came in at
Quarterly prototyping revenues totaled at
Prototyping and production revenue* per quarter and end market:
in millions of USD |
Revenue |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Automotive |
Prototyping |
3.5 |
3.9 |
6.2 |
10.0 |
6.7 |
Production |
117.3 |
127.2 |
129.1 |
141.8 |
128.9 |
|
Industrial |
Prototyping |
14.2 |
16.6 |
14.3 |
10.5 |
10.7 |
Production |
32.7 |
34.8 |
39.4 |
43.8 |
41.9 |
|
Medical |
Prototyping |
2.9 |
2.5 |
3.3 |
3.3 |
2.7 |
Production |
14.7 |
13.7 |
13.7 |
13.1 |
11.8 |
|
CCC |
Prototyping |
5.7 |
4.5 |
3.3 |
3.5 |
3.1 |
Production |
16.8 |
15.4 |
13.9 |
13.7 |
12.9 |
The lower revenue guidance for the second quarter reflects the anticipated decline in demand for X-FAB's 150mm CMOS technologies, primarily from industrial customers, as well as a decline in SiC revenues following the reduction of SiC bookings in the first quarter. The second quarter is considered to mark the bottom of the current slowdown with X-FAB’s SiC business expected to gradually recover in the second half of the year. The positive long-term outlook for X-FAB’s business remains unchanged due to the Group’s positioning in high-growth end markets and its future-oriented technology portfolio, which enables sustainable solutions for today's key societal challenges.
Operations update
In the first quarter, X-FAB’s 200mm CMOS lines and the MEMS/microsystems fabs were running at full load and capacity still had to be allocated.
The sites that produce the 150mm CMOS technologies, i.e. in
In the first quarter, X-FAB's capacity expansion program continued as planned. Key projects include the expansion of capacity for X-FAB's popular 200mm CMOS technology at
Total capital expenditures in the first quarter came in at
Financial update
First quarter EBITDA was
First quarter profitability was negatively impacted by a combination of lower 150mm CMOS production and lower SiC wafer starts. A reversal is expected in the second half of 2024, driven by the recovery of the SiC business and the positive effects of increased economies of scale as additional 200mm CMOS capacity becomes available. In addition, X-FAB has initiated a number of measures to adjust the cost structure of the sites producing 150mm CMOS wafers while accelerating the transition to silicon carbide in
Thanks to the natural hedging of X-FAB's business in terms of currency exposure, profitability is not affected by exchange rate fluctuations. At a constant USD/Euro exchange rate of 1,07 as experienced in the previous year’s quarter, the EBITDA margin would have been 0,1 percentage points lower.
Cash and cash equivalents at the end of the first quarter amounted to
Management comments
X-FAB Quarterly Conference Call
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Please register here for the conference call (listen and ask questions).
The second quarter 2024 results will be communicated on
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 µm to 110 nm, and its special silicon carbide 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
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, unless legally required. 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
unaudited |
Quarter ended
unaudited |
Quarter ended
unaudited |
Year ended
audited |
Revenue* |
218,712 |
208,109 |
239,750 |
890,181 |
Impact from revenue recognized over time |
-2,559 |
0 |
-2,017 |
16,605 |
Total revenue |
216,152 |
208,109 |
237,733 |
906,786 |
Revenues in USD in % |
62 |
55 |
57 |
56 |
Revenues in EUR in % |
38 |
45 |
43 |
44 |
Cost of sales |
-165,786 |
-150,912 |
-174,183 |
-648,734 |
Gross Profit |
50,367 |
57,197 |
63,551 |
258,052 |
Gross Profit margin in % |
23.3 |
27.5 |
26.7 |
28.5 |
|
|
|
|
|
Research and development expenses |
-11,106 |
-10,922 |
-12,581 |
-47,191 |
Selling expenses |
-2,537 |
-2,196 |
-2,157 |
-8,463 |
General and administrative expenses |
-12,811 |
-10,501 |
-13,113 |
-47,157 |
Rental income and expenses from investment properties |
1,434 |
2,071 |
-532 |
2,906 |
Other income and other expenses |
1,847 |
1,743 |
392 |
-472 |
Operating profit |
27,193 |
37,393 |
35,559 |
157,675 |
Finance income |
5,778 |
8,538 |
10,451 |
34,658 |
Finance costs |
-7,653 |
-10,255 |
-10,172 |
-37,149 |
Net financial result |
-1,875 |
-1,717 |
280 |
-2,491 |
|
|
|
|
|
Profit before tax |
25,318 |
35,676 |
35,839 |
155,184 |
Income tax |
-2,260 |
7,042 |
2,964 |
6,711 |
Profit for the period |
23,059 |
42,717 |
38,803 |
161,895 |
|
|
|
|
|
Operating profit (EBIT) |
27,193 |
37,393 |
35,559 |
157,674 |
Depreciation |
23,765 |
20,618 |
24,048 |
87,939 |
EBITDA |
50,958 |
58,011 |
59,607 |
245,614 |
EBITDA margin in % |
23.6 |
27.9 |
25.1 |
27.1 |
|
|
|
|
|
Earnings per share at the end of period |
0.18 |
0.33 |
0.30 |
1.24 |
Weighted average number of shares |
130,631,921 |
130,631,921 |
130,631,921 |
130,631,921 |
|
|
|
|
|
EUR/USD average exchange rate |
1.08605 |
1.07165 |
1.07570 |
1.08138 |
Amounts in the financial tables provided in this press release are rounded to the nearest thousand except when otherwise indicated, rounding differences may occur.
Condensed Consolidated Statement of Financial Position
in thousands of USD |
Quarter ended
unaudited |
Quarter ended
unaudited |
Year ended
audited |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant, and equipment |
800,843 |
486,499 |
734,488 |
Investment properties |
7,108 |
7,539 |
7,171 |
Intangible assets |
5,985 |
6,184 |
5,627 |
Other non-current assets |
54 |
73 |
58 |
Deferred tax assets |
83,692 |
77,577 |
83,772 |
Total non-current assets |
897,682 |
577,872 |
831,116 |
|
|
|
|
Current assets |
|
|
|
Inventories |
276,983 |
233,322 |
269,227 |
Contract assets |
21,451 |
0 |
24,010 |
Trade and other receivables |
119,271 |
93,896 |
123,101 |
Other assets |
48,786 |
53,231 |
50,659 |
Cash and cash equivalents |
351,468 |
350,276 |
405,701 |
Total current assets |
817,959 |
730,725 |
872,698 |
|
|
|
|
TOTAL ASSETS |
1,715,640 |
1,308,597 |
1,703,814 |
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
Equity |
|
|
|
Share capital |
432,745 |
432,745 |
432,745 |
Share premium |
348,709 |
348,709 |
348,709 |
Retained earnings |
203,218 |
59,227 |
180,159 |
Cumulative translation adjustment |
-1,052 |
-297 |
-301 |
|
-770 |
-770 |
-770 |
Total equity attributable to equity holders of the parent |
982,850 |
839,614 |
960,542 |
|
|
|
|
Non-controlling interests |
0 |
0 |
0 |
|
|
|
|
Total equity |
982,850 |
839,614 |
960,542 |
|
|
|
|
Non-current liabilities |
|
|
|
Non-current loans and borrowings |
58,778 |
59,143 |
42,661 |
Other non-current liabilities and provisions |
4,696 |
4,023 |
4,024 |
Total non-current liabilities |
63,474 |
63,165 |
46,685 |
|
|
|
|
Current liabilities |
|
|
|
Trade payables |
102,660 |
78,119 |
90,681 |
Current loans and borrowings |
185,400 |
211,542 |
218,316 |
Other current liabilities and provisions |
381,258 |
116,157 |
387,590 |
Total current liabilities |
669,317 |
405,818 |
696,587 |
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
1,715,640 |
1,308,597 |
1,703,814 |
Condensed Consolidated Statement of Cash Flow
in thousands of USD |
Quarter ended
unaudited |
Quarter ended
unaudited |
Quarter ended
unaudited |
Year ended
audited |
Income before taxes |
25,318 |
35,676 |
35,839 |
155,184 |
|
|
|
|
|
Reconciliation of net income to cash flow arising from operating activities: |
23,732 |
22,981 |
16,227 |
88,948 |
Depreciation and amortization, before effect of grants and subsidies |
23,765 |
20,618 |
24,048 |
87,939 |
Recognized investment grants and subsidies netted with depreciation and amortization |
-673 |
-737 |
-730 |
-2,972 |
Interest income and expenses (net) |
-306 |
1,445 |
607 |
2,600 |
Loss/(gain) on the sale of plant, property, and equipment (net) |
-1,751 |
-1,483 |
-199 |
-3,373 |
Other non-cash transactions (net) |
2,698 |
3,138 |
-7,498 |
4,754 |
|
|
|
|
|
Changes in working capital: |
-799 |
-1,210 |
70,615 |
172,490 |
Decrease/(increase) of trade receivables |
8,252 |
-21,001 |
-496 |
-39,774 |
Decrease/(increase) of other receivables & prepaid expenses |
6,587 |
3,073 |
5,371 |
4,855 |
Decrease/(increase) of inventories |
-4,951 |
-18,886 |
-8,266 |
-52,504 |
Decrease/(increase) of contract assets |
2,559 |
0 |
2,017 |
-24,010 |
(Decrease)/increase of trade payables |
-206 |
27,240 |
16,823 |
16,634 |
(Decrease)/increase of other liabilities |
-13,040 |
8,364 |
55,166 |
267,289 |
|
|
|
|
|
Income taxes (paid)/received |
-1,441 |
-109 |
-3,275 |
-6,658 |
|
|
|
|
|
Cash Flow from operating activities |
46,810 |
57,339 |
119,405 |
409,964 |
|
|
|
|
|
Cash Flow from investing activities: |
|
|
|
|
Payments for property, plant, equipment & intangible assets |
-104,980 |
-48,895 |
-100,432 |
-337,789 |
Acquisition of subsidiary, net of cash acquired |
23,229 |
0 |
0 |
0 |
Payments for loan investments to related parties |
0 |
-135 |
-39 |
-276 |
Proceeds from loan investments related parties |
0 |
120 |
47 |
252 |
Proceeds from sale of property, plant, and equipment |
1,791 |
1,486 |
235 |
3,733 |
Interest received |
3,433 |
1,014 |
3,748 |
10,457 |
|
|
|
|
|
Cash Flow used in investing activities |
-76,527 |
-46,411 |
-96,442 |
-323,623 |
Condensed Consolidated Statement of Cash Flow – con’t
in thousands of USD |
Quarter ended
unaudited |
Quarter ended
unaudited |
Quarter ended
unaudited |
Year ended
audited |
Cash Flow from (used in) financing activities: |
|
|
|
|
Proceeds from loans and borrowings |
50,300 |
9,213 |
105,640 |
205,784 |
Repayment of loans and borrowings |
-94,113 |
-35,931 |
-112,939 |
-241,806 |
Receipts of sale & leaseback arrangements |
31,616 |
0 |
0 |
0 |
Payments of lease installments |
-1,169 |
-1,513 |
-1,197 |
-5,512 |
Interest paid |
-4,058 |
-3,258 |
-7,170 |
-11,630 |
|
|
|
|
|
Cash Flow from (used in) financing activities |
-17,423 |
-31,488 |
-15,666 |
-53,164 |
|
|
|
|
|
Effect of changes in foreign currency exchange rates on cash |
-7,093 |
1,411 |
7,129 |
3,099 |
Increase/(decrease) of cash and cash equivalents |
-47,140 |
-20,560 |
7,298 |
33,177 |
Cash and cash equivalents at the beginning of the period |
405,701 |
369,425 |
391,274 |
369,425 |
Cash and cash equivalents at the end of the period |
351,468 |
350,276 |
405,701 |
405,701 |
*excluding impact from revenue recognized over time according to IFRS 15
View source version on businesswire.com: https://www.businesswire.com/news/home/20240424965508/en/
X-FAB Press Contact
Investor Relations
+49-361-427-6489
uta.steinbrecher@xfab.com
Source: X-FAB