SINGULUS TECHNOLOGIES (SINGULUS) announces revenues of 50.4 million Euro (prior-year 69.4 million Euro) for the 1st quarter of 2005. Consolidated net income totaled 0.8 million Euro during the 1st quarter (previous year 4.3 million Euro). SINGULUS’ 1st quarter revenues and earnings were strained by weak market conditions according to expectations. The Asian market continues to be characterized by an investment reluctance in particular due to the drastic increase in the price of polycarbonate in 2004, the raw material needed to manufacture discs.
At 34.3 million Euro (prior year 139.9 million Euro), the order intake for the 1st quarter of 2005 declined, reflecting both the weakness of the Asian market and capital expenditures uncertainties in the U.S. Even in the still robust European market environment, previous year’s level of order intake could not be maintained. The sluggish order intake resulted in an order backlog of 40.6 million Euro as of March 31, 2005 (prior year 160.5 million Euro). Earnings before interest and taxes (EBIT) fell from nearly 6.6 million Euro during the 1st quarter of last year to 0.9 million Euro in the same period in 2005. The EBIT margin totaled 1.9 % (prior year 9.9 %). At 27.3 %, the gross margin was comparable to that of last year.
Since early 2005 we face difficult market conditions and have decided counter measures in an early stage. We expect all agreed measures to be implemented no later than the 4th quarter of the year and reduce our overall costs by more than 5 million Euro. The labor reduction included in the scope of cost-saving measures led to staff cutbacks by the 1st quarter of 2005. Consequently, 44 positions were eliminated in the Group and are reflected in the employee headcount which dropped from 736 to 692.
SINGULUS is in an excellent position with regard to the development of the new HD DVD and Blu-ray formats. The cooperation agreements with SONY and TOSHIBA / MEMORY-TECH provide the company with paramount access to the new technologies. A newly conceived SPACELINE II HD line for HD DVD production is already available to the market. The cooperation with SONY provides a decisive competi-tive edge for the development of Blu-ray. In April SINGULUS tested a single-layer Blu-ray replication line in production; a dual-layer Blu-ray prototype will be introduced by the end of 2005.
Despite difficult market conditions, we look to the future with optimism. Because of the noticeable improvement in market demand in April 2005 we expect a significantly better trend in the second half of the year. We see growth potential in both the introduction of new injection molding machines and the diversification into optical coating. The introduction of third generation optical disc machines will provide additional stimulus for our core business.
SINGULUS TECHNOLOGIES - Key Figures 1st Quarter | |||||
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| 2002 | 2003 | 2004 | 2005 |
Gross revenues | million Euro | 53.5 | 56.9 | 69.4 | 50.4 |
Order intake | million Euro | 77.5 | 128.6 | 139.9 | 34.3 |
Order backlog | million Euro | 79.7 | 130.1 | 160.5 | 40.6 |
EBIT | million Euro | 9.2 | 8.7 | 6.6 | 0.9 |
Profit before tax | million Euro | 9.4 | 9.1 | 7.1 | 1.3 |
Net income | million Euro | 6.1 | 5.8 | 4.3 | 0.8 |
Earnings per share | Euro | 0.17 | 0.16 | 0.12 | 0.02 |
Employees |
| 427 | 508 | 702 | 692 |
Beginning with fiscal 2005, SINGULUS TECHNOLOGIES will report for the first time its quarterly figures according to International Financial Reporting Standards (IFRS). The comparable figures for 2004 were also calculated in accordance with IFRS.
SINGULUS TECHNOLOGIES AG, Hanauer Landstrasse 103, D-63796 Kahl/Main
ISIN: DE0007238909 / WKN: 723890