TABY, SWEDEN – Mycronic reported first quarter net sales decreased 33% to SEK 736 million (US$73.2 million) and 35% based on constant exchange rates.

As planned, no mask writers were delivered during the period, which in its entirety accounts for the decline in the group's net sales.

EBIT was SEK 55 million, a decline of 86% compared to the first quarter of 2019. The underlying EBIT was SEK 65 million, down 85%.

Order intake increased 99% to SEK 1.4 billion.

"We delivered a stable first quarter, with strong order intake,” said Anders Lindqvist, president and CEO. “In a time marked by uncertainty and turbulence, I feel confident in Mycronic's solid financial position and healthy liquidity. In recent years, we have strengthened our aftermarket sales, which accounted for 28% of the group's sales in 2019. Our Pattern Generators business is characterized by long lead times, together with customer relationships that extend over decades. Deliveries of mask writers, from a well-filled order book for the year, are continuing as planned. This feels secure.”

The firm expects consolidated net sales for 2020 will be SEK 4.1 billion, excluding any acquisitions made in 2020. This outlook remains, but the increased uncertainty in the global economy due to Covid-19 should be noted.

“We have changed our way of working. As of the beginning of April, our daily operations comprise four divisions, with the Assembly Solutions business area being divided between the three divisions: High Flex, High Volume and Global Technologies, while Pattern Generators forms the fourth division. The work in our divisions is characterized by clear accountability and leadership, with a decentralized mandate and responsibility to ensure we always support and enhance our customers' operations in the best possible way. We are continuing to prioritize and invest in innovation, at the same time as there is good potential for the divisions to pursue continuous improvement efforts.

“Order intake during the quarter was strong and nearly doubled, from a favorable comparison, to SEK 1,432 million, fueled mainly by the five orders for mask writers secured by Pattern Generators: one Prexision 800 Evo, together with four orders for the recently launched SLX, which produces masks for the semiconductor industry. This is very satisfying, and it is confirmation from semiconductor manufacturers that we now offer attractive and effective production solutions also in this segment. Assembly Solutions reported strong performance in the High Volume division, driven by strong demand for dispensing equipment in China, which contributed to an order intake of SEK 707 million, corresponding to growth of 25%. In total, this yields a robust order book of nearly SEK 2.9 billion, compared with SEK 1.5 billion a year ago.

“Assembly Solutions displayed healthy net sales growth of 8% during the quarter, generated by strong performance by the High Volume division in the Chinese market. The operations in Pattern Generators are characterized by natural variations between the quarters, and as planned, no system deliveries were made during the period, which in its entirety, accounts for the group's year-on-year sales decline of 33%.

“Covid-19 is spreading throughout the world and is having a major impact on communities and businesses. We are monitoring developments closely and taking a structured approach to reduce the risks for personnel and operations, while we are implementing measures that will also secure scope for maneuvers in the future. The safety and health of our personnel are our priority, while we are following the official instructions. We are also working to support society wherever we see that we can make a difference. For example, we have put production-ready SMT lines from our demo centers at the disposal of the medical devices industry.

“We have a strong financial position, combined with the fact that we have delivered a stable first quarter with marginal impact from Covid-19. On this basis, the board of directors repeats its outlook issued earlier for net sales at a level of SEK 4.1 billion, while adding the increased uncertainty in the global economy due to Covid-19 should be noted. Also, the long-term goal of achieving net sales of SEK 5 billion not later than 2023 remains.”

Ed.: SEK 1 = US$0.099

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