BRONSCHHOFEN, SWITZERLAND – Cicor Technologies reported net profit tripled in the first half of 2021 to CHF 5.2 million (US$5.6 million), 4.4% of sales. The favorable development of the Euro against the Swiss Franc contributed to the increase.

Free cash flow in the first half of 2021 was negative at CHF -1.8 million, compared to CHF 700,000 in the first half of 2020.

During the period, the Advanced Microelectronics and Substrates Division reported flat sales of CHF 28.1 million. EBIT increased 17% to CHF 2.9 million. Consistent results at the thin-film substrate sites in Ulm, Germany, and Wangs, Switzerland, contributed to growth.

For the Electronic Solutions Division, sales in the first half of 2021 were up 9.3% to CHF 89.1 million, despite headwinds from component shortages. EBIT more than doubled to CHF 4.6 million. During the period, the company relocated production from Singapore to Batam, Indonesia.

The ongoing shortage in the market for semiconductor devices and certain other input materials poses challenges for Cicor. Due to the long process times in semiconductor production, the situation is not expected to ease until around the end of the year. On the one hand, this slows down sales growth; on the other hand, customers place longer-term orders, which, in addition to the significant recovery of the global economy, led to a 51% increase in orders (CHF 139.8 million) in the first six months of 2021. The book-to-bill ratio reached 1.20.

Cicor expects second-half sales growth to continue year-over-year, although this is likely to be slowed by the current global shortage of materials. For 2021, sales are expected to be in the range of CHF 230 million to CHF 240 million.

Ed.: CHF 1 = US$1.08

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