TӒBY, SWEDEN — A strong performance by Mycronic's Pattern Generators division has led to an increase in net sales and earnings for the third quarter of 2022. During the third quarter, the company's order intake increased by 30% to SEK 1.609 (US $1.242) million, while net sales increased by 23% to SEK 1.214 (US $986) million.

“Order intake increased during the third quarter by 30% compared with a relatively weak corresponding quarter in the preceding year, mainly driven by a strong performance by Pattern Generators, and supported by positive currency effects. Net sales increased 23%, with good growth in High Flex and High Volume, here again supported by positive currency effects. EBIT increased to SEK 203 million with an EBIT margin of 17% and I am pleased to note that all divisions reported double-digit EBIT margins for the second consecutive quarter,” said Anders Lindqvist, Mycronic President and CEO.

Lindqvist said Mycronic's Pattern Generators division received its first order for a Prexision 8 Entry Evo – a new model in the Prexision Evo series of mask writers to write photomasks for displays up to mask size G8 – during the quarter. He said quarter order intake was strong and the division also received orders for seven mask writers: one Prexision 8 Entry Evo, two Prexision Lite 8 Evos and four SLXs. At the same time, one SLX was delivered.

Lindqvist also provided an update on the rest of Mycronic's four divisions.

He said demand remained at a healthy level for High Flex during the third quarter, despite an uncertain macroeconomic environment. Europe has continued to show positive development, with particularly strong demand noted in Italy. North America also performed well, and High Flex’s sales and service center in Mexico is expected to be operational in the fourth quarter.

For High Volume, suppliers to the electric car industry witnessed high demand and continued to invest. Consumer electronics remained weak and the division’s customers in this industry are thus postponing new investments, he said.

Lindqvist said customers’ investments in China continued in substrates, which meant that the Global Technologies division’s electrical test equipment for substrates continued to demonstrate strong performance. In parallel, demand for test equipment for PCBs was stable, with the decline in investments in consumer electronics offset by demand driven by high layer count PCBs. Demand in die bonding from China in telecom and datacom developed negatively.

"During the quarter, our die bonding operations within Global Technologies struggled with component shortages, while the other divisions were largely successful in delivering as planned. The high energy prices have not had a material direct impact on cost," he said.

Mycronic's board of directors also revised its outlook for the rest 2022. The board predicts that consolidated net sales for 2022 will be at a level of SEK 5 billion at prevailing exchange rates. Due to the product mix of announced orders in Pattern Generators with deliveries in 2022, the group’s EBIT margin is still expected to be slightly above the previous long-term financial target of >15%.

"The revised opinion of the board of directors and myself is that consolidated net sales for 2022 remain at a level of SEK 5 billion, but based on prevailing exchange rates, where a softer SEK has compensated for weaker demand in China," Lindqvist said.

Interim Report January–September 2022

Third quarter
• Order intake amounted to SEK 1,609 (1,242) million, an increase of 30%
• Net sales increased 23% to SEK 1,214 (986) million. Based on constant exchange rates, net sales increased 10%
• EBIT amounted to SEK 203 (106) million and the EBIT margin was 17 (11)%
• Earnings per share were SEK 1.56 (0.82)

January–September
• Order intake amounted to SEK 4,253 (3,272) million, an increase of 30%
• Net sales increased 8 percent to SEK 3,622 (3,341) million. Based on constant exchange rates, net sales decreased 1%
• EBIT amounted to SEK 632 (845) million and the EBIT margin was 17 (25)%
• Earnings per share were SEK 5.03 (6.66)

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