Intermediate declaration by the Board of Directors
Regulatory News:
X-FAB Silicon Foundries SE (BOURSE:XFAB)
Highlights Q3 2023:
› Revenue was USD 233.8 million, up 24% year-on-year (YoY) and
3% quarter-on-quarter (QoQ); including USD 10.4 million of revenues
recognized over time according to IFRS 15
› Continued strong growth in X-FAB’s key end markets –
automotive, industrial, and medical – up 31% YoY (excluding
revenues recognized over time)
› All-time high Microsystems (MEMS) revenues, up 33% YoY
› EBITDA at USD 65.7 million compared to USD 9.2 million in Q3
2022
› EBITDA margin of 28.1%, slightly above the guided 24-28%
› EBIT was USD 43.9 million with an EBIT margin of 18.8%
Outlook:
› Q4 2023 revenue is expected to come in within a range of USD
230-245 million with an EBITDA margin in the range of 25-29%. This
guidance is based on an average exchange rate of 1.06 USD/Euro.
Revenue* breakdown per quarter:
in millions of USD
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q3 y-o-y growth
Automotive
83.8
89.7
98.3
96.9
104.4
120.9
131.1
135.3
40%
Industrial
39.7
41.4
42.5
46.7
42.3
46.9
51.3
53.7
15%
Medical
14.5
13.7
13.9
13.5
14.6
17.6
16.2
17.0
26%
Subtotal core business
138.0
144.9
154.7
157.0
161.3
185.4
198.7
206.1
31%
80.1%
81.1%
81.9%
83.4%
87.9%
89.1%
90.8%
92.2%
CCC1
34.0
32.5
33.6
30.7
21.6
22.5
20.0
17.2
-44%
Others
0.3
1.2
0.6
0.6
0.7
0.2
0.2
0.2
Revenue*
172.3
178.7
188.8
188.3
183.6
208.1
218.9
223.5
19%
1Consumer, Communications & Computer
in millions of USD
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q3 y-o-y growth
CMOS
144.2
148.6
156.3
152.6
151.9
172.8
180.7
180.5
18%
Microsystems
17.5
17.9
19.8
18.4
19.5
22.2
20.8
24.4
33%
Silicon carbide
10.6
12.1
12.8
17.4
12.2
13.2
17.3
18.6
7%
Revenues*
172.3
178.7
188.8
188.3
183.6
208.1
218.9
223.5
19%
Business development
In the third quarter of 2023, X‑FAB recorded total revenues of
USD 233.8 million, up 24% year-on-year and up 3% quarter-on-quarter
and in line with the guidance of USD 225-240 million. A portion of
USD 10.4 million is attributable to the recognition of revenues
over time mainly related to long-term contracts with customers in
accordance with IFRS 15.
Revenues* in X-FAB’s core markets – automotive, industrial, and
medical – amounted to USD 206.1 million, up 31% year-on-year,
representing a share of 92.2% of revenues.
Demand in X-FAB's key end markets remained strong. Third quarter
bookings were USD 208.2 million. While this represents a decrease
of 4% year-on-year and 6% quarter-on-quarter, the order intake does
not fully reflect the demand. This is mainly related to X-FAB's
long-term agreements (LTAs) with major customers. The quantities
under these contracts are not included in the bookings. Due to
X-FAB’s high backlog, which amounted to USD 483.7 million at the
end of the third quarter, LTA customers prefer not to place orders
too far in advance while having secured their capacity via LTA.
In the third quarter, X-FAB’s automotive business continued to
grow strongly recording revenues* of USD 135.3 million. This is an
increase of 40% compared to the same quarter last year, primarily
driven by the production ramp of X-FAB’s popular 180nm automotive
process at X-FAB France. In the third quarter, 91% of the revenues
generated by the French site were based on X-FAB technologies,
compared to 56% in the third quarter last year. In addition, a car
headlight application was a main contributor to X-FAB's automotive
growth in the third quarter, boosting automotive prototyping
revenues after a major development achievement. X-FAB offers the
full range of technologies required for power systems, including
high-voltage CMOS and silicon carbide applications, and is well
positioned to support the transition to electric vehicles, a key
long-term growth driver for X-FAB's automotive business.
Industrial revenues* for the third quarter were USD 53.7
million, up 15% year-on-year. The shift towards clean energy
sources like wind and solar is driving growth of X-FAB's silicon
carbide business, while X‑FAB's expertise in sensing and actuating
is key to applications supporting major trends such as factory
automation as well as smart cities and buildings.
Third quarter SiC revenues* totaled USD 18.6 million, an
increase of 7% year-on-year, whereas SiC wafer shipments went up
38% year-on-year. The stronger increase in wafer shipments is not
reflected in the top line due to a higher portion of customers that
source their own SiC raw wafers and consign them to X‑FAB. Since
the value added by X-FAB remains unaffected, this results in a
lower total billing but higher profitability.
In the third quarter, medical revenues* were USD 17.0 million,
up 26% year-on-year, primarily driven by a DNA sequencing
application. X-FAB is leveraging its MEMS expertise in combination
with CMOS for this type of applications and has evolved its MEMS
business towards high value-added microsystems integrating a
variety of functions. This enables the miniaturization of large
diagnostic equipment to handheld or tabletop size. In the third
quarter, X-FAB's Microsystems business set a new revenue* record of
USD 24.4 million, an increase of 33% year-on-year, demonstrating
that the realignment of this business unit towards system
integration is gaining traction.
Third quarter CCC (Consumer, Communication & Computer)
revenues* amounted to USD 17.2 million, down 44% year-on-year.
Prototyping revenues* in the third quarter came in at USD 27.4
million, up 20% year-on-year and flat sequentially.
Prototyping and production revenue* per quarter and end
market:
in millions
of USD
Revenue
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Automotive
Prototyping
3.3
4.7
3.5
3.9
6.2
Production
93.6
99.8
117.3
127.2
129.1
Industrial
Prototyping
11.1
11.2
14.2
16.6
14.3
Production
35.6
31.1
32.7
34.8
39.4
Medical
Prototyping
2.8
2.8
2.9
2.5
3.3
Production
10.7
11.8
14.7
13.7
13.7
CCC
Prototyping
5.0
4.6
5.7
4.5
3.3
Production
25.7
17.1
16.8
15.4
13.9
As announced on October 18, 2023, X-FAB is set to receive
subsidies of up to EUR 80 million as part of the Important Project
of Common European Interest in Microelectronics and Communication
Technologies (IPCEI ME/CT). The funding will be granted by the
participating governments of France and Germany over a period of
five years supporting innovation to advance European goals of
digitalization, sustainability, and technological sovereignty. See
press release for more information.
Operations update
With continued strong demand particularly for X-FAB's 200mm
CMOS, silicon carbide and MEMS technologies, operational excellence
and productivity improvements remained key to reliably serve
customers. Supply and demand for X-FAB’s 150mm CMOS technologies is
meanwhile well balanced.
A major operational focus in the third quarter was the execution
of X-FAB’s capacity expansion program, across all its sites.
Although lead times for the new equipment are still long, all
projects are on schedule.
In the third quarter, capital expenditures came in at USD 84.0
million, down 20% against the previous quarter. Considering the
planned equipment deliveries in the fourth quarter, total capital
expenditures of 2023 are expected to come in at approximately USD
350 million. Major expenditures in the third quarter included the
capacity expansion project at X-FAB Sarawak, Malaysia, the capacity
conversion at X-FAB France as well as the expansion of X-FAB’s SiC
manufacturing line in Lubbock, Texas.
Financial update
Third quarter EBITDA was USD 65.7 million with an EBITDA margin
of 28.1%, slightly above the guidance range of 24-28%. Excluding
revenues recognized over time in accordance with IFRS 15, the
EBITDA margin of the third quarter would have been 26.8%. Gross
profit in the third quarter amounted to USD 69.7 million with a
gross profit margin of 29.8%, which would have been 29.1% without
revenues recognized over time. The third quarter’s profitability
was driven by economies of scale, a favorable product mix and good
cost control.
Due to the natural hedging of X-FAB’s business, profitability
was unaffected by exchange rate fluctuations. At a constant
USD/Euro exchange rate of 1.01 as experienced in the previous
year’s quarter, the EBITDA margin would have been 0.3 percentage
points lower.
Cash and cash equivalents at the end of the third quarter
amounted to USD 391.3 million, down 11.4% compared to the end of
the previous quarter, which had been extraordinarily strong due to
a major portion of prepayments received from customers with
long-term agreements. In addition, the decrease in cash and cash
equivalents was due to cash outflows related to investments made in
the third quarter.
Management comments
Rudi De Winter, CEO of the X-FAB Group, said: “The third quarter
was characterized by strong revenue growth in X-FAB's key end
markets, with our automotive business again leading the way with a
40% year-on-year increase. The successful transformation of our
business keeps contributing to increasing profitability, driven by
economies of scale and a favorable product mix. A highlight of the
third quarter was the record sales in our Microsystems business. I
am very proud of the system integration capabilities and expertise
that X-FAB has built up. It is now starting to pay off and offers
great opportunities for the future across various end markets.”
*excluding revenues recognized over time according to IFRS
15
X-FAB Quarterly Conference Call
X-FAB’s third quarter results will be discussed in a live
conference call/webcast on Thursday, October 26, 2023, at 6.30 p.m.
CEST. The conference call will be in English.
Please register here for the webcast (listen only).
Please register here for the conference call (listen and ask
questions).
The fourth quarter 2023 results will be communicated on February
8, 2024.
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 Germany, France, Malaysia and the U.S.
X-FAB employs more than 4,200 people worldwide. For more
information, please visit www.xfab.com.
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 30 Sep 2023
unaudited
Quarter
ended 30 Sep 2022
unaudited
Quarter
ended 30 Jun 2023
unaudited
Nine months
ended 30 Sep 2023
unaudited
Nine months
ended 30 Sep 2022
unaudited
Revenue*
223,452
188,336
218,870
650,431
555,831
Revenue recognized over time
10,360
0
8,261
18,622
0
Total revenue
233,812
188,336
227,131
669,052
555,831
Revenues in USD in %
57
59
56
56
59
Revenues in EUR in %
43
41
44
44
41
Cost of sales
-164,147
-142,432
-159,492
-474,551
-420,724
Gross Profit
69,665
45,904
67,639
194,501
135,107
Gross Profit margin in %
29.8
24.4
29.8
29.1
24.3
Research and development expenses
-10,782
-9,917
-12,905
-34,609
-30,596
Selling expenses
-1,999
-1,844
-2,112
-6,307
-5,961
General and administrative expenses
-11,583
-8,860
-11,961
-34,044
-28,087
Rental income and expenses from investment
properties
977
-328
390
3,438
151
Other income and other expenses
-2,376
-34,897
-231
-864
-34,310
Operating profit
43,902
-9,943
40,820
122,115
36,304
Finance income
9,011
10,219
6,658
24,207
25,896
Finance costs
-8,493
-13,690
-8,229
-26,977
-46,332
Net financial result
518
-3,471
-1,571
-2,770
-20,436
Profit before tax
44,420
-13,413
39,249
119,345
15,868
Income tax
-2,747
-1,608
-548
3,747
-4,596
Profit for the period
41,673
-15,021
38,701
123,092
11,272
Operating profit (EBIT)
43,902
-9,943
40,820
122,115
36,304
Depreciation
21,808
19,123
21,465
63,891
56,372
EBITDA
65,711
9,180
62,284
186,006
92,676
EBITDA margin in %
28.1
4.9
27.4
27.8
16.7
Earnings per share at the end of
period
0.32
-0.11
0.30
0.94
0.09
Weighted average number of shares
130,631,921
130,631,921
130,631,921
130,631,921
130,631,921
EUR/USD average exchange rate
1.08842
1.00955
1.08946
1.08330
1.06620
Amounts in the financial tables provided in this press release
are rounded to the nearest thousand except when otherwise
indicated, rounding differences may occur.
*excluding revenues recognized over time in accordance with IFRS
15
Condensed Consolidated Statement of Financial
Position
in thousands of USD
Quarter ended
30 Sep 2023
unaudited
Quarter ended
30 Sep 2022
unaudited
Year ended
31 Dec 2022
audited
ASSETS
Non-current assets
Property, plant, and equipment
653,024
419,827
460,126
Investment properties
7,319
7,952
7,675
Intangible assets
5,827
7,269
6,199
Other non-current assets
63
6
79
Deferred tax assets
79,155
44,912
67,977
Total non-current assets
745,387
479,967
542,056
Current assets
Inventories
260,961
204,278
214,435
Contract assets
26,027
0
0
Trade and other receivables
111,828
82,595
73,116
Other assets
52,005
47,118
56,025
Cash and cash equivalents
391,274
327,468
369,425
Total current assets
842,095
661,459
713,001
TOTAL ASSETS
1,587,482
1,141,425
1,255,057
EQUITY AND LIABILITIES
Equity
Share capital
432,745
432,745
432,745
Share premium
348,709
348,709
348,709
Retained earnings
141,904
-24,625
16,509
Cumulative translation adjustment
-328
185
-226
Treasury shares
-770
-770
-770
Total equity attributable to equity
holders of the parent
922,260
756,243
796,967
Non-controlling interests
0
0
0
Total equity
922,260
756,243
796,967
Non-current liabilities
Non-current loans and borrowings
49,244
65,234
63,432
Other non-current liabilities and
provisions
4,024
3,686
4,024
Total non-current liabilities
53,268
68,921
67,456
Current liabilities
Trade payables
69,811
41,282
53,654
Current loans and borrowings
214,778
191,519
233,513
Other current liabilities and
provisions
327,365
83,460
103,467
Total current liabilities
611,954
316,261
390,634
TOTAL EQUITY AND LIABILITIES
1,587,482
1,141,425
1,255,057
Condensed Consolidated Statement of Cash Flow
in thousands of USD
Quarter
ended 30 Sep 2023
unaudited
Quarter
ended 30 Sep 2022
unaudited
Quarter
ended 30 Jun 2023
unaudited
Nine months
ended 30 Sep 2023
unaudited
Nine months
ended 30 Sep 2022
unaudited
Income before taxes
44,420
-13,413
39,249
119,345
15,868
Reconciliation of net income to cash
flow arising from operating activities:
26,845
18,392
22,895
72,721
75,631
Depreciation and amortization, before
effect of grants and subsidies
21,808
19,123
21,465
63,891
56,372
Recognized investment grants and subsidies
netted with depreciation and amortization
-753
-820
-751
-2,241
-2,535
Interest income and expenses (net)
-105
967
652
1,992
14,165
Loss/(gain) on the sale of plant,
property, and equipment (net)
-1,554
-1,822
-137
-3,174
-1,998
Other non-cash transactions (net)
7,448
945
1,666
12,252
9,628
Changes in working capital:
-38,694
8,067
141,779
101,875
-45,451
Decrease/(increase) of trade
receivables
3,206
7,883
-21,482
-39,277
-16,232
Decrease/(increase) of other receivables
& prepaid expenses
3,417
1,913
-7,006
-516
-4,804
Decrease/(increase) of inventories
-13,049
-5,852
-12,303
-44,238
-23,263
Decrease/(increase) of contract assets
-10,360
0
-15,667
-26,027
0
(Decrease)/increase of trade payables
-19,254
-3,080
-8,175
-189
-8,436
(Decrease)/increase of other
liabilities
-2,653
7,203
206,411
212,123
7,284
Income taxes (paid)/received
-2,874
-342
-401
-3,383
-557
Cash Flow from operating
activities
29,697
12,704
203,522
290,558
45,491
Cash Flow from investing
activities:
Payments for property, plant, equipment
& intangible assets
-83,964
-40,918
-104,498
-237,357
-126,524
Payments for investments
0
-204
0
0
-204
Payments for loan investments to related
parties
-61
-45
-41
-237
-193
Proceeds from loan investments related
parties
44
70
42
206
230
Proceeds from sale of property, plant, and
equipment
1,805
1,887
208
3,499
2,115
Interest received
3,139
394
2,557
6,709
906
Cash Flow used in investing
activities
-79,038
-38,815
-101,732
-227,181
-123,670
Condensed Consolidated Statement of Cash Flow – con’t
in thousands of USD
Quarter
ended 30 Sep 2023
unaudited
Quarter
ended 30 Sep 2022
unaudited
Quarter
ended 30 Jun 2023
unaudited
Nine months
ended 30 Sep 2023
unaudited
Nine months
ended 30 Sep 2022
unaudited
Cash Flow from (used in) financing
activities:
Proceeds from loans and borrowings
85,904
129,728
5,027
100,144
152,270
Repayment of loans and borrowings
-79,067
-1,892
-13,870
-128,867
-6,062
Receipts of sale & leaseback
arrangements
0
0
0
0
7,723
Payments of lease installments
-1,530
-1,362
-1,273
-4,315
-4,379
Receipt of government grants and
subsidies
0
512
0
0
512
Interest paid
-1,892
-13,503
691
-4,460
-14,074
Distribution to non-controlling
interests
0
0
0
0
-11
Cash Flow from (used in) financing
activities
3,415
113,484
-9,425
-37,498
135,979
Effect of changes in foreign currency
exchange rates on cash
-4,587
-10,734
-855
-4,030
-20,519
Increase/(decrease) of cash and cash
equivalents
-45,926
87,373
92,365
25,879
57,800
Cash and cash equivalents at the beginning
of the period
441,786
250,828
350,276
369,425
290,187
Cash and cash equivalents at the end
of
the period
391,274
327,468
441,786
391,274
327,468
###
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X-FAB Press Uta Steinbrecher Investor Relations X-FAB
Silicon Foundries +49-361-427-6489 uta.steinbrecher@xfab.com
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