Intermediate declaration by the
Board of Directors
Regulatory News: X-FAB (Paris:XFAB)
Highlights Q4 2020:
› Revenue was USD 135.9 million, clearly exceeding the initial
guidance of USD 120-127 million, up 20% year-on-year (YoY) and up
41% quarter-on-quarter (QoQ)
› Record quarterly bookings at USD 190.7 million, up 49% YoY and
up 71% QoQ
› Record medical revenue at USD 12.0 million, up 90% YoY and up
57% QoQ
› EBITDA margin of 16.6%, clearly above the 10-14% guidance
› EBITDA was USD 22.5 million, up USD 25.1 million YoY and up
USD 17.8 million QoQ
› EBIT was USD 3.6 million, up USD 25.5 million YoY and up USD
17.6 million QoQ
Highlights 2020:
› Revenue was USD 477.6 million, down 6% year-on-year (YoY)
› EBITDA margin of 12.7% vs. 5.6% in 2019
› EBITDA was USD 60.4 million, up USD 32.0 million YoY
› EBIT was USD -14.6 million, up USD 29.2 million YoY
› Net profit was USD 13.5 million, up 62.1 million YoY
Outlook:
› Q1 2021 revenue is expected in the range of USD 145-152
million with an EBITDA margin in the range of 16-20%.
› The guidance for Q1 2021 is based on an average exchange rate
of 1.21 USD/Euro.
› Management expects full year 2021 revenues in the range of USD
560-580 million with an EBITDA margin in the range of 16-20%.
Revenue breakdown per quarter:
in millions of USD
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q4 y-o-y growth
Automotive
64.1
62.5
60.5
56.7
68.3
61.6
40.8
65.4
15%
Industrial
24.1
23.3
24.4
20.1
22.1
23.9
23.9
27.3
36%
Medical
6.8
6.3
8.8
6.3
6.5
7.3
7.7
12.0
90%
Subtotal core business
95.0
92.1
93.7
83.2
96.9
92.7
72.3
104.7
26%
72.5%
70.0%
71.8%
73.3%
76.4%
78.1%
75.2%
77.1%
CCC1
35.8
39.1
36.7
30.1
29.7
25.9
23.7
30.9
3%
Others
0.2
0.3
0.0
0.1
0.3
0.2
0.1
0.3
Total revenues
131.0
131.6
130.5
113.4
126.9
118.8
96.1
135.9
20%
1 Consumer, Communications & Computer
in millions of USD
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q4 y-o-y growth
CMOS
118.2
114.4
114.4
98.1
112.8
103.4
81.1
115.0
17%
MEMS
8.1
10.7
9.5
9.9
9.6
10.4
9.8
14.6
48%
Silicon carbide
4.7
6.4
6.5
5.5
4.5
5.0
5.2
6.3
14%
Total revenues
131.0
131.6
130.5
113.4
126.9
118.8
96.1
135.9
20%
Business development
X-FAB closed the fourth quarter with Q4 revenues amounting to
USD 135.9 million, clearly exceeding the initial guidance range of
USD 120-127 million. Revenues recorded an increase of 20% compared
to the same quarter last year and were up 41% quarter-on-quarter.
In the fourth quarter, business developed positively across all
markets.
Full year revenues totaled at USD 477.6 million, which is a 6%
decline compared to 2019. While prototyping activities remained at
a high level, production revenues decreased 7%, reflecting the
impact of the COVID-19 pandemic on the world economy. The main
contributor to overall revenue decline in 2020 was the CCC
business, which decreased 22% year-on-year. This was essentially
driven by the planned decrease of the legacy business at X-FAB
France.
Quarterly revenues in X-FAB’s core business, namely automotive,
industrial and medical, amounted to USD 104.7 million, up 26%
year-on-year and up 45% quarter-on-quarter. In 2020 financial year,
revenues in the core markets totaled USD 366.6 million, an increase
of 1% when compared to 2019. While both, X-FAB’s industrial and
medical businesses recorded a year-on-year growth of 6% and 19%
respectively, automotive revenues decreased 3%.
After a strong pick up in September, bookings remained at a high
level throughout the fourth quarter reaching a new quarterly record
of USD 190.7 million and partially offsetting low order intake
earlier in the year. Fourth quarter bookings increased 49%
year-on-year and 71% quarter-on-quarter.
Prototyping and production revenue per quarter and end
market:
in millions
of USD
Revenue
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q4 y-o-y growth
Automotive
Prototyping
2.9
2.1
2.3
2.6
3.6
24%
Production
53.8
66.2
59.3
38.2
61.8
15%
Industrial
Prototyping
8.3
7.3
7.2
7.2
8.2
-1%
Production
11.8
14.8
16.7
16.6
19.0
61%
Medical
Prototyping
2.4
2.0
3.3
3.4
6.9
188%
Production
4.0
4.5
4.0
4.2
5.1
28%
CCC
Prototyping
3.5
2.4
2.6
2.6
3.2
-9%
Production
26.6
27.3
23.3
21.0
27.7
4%
In the fourth quarter, X-FAB’s automotive revenues increased
significantly reflecting the recovery which started towards the end
of the third quarter after the COVID-19-related fall during the
summer months. New product introductions have further contributed
to the positive revenue development.
Industrial production revenues recorded a substantial increase
in the fourth quarter, which is mainly attributable to new product
launches in silicon carbide but also to the general recovery after
the previous quarters’ weakness.
X-FAB’s quarterly medical revenues reached an all-time high with
prototyping revenues performing particularly well. This is mainly
due to product launch related activities which are expected to be
converted into production revenue going forward.
The quarterly growth of X-FAB’s CCC business reflects the
ongoing recovery across all customers and applications. This is in
contrast with the substantial decline of full year CCC revenues
predominantly resulting from the planned decrease of the legacy
business at X-FAB France. In the fourth quarter, the share of the
French site’s revenues based on X-FAB technologies amounted to 15%
and is expected to significantly increase in the second half of
2021.
In the fourth quarter, X-FAB achieved record prototyping
revenues amounting to USD 22.2 million, which is an increase of 29%
year-on-year and 39% quarter-on-quarter. The strong growth in
quarterly prototyping revenues was mainly driven by the activities
of a major medical customer in order to prepare the start of volume
production. Full year prototyping revenues totaled USD 67.7
million, recording a growth of 2% against 2019.
Operations update
In light of strong order intake in the fourth quarter, X-FAB’s
main focus is to ensure a reliable supply to its customers by
managing the ramp-up of capacities and by execution excellence
despite the sudden increase in demand. At some sites, staff
availability is limited due to quarantine regulations. However,
this is seen as a temporary effect and X-FAB aims to increase the
wafer output in all factories while safeguarding the health and
well-being of X-FAB’s employees during the COVID-19 pandemic.
X-FAB’s silicon carbide (SiC) business recorded quarterly
revenues of USD 6.3 million, an increase of 14% year-on-year and up
20% quarter-on-quarter. SiC revenues for the full year came in at
USD 21.0 million, a 10% decline compared to the previous year,
while annual SiC production quantity was up 26% year-on-year. The
revenue decline is partially due to the fact that one customer
started to provide X-FAB with their own SiC base wafers for the
manufacture of their products whereas these were previously sourced
and invoiced directly by X-FAB. While the revenue invoiced to the
client was lower, the value-add provided by X-FAB was
unchanged.
Despite a difficult environment in 2020, X-FAB recorded a
substantial year-on-year increase in silicon carbide bookings and
more than doubled the number of new designs (tape-outs) compared to
2019. As at year-end, X-FAB had 23 silicon carbide customers, eight
of which have started volume production. The process to qualify
X-FAB’s in-house SiC epitaxy with various customers is progressing
well. More than ten customers are either in the process of
qualification or have already started SiC epitaxy production at
X-FAB. X-FAB’s new SiC customer pipeline continues to grow and at
the same time existing customers keep expanding their technology
portfolio, pointing to a positive development for X-FAB’s SiC
business going forward.
Capital expenditures in the fourth quarter amounted to USD 14.6
million, down 6% year-on-year. In 2020, they totaled USD 38.5
million, which is a decrease of 51% compared to the previous year.
In light of the COVID-19 pandemic and its impact on the global
economy, capital expenditures were low and mainly related to the
finalization of expansion projects which kicked off mid-2019. Capex
spending in 2021 will largely depend on the business development
going forward as well as the outlook for the following years. It is
expected to range from USD 50 million up to USD 70 million.
Financial update
EBITDA of the fourth quarter amounted to USD 22.5 million with
an EBITDA margin of 16.6%, exceeding the guided 10-14%. This is
mainly attributable to the strong revenue increase in the fourth
quarter as well as X-FAB’s cost-saving initiatives with a variety
of cost reduction measures related to staff, travel, electricity
and raw materials. The cost-saving program, initiated in 2019 in
response to the automotive crisis, was continued and intensified
after the COVID-19 pandemic set in, yielding significant savings
throughout the year and laying the foundation for greater
profitability with continued growth going forward.
The inventory of unfinished and finished goods increased by USD
2.9 million, contributing positively to the profitability of the
fourth quarter.
Cash and cash equivalents at the end of Q4 were at USD 205.9
million, up 15% against the end of the previous quarter, primarily
due to strong revenue increase. Compared to the end of 2019, the
cash position increased 19%, as a result of the cost-saving
program.
Throughout the year, X-FAB continued its efforts to increase the
share of Euro-denominated sales in order to achieve a natural
currency hedging of its business. In the fourth quarter, the share
of Euro-denominated sales was at 34% with approximately 40% of
costs being incurred in Euro. X-FAB aims to further increase the
Euro share of sales to limit the impact of exchange rate
fluctuations on its profitability.
The actual US-Dollar/Euro exchange rate for the fourth quarter
of 2020 was 1.19 leading to an EBITDA margin of 16.6%. At a
constant exchange rate of 1.11, as experienced in the fourth
quarter of last year, the EBITDA margin would have been 17.5%.
Exceptional finance income
In 2013, Sarawak Technology Holdings Sdn. Bhd (STH), a Malaysian
government-linked entity and shareholder of X-FAB, granted a
long-term incentive up to USD 72.0 million to X-FAB Sarawak Sdn.
Bhd to finance R&D activities in the State of Sarawak. This
grant was scheduled to be paid in 15 annual installments of up to
USD 4.8 million.
Further to previous agreements, STH held redeemable preference
shares in X-FAB Sarawak Sdn. Bhd for an amount of USD 50 million,
due for bullet repayment to STH in 2030 (recognized as a financial
non-current liability at discounted present value).
In October 2020, X-FAB Sarawak and STH signed a written
agreement stating that STH would waive its rights on the redeemable
preference shares against the cancellation of the still
unrecognized and outstanding R&D grants of USD 38.4
million.
This agreement resulted in a one-off net non-cash financial gain
of USD 31.8 million for X-FAB Sarawak in the fourth quarter of 2020
(as a result of the cancellation of a future liability at a
discounted present value).
In the fourth quarter and as a result of the above agreement,
accrued R&D subsidies booked in the first half of 2020 were
reversed, which explains the exceptionally high R&D spending in
the fourth quarter.
Organizational change
Effective January 1, 2021, Dr. Dirk Drescher was appointed Vice
President Operations of X-FAB group replacing Dr. Manfred Riemer,
who retired after having served as Chief Operations Officer for the
past 15 years. Dr. Dirk Drescher joined X-FAB in 2016 as site
manager and managing director of X-FAB Dresden and later on also
served as CEO of X-FAB France.
Management comments & outlook
Rudi De Winter, CEO of X-FAB Group, said: “It is great to see
demand is back, and after this strong uptick in bookings, it is our
topmost priority to satisfy our customers’ needs. Going forward, I
am confident that X-FAB is well positioned for future growth, even
though there is still uncertainty with respect to the development
of the global economy. We have successfully streamlined our cost
structure over the past two years, which provides a solid base for
the increase in profitability. I am very excited about our medical
business, in particular the lab-on-a-chip applications for reliable
and high-throughput medical testing and analysis. The demand for
such applications was further pushed by the COVID-19 pandemic, and
based on the projects in the pipeline, we expect those to be a
long-term growth driver for X-FAB. We also see our automotive
business coming back strongly. The progression in the
electrification of cars will contribute to the growth of X-FAB’s
auto revenues, thanks to our silicon carbide technology offering,
high-voltage CMOS technologies and on-chip high-voltage isolation
capabilities.”
Procedures of the independent auditor
The statutory auditor, KPMG Bedrijfsrevisoren – Réviseurs
d’Entreprises BV, represented by Herwig Carmans, has confirmed that
the audit procedures, which have been substantially completed, have
not revealed any material adjustments which would have to be made
to the condensed consolidated financial information as of and for
the year ended December 31, 2020, included in the annual
announcement of X-FAB Silicon Foundries SE.
X-FAB Quarterly Conference Call
X-FAB’s fourth quarter results will be discussed in a live
conference call on Thursday, February 11, 2020, at 6.30 p.m. CET.
The conference call will be in English. Please register in advance
of the conference using the following link:
http://emea.directeventreg.com/registration/2264108.
Upon registering, you will be provided with participant dial-in
numbers, Direct Event passcode and a unique registrant ID. In the
10 minutes prior to the call, you will need to use the conference
access information provided in the email received at the point of
registering.
The conference call will be available for replay from February
11, 2021, 11.30 p.m. CET until February 18, 2021, 11.30 p.m. CET.
The replay number will be +44 (0) 3333009785, conference ID
2264108.
The first quarter 2021 results will be communicated on April 29,
2021.
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 to 0.13 µm, 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 about 3,800 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 31 Dec 2020
unaudited
Quarter
ended 31 Dec 2019
unaudited
Quarter
ended 30 Sep 2020
unaudited
Year
ended 31 Dec 2020
unaudited
Year
ended 31 Dec 2019
audited
Revenue
135,851
113,390
96,085
477,586
506,417
Revenues in USD in %
66
73
65
68
75
Revenues in EUR in %
34
26
35
32
25
Cost of sales
-116,258
-117,702
-97,233
-433,852
-479,128
Gross Profit
19,593
-4,312
-1,148
43,734
27,290
Gross Profit margin in %
14.4
-3.8
-1.2
9.2
5.4
Research and development expenses
-9,559
-6,615
-5,462
-26,812
-28,298
Selling expenses
-2,077
-2,064
-1,798
-8,005
-8,080
General and administrative expenses
-8,065
-7,917
-6,897
-29,610
-30,728
Rental income and expenses from investment
properties
703
168
765
1,691
-129
Other income and other expenses
3,026
-1,145
583
4,385
-3,920
Operating profit
3,621
-21,886
-13,957
-14,617
-43,865
Finance income
43,016
2,943
4,262
54,187
13,049
Finance costs
-5,080
-2,665
-3,240
-22,015
-14,102
Net financial result
37,936
278
1,022
32,172
-1,053
Profit before tax
41,557
-21,607
-12,935
17,555
-44,918
Income tax
-2,486
-298
5
-4,025
-3,622
Profit for the period
39,072
-21,906
-12,930
13,530
-48,540
Operating profit (EBIT)
3,621
-21,886
-13,957
-14,617
-43,865
Depreciation
18,879
19,330
18,700
75,067
72,286
EBITDA
22,500
-2,555
4,743
60,450
28,421
EBITDA margin in %
16.6
-2.3
4.9
12.7
5.6
Earnings per share at the end of
period
0.30
-0.17
-0.10
0.10
-0.37
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
1.19146
1.10710
1.16732
1.14126
1.11976
Amounts in the financial tables provided in this press release
are rounded to the nearest thousand except when otherwise
indicated, rounding differences may occur.
Condensed Consolidated Statement of Financial
Position
in thousands of USD
Year ended 31 Dec 2020
unaudited
Year ended
31 Dec 2019
audited
ASSETS
Non-current assets
Property, plant, and equipment
336,848
368,754
Investment properties
8,556
9,128
Intangible assets
4,726
8,363
Non-current investments
0
736
Other non-current assets
68
27,568
Deferred tax assets
30,392
33,922
Total non-current assets
380,590
448,471
Current assets
Inventories
153,711
154,649
Trade and other receivables
54,576
55,636
Other assets
38,054
34,429
Cash and cash equivalents
205,867
173,211
Total current assets
452,208
417,925
TOTAL ASSETS
832,798
866,397
EQUITY AND LIABILITIES
Equity
Share capital
432,745
432,745
Share premium
348,709
348,709
Retained earnings
-120,660
-133,835
Cumulative translation adjustment
-690
-445
Treasury shares
-770
-770
Total equity attributable to equity
holders of the parent
659,334
646,403
Non-controlling interests
344
377
Total equity
659,677
646,781
Non-current liabilities
Non-current loans and borrowings
44,413
92,389
Other non-current liabilities and
provisions
4,371
7,407
Total non-current liabilities
48,784
99,795
Current liabilities
Trade payables
27,882
38,327
Current loans and borrowings
31,796
26,658
Other current liabilities and
provisions
64,658
54,835
Total current liabilities
124,336
119,821
TOTAL EQUITY AND LIABILITIES
832,798
866,397
Condensed Consolidated Statement of Cash Flow
in thousands of USD
Quarter
ended 31 Dec 2020
unaudited
Quarter
ended 31 Dec 2019
unaudited
Quarter
ended 30 Sep 2020
unaudited
Year
ended 31 Dec 2020
unaudited
Year
ended 31 Dec 2019
audited
Income before taxes
42,348
-21,607
-13,685
17,597
-44,918
Reconciliation of net income to cash
flow arising from operating activities:
-21,087
21,283
9,974
33,536
74,076
Depreciation and amortization, before
effect of grants and subsidies
18,879
19,330
18,700
75,067
72,286
Recognized investment grants and subsidies
netted with depreciation and amortization
-850
-1,551
-852
-3,453
-3,750
Interest income and expenses (net)
-1,601
358
348
379
1,582
Loss/(gain) on the sale of plant,
property, and equipment (net)
-2,668
2,195
-270
-3,253
2,202
Loss/(gain) on the change in fair value of
derivatives (net) and financial assets (net)
0
5
0
-420
-355
Other non-cash transactions (net)
-34,846
944
-7,953
-34,783
2,111
Changes in working capital:
10,319
9,306
1,897
23,249
-12,093
Decrease/(increase) of trade
receivables
-3,592
8,191
-2,663
362
16,169
Decrease/(increase) of other receivables
& prepaid expenses
4,824
-3,402
4,800
24,900
-16,342
Decrease/(increase) of inventories
5,628
-1,623
5,928
936
-7,498
(Decrease)/increase of trade payables
4,611
8,350
-7,082
-10,970
-33
(Decrease)/increase of other
liabilities
-1,151
-2,211
914
8,020
-4,389
Income taxes (paid)/received
187
-1,394
-113
-645
-2,061
Cash Flow from operating
activities
31,768
7,587
-1,926
73,736
15,004
Cash Flow from investing
activities:
Payments for property, plant, equipment
& intangible assets
-14,611
-15,602
-6,756
-38,460
-78,958
Payments for investments
0
0
0
0
-350
Proceeds from sale of financial assets
0
0
0
1,156
0
Acquisition of subsidiary, net of cash
acquired
0
0
0
0
0
Payments for loan investments to related
parties
-39
-8
-34
-211
-231
Proceeds from loan investments related
parties
40
40
40
193
217
Proceeds from sale of property, plant, and
equipment
2,002
415
1,208
3,528
454
Interest received
459
689
436
1,864
2,648
Cash Flow used in investing
activities
-12,149
-14,466
-5,105
-31,929
-76,220
Condensed Consolidated Statement of Cash Flow – con’t
in thousands of USD
Quarter
ended 31 Dec 2020
unaudited
Quarter
ended 31 Dec 2019
unaudited
Quarter
ended 30 Sep 2020
unaudited
Year
ended 31 Dec 2020
unaudited
Year
ended 31 Dec 2019
audited
Cash Flow from (used in) financing
activities:
Proceeds from loans and borrowings
8,660
0
-266
17,208
24,706
Repayment of loans and borrowings
-6,232
-12,754
-7,781
-26,950
-34,667
Receipts from sale & leaseback
arrangements
0
7
0
0
1,187
Payments of lease installments
-1,130
-1,399
-1,390
-5,331
-5,485
Receipt of government grants and
subsidies
0
3,309
0
696
9,609
Interest paid
-1,007
-358
-185
-1,635
-1,551
Gross proceeds from capital increase
0
0
0
0
0
Direct cost related to capital
increase
0
0
0
0
0
Payment of preference dividend
0
0
0
0
0
Distribution to non-controlling
interests
0
-1,000
0
-12
-1,011
Cash Flow from (used in) financing
activities
291
-12,195
-9,622
-16,024
-7,213
Effect of changes in foreign currency
exchange rates on cash
6,295
3,036
4,679
6,872
-1,129
Increase/(decrease) of cash and cash
equivalents
19,909
-19,075
-16,654
25,783
-68,428
Cash and cash equivalents at the beginning
of the period
179,662
189,250
191,636
173,211
242,768
Cash and cash equivalents at the end
of
the period
205,867
173,211
179,662
205,867
173,211
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version on businesswire.com: https://www.businesswire.com/news/home/20210211005706/en/
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