- Executive Board reevaluates balance sheet assets
- Further consolidation: Optical Disc activities centralized in Kahl
- Cost base improves
- Order intake above prior-year level
- Blu-ray sales significantly expanded
- Favorable outlook for Blu-ray in 2011
- Pick-up of Solar expected for 2011
Kahl am Main, November 05, 2010 - The SINGULUS TECHNOLOGIES AG (SINGULUS) generated sales of € 81.0 million in the first nine months of the current business year (previous year: € 95.9 million). On this basis and an insufficient order intake in the Solar segment the Executive Board is not expecting to achieve the full-year targets with respect to sales (forecast: € 130-135 million) and earnings (breaking even). The Executive Board of SINGULUS announced this in an adhoc announcement pursuant to § 15 WpHG on October 26, 2010 and adjusted the sales forecast for 2010 to a range from € 118 to 125 million. In addition, an operating loss will be incurred for the full year. The reason for the lower order intake is the continuing restraint for new investments into thin-film solar technology. In particular the business activities for equipment for wet-chemical processes are still negatively impacted by the late effects of the international financial and economic crisis. In addition, orders for planned complete systems for the production of silicon-based solar cells are still lagging behind.
In the 3rd quarter 2010 sales of € 31.6 million increased slightly compared with the € 28.8 million realized in the same quarter one year ago. Cumulated sales in the first nine months of 2010 amounted to € 81.0 million (previous year: € 95.9 million). The order intake of € 29.9 million in the 3rd quarter 2010 was significantly higher than in the previous year (€ 15.2 million). As a result the order intake in the first nine months of 2010 also rose to € 97.3 million (previous year: € 56.0 million). The order backlog as of September 30, 2010 increased significantly to € 43.7 million (previous year: € 30.3 million).
Further consolidation planned, cost structure improves
Against the backdrop of current developments, the resolved repositioning of the business activities as well as current market information, the Executive Board reviewed the respective values of all balance sheet items and accordingly in the course of its meeting on October 25, 2010 agreed to recognize value adjustments and write-offs in the balance sheet as well as restructuring measures amounting to € 67.8 million (extraordinary charges) in total. This includes adjustments of tangible and intangible assets from earlier acquisitions in the amount of € 40.7 million, capitalized development expenses in the amount of € 7.5 million as well as of receivables and inventories totaling € 17.3 million. These value adjustments are not tied to an outflow of liquid funds. Furthermore, restructuring charges in the amount of € 2.3 million were recognized. In this connection all Optical Disc activities will be centralized in Kahl to realize further cost reductions. First steps were already implemented with the integration of the injection molding activities in Kahl. Now, essential parts of the mastering activities will be relocated from Eindhoven to Kahl. The operating result (before extraordinary expenses) amounted to - € 13.1 million in the first nine months (previous year: - € 13.9 million). In the 3rd quarter 2010 a negative result (before extraordinary expenses) in the amount of - € 5.0 million (previous year: - € 6.2 million) was realized.
Outlook - still unchanged favorable prospects for 2011
SINGULUS TECHNOLOGIES still reaffirms its goals for the upcoming years even after the adjustments of the prospects for 2010. The Executive Board expects the company to generate stable and positive earnings in the future as the No. 1 player in the Blu-ray market. The Executive Board is still confident for the business activities in the Solar segment to expand as planned and to contribute positively to the Group’s results sustainably.
We are working very hard to achieve the projected turnaround in the year 2011.
In this connection SINGULUS sees the following points confirming this:
Optical Disc segment
_ Only global one-stop supplier and No. 1 for Blu-ray equipment
_ Strong growth for Blu-ray in the next years expected
_ Profitable products
_ Product offer for rewritable/once-recordable Blu-ray (BD-RE/BD-R)
Solar segment
_ Projects for complete systems in negotiations
_ Position in attractive, rapidly growing solar market
_ SINGULUS AR coating technology establishing itself
_ Expansion of sales & marketing in Asia
_ Solar segment expected to break-even in 2011