- Q3 2010 sales of USD 68.3 million, 48.6% above prior year period and up 12.6% compared with Q2 2010
- USD 10.0 million income from operations and high operating cash flow of USD 16.3 million
- Increased guidance for 2010: Sales to reach USD 250 - 255 million and income from operations USD 33 - 35 million
Bad Ragaz/Switzerland, October 21, 2010. INFICON Holding AG (SIX Swiss Exchange: IFCN) achieved 48.6% higher sales of USD 68.3 million in the third quarter 2010 versus the prior year period. Foreign currency exchange effects account for 0.3 percentage points and acquisitions for 3.3 percentage points. Compared with the second quarter 2010, sales in-creased by 12.6% and indicate a continuing and broad market recovery in the target mar-kets. INFICON closed the quarter with an income from operations of USD 10.0 million, or 14.7% of sales, after an income from operations of USD 3.0 million in the same period of last year. Operating cash flow reached an all-time high with USD 16.3 million. The company re-ports a net income of USD 6.8 million for the third quarter 2010.
Market Opportunities Realized
Except for the Emergency Response & Security market, INFICON achieved significant sales in-creases in all regions and target markets in the third quarter compared with the same period last year. Third quarter growth was also satisfactory compared to the second quarter 2010.
Sales to the Refrigeration & Air Conditioning market were strong compared with both the prior year period and the previous quarter. Demand for refrigerator and air conditioning technology continued to increase in the Asian markets, particularly in China, leading to very high sales. Sales also grew markedly in the Specific Vacuum Processes markets (solar, flat panel displays, preci-sion optics, and semiconductor). Both the chip and tool manufacturers in Asia and North America showed increased demand compared with the prior year period. Sales to the General Vacuum Processes markets increased steadily both in Europe and Asia compared with the same period last year and the second quarter 2010. Demand in this market remains strong, as customers not only re-order but also invest in new capacities. Quarterly sales to the Emergency Response & Security market were lower due to smaller sales volumes recorded in North America. This target market was the only one in the period under review that recorded a decrease over the second quarter 2010. This decline is primarily attributable to the typical large-scale nature of orders placed by governmental agencies.
The INFICON plant in Shanghai has started production of the Micro GC product line acquired from Agilent Technologies in May 2010. This complementary sensor product line saw shipments in the third quarter worth approximately USD 1.5 million. This represents year-over-year 3.3 per-centage points of the overall sales growth of 48.6%. Exchange rate effects account for 0.3 per-centage points of sales growth.
Record-high Operating Cash Flow and Very Strong Income From Operations
INFICON generated income from operations of USD 10.0 million in the third quarter of 2010, which represents 14.7% of sales. Operating cash flow increased from USD 3.6 million in the third quarter 2009 to USD 16.3 million in the period under review. This increase reflects the growing earnings as well as the successful optimization of inventories and accounts receivables days sales outstanding. Net income increased by 185.2% to USD 6.8 million compared with the third quarter of 2009. INFICON achieved earnings per share of USD 3.15 on a fully diluted basis compared to USD 1.12 a year ago. The balance sheet remains strong with an equity ratio of 73.0%.
Based on the previous development, INFICON has increased its sales guidance for the full year 2010 from previously USD 235 - 245 million to USD 250 - 255 million. With USD 33 - 35 mil-lion (previously USD 28 - 32 million), INFICON equally expects a higher income from operations for the financial year 2010.
Conference Call and Webcast Today at 10:30 a.m. CEST
INFICON will discuss its detailed quarterly results today in a conference call scheduled for 10:30 a.m. CEST. The local dial-in numbers are as follows: Continental Europe: +41 (0)91 610 41 11; UK: +44 (0)207 098 07 02; USA (Toll free): +1 (1) 866 666 56 64. All participants should dial in at least 10 minutes prior to the call. There is no pin required to access the call. A live webcast of the conference call and the presentation visuals (as from 07:00 a.m. CEST) are available in the Investors section of the INFICON website www.inficon.com where the webcast will also be archived and available on demand approximately one hour after the end of the conference.
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INFICON is a leading provider of innovative instrumentation, critical sensor technologies, and advanced process control software that enhance productivity and quality in sophisticated industrial vacuum processes. These analysis, measurement and control products are essential for gas leak detection in air conditioning/refrigeration, and automotive manufacturing. They are vital to equipment manufacturers and end-users in the complex fabrication of semiconductors and thin film coatings for optics, flat panel displays, solar cells and industrial vacuum coating applications. Other users of vacuum based processes include the life sciences, research, aerospace, packaging, heat treatment, laser cutting and many other industrial processes. We also leverage our expertise in vacuum technology to provide unique, toxic chemical analysis products for emergency response, security, and environmental monitoring. INFICON is headquartered in Switzerland and has world-class manufacturing facilities in Europe, the United States and China, as well as subsidiaries in China, Finland, France, Germany, Japan, Korea, Liechtenstein, Singapore, Switzerland, Taiwan, the United Kingdom and the United States. INFICON registered shares (IFCN) are listed on SIX Swiss Exchange. For more information about INFICON and its products, please visit www.inficon.com.
This press release and oral statements or other written statements made, or to be made, by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.