- Sales increase to USD 78.4 million, up 14.8% versus the prior year period. The result is 4.1% below the Q2 2011 record level
- Income from operations of USD 12.5 million, representing 16.0% of sales, and strong cash flow from operations of USD 23.3 million
- Expectations for full year 2011 raised again: sales to reach between USD 300–315 million and income from operations between USD 50–55 million
Bad Ragaz/Switzerland, October 20, 2011.
INFICON Holding AG (SIX Swiss Exchange: IFCN) achieved sales of USD 78.4 million in the third quarter 2011. Compared with the prior year period, sales increased by 14.8%. Adjusted for acquisition effects (0.7 percentage points) and exchange rate impacts (8.4 percentage points) organic growth was 5.7%. Sales saw a slight decline of 4.1% in the third quarter compared with the second quarter 2011. With a slightly better-than-projected third quarter and despite expecting a somewhat weaker fourth quarter, INFICON anticipates closing the full financial year 2011 with a new record result.Market for Refrigeration & Air Conditioning Posts Record Results
The market for Refrigeration & Air Conditioning enjoyed strong demand from Asia – particularly from China – and increased sales clearly by 19.3% to USD 13.6 million. Sales recorded in the industrially and geographically broad-based market for General Vacuum applications rose by 16.4% to USD 32.7 million compared with the same period last year. The market for Specific Vacuum Process Industries which supplies the semiconductor, display, LED/OLED manufacturers, as well as the optical coating and solar industries, increased by 11.8% to USD 27.4 million compared with the prior year period. This market is expected to post a decline in the fourth quarter 2011. INFICON’s smallest target market, Emergency Response & Security, recorded both a 9.3% increase in sales compared with the same period last year and a 14.6% increase compared with the prior quarter to USD 4.7 million. Sales are gaining renewed momentum in the next months thanks to several government orders.Solid Income from Operations and Strong Operating Cash Flow
In the third quarter of 2011, INFICON generated income from operations of USD 12.5 million, which corresponds to a margin of 16.0 percent. Due to its broad international presence with production sites in Europe, the U.S. and Asia, INFICON has been able to largely contain the effects of currency fluctuations at the group level. The third quarter saw a strong operating cash flow of USD 23.3 million after recording USD 16.3 million in the prior year period. The inventory turns and days sales outstanding have been actively addressed so that net working capital was reduced by around USD 3.1 million and remains stable at 20.7%. INFICON closed the period with a net cash position (cash less short-term borrowings) of USD 74.5 million. The balance sheet continues to remain strong with an equity ratio of 68.7%.
Compared with the third quarter of 2010, net income for the period was up by 46.2% to USD 10.0 million. This amounts to earnings per diluted share of USD 4.55, compared with earnings per diluted share of USD 3.15 last year.Outlook
An excellent product and customer mix, a broad-based positioning in the different markets, and the capacity to innovate enable INFICON to seize market opportunities efficiently. A case in point is the acquisition of Adixen Scandinavia AB located in Sweden, which successfully closed at the end of August. The former entity of Pfeiffer Vacuum AG is a global leader in leak detection utilizing hydrogen as testing gas and thus, complements INFICON’s existing competence in leak detection. With the recent introduction of Quantus, INFICON now offers large customers from the semiconductor industry another innovative gas analysis tool. The new system is based on an optical emissions sensor and enables reliable gas analysis even in corrosive process environments.
Despite the current general economic uncertainty, INFICON is confident due to the present market developments it will achieve very positive results for 2011. INFICON expects to record for the full year 2011 sales in the range of USD 300 – 315 million (FY10 USD 265.4 million) and income from operations of USD 50 – 55 million (FY10 USD 39.2 million).Plans to Change Financial Reporting to Swiss GAAP FER
The accounting standards IFRS and US GAAP will converge significantly in the coming years. The related regulatory changes, including the increasingly elaborate and complex regulatory details, audit provisions, and the high internal and external costs that go along with these standards are making them less and less suitable for small and medium-sized companies listed on SIX Swiss Exchange. INFICON expects to change to SWISS GAAP FER on January 1, 2012 following approval by SIX Swiss Exchange. Further information will be provided in the near future.Conference Call with Management and Webcast Today at 09:30 a.m. CEST
INFICON will discuss its detailed quarterly results today in a conference call scheduled for 09:30 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. The conference call can be accessed via http://phx.corporate-ir.net/phoenix.zhtml?c=124424&p=irol-EventDetails&EventId=3491057
To automatically receive notification via e-mail of the latest financial information from INFICON, sign up for e-mail Alert in the Investors section of the INFICON website at http://phx.corporate-ir.net/phoenix.zhtml?c=124424&p=irol-alerts&t=&id=&
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.