Bad Ragaz/Switzerland, July 21, 2009.
- USD 2.5 million loss from operations, including one-time expenses for cost reductions of USD 2.0 million in second quarter 2009
- Cash flow from operations increased to 2.6 Million USD
- Reduced cost base supports break-even at current quarter sales level
INFICON (SIX Swiss Exchange: IFCN), recorded a 1.7% sequential sales increase to USD 38.7 million in the second quarter of 2009 versus the preceding quarter. Compared with the high sales in the second quarter of 2008, sales for the three months ended June 30, 2009 were 45.4% or at constant exchange rates 42.6% lower. The low sales level and the one-time expenses of USD 2.0 million for headcount reductions lead to a loss from operations of USD 2.5 million.
Sales for the second quarter of 2009 amounted to USD 38.7 million after USD 71.0 million recorded in the strong second quarter of 2008. This represents a decrease of 45.4% or at constant exchange rates of 42.6%. On a sequential basis, sales in the three months ended June 30, 2009 were 1.7% above first quarter sales. The additional headcount adjustments and early retirement measures announced at the end of June lead to one-time expenses of USD 2 million. These one-time expenses and the low sales volume result in a loss from operations of USD 2.5 million. INFICON shows a net loss for the second quarter of USD 2.1 million or USD 0.96 per fully diluted share. This compares with income from operations of USD 10.5 million, a net income of USD 7.7 million or diluted earnings per share of USD 3.55 in the second quarter of 2008.
European markets lag behind while North America and Asia are stabilizing "With the exception of the General Vacuum market which largely reflects the low level of activity in European markets, the activity in our other target markets is slowly picking up," commented Lukas Winkler, CEO and President of INFICON. "With USD 9.5 million, sales in the Semiconductor & Vacuum Coating market were lower by USD 13.4 million compared with the second quarter of 2008. At this low sales level, the situation improved compared to the first quarter of 2009, as evidenced by a 10% increase. Sales in all applications of the Refrigeration & Air Conditioning market slightly increased from a markedly low level. We remain positive for the Emergency Response & Safety markets for the full fiscal year 2009, although second quarter sales did not fully meet our expectations due to the request of shipment delays by certain customers," Lukas Winkler added.Continuously strong balance sheet
INFICON generated USD 2.6 million cash from operations in the second quarter of 2009, compared to a negative cash flow of USD -3.4 million in the first quarter of 2009. After dividend payments of USD 11.7 million in total, INFICON closed the quarter with cash and cash equivalents of USD 31.3 million compared with USD 45.8 million at the end of December 2008.
The equity ratio at the end of June 2009 stood at 77.8%, up from 76.6% at the end of the year 2008.Reduced cost base
"Visibility of the world markets is still limited. After the additional reduction of our cost base, announced at the end of June, INFICON will be able to break-even at the current sales level," Lukas Winkler concluded.Analyst/Media conference call and webcast
INFICON will discuss its second quarter 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)43 456 93 68; UK: +44 (0)207 153 89 42; USA (Toll free): +1 (1) 866 796 15 69. 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 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 1 hour after the end of the conference.E-mail Alerts
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.ABOUT INFICON
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 manufacturing and vital to original equipment manufacturers (OEMs) and end-users in the complex manufacturing of semiconductors, flat panel displays, magnetic and optical storage media, and precision optics. 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.