RoodMicrotec reports unaudited preliminary total income for 2020

RoodMicrotec N.V., a leading independent company for semiconductors supply and quality services, today publishes the unaudited preliminary total income for the whole year 2020. The unaudited preliminary total income for 2020 amounts to EUR 11.9 million, which is 10% lower than in 2019 but includes a substantial increase in the second half of 2020 (EUR 6.5 million) compared to the first half of 2020 (EUR 5.4 million). The total income in the fourth quarter of 2020 was EUR 3.5 million, which is in the upper range of the October outlook.

The Qualification & Failure Analysis unit shows an increase compared to 2019, thanks to well established relationships with long-term customers. The Test Operations and Supply Chain Management units show some decrease compared to 2019. This is mainly because of the COVID-19 situation and the reduced demand due to the lock-downs and inventory management. Due to the unclear market situation, many customers reduced their demand as well as their inventories and thus did not order new components. This drop was mainly seen in the second quarter of 2020 and significantly improved in the second half of the year.

“We were expecting and budgeted a continuing increase in total income in 2020, but the COVID-19 pandemic significantly affected us. We continued to serve our customers with our usual high quality, but saw a reduced demand in our test operations and supply chain management due to changes in inventory management by our customers”, says Martin Sallenhag, CEO of RoodMicrotec. “We have intensified our communication with the customers for a better planning capability, and with this information, we have been able to control our cash situation in a very effective way. Even with an investment in a new test system early in the year, the cash situation at the end of the year 2020 has improved considerably compared to the end of 2019.“

Outlook
Currently, it is still not possible to forecast the duration of the COVID-19 disruption or the impact of the increasing number of infections in Europe. With the present visibility, RoodMicrotec expects a total income in the range of EUR 12.8 million to EUR 13.4 million in 2021. The profit before tax in 2021 is expected to be in the range of 2% to 4% of the total income.

Audit
The financial data in this press release has not been audited.

Forward-looking statements
This press release contains a number of forward-looking statements. These statements are based on current expectations, estimates and prognoses of the board of management and on the information currently available to the Company. The statements are subject to certain risks and uncertainties which are hard to evaluate, such as the general economic conditions, interest rates, exchange rates and amendments to statutory laws and regulations. The board of management of RoodMicrotec cannot guarantee that its expectations will materialise. Furthermore, RoodMicrotec does not accept any obligation to update the statements made in this press release.

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