This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Aixtron Aktiengesellschaft's CEO Discusses Q2 2012 Results - Earnings Call Transcript

There is however some good news. Some of our customers, especially in Taiwan, have been reporting very high utilization rates which is an essential precursor indicator of any capacity driven equipment demand pick up. Unfortunately many of these same customers remain cautious on adding new capacity at this time, principally because of their doubts on the sustainability of the currently high LED backlighting demand. This understandable customer caution makes the magnitude and timing of any system demand pick up still difficult to forecast with any real precision. Nevertheless, we are still of the opinion that next year will be a much stronger year, based on the predicted increased penetration of LEDs and in general LED lighting market, for which AIXTRON is well positioned to capitalize on this opportunity.

Let me now move on to slide three to pick out some of our key financials from the last quarter. As you can see on this slide there are some positive developments to report from the second quarter results. Revenues were up by 10% sequentially to €46 million compared to the €42 million achieved in Q1 2012. The gross margin improved over the prior quarter by 7 percentage points to 32%. Although still in negative territory, the EBIT achieved in Q2 was a 10% improvement sequentially with the operating loss for the quarter amounting to €16.5 million.

Order intake remained broadly in line with the prior quarter at €30 million, leaving us with an order backlog of around €138 million. I’d also like to point out that after a few years in the wilderness in the silicon world. It’s good to be able to report the return on production orders for our silicon semiconductor equipment business. A large part of these orders, placed by a leading Korean DRAM manufacturer with AIXTRON’s next generation QXP-8300 ALD deposition tool. My colleagues and I continued to believe that AIXTRON has a significant growth opportunity with this tool, given the projected growth in sub-30 nanometer DRAM production.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs