NET AND OPERATIONAL PROFITABILITY FROM CONTINUING
OPERATIONS POSITIVE OPERATING CASH FLOW FROM CONTINUING
OPERATIONS AT +0.8 MILLION EUROS HIGH LEVEL OF ACTIVITY OF
THE AVIONICS BUSINESS FINALISATION OF THE FABLITE PROGRAM
EXPECTED IN THE 4TH QUARTER OF 2022 Half-year revenue from
continuing operations at 4.6 million euros (5.7 million euros
including sales from discontinued operations) Half-year net
profit from continuing operations at 0.1 million euros
Half-year EBITDA from continuing operations at 0.7 million
euros
Regulatory News:
MEMSCAP (NYSE Euronext: MEMS), the leading provider of
innovative solutions based on MEMS (micro-electro-mechanical
systems) technology, today announced its earnings for the first
half of 2022 ending June 30, 2022.
Restructuring of the US operations / Revenue and consolidated
earnings for the first half of 2022
As previously announced, the MEMSCAP Group has initiated the
restructuring phase of its US operations as part of the progress of
the FABLITE program. This program is progressing according to the
management's plans and should be completed before the end of the
4th quarter of 2022.
In accordance with IFRS 5 “Non-current assets held for sale and
discontinued operations”, revenue from the US operations was
excluded from revenue from continuing operations and included in
the consolidated income statement via the loss after tax from
discontinued operations.
In accordance with the previous quarterly press releases,
consolidated revenue for the first half of 2022, excluding US
operations, amounted to 4.6 million euros (5.0 million US dollars)
compared to 4.2 million euros (5.1 million US dollars) for the
restated first half of 2021. Including sales from discontinued
operations, consolidated revenue amounted to 5.7 million euros (6.2
million US dollars) over the first half of 2022.
Consolidated revenue distribution by market segment, over the
first half of 2022, is as follows:
Market segments / Revenue
(M€)
For the 6 months ended 30 June
2022
%
For the 6 months ended 30 June
2021 (Restated)
%
Var. 1er sem. (M€)
2022 / 2021 (%)
Aerospace
3.5
77%
2.3
56%
+1.2
+49%
Medical
1.0
22%
1.8
43%
-0.8
-44%
Others
0.1
1%
0.1
1%
-0.0
-13%
Total revenue from continuing
operations
4.6
100%
4.2
100%
+0.4
+9%
Revenue from discontinued
operations – IFRS 5
(US operations)
1.2
--
1.2
--
-0.0
-3%
(Any apparent discrepancies in totals are due to rounding. In
accordance with IFRS 5, items related to the 2021 financial year
were restated in order to present comparative information for
discontinued operations.)
Sales from continuing operations for the first half of 2022
confirmed the strong recovery of the avionics business, up +1.2
million euros (+49%) compared to the first half of 2021. The
evolution of business volumes related to the medical business (-0.8
million euros) resulted from the annual delivery schedules marked
by particularly high delivery levels from one client in the first
half of 2021. The avionics business thus represented 77% of sales
from continuing operations for the first half of 2022 compared to
56% for the restated first half of 2021.
Sales of the US operations, classified as discontinued
operations, amounted to 1.2 million euros (1.3 million US dollars)
for the first half of 2022 compared to 1.2 million euros (1.4
million US dollars) for the first half of 2021.
* * *
MEMSCAP’s consolidated earnings for the first half of 2022 are
given within the following table:
In million euros
Q1 2021 (Restated)
Q2 2021 (Restated)
H1 2021 (Restated)
Q1 2022
Q2 2022
H1 2022
Revenue from continuing
operations
2.2
2.0
4.2
2.3
2.3
4.6
Cost of revenue
(1.1)
(1.2)
(2.4)
(1.4)
(1.4)
2.8
Gross margin
1.0
0.8
1.8
0.8
0.9
1.7
% of revenue
49%
39%
44%
37%
38%
38%
Operating expenses*
(0.8)
(0.7)
(1.5)
(0.8)
(0.9)
(1.7)
Operating profit /
(loss)
0.3
0.1
0.3
0.0
(0.0)
0.0
Financial profit / (loss)
(0.0)
(0.0)
(0.0)
(0.1)
0.2
0.1
Income tax expense
(0.0)
(0.0)
(0.0)
0.0
(0.0)
(0.0)
Net profit / (loss) from
continuing operations
0.3
0.0
0.3
(0.0)
0.1
0.1
Profit / (loss) after tax from
discontinued operations
(0.4)
(0.1)
(0.5)
(0.4)
(0.3)
(0.7)
Net profit / (loss)
(0.1)
(0.1)
(0.2)
(0.4)
(0.1)
(0.6)
(Any apparent discrepancies in totals are due to rounding. In
accordance with IFRS 5, items related to the 2021 financial year
were restated in order to present comparative information for
discontinued operations.) * Net of research & development
grants.
(Financial data were subject to a limited review by the Group’s
statutory auditors. On August 31, 2022, MEMSCAP’s board of
directors authorized the release of the interim condensed
consolidated financial statements on June 30, 2022.)
The evolution of the sales mix led to a consolidated gross
margin of 1.7 million euros for the first half of 2022, 38% of
consolidated sales, compared to 1.8 million euros for the restated
first half of 2021, representing 44% of consolidated sales.
The amount of operating expenses at 1.7 million euros for the
first half of 2022 was up compared to the restated first half of
2021 (+0.2 million euros). This evolution resulted from an
increasing R&D activity for the period.
The Group therefore reported consolidated operating earnings
from continuing operations at the breakeven point for the first
half of 2022 compared to an operating profit of 0.3 million euros
for the restated first half of 2021. It should be noted that the
net foreign exchange gain related to operating activities, recorded
in financial income, amounted to 0.2 million euros over this
half-year period. The Group thus posted a half-year net profit from
continuing operations of 0.1 million euros compared to a net profit
from continuing operations of 0.3 million euros for the restated
first half of 2021.
The net loss from discontinued operations related to the Group's
US operations amounted to 0.7 million euros for the first half of
2022 compared to 0.5 million euros for the restated first half of
2021. It is recalled that the Group's US subsidiary benefited in
the first half of 2021 from a PPP (Paycheck protection program)
state subsidy of 0.2 million euros.
Considering the net loss from discontinued operations related to
the Group's US operations, the net consolidated loss amounted to
0.6 million euros for the first half of 2022 compared to a net loss
of 0.2 million euros for the restated first half of 2021.
* * *
Evolution of the Group’s cash / Consolidated shareholders’
equity
For the first half of 2022, the Group posted a positive EBITDA
from continuing operations of 0.7 million euros compared to 0.9
million euros for the restated first half of 2021. Operating cash
flows from continuing operations amounted to +0.8 million euros for
the first half of 2022 compared to +1.2 million euros for the
restated first half of 2021.
In addition, net cash used by operating activities from
discontinued operations (the Group’s US operations) amounted to 0.6
million euros for the first half of 2022 compared to 0.3 million
euros for the restated first half of 2021.
Taking into account cash flows used by investing activities (0.1
million euros) and cash flows used by financing activities (0.4
million euros), the Group's net cash was down 0.3 million euros for
the first half of 2022 compared to an increase of 0.4 million euros
for the restated first half of 2021.
As of June 30, 2022, the Group reported available liquidities at
4.4 million euros (5.3 million euros as of December 31, 2021)
including investment securities recorded under non-current
financial assets for an amount of 1.0 million euros. In addition to
this amount, the Group had unused available credit lines for an
amount of 0.4 million euros on the same date.
Current financial debt, including lease liabilities under IFRS
16, was 0.7 million euros as of June 30, 2022 compared to 1.0
million euros as of December 31, 2021. MEMSCAP shareholders’ equity
totalled 14.8 million euros as of June 30, 2022 compared to 15.8
million euros as of December 31, 2021.
* * *
Analysis and perspectives
As previously mentioned, the Norwegian entity, including the
avionics and medical businesses of the Group, will become the
operational core of the MEMSCAP Group at the end of the
restructuring phase of the US operations. These activities over the
first half of 2022 posted historically high levels of sales thanks
to the renewed momentum of the avionics business.
The ongoing FABLITE program should lead to a significant
improvement in the Group's operating profitability.
* * *
Q3 2022 Earnings: October 20, 2022
About MEMSCAP MEMSCAP is the leading provider of
innovative micro-electro-mechanical systems (MEMS)-based solutions.
MEMSCAP’s products and solutions include components, component
designs (IP), manufacturing and related services.
MEMSCAP is listed on Euronext Paris ™ - Segment C - ISIN:
FR0010298620 - MEMS.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Interim condensed consolidated financial statements at 30
June 2022
30 June 2022
31 December 2021
€000
€000
Assets
Non-current assets
Property, plant and
equipment.....................................................................................
953
1 662
Goodwill and intangible
assets......................................................................................
7 128
7 238
Right-of-use
assets........................................................................................................
5 131
5 224
Other non-current financial
assets................................................................................
1 041
1 385
Employee benefit net
asset...........................................................................................
34
35
Deferred tax
asset........................................................................................................
190
229
14 477
15 773
Current assets
Inventories...................................................................................................................
1 972
2 493
Trade and other
receivables..........................................................................................
2 286
2 824
Prepayments................................................................................................................
253
426
Cash and short-term
deposits.......................................................................................
3 343
3 919
7 854
9 662
Assets held for
sale.......................................................................................................
1 743
--
9 597
9 662
Total assets
24 074
25 435
Equity and liabilities
Equity
Issued
capital................................................................................................................
1 869
1 869
Share
premium.............................................................................................................
17 972
17 972
Treasury
shares............................................................................................................
(150)
(144)
Retained
earnings.........................................................................................................
(1 842)
(1 130)
Foreign currency
translation.........................................................................................
(3 052)
(2 779)
14 797
15 788
Non-current liabilities
Lease
liabilities.............................................................................................................
4 838
4 989
Interest-bearing loans and
borrowings..........................................................................
178
229
Employee benefit
liability..............................................................................................
69
67
5 085
5 285
Current liabilities
Trade and other
payables.............................................................................................
1 494
3 375
Lease
liabilities.............................................................................................................
582
577
Interest-bearing loans and
borrowings..........................................................................
100
390
Provisions.....................................................................................................................
19
20
2 195
4 362
Liabilities directly associated with the
assets held for
sale..............................................
1 997
--
4 192
4 362
Total liabilities
9 277
9 647
Total equity and liabilities
24 074
25 435
CONSOLIDATED STATEMENT OF INCOME
Interim condensed consolidated financial statements at 30
June 2022
For the six months ended 30
June
2022
(Restated)
2021
(Published)
2021
Continuing operations
€000
€000
€000
Sales of goods and
services.................................................................................
4 555
4 191
5 382
Revenue............................................................................................................
4 555
4 191
5 382
Cost of
sales.......................................................................................................
(2 841)
(2 351)
(3 811)
Gross
profit.......................................................................................................
1 714
1 840
1 571
Other
income.....................................................................................................
204
174
174
Research and development
expenses.................................................................
(945)
(725)
(755)
Selling and distribution
costs..............................................................................
(306)
(299)
(312)
Administrative
expenses.....................................................................................
(638)
(646)
(816)
Operating profit /
(loss).....................................................................................
29
344
(138)
Finance
costs.....................................................................................................
(87)
(75)
(75)
Finance
income..................................................................................................
182
50
50
Profit / (loss) for the period from
continuing operations before tax..................
124
319
(163)
Income tax
expense...........................................................................................
(38)
(47)
(47)
Profit / (loss) for the period from
continuing operations...................................
86
272
(210)
Discontinued operations
Profit/(loss) after tax for the period
from discontinued operations......................
(657)
(482)
--
Profit / (loss) for the
period...............................................................................
(571)
(210)
(210)
Earnings per share:
- Basic, for profit / (loss) for the
period attributable to ordinary equity holders of the parent (in
euros)................................................................................
€ (0,077)
€ (0,028)
€ (0,028)
- Diluted, for profit / (loss) for the
period attributable to ordinary equity holders of the parent (in
euros)....................................................................
€ (0,077)
€ (0,028)
€ (0,028)
- Basic, profit / (loss) for the period
from continuing operations attributable to ordinary equity holders
of the parent (in euros)....................................
€ 0,012
€ 0,037
€ (0,028)
- Diluted, profit / (loss) for the period
from continuing operations attributable to ordinary equity holders
of the parent (in euros)................................
€ 0,012
€ 0,037
€ (0,028)
In accordance with IFRS 5, items related to the 2021 financial
year were restated in order to present comparative information for
discontinued operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Interim condensed consolidated financial statements at 30
June 2022
For the six months ended 30
June
2022
2021
€000
€000
Profit / (loss) for the
period........................................................................................
(571)
(210)
Items that will not be reclassified
subsequently to profit or loss
Remeasurement gain/(loss) on defined
benefit plans..................................................
--
--
Income tax on items that will not be
reclassified to profit or loss.................................
--
--
Total items that will not be
reclassified to profit or
loss.............................................
--
--
Items that may be reclassified
subsequently to profit or loss
Net gain / (loss) on other non-current
financial
assets.................................................
(141)
114
Exchange differences on translation of
foreign operations...........................................
(273)
229
Income tax on items that may be
reclassified to profit or
loss......................................
--
--
Total items that may be reclassified to
profit or
loss..................................................
(414)
343
Other comprehensive income for the
period, net of
tax.............................................
(414)
343
Total comprehensive income for the
period, net of
tax..............................................
(985)
133
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Interim condensed consolidated financial statements at 30
June 2022
Number
Issued
Share
Treasury
Retained
Foreign
Total
(In thousands of euros, except for
number of shares)
of shares
capital
premium
shares
earnings
currency translation
shareholders’ equity
€000
€000
€000
€000
€000
€000
At 1 January
2021..........................................................................
7 476 902
1 869
18 783
(133)
(1 752)
(3 178)
15 589
Loss for the
period.........................................................................
--
--
--
--
(210)
--
(210)
Other comprehensive income for the period,
net of tax..................
--
--
--
--
114
229
343
Total comprehensive
income.........................................................
--
--
--
--
(96)
229
133
Retained earnings offset with share
premium................................
--
--
(811)
--
811
--
--
Treasury
shares.............................................................................
--
--
--
--
--
--
--
At 30 June
2021.............................................................................
7 476 902
1 869
17 972
(133)
(1 037)
(2 949)
15 722
At 1 January
2022..........................................................................
7 476 902
1 869
17 972
(144)
(1 130)
(2 779)
15 788
Loss for the
period.........................................................................
--
--
--
--
(571)
--
(571)
Other comprehensive income for the period,
net of tax..................
--
--
--
--
(141)
(273)
(414)
Total comprehensive
income.........................................................
--
--
--
--
(712)
(273)
(985)
Treasury
shares.............................................................................
--
--
--
(6)
--
--
(6)
At 30 June
2022.............................................................................
7 476 902
1 869
17 972
(150)
(1 842)
(3 052)
14 797
CONSOLIDATED CASH FLOW STATEMENT
Interim condensed consolidated financial statements at 30
June 2022
For the six months ended 30
June
2022
(Restated)
2021
(Published)
2021
€000
€000
€000
Operating activities:
Net profit / (loss) for the
period..............................................................................
(571)
(210)
(210)
Profit/(loss) after tax for the period
from discontinued operations..........................
(657)
(482)
--
Profit / (loss) for the period from
continuing operations..........................................
86
272
(210)
Non-cash items written back:
Amortization and
depreciation..........................................................................
499
476
591
Loss / (capital gain) on disposal of fixed
assets...................................................
35
31
31
Other non-financial
activities............................................................................
52
88
88
Accounts
receivable................................................................................................
212
403
212
Inventories.............................................................................................................
(202)
73
146
Other
debtors.........................................................................................................
(52)
(126)
(127)
Accounts
payable....................................................................................................
149
5
229
Other
liabilities.......................................................................................................
20
27
27
Net cash flows from operating
activities - continuing
operations...........................
799
1 249
987
Net cash flows used in operating
activities - discontinued operations......................
(614)
(262)
--
Total net cash flows from operating
activities........................................................
185
987
987
Investing activities:
Purchase of fixed
assets..........................................................................................
(223)
(15)
(56)
Proceeds from sale / (purchase) of other
non-current financial assets......................
155
(111)
(111)
Net cash flows used in investing
activities - continuing operations.........................
(68)
(126)
(167)
Net cash flows used in investing
activities - discontinued operations........................
(7)
(41)
--
Total net cash flows used in investing
activities.....................................................
(75)
(167)
(167)
Financing activities:
Repayment of
borrowings.......................................................................................
(70)
(104)
(104)
Payment of principal portion of lease
liabilities........................................................
(298)
(303)
(303)
Sale / (purchase) of treasury
shares........................................................................
(6)
--
--
Net cash flows used in financing
activities - continuing operations.........................
(374)
(407)
(407)
Net cash flows used in financing
activities - discontinued operations.......................
--
--
--
Total net cash flows used in financing
activities.....................................................
(374)
(407)
(407)
Net foreign exchange
difference.............................................................................
(41)
12
12
Increase / (decrease) in net cash and
cash equivalents...........................................
(305)
425
425
Opening cash and cash equivalents
balance...........................................................
3 648
2 928
2 928
Closing cash and cash equivalents
balance.............................................................
3 343
3 353
3 353
In accordance with IFRS 5, items related to the 2021 financial
year were restated in order to present comparative information for
discontinued operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220831005643/en/
Yann Cousinet Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00
yann.cousinet@memscap.com
For more information, visit our website at:
www.memscap.com.
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