Intermediate declaration by the Board of Directors
Regulatory News:
X-FAB Silicon Foundries SE (BOURSE:XFAB)
Highlights Q2 2023:
› Revenue was USD 227.1 million, up 20% year-on-year (YoY) and
9% quarter-on-quarter (QoQ); including USD 8.3 million of revenues
recognized over time due to long-term customer contracts in
accordance with IFRS 15
› Excluding this positive effect, revenues* would have been USD
218.9 million, within the guided USD 205-220 million
› Strong growth in X-FAB’s key end markets – automotive,
industrial, and medical – up 28% YoY (excluding revenues recognized
over time)
› EBITDA at USD 62.3 million, up 46.7% YoY
› EBITDA margin of 27.4%, slightly above the guided 23-27%
› EBIT was USD 40.8 million, up 69.9% YoY, with an EBIT margin
of 18.0%
Outlook:
› Q3 2023 revenue is expected to come in within a range of USD
225-240 million with an EBITDA margin in the range of 24-28%. This
guidance is based on an average exchange rate of 1.10 USD/Euro.
› The FY 2023 guidance gets reconfirmed.
Revenue* breakdown per quarter:
in millions of USD
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q2 y-o-y growth
Automotive
81.5
83.8
89.7
98.3
96.9
104.4
120.9
131.1
33%
Industrial
38.3
39.7
41.4
42.5
46.7
42.3
46.9
51.3
21%
Medical
14.3
14.5
13.7
13.9
13.5
14.6
17.6
16.2
16%
Subtotal core business
134.1
138.0
144.9
154.7
157.0
161.3
185.4
198.7
28%
79.3%
80.1%
81.1%
81.9%
83.4%
87.9%
89.1%
90.8%
CCC1
34.7
34.0
32.5
33.6
30.7
21.6
22.5
20.0
-40%
Others
0.3
0.3
1.2
0.6
0.6
0.7
0.2
0.2
Revenue*
169.1
172.3
178.7
188.8
188.3
183.6
208.1
218.9
16%
1Consumer, Communications & Computer
in millions of USD
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q2 y-o-y growth
CMOS
141.8
144.2
148.6
156.3
152.6
151.9
172.8
180.7
16%
Microsystems
17.4
17.5
17.9
19.8
18.4
19.5
22.2
20.8
5%
Silicon carbide
9.9
10.6
12.1
12.8
17.4
12.2
13.2
17.3
36%
Revenues*
169.1
172.3
178.7
188.8
188.3
183.6
208.1
218.9
16%
Business development
In the second quarter of 2023, X-FAB recorded total revenues of
USD 227.1 million, up 20% year-on-year and up 9%
quarter-on-quarter. A portion of USD 8.3 million is due to the
recognition of revenues over time mainly related to long-term
contracts with customers in accordance with IFRS 15. Excluding this
effect, quarterly revenues* would have been at USD 218.9 million
and in line with the guided USD 205-220 million.
In the second quarter, the volume of business based on long-term
contracts reached a level that is material under IFRS 15. In line
with the long-term nature of these contracts, X-FAB will from now
on regularly recognize revenues over time.
X-FAB’s core markets – automotive, industrial, and medical –
accounted for USD 198.7 million, up 28% year-on-year, representing
a share of 90.8% of revenues*.
Demand remained strong and continued to exceed X-FAB’s available
production capacity. Second quarter bookings came in at USD 220.9
million with a book-to-bill ratio of 1.01. Backlog at the end of
the second quarter amounted to USD 507.0 million, compared to USD
508.3 million in the previous quarter.
In the second quarter, X-FAB’s automotive revenues* set a new
record totaling USD 131.1 million. This represents a strong growth
of 33% compared to the same quarter last year. The majority of this
increase is directly attributable to X-FAB France. The site
significantly increased its wafer shipments in X-FAB’s popular
180nm automotive process and now produces 92% of its quarterly
revenues* based on X-FAB technologies, compared to 52% one year
ago. The positive momentum from converting X-FAB France’s capacity
to X-FAB’s automotive technologies is expected to continue in the
coming quarters, helping to close the gaps between supply and
demand from customers. X-FAB delivers into a great variety of car
applications from comfort functions, such as interior lighting, to
safety measures, including tire pressure monitoring systems, as
well as battery management systems for hybrid and electric cars.
The electrification of mobility is a key growth driver for X-FAB’s
automotive business and demand for X-FAB’s specialty technologies
for high-voltage CMOS as well as silicon carbide (SiC) applications
remains high.
Industrial revenues* totaled USD 51.3 million in the second
quarter, up 21% year-on-year. X-FAB’s comprehensive technology
portfolio enables a wide range of industrial applications
addressing major global trends such as smart manufacturing, smart
buildings, smart cities, and the transition to renewable energy
sources. Growth of X-FAB’s industrial business during the second
quarter was primarily driven by strong demand for SiC
technologies.
SiC revenues* in the second quarter were USD 17.3 million, up
36% year-on-year. The even stronger increase in SiC wafer shipment,
up by 103% year-on-year, is not fully reflected in the top line due
to a higher portion of customers that source their own SiC raw
wafers and consign them to X-FAB. This results in a lower total
billing but a stronger profitability, as the value added by X-FAB
remains unaffected.
In the second quarter, X-FAB’s medical business recorded
revenues* of USD 16.2 million, up 16% year-on-year with a strong
contribution from an ultrasound probe application. Ultrasound is a
medical imaging technique used as a primary diagnostic method
during pregnancy which does not require radiation.
In the second quarter, CCC (Consumer, Communication &
Computer) revenues* were USD 20.0 million, down 40% year-on-year.
This reflects the planned decline in CCC legacy business, which
until recently was produced at X-FAB France. While X-FAB France is
in the process of converting the freed-up capacity to X-FAB’s
popular 180nm automotive technology, CCC revenues* are now at a
sustainable level and X-FAB’s top line growth is no longer impacted
by the decreasing legacy business.
Prototyping revenues* in the second quarter came in at USD 27.7
million, up 35% year-on-year and up 5% quarter-on-quarter.
Prototyping and production revenue* per quarter and end
market:
in millions
of USD
Revenue
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Automotive
Prototyping
4.1
3.3
4.7
3.5
3.9
Production
94.2
93.6
99.8
117.3
127.2
Industrial
Prototyping
9.2
11.1
11.2
14.2
16.6
Production
33.3
35.6
31.1
32.7
34.8
Medical
Prototyping
1.6
2.8
2.8
2.9
2.5
Production
12.4
10.7
11.8
14.7
13.7
CCC
Prototyping
5.0
5.0
4.6
5.7
4.5
Production
28.6
25.7
17.1
16.8
15.4
Operations update
The capacity utilization of X-FAB’s fabs remained high
throughout the second quarter. All teams have been focused on
ensuring smooth operations and increasing productivity and wafer
output further. This gets supported by consistent clearing of
production bottlenecks, automation projects and the execution of
X-FAB’s capacity expansion program, which continues to progress
well and on schedule.
In the second quarter, capital expenditures came in at USD 104.5
million, up 114% against the previous quarter, in line with
expectations. Over the quarter and in the context of the ongoing
capacity expansion projects, X-FAB has received several new tools
and equipment at various sites, primarily related to the capacity
conversion at X-FAB France and the expansion of SiC capacity at
X-FAB Texas. The building extension at X-FAB Sarawak to provide
additional cleanroom space is also progressing. Over the full year
2023, capital expenditures are expected to come in at USD 350
million.
Financial update
Second quarter EBITDA was USD 62.3 million with an EBITDA margin
of 27.4%, slightly above the guidance range of 23-27%. Excluding
the effect from the revenue recognition over time, the EBITDA
margin would have been 27.0%.
Due to the long-term agreements (LTAs) with customers, which
include a commitment to deliver and a commitment to buy certain
wafer quantities, the IFRS 15 effect on overtime revenue
recognition has become material during the second quarter. As a
result, X-FAB has recognized over time revenue in the amount of USD
8.3 million in the second quarter.
X-FAB has achieved an all-time high gross profit in the second
quarter amounting to USD 67.6 million with a gross profit margin of
29.8%, mainly due to volume growth, an improved product mix and
good cost control.
Profitability was unaffected by exchange rate fluctuations
thanks to the natural hedging of X-FAB’s business. At a constant
USD/Euro exchange rate of 1.07 as experienced in the previous
year’s quarter, the EBITDA margin would have been 0.1 percentage
points lower.
Cash and cash equivalents at the end of the second quarter
amounted to USD 441.8 million, up 26.1% compared to the end of the
previous quarter. This increase is mainly due to prepayments
received from customers with whom X-FAB has long-term agreements in
place. This gets also reflected in the cash flow from operating
activities, which totaled USD 203.5 million. The prepayments will
be used to support capital expenditures in the next quarters.
Management comments
Rudi De Winter, CEO of the X-FAB Group, said: “I am proud that
X-FAB has delivered another strong quarter with a new revenue
record and in line with the guidance. We continue to see high
demand, with the automotive end market being particularly strong,
and reliable supply to our customers is key. We are fully focused
on filling existing supply gaps and increasing our wafer production
to match X-FAB’s positive growth prospects and to serve our
customers. Our capacity expansion program is well underway, with
new equipment coming online at various sites and on a regular
basis. Our unique technology portfolio supports solutions in
high-growth end markets, and I see X-FAB well on track to achieve
its long-term financial and strategic goals.”
Procedures of the independent auditor
The statutory auditor, KPMG Bedrijfsrevisoren – Réviseurs
d’Entreprises BV/SRL, represented by Herwig Carmans, has confirmed
that the review procedures, which have been substantially
completed, have not revealed any material misstatement in the
accounting information included in this press release as of and for
the six months ended June 30, 2023.
X-FAB Quarterly Conference Call
X-FAB’s second quarter results will be discussed in a live
conference call/audiocast on Thursday, July 27, 2023, at 6.30 p.m.
CEST. The conference call will be in English.
Please register here for the audiocast (listen only):
https://channel.royalcast.com/x-fab/#!/x-fab/20230727_1
Please register here for the conference call (listen and ask
questions): https://registrations.events/direct/INF61177
The third quarter 2023 results will be communicated on October
27, 2023.
About X-FAB
X-FAB is the leading analog/mixed-signal and MEMS foundry group
manufacturing silicon wafers for automotive, industrial, consumer,
medical and other applications. Its customers worldwide benefit
from the highest quality standards, manufacturing excellence and
innovative solutions by using X-FAB’s modular CMOS processes in
geometries ranging from 1.0 µm to 110 nm, and its special silicon
carbide and MEMS long-lifetime processes. X-FAB’s analog-digital
integrated circuits (mixed-signal ICs), sensors and
micro-electro-mechanical systems (MEMS) are manufactured at six
production facilities in Germany, France, Malaysia and the U.S.
X-FAB employs more than 4,200 people worldwide. For more
information, please visit www.xfab.com.
Forward-looking information
This press release may include forward-looking statements.
Forward-looking statements are statements regarding or based upon
our management’s current intentions, beliefs or expectations
relating to, among other things, X-FAB’s future results of
operations, financial condition, liquidity, prospects, growth,
strategies or developments in the industry in which we operate. By
their nature, forward-looking statements are subject to risks,
uncertainties and assumptions that could cause actual results or
future events to differ materially from those expressed or implied
thereby. These risks, uncertainties and assumptions could adversely
affect the outcome and financial effects of the plans and events
described herein.
Forward-looking statements contained in this press release
regarding trends or current activities should not be taken as a
report that such trends or activities will continue in the future.
We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, unless legally required. You should not place undue
reliance on any such forward-looking statements, which speak only
as of the date of this press release.
The information contained in this press release is subject to
change without notice. No re-report or warranty, express or
implied, is made as to the fairness, accuracy, reasonableness, or
completeness of the information contained herein and no reliance
should be placed on it.
Condensed Consolidated Statement of Profit and Loss
in thousands of USD
Quarter
ended 30 Jun 2023
unaudited
Quarter
ended 30 Jun 2022
unaudited
Quarter
ended 31 Mar 2023
unaudited
Half-year
ended 30 Jun 2023
unaudited
Half-year
ended 30 Jun 2022
unaudited
Revenue*
218,870
188,832
208,109
426,979
367,495
Revenue recognized over time
8,261
0
0
8,261
0
Total revenue
227,131
188,832
208,109
435,240
367,495
Revenues in USD in %
56
58
55
56
59
Revenues in EUR in %
44
42
45
44
41
Cost of sales
-159,492
-142,870
-150,912
-310,404
-278,292
Gross Profit
67,639
45,962
57,197
124,836
89,203
Gross Profit margin in %
29.8
24.3
27.5
28.7
24.3
Research and development expenses
-12,905
-9,920
-10,922
-23,828
-20,679
Selling expenses
-2,112
-1,968
-2,196
-4,308
-4,117
General and administrative expenses
-11,961
-10,495
-10,501
-22,462
-19,226
Rental income and expenses from investment
properties
390
187
2,071
2,462
478
Other income and other expenses
-231
257
1,743
1,512
588
Operating profit
40,820
24,023
37,393
78,213
46,247
Finance income
6,658
8,585
8,538
15,196
15,677
Finance costs
-8,229
-24,153
-10,255
-18,484
-32,643
Net financial result
-1,571
-15,567
-1,717
-3,288
-16,966
Profit before tax
39,249
8,456
35,676
74,925
29,281
Income tax
-548
-1,539
7,042
6,494
-2,988
Profit for the period
38,701
6,917
42,717
81,418
26,293
Operating profit (EBIT)
40,820
24,023
37,393
78,213
46,247
Depreciation
21,465
18,442
20,618
42,083
37,250
EBITDA
62,284
42,465
58,011
120,295
83,496
EBITDA margin in %
27.4
22.5
27.9
27.6
22.7
Earnings per share at the end of
period
0.30
0.05
0.33
0.62
0.20
Weighted average number of shares
130,631,921
130,631,921
130,631,921
130,631,921
130,631,921
EUR/USD average exchange rate
1.08946
1.06719
1.07165
1.08060
1.09491
Amounts in the financial tables provided in this press release
are rounded to the nearest thousand except when otherwise
indicated, rounding differences may occur.
*excluding revenues recognized over time in accordance with IFRS
15
Condensed Consolidated Statement of Financial
Position
in thousands of USD
Quarter ended
30 Jun 2023
unaudited
Quarter ended
30 Jun 2022
unaudited
Year ended
31 Dec 2022
audited
ASSETS
Non-current assets
Property, plant, and equipment
568,926
397,012
460,126
Investment properties
7,403
8,070
7,675
Intangible assets
5,989
6,227
6,199
Other non-current assets
68
8
79
Deferred tax assets
79,082
45,143
67,977
Total non-current assets
661,467
456,459
542,056
Current assets
Inventories
247,912
198,427
214,435
Contract assets
15,667
0
0
Trade and other receivables
115,217
90,472
73,116
Other assets
61,322
49,473
56,025
Cash and cash equivalents
441,786
250,828
369,425
Total current assets
881,905
589,200
713,001
TOTAL ASSETS
1,543,372
1,045,659
1,255,057
EQUITY AND LIABILITIES
Equity
Share capital
432,745
432,745
432,745
Share premium
348,709
348,709
348,709
Retained earnings
100,230
-9,598
16,509
Cumulative translation adjustment
-243
123
-226
Treasury shares
-770
-770
-770
Total equity attributable to equity
holders of the parent
880,672
771,209
796,967
Non-controlling interests
0
368
0
Total equity
880,672
771,576
796,967
Non-current liabilities
Non-current loans and borrowings
55,952
33,697
63,432
Other non-current liabilities and
provisions
4,025
3,996
4,024
Total non-current liabilities
59,977
37,693
67,456
Current liabilities
Trade payables
67,764
43,157
53,654
Current loans and borrowings
204,948
105,040
233,513
Other current liabilities and
provisions
330,011
88,192
103,467
Total current liabilities
602,723
236,389
390,634
TOTAL EQUITY AND LIABILITIES
1,543,372
1,045,659
1,255,057
Condensed Consolidated Statement of Cash Flow
in thousands of USD
Quarter
ended 30 Jun 2023
unaudited
Quarter
ended 30 Jun 2022
unaudited
Quarter
ended 31 Mar 2023
unaudited
Half-year
ended 30 Jun 2023
unaudited
Half-year
ended 30 Jun 2022
unaudited
Income before taxes
39,249
8,456
35,676
74,925
29,281
Reconciliation of net income to cash
flow arising from operating activities:
22,895
36,295
22,981
45,876
57,239
Depreciation and amortization, before
effect of grants and subsidies
21,465
18,442
20,618
42,083
37,250
Recognized investment grants and subsidies
netted with depreciation and amortization
-751
-841
-737
-1,488
-1,715
Interest income and expenses (net)
652
13,015
1,445
2,097
13,198
Loss/(gain) on the sale of plant,
property, and equipment (net)
-137
-19
-1,483
-1,620
-177
Other non-cash transactions (net)
1,666
5,698
3,138
4,804
8,683
Changes in working capital:
141,779
-21,335
-1,210
140,569
-53,518
Decrease/(increase) of trade
receivables
-21,482
-15,479
-21,001
-42,483
-24,115
Decrease/(increase) of other receivables
& prepaid expenses
-7,006
-918
3,073
-3,933
-6,717
Decrease/(increase) of inventories
-12,303
-3,062
-18,886
-31,189
-17,411
Decrease/(increase) of contract assets
-15,667
0
0
-15,667
0
(Decrease)/increase of trade payables
-8,175
-3,341
27,240
19,065
-5,356
(Decrease)/increase of other
liabilities
206,411
1,466
8,364
214,776
82
Income taxes (paid)/received
-401
-108
-109
-509
-215
Cash Flow from operating
activities
203,522
23,308
57,339
260,861
32,787
Cash Flow from investing
activities:
Payments for property, plant, equipment
& intangible assets
-104,498
-36,760
-48,895
-153,393
-85,606
Payments for loan investments to related
parties
-41
-35
-135
-176
-148
Proceeds from loan investments related
parties
42
62
120
162
160
Proceeds from sale of property, plant, and
equipment
208
64
1,486
1,694
228
Interest received
2,557
275
1,014
3,571
512
Cash Flow used in investing
activities
-101,732
-36,393
-46,411
-148,143
-84,855
Condensed Consolidated Statement of Cash Flow – con’t
in thousands of USD
Quarter
ended 30 Jun 2023
unaudited
Quarter
ended 30 Jun 2022
unaudited
Quarter
ended 31 Mar 2023
unaudited
Half-year
ended 30 Jun 2023
unaudited
Half-year
ended 30 Jun 2022
unaudited
Cash Flow from (used in) financing
activities:
Proceeds from loans and borrowings
5,027
15,281
9,213
14,240
22,542
Repayment of loans and borrowings
-13,870
-1,367
-35,931
-49,800
-4,170
Receipts of sale & leaseback
arrangements
0
0
0
0
7,723
Payments of lease installments
-1,273
-1,258
-1,513
-2,785
-3,017
Interest paid
691
-432
-3,258
-2,568
-571
Distribution to non-controlling
interests
0
0
0
0
-11
Cash Flow from (used in) financing
activities
-9,425
12,224
-31,488
-40,913
22,495
Effect of changes in foreign currency
exchange rates on cash
-855
-7,581
1,411
556
-9,786
Increase/(decrease) of cash and cash
equivalents
92,365
-861
-20,560
71,805
-29,573
Cash and cash equivalents at the beginning
of the period
350,276
259,271
369,425
369,425
290,187
Cash and cash equivalents at the end
of
the period
441,786
250,828
350,276
441,786
250,828
###
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version on businesswire.com: https://www.businesswire.com/news/home/20230727580520/en/
X-FAB Press Contact Uta Steinbrecher Investor Relations
X-FAB Silicon Foundries +49-361-427-6489
uta.steinbrecher@xfab.com
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