Release Date: July 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Order intake increased significantly, reaching approximately SEK2 billion, driven by strong performance in the pattern generators division.
- Sales increased by 23% compared to the same quarter last year, totaling more than SEK1.5 billion.
- EBIT doubled to SEK348 million, with a strong EBIT margin of 23%.
- The company launched two important products: the Prexision 8000 and MMX, and completed the Vanguard acquisition.
- The pattern generators division showed strong performance with a 47% increase in sales and a stable gross margin of 67%.
Negative Points
- The high flex division faced challenges with a low order backlog of SEK167 million, indicating potential future sales pressure.
- The global technologies segment experienced a 16% decline in order intake, with slow development in the die bonding business line.
- The acquisition of Vanguard Automation negatively impacted EBIT by SEK16 million due to operational costs without corresponding sales.
- The US market remains difficult for the high flex division, characterized by uncertainty driven by upcoming elections.
- The electric vehicle industry showed slower growth, particularly outside of China, affecting the high volume division.
Q & A Highlights
Q: What is the reason behind the updated guidance of SEK6.5 billion, and can you elaborate on the die bonding business in global technologies?
A: Anders Lindqvist, CEO, explained that the updated guidance reflects improved certainty and positive developments in China. Pierre Brorsson, CFO, noted that die bonding orders are typically clustered, leading to variability in order intake and deliveries. Despite a weak quarter, the long-term outlook for die bonding remains positive.
Q: What caused the SEK16 million impact from the Vanguard acquisition in the global technologies segment?
A: Anders Lindqvist, CEO, stated that the impact was primarily due to operational costs without corresponding sales, along with some acquisition-related expenses. The situation is expected to improve towards the end of the year.
Q: Can you discuss the market situation for the Prexision and SLX product lines in the pattern generators segment?
A: Anders Lindqvist, CEO, mentioned that demand remains strong for both product lines, with ongoing discussions for the Prexision 8000. The SLX product line is seeing more replacement orders, but new investments still dominate.
Q: How does the forecasted growth in the display market affect Mycronic's business?
A: Pierre Brorsson, CFO, clarified that while display market growth is positive, the correlation with photomask demand is not direct. Increased display sales eventually lead to more investments in new models, benefiting Mycronic's photomask business.
Q: How is Mycronic addressing potential regulatory changes regarding semiconductor imports to the West?
A: Pierre Brorsson, CFO, stated that Mycronic is prepared to serve both the Chinese and potential European semiconductor markets. The company is not currently seeing price erosion due to high demand from China.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
