Micronas: Encouraging first quarter (0308)

Key data for first quarter of 2003

In the first three months of the current business year, the Micronas Group was able to build on the good results achieved in 2002. In the reporting period, consolidated net sales were up compared with the fourth quarter of 2002 by 3.4 percent to CHF 191.1 million; this represented a rise of 18.7 percent over the comparable quarter of 2002.

The operating profit before depreciation and amortization of goodwill (EBITDA) amounted to CHF 63.3 million in the reporting period. Compared with the same quarter a year ago, this is equivalent to an increase of CHF 16.5 million or 35.3 percent; while compared with the fourth quarter of 2002, it represents a decrease of 1.9 percent. The operating profit (EBIT) reached CHF 35.6 million, CHF 15.5 million or 77.1 percent up on the first quarter of 2002 and 3.8 percent lower than the fourth quarter of 2002.

The net profit for the first three months of 2003 reached CHF 23.5 million. This surpassed the result in the fourth quarter of 2002 by 2.2 percent and was CHF 15.4 million higher than in the same period a year ago, equivalent to an increase of 190.1 percent. Earnings per share amounted to CHF 0.87; adjusted for amortization of goodwill after tax, the figure was CHF 1.01.

Both the core businesses contributed to this encouraging first-quarter performance. The strategy of focusing on high-value-added, application-specific semiconductor systems in the areas of multimedia, consumer and automotive electronics was vindicated once more in a persistently challenging business climate that is growing more difficult all the time.

A sign of the good market acceptance enjoyed by Micronas semiconductor chipsets was the fact that available machine capacity was 95 percent utilized during the reporting period.

Despite the generally good performance in 2003 so far, the present global political and economic developments make it difficult to give firm predictions about the short-term prospects for the Micronas Group. Unlike the first three months, we expect the second quarter to bring a decline in sales. On the present evidence, we expect single-digit sales growth for the first half-year and for 2003 overall, in contrast to the picture in 2002.

The Micronas Group is a leading independent supplier of innovative application-specific semiconductor solutions for multimedia, consumer and automotive electronics. Its shares are listed on the SWX Swiss Exchange and on the Prime Standard segment in Frankfurt.