Market success for Micronas (PR14)
Very good results for 1999
February 15, 2000 - Micronas Semiconductor Holding AG
The Micronas Group, which is listed on the Swiss stock exchange and the Frankfurt Neue Markt, had a very good 1999. The Group's consolidated net sales after adjusting for disinvestments increased by 28.9 percent to CHF 321.7 million. Annual profit came to CHF 24.8 million. The Micronas Group expects a further improvement in sales and earnings in the current year.
Both of the company's strategic business areas contributed to the strong growth in sales. Once again, the Consumer business area accounted for the largest proportion of sales with CHF 253.8 million, or 79 percent of the overall total. This represents a 31% rise in volume on the previous year. The Automotive division, meanwhile, enjoyed sales of CHF 67.9 million, or 21 percent of the Group total, a 22 percent increase on 1998.
The new Virtual Dolby chip system introduced in summer 1999 met with a very positive response. Innovative new products based on the Micronas MP3 chip system are also being developed for market introduction. Micronas and IBM Corporation have been in cross-licensing negotiations since the beginning of the year. The aim of these negotiations is to conclude an agreement that will allow the two companies to use each other's proprietary rights.
A regional breakdown of sales volumes shows that Europe, with sales of CHF 201.7 million, was once again the main market for Micronas products, though the Asian and North American markets are gaining in significance. Sales to Asia in 1999 came to CHF 86.8 million, while those to America amounted to CHF 26.5 million. Other countries accounted for CHF 6.7 million.
The earnings situation was very positive during the period under review. Cash flow from operational activities came to CHF 84.1 million and annual profit reached CHF 24.8 million. These figures compare with the previous year's loss of CHF 44.6 million, which was caused primarily by restructuring activity. Demand trends enabled the company to exceed its earnings forecasts by a significant margin. The equity ratio went up from 19.7 percent to 37.4 percent, and earnings per share came to CHF 13.29.
In order to finance this strong growth and make high-potential investments for the future, Micronas increased its equity capital in summer 1999 by means of a public offering. This raised CHF 83.6 million of new funds for the company and at the end of the year equity capital stood at CHF 158.0 million, compared with CHF 57.7 million at the end of 1998. As a result, Micronas is now in a position to exploit targeted opportunities to expand in a quickly growing market. During the 1999 business year, the company's shares were successfully quoted on Germany's Neue Markt in Frankfurt in addition to their listing on the Swiss Stock Exchange. This has increased the liquidity of Micronas shares and broadened their distribution in the market.
Micronas is an internationally active manufacturer of applications-specific chip systems in the areas of multimedia, and consumer and automotive electronics.
Details of the 1999 annual results will be presented to the public on 14 March 2000 in Zurich. On 15 March, the DVFA presentation will take place in Frankfurt.