9-MONTH REVENUE SHOWING A SLIGHT DECLINE OF 2.0%
FOLLOWING 52.3% GROWTH IN 2023
STRONG COMMERCIAL MOMENTUM MITIGATING SHIFT EFFECTS IN
SALES
HIGH VISIBILITY AND SOLID ORDER BACKLOG IN AEROSPACE
FOR 2025
CONFIRMATION OF A SUSTAINABLE PROFITABILITY MODEL
VALIDATION OF TECHNICAL ADVANCEMENTS IN THE "ENGINE
CONTROL" PROGRAM, SUPPORTING THE PROFITABLE GROWTH OBJECTIVES OF
THE 4G 2026 PLAN
HEADING TOWARDS 2025!
INVESTOR WEBINAR MONDAY, OCTOBER 28
AT 6:00 PM
- Quarterly consolidated revenue at EUR 2,626
thousand (vs. EUR 3,011 thousand in Q3 2023)
- 9-month consolidated revenue of EUR 9,901 thousand with a
very limited decrease of 2.0%, following a high baseline (52.3%
growth as of September 30, 2023)
- Revenue strongly supported by new business offsetting
revenue delays from 3 significant customers (4th, 5th and 6th
customers in 2023)
- Sustainable profitability model confirmed
- Quarterly adjusted EBITDA1 of EUR 369 thousand (14.0% of
consolidated revenue) and EUR 1,778 thousand (18.0% of consolidated
revenue) over 9 months
- Quarterly operating profit of EUR 210 thousand (8.0% of
consolidated revenue) and EUR 1,109 thousand over 9 months (11.2%
of consolidated revenue)
- Group's net profit of EUR 1,170 thousand over 9 months
(11.8% of consolidated revenue)
- Significant technical advancements related to the "Engine
Control" development and industrialization program
- High visibility in aerospace business for 2025
- The Group remains confident in achieving the profitable
growth objectives defined by the 4G Plan by 2026.
- Investor webinar: Monday, October 28 at 6:00 PM
Registration link:
https://app.livestorm.co/euroland-corporate/memscap-webinaire-actionnaires?s=de932fe9-2197-4d41-803b-10d138711ecb
Regulatory News:
MEMSCAP (Euronext Paris: MEMS), leading provider of
high-accuracy, high-stability pressure sensor solutions for the
aerospace and medical markets using MEMS technology (Micro Electro
Mechanical Systems), today announced its earnings for the third
quarter of 2024 ending September 30, 2024.
Analysis of consolidated revenue
Consolidated revenue from continuing operations (non-audited)
for the third quarter of 2024 was EUR 2,626 thousand compared to
EUR 3,011 thousand for the third quarter of 2023.
The distribution of consolidated revenue from continuing
operations by market segment for the third quarter of 2024 and for
the first 9 months of 2024 is as follows:
Market segments / Revenue (In
thousands of euros) – Non-audited
Q3 2023
(3 months)
Q3 2023 (%)
Jan.-Sept. 2023
(9 months)
Jan.-Sept. 2023 (%)
Q3 2024 (3 months)
Q3 2024 (%)
Jan.-Sept. 2024
(9 months)
Jan.-Sept. 2024 (%)
Aerospace
1,963
65%
6,478
64%
1,569
60%
6,468
65%
Medical
814
27%
2,523
25%
769
29%
2,432
25%
Optical communications
209
7%
1,007
10%
273
10%
940
9%
Others (Royalties from licensed
trademarks)
25
1%
92
1%
16
1%
61
1%
Total revenue from continuing
operations
3,011
100%
10,100
100%
2,626
100%
9,901
100%
(Any apparent discrepancies in totals are due to rounding.)
The 9-month sales reached EUR 9,901 thousand, showing a very
limited decrease of 2.0%, despite a particularly challenging
baseline, as MEMSCAP achieved revenue growth of 52.3% over the
first 9 months of 2023 compared to 2022. This trend of strong
growth continued for the majority of MEMSCAP's customers,
contributing more than EUR 1,315 thousand in growth (first 9 months
of 2024 vs. 2023), except for 3 main customers (the Group's 4th,
5th, and 6th largest customers in 2023) whose revenues were
significantly below the normative level due to supply chain
pressures. These 3 customers, with a decrease in sales of EUR 1,549
thousand (first 9 months of 2024 vs. 2023), offset the entire
growth and resulted in this slight decline.
The average 9-month growth rate over the 2022-2024 period is
over 22%.
Considering the 2025 order backlog in aerospace, and
particularly from one of these 3 clients, this delay impact is
considered temporary.
Sales levels in the optical communications and royalties from
licensed trademarks segments remained stable. Revenue distribution
by segment for the first 9 months of 2024 were in line with the
previous period.
Analysis of consolidated income statement
MEMSCAP’s consolidated earnings for the third quarter of 2024
and the first 9 months of 2024 are given within the following
table:
In thousands of euros –
Non-audited
Q3 2023 (3 months)
Jan.-Sept. 2023 (9 months)
Q3 2024 (3 months)
Jan.-Sept. 2024 (9 months)
Revenue from continuing
operations
3,011
10,100
2,626
9,901
Cost of revenue
(1,723)
(5,754)
(1,489)
(5,828)
Gross margin
1,288
4,346
1,138
4,073
% of revenue
42.8%
43.0%
43.3%
41.1%
Operating expenses*
(787)
(2,688)
(927)
(2,965)
Operating profit /
(loss)
500
1,659
210
1,109
Financial profit / (loss)
(196)
(172)
(27)
84
Income tax expense
(1)
(49)
(6)
(23)
Net profit / (loss)
304
1,437
178
1,170
* Net of research & development grants. (Any apparent
discrepancies in totals are due to rounding.)
The gross margin rate, representing 43.3% of consolidated
revenue compared to 42.8% in the third quarter of 2023, increased
by 0.5 percentage point. The gross margin thus amounted to EUR
1,138 thousand compared to EUR 1,288 thousand for the third quarter
of 2023.
Operating expenses, net of research and development grants,
amounted to EUR 927 thousand compared to an amount of EUR 787
thousand for the third quarter of 2023.
For the third quarter of 2024, the Group posted an operating
profit from continuing operations of EUR 210 thousand (8.0% of
consolidated revenue) compared to an operating profit of EUR 500
thousand (16.6% of consolidated revenue) for the third quarter of
2023.
The net financial loss for the third quarter of 2024 was EUR 27
thousand compared to EUR 196 thousand for the third quarter of 2023
which was mainly affected by an unfavourable exchange rate effect.
The tax expense recognized over the third quarters of 2024 and 2023
corresponded to the change in deferred tax assets. This tax expense
is a non-cash item.
The Group therefore reported a net profit EUR 178 thousand in
the third quarter of 2024 (6,8% of consolidated revenue) compared
to a net profit of EUR 304 thousand in the third quarter of 2023
(10.1% of consolidated revenue).
MEMSCAP posted an adjusted EBITDA1 of EUR 369 thousand for the
third quarter of 2024 (14.0% of consolidated revenue) and EUR 1,778
thousand for the first 9 months of 2024, representing 18.0% of
consolidated revenue (EUR 616 thousand for the third quarter of
2023 and EUR 2,293 thousand for the first 9 months of 2023,
representing 22.7% of consolidated revenue). It is noted that
research and development costs were fully recognized as expenses
during this 9-month period and were not capitalized in the Group's
balance sheet.
1 Adjusted EBITDA means operating profit before depreciation,
amortisation, and share-based payment charge (IFRS 2) and including
foreign exchange gains/losses related to ordinary activities.
The current 9-month period demonstrates the strength of
MEMSCAP's business model, whose foundations ensure a significant
and sustainable level of profitability.
Perspectives
In this quarter, the Group validated major technical
advancements in the "Engine Control" development and
industrialization program, marking a major milestone in
implementing an important growth driver.
This significant progress, combined with very encouraging
business prospects, strengthens MEMSCAP's confidence in achieving
its profitable growth objectives outlined in the 4G Plan by
2026.
Shareholders and investors video conference - Monday, October
28, 2024 at 06:00 p.m. Thank you for registering and sending
your questions in advance using the following link:
https://memscap.com/fr/visio/
Q4 2024 revenue and earnings: January 27, 2025.
About MEMSCAP
MEMSCAP is a leading provider MEMS based pressure sensors,
best-in-class in term of precision and stability (very low drift)
for two market segments: aerospace and medical.
MEMSCAP also provides variable optical attenuators (VOA) for the
optical communications market.
For more information, visit our website at: www.memscap.com
MEMSCAP is listed on Euronext Paris (Euronext Paris - Memscap -
ISIN code: FR0010298620 - Ticker symbol: MEMS)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241028398863/en/
Yann Cousinet Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00
yann.cousinet@memscap.com
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