Singulus Technologies AG announced that it posed an operating loss of €5.0 million (US $7 million) in its third quarter and has reduced its 2010 sales outlook from €130-€135 million (US $180-187 million) to €118-€125 million (US $164-$173 million).
Additionally, Singulus will continue to consolidate its optical disc business in Kahl am Main (Germany) by transferring its mastering activities from Eindhoven (Netherlands).
Exchange rate as of October 26, 2010.
For more information visit: www.singulus.de
Unedited press release follows:
Forecast for 2010 Adjusted
October 26, 2010
* Executive Board reevaluates balance sheet assets
* Further consolidation: Optical Disc activities centralized in Kahl
* Cost base improves
* Order intake above prior-year level
* Strong growth for Blu-ray achieved
* Favorable outlook for Blu-ray in 2011
* Pick-up of Solar expected for 2011
Kahl am Main, October 25, 2010 – SINGULUS TECHNOLOGIES (SINGULUS) was not able to realize all of the expected orders in the Solar segment in the current business year 2010 up to now despite a higher order intake. On the one hand the reason is the restraint for new investments in the area of thin-film solar technology and on the other hand the delayed completion of expected solar projects. The budgeted sales volume in the SINGULUS Group cannot be achieved in the business year 2010. Accordingly, the Executive Board of the SINGULUS TECHNOLOGIES AG adjusts the sales forecast for 2010 to a range from € 118 to 125 million (forecast: € 130 – 135 million).
According to preliminary results, in the first nine months of 2010 SINGULUS achieved sales in the amount of € 81.0 million (previous year: € 95.9 million). In the 3rd quarter 2010 SINGULUS generated sales of € 31.6 million (previous year: € 28.8 million). The order intake of € 29.9 million in the 3rd quarter 2010 was significantly higher than in the previous year (Q3 2009: € 15.2 million). Correspondingly, the order intake in the first nine months of 2010 also rose to € 97.3 million (previous year: € 56.0 million). The order backlog as of September 30, 2010 increased to € 43.7 million and is thus considerably above the prior-year level (€ 30.3 million).
Against the backdrop of current development, the resolved repositioning of the business activities as well as current market information, the Executive Board reviewed the respective values of all balance sheet items and accordingly in the course of its meeting on October 25, 2010 agreed to recognize value adjustments and write-offs in the balance sheet as well as other restructuring measures amounting to € 67.8 million (extraordinary expenses) in total This includes adjustments of intangible and tangible assets from earlier acquisitions in the amount of € 40.7 million, capitalized development expenses in the amount of € 7.5 million as well as of receivables and inventories totaling € 17.3 million. These value adjustments are not tied to an outflow of liquid funds. Overall, restructuring charges in the amount of € 2.3 million were achieved. In this connection all Optical Disc activities will be centralized in Kahl to realize further cost reductions. First steps were already implemented with the integration of the injection molding activities in Kahl. Now, essential parts of the mastering activities will be relocated from Eindhoven to Kahl.
The operating results (before extraordinary expenses) is expected to amount to – € 13.1 million (previous year: – € 13.9 million) for the first nine months. In the 3rd quarter 2010 a negative result (before extraordinary expenses) in the amount of – € 5.0 million was realized.
Still favorable outlook for 2011
SINGULUS TECHNOLOGIES still reaffirms its medium-term goals even after these adjustments.
The Executive Board expects the company to generate stable and positive earnings in the future as the No. 1 player in the Blu-ray market. Dr.-Ing. Stefan Rinck, Chief Executive Officer of SINGULUS, comments: “The BLULINE and our mastering system CRYSTALLINE have established themselves internationally. We expect new orders and are very optimistic for 2011. We also have ongoing projects for Recordable Blu-ray, i.e. für Blu-ray Discs to record movies. Overall, the Blu-ray market will grow strongly in 2011 and 2012.”
In the Solar segment SINGULUS together with STANGL offers modern plant systems for silicon and also thin-film solar technology. Since the beginning of 2010 SINGULUS is actively marketing complete systems for the production of crystalline silicon solar cells. The further development of the company’s strategy – becoming OEM supplier as well as system provider – has given the company access to additional projects and extensive order potential. The project talks that have been going on for a while raise hope for an increase in order intake.
The Executive Board is confident that the company will succeed in expanding the business activities in the Solar division as planned, so that this segment will contribute with significantly positive earnings to the Group’s results.
We are certain that we will achieve the announced turnaround in 2011. In this connection we see the following points confirming this:
Optical Disc segment
* Only global one-stop supplier and No. 1 for Blu-ray equipment
* Strong growth for Blu-ray in the next years
* Profitable products with good margins
* Strong growth for Blu-ray achieved
* Production know-how for the coming market of rewritable/once-recordable Blu-ray (BD-RE/BD-R).
* Projects for complete systems in negotiations
* Position in attractive, rapidly growing solar market
* SINGULUS AR coating technology establishing itself
* Expansion of sales & marketing in Asia
* Solar segment expected to break-even in 2011