$AIXA (-2.06%) Reports FY 2024
Sales: 633M vs 625M expected 🟢
EBIT: 131M vs 137M expected 🔴
Income: 106M vs 117M expected 🔴
Outlook for FY25:
Sales: 565M vs 566M expected 🟡
EBIT: 113M vs 121M expected 🔴
Outlook for Q1 FY25:
Sales: 100M vs 126M expected 🔴
The following things are mentioned:
- Competitive position and market shares in key sectors expanded 🟢
- Difficult environment 🔴
- Power electronics for AI (making the move here) $IFX (-0.35%) move) 🟢
- Record quarter with 227M sales 🟢
- Bookings have fallen by -7% to 596M, Q4 2023 to 2024 even by -23% 🔴
- Order backlog thus falls to 290M 🔴
- Weakening demand due to cutbacks in customer investments 🔴
- Decline in gross margin from 44% to 41% 🔴
- It is emphasized that a lot is now being invested in R&D to play the next cycle
- Reduction of the dividend to 15 cents (from 40 cents) is justified by the build-up of a cash position
- Gross margin to remain constant in the current FY2025 (41-42%) 🟡
- The balance sheet looks more solid, with less debt and a higher equity ratio 🟢
- Inventories have also been reduced, resulting in a positive cash flow 🟢
"We will use the current phase of market consolidation to optimally prepare for the next growth phase of the semiconductor cycle," says Dr. Felix Grawert, Chief Executive Officer of AIXTRON SE
"The year 2024 has developed significantly differently than originally expected. Nevertheless, we are continuing to invest consistently in our future. Our new innovation center will further strengthen our research and development activities. The focus of our activities in 2025 is now on strengthening profitability and rebuilding a strong cash position," says Dr. Christian Danninger, Chief Financial Officer of AIXTRON SE.
Conclusion:
The figures were pretty much as expected and the revenue outlook was also in line with expectations. However, profitability has suffered and will continue to do so next year. The difficult market environment was known. The dividend cut sounds sensible, as do the investment plans. However, the order backlog does not look so good, as the order backlog is only sufficient for half a year. However, the balance sheet and the reduction in inventories are positive. I don't really see the share price loss as justified. What do you think about the development and would you buy now? @Tenbagger2024 What are you doing with Aixtron?
