Aixtron Relieves Investors: Revived Demand Despite Economic Cool-Down

Aixtron SE sends positive signals to concerned investors. The specialist equipment manufacturer for the semiconductor industry has announced that it has gained new customers for silicon carbide (SiC) semiconductors, including a heavyweight from the top 5 manufacturers. Despite this good news, the company recorded a decline in order intake in the first quarter but maintained its business targets for the year 2024, reinforced by the confidence of CEO Felix Grawert in the company's strategy. The business figures for the first quarter reveal a mixed picture: with an order volume of just over 120 million euros, Aixtron was around 14 percent below the level of the same quarter of the previous year. A more significant decline was observed compared to the last quarter of the previous year. In 2023, the company still benefited from a boom due to the expansion of chip factories. The demand for energy-efficient and temperature-resistant electronic chips based on SiC is particularly high in electric mobility and alternative energy sources. In addition, GaN-based high-frequency electronic chips, already used in smartphone quick chargers, are becoming increasingly important. Although the order intake across all end markets is described as balanced, Aixtron records strong demand for equipment for manufacturing MicroLED, which claimed more than a third of the order intake. This could be interpreted by investors as a sigh of relief after the cancellation of a MicroLED project at the customer AMS-Osram, despite the rather long-term prospects of this technology. The revenue numbers present a pleasing picture with an increase of more than 50 percent to about 118 million euros compared to the same period last year. A plunge of about half compared to the previous quarter is put in perspective by the export licenses missing last year. In terms of EBIT, Aixtron recorded 9.9 million euros and in profit, 10.8 million euros, a considerable growth compared to the previous year, even if these indicators remain behind those of the last quarter. The management remains optimistic and confirms the revenue expectation of 630 to 720 million euros for the year 2024, with the profit margin before interest and taxes projected to be between 24 and 26 percent. For the second quarter, Grawert expects revenues of 120 to 140 million euros. Investors are now eagerly awaiting details on the business outlook, which are likely to be discussed shortly at the analyst conference. The restored normality in export licensing and the broad-based forecast due to the uncertainties in electromobility give hope that Aixtron can reach the higher revenue marks.