Viscom AG: Positive outlook despite modest start to the 2019 financial year

Revenue: EUR 19,715 thousand (previous year: EUR 16,778 thousand)
Incoming orders: EUR 19,844 thousand (previous year: EUR 24,716 thousand)
Order backlog: EUR 25,099 thousand (previous year: EUR 27,715 thousand)
EBIT: EUR 348 thousand (previous year: EUR 253 thousand)
EBIT-Margin: 1.8 % (previous year: 1.5 %)
Executive Board confirms forecast for 2019

Hanover, 14 May 2019 - In the first quarter of the 2019 financial year, Viscom AG (ISIN DE0007846867), the European market leader for automated optical inspection systems in the electronics industry, increased its revenue by 18 % year-on-year. Revenue of EUR 19,715 thousand (previous year: EUR 16,778 thousand) was achieved in the first three months. Incoming orders amounted to around EUR 19,844 thousand (previous year: EUR 24,716 thousand), down around 20 % from the very strong figure for the previous year.

Operating profit (EBIT) amounted to EUR 348 thousand in the first quarter of 2019 (previous year: EUR 253 thousand). This corresponds to an EBIT-Margin of 1.8 % (previous year: 1.5 %) and was therefore on a par with the previous year. Operating profit was significantly negatively affected by valuation allowances on inventories and increased warranty expenses. In addition, earnings were reduced by increased staff costs due to the capacity expansion. Net profit for the period fell from EUR 395 thousand in the previous year to EUR 141 thousand. The effects discussed under operating profit above also had an impact here. The financial result was positive at EUR 132 thousand. This was due primarily to interest income from concluded fiscal court proceedings. In addition, lower tax refunds for previous years and high deferred taxes from temporary differences had a negative impact.

Europe was the Viscom Group's strongest region by some distance, generating revenue of EUR 13,795 thousand in the first three months of the 2019 financial year (previous year: EUR 10,485 thousand) and accounting for around 70 % of total revenue. Revenue increased by around 32 % as against the previous year. This was primarily due to higher system sales. Revenue in Germany amounted to EUR 8,907 thousand (previous year: EUR 5,339 thousand). Segment earnings in the Europe region totalled EUR 494 thousand (previous year: EUR 196 thousand), corresponding to a margin of 3.6 % (previous year: 1.9 %). This increase was primarily attributable to the effects already discussed under operating profit.

The Viscom Group likewise registered good demand in the USA and Canada and in Mexico. The Company sees the economic environment as stable with constant but modest growth. In the Americas regions, segment revenue doubled from EUR 1,230 thousand to EUR 2,475 thousand. Segment earnings in the region totalled EUR 83 thousand (previous year: EUR -404 thousand), corresponding to a margin of 3.4 % (previous year: -32.8 %). This was due primarily to increased revenue.

Revenue in the Asia region amounted to EUR 3,445 thousand in the first quarter of 2019 (previous year: EUR 5,063 thousand). Incoming orders in the first quarter were characterised by customers' reluctance to invest and geographical relocations of orders already placed to Europe. In addition, lower demand was observed for services and replacement parts. These factors resulted in negative quarterly earnings of EUR -194 thousand (previous year: EUR 444 thousand). The corresponding EBIT-Margin therefore amounted to -5.6 % (previous year: 8.8 %). Being optimistic, the still high order backlog and decision-ready projects give reason to expect that revenue and earnings will increase significantly at the end of the second quarter.

The economic situation is currently characterised by uncertainty over future economic development in Asia and the automotive industry. As a result, there has been a palpable drop in the propensity to invest.

For the Viscom Group, the market continues to offer good opportunities for the future that were already taken in the first quarter of 2019: The Company was awarded a procurement contract by a major existing customer in March, positioning itself as the exclusive supplier for the 3D inspection of wired solder joints with the new Viscom inspection system S3016 ultra for the next five years. In the close interplay of application and software, product and central development, Viscom expanded the possibilities of the new XM module and presented a convincing service.

To continue meeting the future megatrends and the demands that they entail on an equal footing and in a timely manner, the mechanical engineering firm from the German state of Lower Saxony maintains a permanent dialogue with its customers at various levels. Demand for inspection systems is increasing steadily on the back of growth in vehicle electronics, especially e-mobility and the requirements of autonomous driving. The use of batteries by Viscom customers has also led to new quality control requirements that the Company is able to cover with its system technology. This relates to various types of battery cells, such as button cells, round cells and pouch cells, thereby giving rise to additional applications.

In terms of markets, the management sees growth potential in Asia. Many Viscom customers and, in particular, potential customers from the computer, communication and consumer industry are located in this region. In addition to China, Viscom is intensifying its activities in other Asian countries in order to facilitate additional growth in the region over many years. India, where there is greater investment from customers, is particularly noteworthy here.

Overall, Viscom AG's management remains confident about the future. The Company is in a good technological and strategic position for further growth. The management is therefore confirming the forecasts for 2019 as a whole that were published previously, with revenue of between EUR 94 million and EUR 100 million and an EBIT-Margin of between 10 % and 13 %.

The consolidated interim report for the period ended 31 March 2019 can now be found in the Investor Relations section at www.viscom.com.

OPERATING FIGURES

Consolidated statement of comprehensive income		01.01.-31.03.2019	01.01.-31.03.2018
Revenue	KEUR	19,715	16,778
EBIT	KEUR	348	253
EBIT-Margin	%	1.8	1.5
Net profit for the period	KEUR	141	395
Earnings per share	EUR	0.02	0.04
Employees at end of quarter		484	437
Consolidated statement of financial position		31.03.2019	31.12.2018
Assets
Current assets	KEUR	66,847	67,045
Non-current assets	KEUR	26,107	14,758
Total assets	KEUR	92,954	81,803
Liabilities
Current liabilities	KEUR	20,577	18,659
Non-current liabilities	KEUR	12,704	3,846
Total shareholders' equity	KEUR	59,673	59,298
Total liabilities and shareholders' equity	KEUR	92,954	81,803
Equity ratio	%	64.2	72.5
Consolidated statement of cash flows		01.01.-31.03.2019	01.01.-31.03.2018
Cash flow from operating activities	KEUR	2,307	1,291
Cash flow from investing activities	KEUR	-722	-1,288
Cash flow from financing activities	KEUR	-724	0
Cash and cash equivalents	KEUR	3,258	11,459

 

SEGMENT INFORMATION

		01.01.-31.03.2019	01.01.-31.03.2018
EUROPE
Revenue	KEUR	13,795	10,485
EBIT	KEUR	494	196
EBIT-Margin	%	3.6	1.9
AMERICAS
Revenue	KEUR	2,475	1,230
EBIT	KEUR	83	-404
EBIT-Margin	%	3.4	-32.8
ASIA
Revenue	KEUR	3,445	5,063
EBIT	KEUR	-194	444
EBIT-Margin	%	-5.6	8.8
EBIT consolidation differences	KEUR	-35	17

 

 

About Viscom
Viscom AG develops, manufactures and sells high-quality inspection systems. Its product range covers the complete range of optical inspection and X-ray inspection. The company is one of the world's leading providers in the field of component inspection for electronics production. Viscom's systems can be configured and connected according to specific customer requirements. The company's headquarters and production site are in Hanover, Germany. Viscom has an international presence with an extensive network of branches, application centres, service support centres and representatives. Formed in 1984, Viscom has been listed on the Frankfurt Stock Exchange (ISIN: DE0007846867) since 2006. Further information can be found at www.viscom.com.

Insofar as this report contains forecasts, expectations or statements relating to the future, these statements may involve risks and uncertainties. We therefore cannot guarantee that the expectations will prove correct. Actual results and developments may differ materially from the expectations and assumptions expressed. Factors that can cause such differences include changes in the general economic or competitive situation, fluctuations in exchange and interest rates, and reforms of national and international laws. The company assumes no obligation to update the statements included in this report.

Contact:
Viscom AG
Investor Relations
Anna Borkowski
Carl-Buderus-Str. 9-15
30455 Hannover
Tel.: +49-511-94996-861
Fax: +49-511-94996-555
[email protected]