LPKF Laser & Electronics AG / Key word(s): Half Year Results

14.08.2013 / 08:12

---------------------------------------------------------------------

Strong LDS business boosts revenue and EBIT / Forecast for the year raised
slightly

Garbsen, 14 August 2013 - Specialty mechanical engineering company LPKF has
remained on track for success in the second quarter of 2013. In its
half-yearly report published today, the Group reports year-on-year revenue
growth of 39% to EUR 70 million.

At around EUR 15 million, the company's earnings before interest and taxes
(EBIT) doubled compared to the first half of 2012. The EBIT margin was 22%.
This means that both revenue and EBIT surpassed expectations.
 
Due to the unexpectedly strong business with laser direct structuring (LDS)
systems in the first half of the year, LPFK several days ago raised the
forecast for the current financial year. The Management Board expects the
LPKF Group to post revenue between EUR 119 million and EUR 123 million in
2013 (previously: between EUR 115 million and EUR 120 million). The EBIT
margin should be between 16% and 17% in 2013 (previously: between 15% and
16%).

Despite the record revenue and earnings figures in the first six months,
the forecast for the full year was raised only moderately. This is because,
for one, the management does not believe the LDS business to make a
similarly strong contribution to revenue in the second half of the year
after the unexpectedly positive performance in the first six months of
2013. For another, the major order from the solar industry, which is being
completed as planned, had a positive effect on revenue in the first six
months. In view of the continuing weakness of the solar market, LPKF is
preparing for a noticeable decline in revenue in its Solar Module Equipment
business in the second half of the year. The completion of the major order
from the solar industry is also reflected in a weaker order book: At EUR 56
million, incoming orders after six months are down 6% compared with the
prior-year period.

Given a stable economic environment, LPKF still expects revenue to grow by
approximately 10% yearly and the EBIT margin to come in between 15% and 17%
in 2014 and 2015.

Both the high level of revenue and the order intake for the first six
months are largely attributable to LPKF's laser direct structuring systems.
As the antenna count in modern smartphones continues to rise, more and more
smartphone manufacturers are choosing the LPKF LDS technology for producing
the antennas. The company therefore expects growth for LDS in the antenna
segment to continue. But there are also growth opportunities outside the
antenna market. In fall, LPKF will be expanding its product portfolio to
include two new LDS systems for new applications.

In addition to the outstanding LDS business, the Plastic Welding and Rapid
Prototyping product groups in particular contributed to the positive
business performance.

LPKF will invest in the expansion of its production capacities for plastic
welding this year. Furthermore, a new main building will be constructed at
LPKF's Garbsen headquarters. The company will make extraordinarily high
investments in its future growth in the 2013 financial year.

The full 6-months-report is available in German at
www.lpkf.de/investor-relations/finanzberichte/index.htm and in English at
www.lpkf.com/investor-relations/financial-reports/index.htm.

LPKF will be holding a conference call (in English) for analysts and
institutional investors on 14 August 2013 at 4.00 pm (CET). The conference
call will later be available for download from the company's website. The
Management Board will be available to answer questions from private
investors during an internet chat at
www.lpkf.de/investor-relations/chat-vorstand/index.htm from 6:00 pm.

About LPKF
LPKF Laser & Electronics AG specializes in the production of laser systems
for micro material processing, a field in which it is the world leader in
several sectors. Founded in 1976, the Group has its headquarters in Garbsen
near Hannover in Germany and does business around the world together with
its subsidiaries and representatives. LPKF has 714 employees globally. The
shares in LPKF Laser & Electronics AG are traded on TecDAX index of the
Frankfurt Stock Exchange (ISIN 0006450000).


End of Corporate News

---------------------------------------------------------------------

14.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English                                               
Company:     LPKF Laser & Electronics AG                           
             Osteriede 7                                           
             30827 Garbsen                                         
             Germany                                               
Phone:       +49 (0) 5131 7095-0                                   
Fax:         +49 (0) 5131 7095-95                                  
E-mail:      investorrelations@lpkf.com                            
Internet:    www.lpkf.com                                          
ISIN:        DE0006450000                                          
WKN:         645000                                                
Listed:      Regulierter Markt in Frankfurt (Prime Standard);      
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,  
             Stuttgart                                             
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
225772 14.08.2013