DGAP-News: LPKF Laser & Electronics AG / Key word(s): Quarter Results

2015-05-13 / 08:01

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Garbsen, 13 May 2015 - LPKF Laser & Electronics AG today announced that it
got off to a subdued start in the current financial year. At EUR 21.4
million, reve-nue in the first quarter was as expected close to the
previous year's figure of EUR 21.6 million. The operating result (EBIT)
fell from EUR 1.1 million to EUR 0.2 million. Accordingly, the EBIT margin
of 1.0% also was lower than in the previous year (5.0%). Incoming orders
totaled EUR 19.2 million, down 48% year-on-year. Orders on hand amounted to
EUR 15.4 million compared to EUR 33.3 million in the previous year. The
decline in incoming orders was mainly due to the fact that a major solar
order was posted in the previous year's first quarter.

Business performance in the first three months shows that the Garbsen-based
laser specialist's main revenue driver, the Electronics Production
Equipment segment, which also includes laser direct structuring (LDS)
machines, has not yet overcome the previous year's period of weakness. At
the same time, CEO Ingo Bretthauer sees clear indications of a continued
improvement in medium-term growth prospects. "Particularly our new
development projects, Through Glass Via (TGV) and Laser Transfer Printing
(LTP), are attracting very specific interest in the market," said
Bretthauer, summarizing: "The situation will remain difficult in the short
term but there is reason to be optimistic in the medium term."

The revenue of the Solar Module Equipment product group in the first three
months was substantially higher than the prior-year figure because the
remainder of the major order from 2014 was invoiced in the first quarter of
2015. Together with a development in the Welding Equipment product group
that was in line with expectations, this led to generally very healthy
revenue of EUR 8.5 million in the Other Production Equipment segment.

The high level of incoming orders in Welding Equipment confirms that after
a turbulent year in 2014 the plastic welding business will most likely
return to its growth trajectory. Bretthauer is confident that with the new
management and the transfer of production to a new building in Fürth LPKF
has laid the foundations for a successful future in this product group.
Order intake in Solar Module Equipment was substantially below the
extraordinary high level in the first quarter of the previous year.
However, as further projects in the solar segment for 2016 and beyond are
already being negotiated, there are realistic opportunities to continue the
success story of the solar business in the medium term.

Revenue in the Electronics Development Equipment segment in the first three
months of the year was down on the very strong prior-year period, but with
the revenue generated and the gratifying order intake Bretthauer feels that
the com-pany has a good chance of achieving its annual targets for this
segment.

Whether the LPKF Group will be able to reach its planned revenue and
earnings targets for 2015 as a whole will also ultimately depend above all
on the earnings of the Electronics Production Equipment segment in the
current financial year. In terms of revenue, this segment started the first
quarter on a weak footing. In this segment, LPKF is currently focusing on
incoming orders. "As we have only limited visibility in this segment and
the underlying markets change very rapidly, achieving our targets in this
segment remains our greatest challenge in 2015," said Bretthauer.

According to the most recent forecast, the Group expects to generate
revenue of EUR 128 million to EUR 136 million in 2015 with an EBIT margin
between 12% and 15%. In the first few weeks of the second quarter, the
level of incoming orders in the LPKF Group failed to meet expectations.
Furthermore, the number of new LDS projects is still too low at the moment.
This situation may change rapidly if just a small number of major orders
are implemented. At the present time, the Management Board therefore
believes that it can still achieve its targets for 2015, though it
considers these to be very ambitious.

For 2016 and beyond, the Management Board is looking to the future with
more confidence again based on the ongoing negotiations with customers. The
newly developed technologies are attracting a great deal of interest among
customers, leading the Management Board to expect additional growth
momentum from 2016 onwards.

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

About LPKF
LPKF Laser & Electronics AG specializes in the production of laser systems
for micro material processing and 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 through subsidiaries and
representatives. LPKF has 800 employees. The shares in LPKF Laser &
Electronics AG are traded on the TecDAX index of the Frankfurt Stock
Exchange (ISIN 0006450000).



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2015-05-13 Dissemination of a Corporate News, transmitted by DGAP - a
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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:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
             Stuttgart                                                  
 
 
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