DGAP-News: LPKF Laser & Electronics Aktiengesellschaft / Key word(s): Final
Results

2016-03-23 / 08:00
The issuer is solely responsible for the content of this announcement.

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

Garbsen, 23 March 2016 - LPKF today announced that the weakness of its
laser direct structuring (LDS) business again put a considerable strain on
the LPKF Group's overall business performance in the fourth quarter of
2015. Generating revenue of EUR 87.3 million, LPKF at least met its most
recent guidance (EUR 85 million - EUR 90 million) at the end of the year.
Although the numerous cost reduction measures were clearly effective, the
laser specialist company was unable to finish the year with a profit. LPKF
posted an operating result (EBIT) of EUR -3.7 million.

The LDS systems business significantly underperformed compared to the
previous year, declining by 74%. Even the growing business with laser
systems for cutting printed circuit boards was unable to compensate for
this decrease in revenue. Overall, revenue in the Electronics Production
Equipment segment was down 42% year on year. At a decrease of 28%, the
Other Production Equipment segment also generated lower revenue compared
with the previous year. The increase in revenue in the plastic welding
business was unable to compensate for the expected revenue decline with
solar systems. The Electronics Development Equipment segment performed well
and increased revenue and EBIT.

"The negative result is particularly frustrating for us," said CEO Dr. Ingo
Bretthauer. According to the CEO, 2015 again showed that LPKF as a
high-tech company is active in what are at times ex-tremely volatile
markets. That LPKF will also have ups and downs in the future is something
the company must accept. Bretthauer pointed out that LPKF's longterm
business performance is critical to success.

The CEO believes that the LDS business "has by no means reached the end of
the road". But due to the extremely low visibility in the LDS market,
Bretthauer has shifted his growth expectations to other product groups for
the time being.

For example, LPKF expanded its range of services for 2016 by adding two
completely new product lines. At the beginning of this year, the first
machine for the new Through Glass Via (TGV) process - used to create
ultrafine holes in glass - was supplied to a key customer in Asia. In 2016,
the first system for the digital printing of pastes (LTP: Laser Transfer
Printing) is scheduled to be delivered to a European customer. According to
the CEO, both product lines have similar medium-term potential for growth
as the LDS business. However, LPKF projects only moderate revenue for these
products in 2016.

The main growth drivers for the current year are the Welding Equipment,
Solar Module Equipment, PCB Production Equipment and Electronics
Development Equipment product groups. Solid growth is expected for all
these product groups, which is why LPKF forecasts revenue in the range of
EUR 100 million to EUR 120 million for 2016. This in turn would lead to
positive, single-digit percentage EBIT.

"The key to our future success lies in continuous innovation. Only if we
succeed in developing new markets again and again with entirely new
laser-based methods will we be able to grow profitably in the long term,"
said Bretthauer. For this reason, LPKF fired on all cylinders in the area
of development in 2015 - in spite of all of the cost-cutting measures. The
Management Board is therefore looking into the medium-term future with more
confidence. From 2017, LPKF will once again aim for targets of average
annual revenue growth of at least 10% and a double-digit EBIT margin.

The full annual report is available in English at
www.lpkf.com/investor-relations/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 778 employees. The shares in LPKF Laser &
Electronics AG are traded on the Prime Standard of Deutsche Börse (ISIN
0006450000).


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

2016-03-23 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP 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 Aktiengesellschaft                
                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; Terminbörse EUREX                               
 
   
     End of News    DGAP News Service