DGAP-Adhoc: LPKF Laser & Electronics AG: 2020 First Quarter Forecast and Medium-Term Forecast up to 2024

- Revenue for 2019 at upper end of guidance
- Weak first quarter of 2020 expected
- 2024 revenue forecast above EUR 360 million

Garbsen, 20 February 2020 - According to preliminary figures, LPKF Laser & Electronics AG has generated consolidated revenue of around EUR 140 million in the 2019 financial year. This puts the technology company at the upper end of its guidance of EUR 135-140 million, and 17% higher than the prior year revenue of EUR 120.0 million. Free Cash Flow was above EUR 40 million, after EUR 5.8 million in the prior year. For 2019, the Management Board continues to expect EBIT margin within the forecast range of 12-14%. At EUR 112 million, incoming orders were below the prior year figure of EUR 139.8 million, and at EUR 30 million, orders on hand at the end of the year were also down from the prior year figure of EUR 58.4 million.

At this time, the Management Board expects that the performance of globally active LPKF will, in aggregate, not be significantly affected by the effects of coronavirus disease (COVID-19). However, LPKF is likely to see some delays in filling individual customer orders during the current financial year.

The company continues to expect revenue and profit growth for the year 2020, and it will publish a guidance for the current financial year later in the first quarter. Significant portions of LPKF's business are characterized by few large-scale orders. This regularly leads to fluctuations in incoming orders and in the distribution of revenue during any year. Due to this seasonality, as well as some effect of COVID-19, the Management Board expects a weak first quarter 2020 with revenues of EUR 18-22 million (prior-year period: EUR 36.4 million) and a quarterly loss of EUR 3-5 million (prior-year period EBIT: EUR 6.1 million).

For subsequent years, the company continues to expect sustainable, profitable growth in each business unit. LPKF's innovative LIDE technology (Laser Induced Deep Etching), which makes it possible to process thin glass quickly, precisely and without damage, will add to this growth. Following progress made in several LIDE customer projects, LPKF has reviewed and assessed the revenue and profit potential of its LIDE technology. This assessment is based on specific expectations for various applications, including in the semiconductor and display segment; in each case coming from corresponding customer projects. This includes the recently reported first sale of a LIDE system for volume production to a semiconductor industry customer. Given the stronger sales and earnings contribution from LIDE, the Management Board now expects consolidated revenue of more than EUR 360 million, and an EBIT margin of over 25%, for 2024, with further growth after that.

The 2019 Annual Report will be published on 24 March 2020. 

LPKF Laser & Electronics AG shares are listed in the SDAX of the Frankfurt Stock Exchange (ISIN 0006450000). Explanation of key figures
EBIT: Earnings before interest and taxes
EBIT margin: Earnings before interest and taxes / sales x 100
Free cash flow: Operativ cash flow + cash flow from investment activities





Contact:
Bettina Schäfer, Department Manager Group Communication & Investor Relations