H1 2015 REVENUE

ON THE STRENGTH OF ITS BUSINESS MOMENTUM, TRONICS CONFIRMS ITS MEDIUM-TERM GROWTH TARGET

Grenoble, France and Dallas, TX, USA – 23 July 2015 – Tronics, a designer and manufacturer of innovative nano and microsystems, is listed on the Paris Alternext market (ISIN code: FR0004175099 - ALTRO).

In the first half of 2015, the engineering activity continued to progress, to €3,297k versus €2,806k in the previous year. This 17% increase reflects the group's business momentum, with a strong pipeline of new projects in various growing sectors, such as mobility and life sciences. These products, currently in the development phase, will generate manufacturing revenue within the next 12-24 months when they enter into production.

The manufacturing activity represented €901k versus €3,195k over the same period in 2014. This drop came about mainly because a significant customer's production volumes were much lower than announced at the beginning of the year, and because the group's sales to its historical customer continued to decline (this customer still generated revenue of €1.5M in H1 2014). The manufacturing business should show overall improvement in the second half of 2015.

Consolidated first-half revenue (1 January to 30 June) – unaudited

The US subsidiary in Dallas confirmed its growth potential with a revenue increase of 27% compared to H1 2014 to €1,537k.

The group continued to penetrate new markets. The life sciences segment is experiencing favorable growth and represented 12% of overall activity during the period (versus 2% in 2013).

Regarding the geographic distribution of revenue over the period, Europe represented 70% of sales, followed by Asia (18%) and North & South America (12%).

STEADY COMMERCIAL MOMENTUM IN LINE WITH THE MEDIUM-TERM DEVELOPMENT PLAN

Sales & marketing initiatives engaged by the group to accelerate its growth and diversify its customer portfolio continued in accordance with the medium-term strategic plan, and have already generated many programs now in the engineering phase.

In this regard, Tronics has recently concluded significant development projects with one of the top five providers of mobile solutions worldwide, with a major luxury goods and watchmaking company, and with an international player in the domain of medical devices.

This acceleration of business momentum is explained by:

• the recent arrival of a Sales & Marketing Director,


• a reinforced presence in new countries such as Israel, where the group has recently signed an exclusive distribution agreement with AVNET Israel, especially in the sector of high performance inertial sensors for avionics applications,


• a growing recognition of Tronics' innovation by industrial companies. Several projects with high technological value are ongoing in the promising areas of high performance inertial sensors (GYPRO®), optical microsystems and BioMEMS.

OUTLOOK FOR 2015 AND THE MEDIUM TERM

“Over all of 2015, Tronics anticipates revenue at the same level as that of last year, as the second half should be better oriented toward the manufacturing activity and the engineering business should continue to enjoy favorable momentum”, said Pascal Langlois, CEO of Tronics. “We are very satisfied with the programs now in the engineering phase and the projects under validation by our prospects and customers. They demonstrate our ability to provide insightful answers to the technology and financial challenges faced by industrial companies in the sector of nano and microsystems with high added value. The robust pipeline of new programs and the business momentum that is accelerating at the international level strengthen our conviction that we can achieve our medium-term goals”.

FORTHCOMING PUBLICATIONS

* Release before the opening of the Paris Alternext market

** Release after the closing of the Paris Alternext market



 

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