X-FAB Continued on Profitable Growth Path in 2005Erfurt, Germany, March 16, 2006.
X-FAB Semiconductor Foundries, one of the world's leading analog/mixed-signal semiconductor foundries, reported significantly increased sales and operating profits in 2005 compared to its business success the previous year. X-FAB's total sales for 2005 were 162.7 million Euro (US$: 207.7 million) and are the highest ever recorded in the company's history. Compared to the previous year?s sales of 142.4 million Euro (US$: 177.1 million), X-FAB achieved a 14.3 percent increase, clearly above the general growth rate of the industry. EBIT was 15.0 million Euro, nearly twice the 7.7 million reported the previous year. This correlates with an increase in operating margins from 5.4 percent in 2004 to 9.2 percent in 2005. These preliminary figures were reported for the first time according to International Financial Reporting Standards (IFRS).
Operating cash flow increased to 34.5 million Euro in 2005, compared with 20.0 million Euro in 2004. The gross profit in 2005 was 37.2 million Euro compared to 29.7 million Euro in 2004. At 13.6 million Euro, research and development expenses in 2005 remained roughly the same as the 13.3 million Euro the previous year.
Hans-Juergen Straub, X-FAB CEO, commented: "We are pleased to be able to report yet another successful business year, and are prepared for further profitable growth. X-FAB has achieved a leading position globally with its specialization in analog/mixed-signal technologies. With an equity ratio of 74 percent at the end of 2005, as well as high operating cash inflow, X-FAB's financial position is sound. For the past few months, our bookings have been growing steadily. We plan to expand our manufacturing capacities, and we hope to achieve another year of double-digit growth in 2006."