X-FAB continues to grow sales and earnings in the first half-year, Company expects double-digit sales growth with disproportionate increase in earningErfurt, Germany, August 25, 2005.
X-FAB Semiconductor Foundries AG, one of the world's leading analog mixed-signal semiconductor foundries, successfully completed the first six months of 2005. The company increased its sales in the first two quarters by 15.5% to EUR 77.4 million. This compares to sales of EUR 67.0 million in the same period of last year. At 19.6%, the operating result showed even stronger growth, from EUR 2.9 million to EUR 3.5 million. Due to lower currency gains associated with the euro vs. the dollar compared to last year, net income in the first six months was EUR 4.8 million, down from EUR 5.7 million in the first half of 2004.
X-FAB managed to increase both sales and earnings in the second quarter of 2005 compared to the first quarter. Sales amounted to EUR 39.5 million and the operating result for the quarter increased to EUR 2.0 million. Net income for the quarter was EUR 2.4 million.
The book-to-bill ratio for the first half of the year was 0.97. After slightly weaker bookings in April and May, bookings have picked up momentum again since June.
For fiscal year 2005, X-FAB thus expects sales to grow in the low double-digits, which is significantly higher than forecasts for the industry average. Earnings are expected to grow disproportionately. X-FAB aims at doubling its operating result compared to fiscal year 2004.