X-FAB continues on course of growthErfurt, Germany, November 16, 2004.
X-FAB Semiconductor Foundries AG, one of the world's leading analog mixed-signal semiconductor foundries, today announced substantial sales and earnings growth in the third quarter of 2004. Sales revenues increased by 27 percent to EUR 38.3 million, with an operating resultof EUR 2.4 million in the third quarter. This compares to an operating loss of EUR 8.2 million in the same period of 2003. Earnings before interest and taxes (EBIT) also improved significantly to EUR 1.3 million, following negative earnings of EUR 7.8 million in the third quarter of 2003. Net income as of September 30, 2004 was EUR 6.1 million, with EUR 0.4 million attributable to the thirdquarter. In the previous year, the company reported a loss of EUR 15.4 million for the first nine months and a loss of EUR 8.4 million for the third quarter. Sales revenues in the first nine months of fiscal year 2004 totalled EUR 105.3 million, up 26 percent versus the same period last year. The EBIT amounted to EUR 9.0 million in the first nine months. This compares to a negative EBIT of EUR 13.6 million in the same period of 2003.
X-FAB achieved this earnings performance despite the negative impact of the U.S. dollar exchange rate. The company generates about half its revenues in the U.S. dollar zone, so a weak U.S. dollar directly affects earnings. Furthermore, an internal loan was re-valued to compensate for exchange rate fluctuation. Without these factors, third-quarter earnings would have been EUR 1.6 million higher. At EUR 41.1 million, bookings in the third quarter once again exceeded sales, resulting in abook-to-bill ratio of 1.07. X-FAB recorded bookings worth EUR 122.3 million in the current fiscal year. The book-to-bill ratio for the first nine months of the year was 1.16. "We expect to report sales in excess of EUR 140 million for fiscal year 2004," says Hans-Juergen Straub, CEO of X-FAB. "Market researchers forecast a decline of approximately 5 percent for the semiconductor market in 2005; however, based on current demand from our customers we do not expect a decline at X-FAB in the coming year."