X-FAB announces strong half-year results

NEWS, Erfurt, Germany, September 9, 2010.

Reports year-on-year sales growth of 85 percent, booking-level surge of 104 percent and 81 percent improvement in EBIT.

The X-FAB Silicon Foundries Group today announced it generated sales of USD 156.2 million (EUR 117.5 million) in the first six months of the current fiscal year. This corresponds to a year-on-year increase of 85 percent. Sales in the second quarter were USD 77.1 million (EUR 60.4 million), a substantial improvement of 78 percent compared to the same period in 2009. Thus the upward trend in sales seen in recent quarters was confirmed and stabilized at the level recorded in the first month of the year.

Booking levels in the first six months of 2010 were up 104 percent compared with the same period last year. With a book-to-bill ratio of 1.02, the order situation remained stable in the second quarter of 2010 as well.

Earnings before interest and taxes (EBIT) as of June 30, 2010 were USD -6.7 million (EUR -5 million), an increase of 81 percent or USD 27.6 million compared with the same period last year. In the second quarter of 2010, EBIT climbed 77 percent to USD -3.1 million (EUR -2.43 million) compared to the same quarter the previous year. EBIT was also up 15 percent for the first quarter of 2010.

Hans-Jürgen Straub, CEO of X-FAB, has positive expectations about the company’s future business development: “We had a strong first half. Thanks to our current level of bookings, we will maintain our sales forecast until the end of the year with an increase of 50 percent compared with 2009. In addition, we expect EBITDA to top USD 60 million in 2010. These figures enable us to look ahead with optimism and plan further growth.”