MEMSCAP – First Half 2021 Earnings
- 212
Regulatory News:
MEMSCAP (NYSE Euronext: MEMS), the leading provider of innovative solutions based on MEMS (micro-electro-mechanical systems) technology, today announced its earnings for the first half of 2021 ending 30 June 2021.
Revenue and consolidated earnings for the first half of 2021
In accordance with the previous quarterly press releases, consolidated revenue for the first half of 2021 amounted to 5.4 million euros (6.5 million US dollars) compared to 6.1 million euros (6.7 million US dollars) for the first half of 2020.
Consolidated revenue distribution by market segment, over the first half of 2021, is as follows:
Market segments / Revenue (M€) |
For the 6 months ended 30 June 2021 |
% |
|
For the 6 months ended 30 June 2020 |
% |
|
Var. H1 (M€) |
2021 / 2020 (%) |
Aerospace |
2.3 |
44% |
|
3.1 |
51% |
|
-0.7 |
-24% |
Optical communications / Adaptive optics |
0.9 |
17% |
|
1.6 |
26% |
|
-0.7 |
-42% |
Medical / Biomedical |
1.9 |
35% |
|
1.2 |
20% |
|
+0.6 |
+51% |
Others |
0.2 |
5% |
|
0.2 |
3% |
|
+0.1 |
+52% |
Total |
5.4 |
100% |
|
6.1 |
100% |
|
-0.7 |
-11% |
(Any apparent discrepancies in totals are due to rounding.)
The impact of the Covid-19 pandemic on the avionics business (-0.7 million euros / -24% compared to the first half of 2020), the Group's leading market representing 44% of consolidated sales over the first half of 2021, was offset by the strong growth of the medical / biomedical business, whose sales increased by +0.6 million euros / + 51% compared to the first half of 2020. It should be noted that the avionics business is gradually recovering a normative activity level. Sales relating to this business thus increased in the second quarter of 2021 (+0.5 million euros / + 61% compared to the first quarter of 2021 and +0.2 million euros / + 17% compared to the second quarter 2020).
In addition, the optical communications sales were affected by the resolution of a technical incident at the Group's US plant and showed a decrease of -0.7 million euros / -42% compared to the first half of the year 2020.
* * *
MEMSCAP’s consolidated earnings for the first half of 2021 are given within the following table:
In million euros |
Q1
|
Q2
|
H1
|
|
Q1
|
Q2
|
H1
|
Revenue |
2.7 |
2.7 |
5.4 |
|
3.4 |
2.7 |
6.1 |
Standard products* Custom products |
2.2 0.6 |
2.0 0.6 |
4.2 1.2 |
|
2.2 1.2 |
2.1 0.6 |
4.3 1.8 |
Cost of revenue |
(2.0) |
(1.9) |
(3.8) |
|
(2.4) |
(1.9) |
(4.3) |
Gross margin |
0.8 |
0.8 |
1.6 |
|
1.0 |
0.8 |
1.8 |
% of revenue |
28% |
30% |
29% |
|
29% |
29% |
29% |
Operating expenses** |
(0.9) |
(0.8) |
(1.7) |
|
(1.0) |
(0.9) |
(1.9) |
Operating profit / (loss) |
(0.1) |
(0.0) |
(0.1) |
|
(0.0) |
(0.1) |
(0.1) |
Financial profit / (loss) |
(0.0) |
(0.0) |
(0.0) |
|
0.0 |
(0.0) |
0.0 |
Income tax expense |
(0.0) |
(0.0) |
(0.0) |
|
(0.0) |
(0.0) |
(0.1) |
Net profit / (loss) |
(0.1) |
(0.1) |
(0.2) |
|
(0.0) |
(0.1) |
(0.2) |
(Financial data were subject to a limited review by the Group’s statutory auditors. On August 31, 2021, MEMSCAP’s board of directors authorized the release of the interim condensed consolidated financial statements on 30 June 2021. Any apparent discrepancies in totals are due to rounding.)
* Including the dermo-cosmetic segment.
** Net of research & development grants.
The consolidated gross margin for the first half of 2021 was 29% of consolidated sales, thus a similar rate compared to the first half of 2020.
The amount of operating expenses of 1.7 million euros in the first half of 2021 is reduced by 0.2 million euros compared to the amount reported over the first half of 2020.
For the first half of 2021, the Group posted an operating loss of 0.1 million euros, a similar amount compared to the first half of 2020.
The net financial income is not significant for the first half of 2021 and 2020. The tax expense for the first half of 2021 and 2020 corresponded to the change in deferred tax over the period with no impact on the Group's cash position.
The Group therefore reported a consolidated net loss of 0.2 million euros for the first half of 2021 and 2020.
* * *
Evolution of the Group’s cash / Consolidated shareholders’ equity
For the first half of 2021 and 2020, the Group posted a positive EBITDA of 0.5 million euros. Cash flow from operating activities in the first half of 2021 amounted to +1.0 million euros vs +1.3 million euros for the first half of 2020. Considering the cash flow consumed by investing activities (0.2 million euros) and the cash flow consumed by financing activities (0.4 million euros), the Group's net cash position increased by 0.4 million euros in the first half of 2021 compared to an increase of 0.9 million euros in the first half of 2020.
On 30 June 2021, the Group reported available liquidities at 4.8 million euros (31 December 2020: 4.2 million euros) including cash investments for 1.4 million euros (Corporate bonds) recorded under non-current financial assets and cash and short-term deposits for 3.4 million euros. Consequently, available liquidities increased by +0.6 million euros over the first half of 2021.
Current financial debt, including lease liabilities under IFRS 16, was 0.7 million euros on 30 June 2021 compared to 1.0 million euros on 31 December 2020.
MEMSCAP shareholders’ equity totalled 15.7 million euros on 30 June 2021 compared to 15.6 million euros on 31 December 2020, particularly due to favourable currency translation adjustments.
* * *
Analysis and perspectives
The acceleration of the deliveries related to the medical / biomedical business during the first quarter of 2021 enabled MEMSCAP to wait for the ramp-up of the avionics business expected and materialized during the second quarter of 2021. The combination of these two businesses allowed the Norwegian subsidiary of the Group to deal with this crisis without significant impact on its revenue and to post increased profitability.
The optical communications business, impacted over the first half of 2021 by the technical incident at the end of the previous year, benefited from an increase in its order book for the coming quarter.
The diversity of its businesses allows MEMSCAP to face the effects of such a major health and economic crisis and to continue to increase its available liquidity position, i.e., 4.8 million euros at the end of June 2021, particularly due to a positive EBITDA for the first half of 2021.
The potential impact of the pandemic remains very uncertain based on the current available information. MEMSCAP will continue to regularly assess the impact of the Covid-19 pandemic on its business.
MEMSCAP pursues its strategy focused on avionics, medical and optical communications segments as well as increasing the flexibility of its production capabilities.
* * *
SFAF Meeting: September 7, 2021
Q3 2021 Earnings: October 26, 2021
About MEMSCAP
MEMSCAP is the leading provider of innovative micro-electro-mechanical systems (MEMS)-based solutions.
MEMSCAP’s products and solutions include components, component designs (IP), manufacturing and related services.
For more information, visit our website at: www.memscap.com.
MEMSCAP is listed on Euronext Paris ™ - Segment C - ISIN: FR0010298620 - MEMS.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Interim condensed consolidated financial statements at 30 June 2021
|
30 June
|
31 December
|
||||
|
€000 |
€000 |
||||
Assets |
|
|
||||
Non-current assets |
|
|
||||
Property, plant and equipment................................................................................. |
1 565 |
1 693 |
||||
Goodwill and intangible assets.................................................................................. |
7 297 |
7 305 |
||||
Right-of-use assets.................................................................................................... |
5 487 |
5 486 |
||||
Other non-current financial assets............................................................................ |
1 437 |
1 217 |
||||
Deferred tax asset.................................................................................................... |
238 |
284 |
||||
|
16 024 |
15 985 |
||||
Current assets |
|
|
||||
Inventories............................................................................................................... |
2 535 |
2 604 |
||||
Trade and other receivables...................................................................................... |
2 295 |
2 558 |
||||
Prepayments............................................................................................................ |
477 |
306 |
||||
Other current financial assets................................................................................... |
58 |
58 |
||||
Cash and short-term deposits................................................................................... |
3 353 |
2 952 |
||||
|
8 718 |
8 478 |
||||
|
|
|
||||
Total assets |
24 742 |
24 463 |
||||
|
|
|
||||
Equity and liabilities |
|
|
||||
Equity |
|
|
||||
Issued capital............................................................................................................ |
1 869 |
1 869 |
||||
Share premium......................................................................................................... |
17 972 |
18 783 |
||||
Treasury shares........................................................................................................ |
(133) |
(133) |
||||
Retained earnings..................................................................................................... |
(1 037) |
(1 752) |
||||
Foreign currency translation..................................................................................... |
(2 949) |
(3 178) |
||||
|
15 722 |
15 589 |
||||
Non-current liabilities |
|
|
||||
Lease liabilities......................................................................................................... |
5 093 |
5 126 |
||||
Interest-bearing loans and borrowings...................................................................... |
278 |
348 |
||||
Employee benefit liability.......................................................................................... |
102 |
35 |
||||
|
5 473 |
5 509 |
||||
Current liabilities |
|
|
||||
Trade and other payables......................................................................................... |
2 787 |
2 317 |
||||
Lease liabilities......................................................................................................... |
571 |
582 |
||||
Interest-bearing loans and borrowings...................................................................... |
170 |
447 |
||||
Provisions................................................................................................................. |
19 |
19 |
||||
|
3 547 |
3 365 |
||||
Total liabilities |
9 020 |
8 874 |
||||
Total equity and liabilities |
24 742 |
24 463 |
||||
CONSOLIDATED STATEMENT OF INCOME
Interim condensed consolidated financial statements at 30 June 2021
|
For the six months ended 30 June |
|||||
|
|
2021
|
2020
|
|||
|
Continuing operations |
€000 |
€000 |
|||
|
|
|
|
|||
|
Sales of goods and services..................................................................................... |
5 382 |
6 073 |
|||
|
Revenue................................................................................................................. |
5 382 |
6 073 |
|||
|
|
|
|
|||
|
Cost of sales............................................................................................................ |
(3 811) |
(4 307) |
|||
|
Gross profit............................................................................................................ |
1 571 |
1 766 |
|||
|
|
|
|
|||
|
Other income.......................................................................................................... |
174 |
91 |
|||
|
Research and development expenses...................................................................... |
(755) |
(868) |
|||
|
Selling and distribution costs................................................................................... |
(312) |
(368) |
|||
|
Administrative expenses......................................................................................... |
(816) |
(768) |
|||
|
Operating profit / (loss).......................................................................................... |
(138) |
(147) |
|||
|
Finance costs.......................................................................................................... |
(75) |
(77) |
|||
|
Finance income....................................................................................................... |
50 |
92 |
|||
|
Profit / (loss) for the period from continuing operations before tax....................... |
(163) |
(132) |
|||
|
Income tax expense................................................................................................ |
(47) |
(50) |
|||
|
|
|
|
|||
|
Profit / (loss) for the period from continuing operations........................................ |
(210) |
(182) |
|||
|
|
|
|
|||
|
Profit / (loss) for the period.................................................................................... |
(210) |
(182) |
|||
|
|
|
|
|||
|
|
|
|
|||
|
Earnings per share: |
|
|
|||
|
|
|
|
|||
|
- Basic, for profit / (loss) for the period attributable to ordinary equity holders of the parent (in euros)......................................................................................... |
€ (0.028) |
€ (0.024) |
|||
|
- Diluted, for profit / (loss) for the period attributable to ordinary equity holders of the parent (in euros)..................................................................................... |
€ (0.028) |
€ (0.024) |
|||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Interim condensed consolidated financial statements at 30 June 2021
|
For the six months ended 30 June |
||||
|
2021
|
2020
|
|||
|
€000 |
€000 |
|||
|
|
|
|||
Profit / (loss) for the period...................................................................................... |
(210) |
(182) |
|||
|
|
|
|||
Items that will not be reclassified subsequently to profit or loss |
|
|
|||
Actuarial gains / (losses)............................................................................................ |
-- |
-- |
|||
Income tax on items that will not be reclassified to profit or loss................................ |
-- |
-- |
|||
Total items that will not be reclassified to profit or loss............................................ |
-- |
-- |
|||
|
|
|
|||
Items that may be reclassified subsequently to profit or loss |
|
|
|||
Net gain / (loss) on available-for-sale financial assets.................................................. |
114 |
(181) |
|||
Exchange differences on translation of foreign operations.......................................... |
229 |
(726) |
|||
Income tax on items that may be reclassified to profit or loss..................................... |
-- |
-- |
|||
Total items that may be reclassified to profit or loss................................................. |
343 |
(907) |
|||
|
|
|
|||
Other comprehensive income for the period, net of tax............................................ |
343 |
(907) |
|||
|
|
|
|||
Total comprehensive income for the period, net of tax............................................. |
133 |
(1 089) |
|||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Interim condensed consolidated financial statements at 30 June 2021
(In thousands of euros, except for |
Number |
Issued |
Share |
Treasury |
Retained |
Foreign |
Total |
||||||
number of shares) |
of shares
|
capital
|
premium
|
shares
|
earnings
|
currency
|
shareholders’
|
||||||
|
|
€000 |
€000 |
€000 |
€000 |
€000 |
€000 |
||||||
|
|
|
|
|
|
|
|
||||||
At 1 January 2020............................................................................ |
7 468 340 |
1 867 |
18 775 |
(131) |
(1 204) |
(2 601) |
16 706 |
||||||
Loss for the period............................................................................ |
-- |
-- |
-- |
-- |
(182) |
-- |
(182) |
||||||
Other comprehensive income for the period, net of tax.................... |
-- |
-- |
-- |
-- |
(181) |
(726) |
(907) |
||||||
Total comprehensive income............................................................ |
-- |
-- |
-- |
-- |
(363) |
(726) |
(1 089) |
||||||
|
|
|
|
|
|
|
|
||||||
Treasury shares................................................................................ |
8 562 |
2 |
8 |
-- |
-- |
-- |
10 |
||||||
Share-based payment....................................................................... |
-- |
-- |
-- |
(10) |
-- |
-- |
(10) |
||||||
|
|
|
|
|
|
|
|
||||||
At 30 June 2020............................................................................... |
7 476 902 |
1 869 |
18 783 |
(141) |
(1 567) |
(3 327) |
15 617 |
||||||
|
|
|
|
|
|
|
|
||||||
At 1 January 2021............................................................................ |
7 476 902 |
1 869 |
18 783 |
(133) |
(1 752) |
(3 178) |
15 589 |
||||||
Loss for the period............................................................................ |
-- |
-- |
-- |
-- |
(210) |
-- |
(210) |
||||||
Other comprehensive income for the period, net of tax.................... |
-- |
-- |
-- |
-- |
114 |
229 |
343 |
||||||
Total comprehensive income............................................................ |
-- |
-- |
-- |
-- |
(96) |
229 |
133 |
||||||
|
|
|
|
|
|
|
|
||||||
Retained earnings offset with share premium................................... |
-- |
-- |
(811) |
-- |
811 |
-- |
-- |
||||||
Treasury shares................................................................................ |
-- |
-- |
-- |
-- |
-- |
-- |
-- |
||||||
|
|
|
|
|
|
|
|
||||||
At 30 June 2021............................................................................... |
7 476 902 |
1 869 |
17 972 |
(133) |
(1 037) |
(2 949) |
15 722 |
CONSOLIDATED CASH FLOW STATEMENT
Interim condensed consolidated financial statements at 30 June 2021
|
For the six months ended 30 June |
|||||
|
|
2021
|
2020
|
|||
|
|
€000 |
€000 |
|||
|
Cash flows from operating activities: |
|
|
|||
|
Net profit / (loss) for the year....................................................................................... |
(210) |
(182) |
|||
|
Non-cash items written back: |
|
|
|||
|
Amortization and depreciation................................................................................ |
591 |
582 |
|||
|
Loss / (capital gain) on disposal of fixed assets......................................................... |
31 |
(11) |
|||
|
Other non-financial activities.................................................................................. |
88 |
54 |
|||
|
Accounts receivable...................................................................................................... |
212 |
361 |
|||
|
Inventories................................................................................................................... |
146 |
254 |
|||
|
Other debtors............................................................................................................... |
(127) |
68 |
|||
|
Accounts payable.......................................................................................................... |
229 |
(18) |
|||
|
Other liabilities............................................................................................................. |
27 |
187 |
|||
|
Total net cash flows from operating activities.............................................................. |
987 |
1 295 |
|||
|
Cash flows from investing activities: |
|
|
|||
|
Purchase of fixed assets................................................................................................ |
(56) |
(413) |
|||
|
Proceeds from sale / (purchase) of financial assets........................................................ |
(111) |
(185) |
|||
|
Total net cash flows from investing activities............................................................... |
(167) |
(598) |
|||
|
Cash flows from financing activities: |
|
|
|||
|
Proceeds from borrowings............................................................................................ |
-- |
500 |
|||
|
Repayment of borrowings............................................................................................. |
(104) |
(79) |
|||
|
Payment of lease liabilities............................................................................................ |
(303) |
(281) |
|||
|
Proceeds from issue of shares....................................................................................... |
-- |
10 |
|||
|
Sale / (purchase) of treasury shares.............................................................................. |
-- |
(10) |
|||
|
Total net cash flows from financing activities............................................................... |
(407) |
140 |
|||
|
Net foreign exchange difference................................................................................... |
12 |
65 |
|||
|
Increase / (decrease) in net cash and cash equivalents................................................. |
425 |
902 |
|||
|
Opening cash and cash equivalents balance................................................................. |
2 928 |
1 990 |
|||
|
Closing cash and cash equivalents balance................................................................... |
3 353 |
2 892 |
|||
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