MEMSCAP – Q4 2024

Regulatory News:

MEMSCAP (Euronext Paris: MEMS), leading provider of high-accuracy, high-stability pressure sensor solutions for the aerospace and medical markets using MEMS technology (Micro Electro Mechanical Systems), today announced its earnings for the fourth quarter of 2024 ending December 31, 2024.

Analysis of consolidated revenue

The distribution of consolidated revenue from continuing operations (non-audited) by market segment for the fourth quarter of 2024 and for FY 2024 is as follows:

(Any apparent discrepancies in totals are due to rounding.)

The fourth quarter of 2024 unfolded in a deteriorated sectoral environment, with the aerospace industry facing significant tensions within supply chains. In the Group's primary market sector (65% of consolidated sales for the 2024 fiscal year), demand remained particularly strong in both civil and military domains. However, supply chains are struggling to meet this demand, with some players experiencing disruptions and delays impacting the entire industry. After a growth-oriented first half, these disruptions nevertheless affected the Group's sales during the second half.

While the Group's major clients remained aligned with stated objectives, achieving significant growth over the fiscal year, these turbulences heavily impacted four smaller clients. Consolidated revenue from continuing operations for the fourth quarter of 2024 amounted to EUR 2,759 thousand (EUR 3,973 thousand for the fourth quarter of 2023).

The Group's 12-month consolidated sales amounted to EUR 12,660 thousand, representing a 10.0% decline compared to fiscal year 2023, despite the previous year's growth reaching +51%, resulting in a particularly demanding base effect.

The aerospace industry is expected to return to a normative situation during the 2025 fiscal year.

Analysis of consolidated income statement

MEMSCAP’s consolidated earnings (non-audited) for the fourth quarter of 2024 and for FY 2024 are given within the following table:

* Net of research & development grants.
(Any apparent discrepancies in totals are due to rounding.)

Due to an unfavourable volume effect, the gross margin for the fourth quarter of 2024 stood at EUR 948 thousand, bringing the annual gross margin rate to 39.7% of consolidated revenue compared to 42.9% in the previous fiscal year.

Operating expenses, net of research and development grants, amounted to EUR 885 thousand for the fourth quarter of 2024, resulting in a total annual amount of EUR 3,849 thousand compared to EUR 3,563 thousand for fiscal year 2023.

As a result, the operating profit from continuing operations stood at EUR 64 thousand (2.3% of consolidated revenue) for the fourth quarter of 2024, leading to an operating profit of EUR 1,172 thousand (9.3% of consolidated revenue) for fiscal year 2024, compared to EUR 2,477 thousand (17.6% of consolidated revenue) for fiscal year 2023.

Benefiting from a favourable exchange rate effect, net financial income for the fourth quarter of 2024 amounted to EUR 142 thousand. The financial income for fiscal year 2024 thus showed a net gain of EUR 226 thousand, compared to a net loss of EUR 304 thousand for fiscal year 2023.

The tax expense recognized for fiscal years 2024 and 2023 corresponded to changes in deferred tax assets. This expense had no impact on the Group's cash flow.

The consolidated net profit after tax amounted to EUR 204 thousand (7.4% of consolidated revenue) in the fourth quarter of 2024, bringing the net profit for fiscal year 2024 to EUR 1,374 thousand (10.9% of consolidated revenue), compared to a net profit of EUR 2,140 thousand (15.2% of consolidated revenue) for fiscal year 2023.

MEMSCAP reported an adjusted EBITDA¹ of EUR 369 thousand for the fourth quarter of 2024 (13.4% of consolidated revenue) and EUR 2,148 thousand for fiscal year 2024, representing 17.0% of consolidated revenue (EUR 3,263 thousand for fiscal year 2023, 23.2% of consolidated revenue). It is noted that research and development costs were fully recognized as expenses during this 12-month period and were not capitalized in the Group's balance sheet.

¹ Adjusted EBITDA means operating profit before depreciation, amortisation, and share-based payment charge (IFRS 2) and including foreign exchange gains/losses related to ordinary activities.

Perspectives

Despite a temporarily deteriorated sectoral environment, the fourth quarter and fiscal year 2024 demonstrated the robustness of MEMSCAP's business model, whose foundations ensure a significant and sustainable level of profitability.

Additionally, the Group holds a strong order backlog in the aerospace sector for fiscal year 2025.

The successful validation of technical tests and major milestones in the "Engine Control" development and industrialization program reinforces the profitable growth objectives outlined in the 4G Plan by 2026.

Shareholders and investors video conference - Tuesday, January 28, 2025 at 10:00 a.m.
Thank you for registering and sending your questions in advance using the following link:
https://memscap.com/fr/visio/

About MEMSCAP

MEMSCAP is a leading provider MEMS based pressure sensors, best-in-class in term of precision and stability (very low drift) for two market segments: aerospace and medical.

MEMSCAP also provides variable optical attenuators (VOA) for the optical communications market.

For more information, visit our website at: www.memscap.com

MEMSCAP is listed on Euronext Paris (Euronext Paris - Memscap - ISIN code: FR0010298620 - Ticker symbol: MEMS)

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127664670/en/