Q2 2011 results - Guidance Confirmed

Intermediate declaration by the Board of Directors.
Ieper, Belgium - July 28th, 2011, 07.00 hrs CET

Half-year sales were 116.6 million EUR, an increase of 14% compared to the first half year 2010.

Gross margin was 53.8 million EUR, an increase of 16% compared to the same period last year.
The operating result was at 27 million EUR, compared to 24.4 million EUR in the same half year of 2010.
Net income was 22.3 million EUR, compared to 20.2 million EUR in the first half year 2010.

Sales for the second quarter were 57.7 million EUR, an increase of 3% compared to the same quarter of the previous year and a decrease of 2% versus the previous quarter.

The EUR/USD exchange rate evolution had a negative impact of 3% compared to the previous quarter.
Gross margin was 26.7 million EUR, an increase of 3% compared to the same quarter last year and a decrease of 2% versus the previous quarter.
The operating result was at 12.8 million EUR, compared to 14.8 million EUR in the same quarter of 2010 and 14.2 million EUR in the previous quarter.
Net income was 10.7 million EUR, 25 cent per share, down from 28 cent per share in the second quarter of 2010 and 27 cent in the previous quarter.
R&D expenses were 16% of sales, Selling remains stable at 3% of sales and G&A was at 5% of sales.
Melexis purchased 373.159 own shares during the first half of 2011 at an average price of 12.56 EUR. As a result, the total number of treasury shares amounts 2.448.704 at the end of the first half of 2011, representing 5.66% of shares outstanding.


Françoise Chombar, CEO of Melexis comments:
"So far in 2011, Melexis launched 14 new ASSPs (Application-Specific Standard Products) and our plan is to continue at about the same pace the rest of this year, across business units. The investments we have been making into our development, sales and marketing capabilities thus start paying off. It equally validates the Melexis mission of bringing innovation to the heart of our customers' business."

Dividend

The Board of Directors decided to pay out an interim dividend of 0,60 EUR gross per share. The Melexis shares will start trading ex coupon on October 24, 2011 (opening of the market). The record date is October 26, 2011 (closing of the market) and the dividend will be payable as from October 27, 2011.

Outlook

Melexis expects sales for the third quarter of 2011 to be at the same level as the second quarter.
For the full year, we expect high single digit growth in sales, our gross margin to solidify above 45% and operating margin to remain above 23%, taking into account a EUR/USD exchange rate of 1.40.