Melexis Q2 2014 results - Full year guidance raised again

Intermediate declaration by the Board of Directors.
Ieper, Belgium - 30 July 2014, 07.00 am CET

Half-year sales were 157.6M EUR, an increase of 22% compared to the first half year of 2013. Gross margin was 74.5M EUR, an increase of 26% compared to the same period last year. The operating result was 41.0M EUR, compared to 28.1M EUR in the same half year of 2013, an increase of 46%. Net income was 40.1M EUR, compared to 24.3M EUR in the first half year of 2013, an increase of 65%.

Sales for the second quarter of 2014 were 82.1M EUR, an increase of 22% compared to the same quarter of the previous year and an increase of 9% versus the previous quarter. The EUR/USD exchange rate evolution had a negative impact of 1% compared to the previous quarter and a negative impact of 3% compared to the same quarter of the previous year.
Gross margin was 39.3M EUR, an increase of 26% compared to the same quarter of last year and an increase of 12% versus the previous quarter.
R&D expenses were at 13.3% of sales, G&A was at 4.8% and Selling was at 2.4% of sales. The operating result was 22.4M EUR, compared to 15.3M EUR in the same quarter of 2013 and 18.6 million EUR in the previous quarter.
Net income was 21.2M EUR, 52 cent per share, up from 33 cent per share in the second quarter of 2013 and 47 cent in the previous quarter.

The Board of Directors decided to pay out an interim dividend of 1.00 EUR gross per share, an increase of 43% compared with last year. The Melexis shares will start trading ex coupon on 21 October 2014 (opening of the market). The record date is 22 October 2014 (closing of the market) and the dividend will be payable as from 23 October 2014.

We expect in the third quarter of 2014 a low single digit sales growth versus the second quarter of 2014. For full year 2014, Melexis now expects sales growth to be between 17% and 20%, a gross profit margin above 47% and an operating margin above 25%, all taking into account a EUR/USD exchange rate of 1.35.

Business comment - Françoise Chombar, CEO:
''On the back of positive customer and market sentiment, Melexis achieved a 22% year-over-year sales growth, better than anticipated. Melexis equally benefited from a favorable product mix, which we expect to sustain for the remainder of the year. All this allows us to increase our sales guidance and profit margins again for full year 2014.
In the second quarter of 2014, in line with the first quarter, the main contributors for growth were magnetic sensors, sensor interfaces and, outside of the sensor space, motor control drivers. In addition we saw an above average performance for pressure sensors and tire pressure monitoring systems (TPMS).
Sales to automotive customers represented 87% of total sales. Year-over-year outside automotive sales growth accelerated from 7% in the first quarter to 13% in the second quarter.
The portion of ASSP sales in the second quarter of 2014 represented 56%, the same level as the first quarter of 2014''.

The statutory auditors BDO Bedrijfsrevisoren Burg. Ven. CVBA, have confirmed that their review procedures, which have been substantially completed, have not revealed material adjustments which would have to be made to the accounting information included in this press release.

Financial Calendar
- Publication Q3 2014 Results: 22 October 2014
- Publication FY 2014 Results: 4 February 2015

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