Melexis Q3 2014 results - On the right track

Intermediate declaration by the Board of Directors
Ieper, Belgium - 22 October 2014, 07.00 am CET

Sales for the third quarter of 2014 were 86.6M EUR, an increase of 22% compared to the same quarter of the previous year and an increase of 6% versus the previous quarter. The EUR/USD exchange rate evolution had a negative impact of 1% compared to the same quarter of the previous year and a positive impact of 1% compared to the previous quarter.
Gross margin was 43.0M EUR, an increase of 29% compared to the same quarter of last year.
R&D expenses were at 12.7% of sales, G&A was at 4.6% and Selling was at 2.1% of sales. The operating result was 26.2M EUR, an increase of 49% compared to the same quarter of 2013.
Net income was 24.7M EUR, 61 cent per share, an increase of 64% compared to 15,0M EUR or 37 cent per share in the third quarter of 2013.

We expect in the fourth quarter of 2014 a low single digit sales decrease versus the third quarter of 2014, resulting in a full year sales growth at the high end of our previous guidance of 17% to 20%, a gross profit margin above 47% and an operating margin above 26%, all taking into account the current EUR/USD exchange rate.

Business comment - Françoise Chombar, CEO:
"During the first nine months of the year, 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 temperature sensors in the third quarter.
Sales to automotive customers represented 88% of total sales. Year-to-date outside automotive sales growth stands now at 10% versus previous year.
The portion of ASSP sales in the third quarter of 2014 represented 55% versus 56% in the second quarter of 2014.
Demand in the third quarter continued to be strong. In the fourth quarter, we are expecting the usual inventory cramps, while we remain confident about the underlying demand."

Financial comment - Karen van Griensven, CFO:
"Robust Q3 sales growth currently not matched by increased operational costs resulted in a higher than expected margin expansion. Our mid-term target for R&D expenses compared to sales remains at 14% to 15%."

Financial Calendar
- Dividend pay date: 23 October 2014 (ex coupon on 21 October 2014)
- Publication FY 2014 Results: 4 February 2015

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