Melexis Q4 and FY 2015 results - Melexis sales exceed 400 million euro

Intermediate declaration by the Board of Directors
Ieper, Belgium - 10 February 2016, 07.00 am CET

For the year 2015, sales were 400.1M EUR, an increase of 20% compared to the previous year.
The EUR/USD exchange rate evolution had a positive impact of 11% compared to 2014.
Gross margin was 192.1M EUR, an increase of 19% compared to 2014.
R&D expenses were 14.2% of sales, G&A was at 4.8% of sales and Selling was at 2.2% of sales. The operating result was 107.6M EUR, an increase of 21% compared to last year.
Net income was 99.1M EUR, 2.45 EUR per share, an increase of 17% compared to 85.0M EUR or 2.10 EUR per share in 2014.

Sales for the fourth quarter of 2015 were 102.4M EUR, an increase of 16% compared to the same quarter of the previous year and an increase of 1% compared to the previous quarter.
The EUR/USD exchange rate evolution had a positive impact of 9% compared to the same quarter of last year and no impact compared to the previous quarter.
Gross margin was 47.5M EUR, an increase of 8% compared to the same quarter of last year.
R&D expenses were 15.8% of sales, G&A was at 5.1% of sales and Selling was at 2.2% of sales.
The operating result was 23.9M EUR, an increase of 9% compared to the same quarter of the previous year.
Net income was 22.0M EUR or 0.54 EUR per share, an increase of 9% compared to 20.2M EUR or 0.50 EUR per share in the fourth quarter of 2014.

The Board of Directors approved on February 8th 2016 to propose to the Annual Shareholder meeting to pay out over the result of 2015 a total dividend of EUR 1.90 gross per share. This amount contains an interim dividend of EUR 1.30 per share which was paid in October 2015 and a final dividend of EUR 0.60 per share which will be payable after approval of the Annual Shareholders meeting.
The Melexis shares will start trading ex coupon on 26 April 2016 (opening of the market). The record date is 27 April 2016 (closing of the market) and the dividend will be payable as from 28 April 2016.

Melexis expects sales in the first quarter of 2016 to be around the level of 105M EUR.
For full year 2016, Melexis expects sales growth to be between 8% and 12%, a gross profit margin around 47% and an operating margin around 25%, all taking into account a EUR/USD exchange rate of 1.10.

Business comment - Françoise Chombar, CEO:
"With a year over year sales growth of more than 20%, a gross profit margin of 48% and an operating margin close to 27%, Melexis successfully accomplishes its 2015 full year guidance. We are extremely proud to achieve this result in a year which was, especially in the second half, marked by increased economic uncertainty resulting in cautious order behavior and inventory management by a number of customers. This performance clearly demonstrates that the Melexis product portfolio is able to address its customer challenges to build the car of the future: smart, safe, sustainable and stylish.
Sales in the fourth quarter increased slightly versus the third quarter, mainly due to a stronger USD currency versus the EUR. Also end of year order behavior was a touch stronger than anticipated. Melexis continues to invest in new equipment and research and development, confidently preparing the company for continued growth.
In line with the October announcement, we observe improved momentum in the beginning of 2016.
In 2015, the main contributors for growth were magnetic sensors and sensor interfaces. Other product lines outperforming company growth were wireless sensing, far infrared (FIR) and local interconnect network (LIN).
Sales to automotive customers represented 89% of total sales, both in the fourth quarter and full year 2015. The portion of standard product (ASSPs) sales represented 60% of total sales in the fourth quarter and 58% of sales for the full year 2015.''

Financial comment - Karen van Griensven, CFO
''The full year 2015 results demonstrated the ability of Melexis to combine an increased R&D spending with a record cash flow generation. We have confidence in the future. As a consequence, the Board of Directors proposed to pay out an additional final dividend to bring net cash in line with future business needs.''

Financial calendar

Annual Shareholders Meeting: 20 April 2016
Publication Q1 2016 Results: 22 April 2016
Dividend pay date: 28 April 2016 (ex coupon on 26 April 2016)
Publication Q2/HY1 2016 Results: 27 July 2016
Publication Q3 2016 Results: 26 October 2016
Publication FY 2016 Results: 8 February 2017

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