Melexis Q2 2020 results – Second quarter sales of 100.4 million EUR

Intermediate declaration by the Board of Directors
Ieper, Belgium – July 29th, 2020, 07.00 hrs CET

Sales for the second quarter of 2020 were 100.4 million EUR, a decrease of 16% compared to the same quarter of the previous year and a decrease of 27% compared to the previous quarter.
The EUR/USD exchange rate evolution had a positive impact on sales of 1% compared to the same quarter of last year and no impact compared to the previous quarter.
The gross result was 38.8 million EUR or 38.7% of sales, a decrease of 22% compared to the same quarter of last year and a decrease of 31% compared to the previous quarter.
R&D expenses were 18.1% of sales, G&A was at 7.1% of sales and Selling was at 3.3% of sales. The operating result was 10.1 million EUR or 10.1% of sales, a decrease of 45% compared to the same quarter of last year and a decrease of 58% compared to the previous quarter.
The net result was 9.7 million EUR or 0.24 EUR per share, a decrease of 38% compared to 15.6 million EUR or 0.39 EUR per share in the second quarter of 2019 and a decrease of 53% compared to the previous quarter.

Q2 2020 result

Sales for the first half year of 2020 were 238.5 million EUR, an increase of 1% compared to the first half year of 2019.
The EUR/USD exchange rate evolution had a positive impact on sales of 1% compared to the first half year of 2019.
The gross result was 94.8 million EUR or 39.8% of sales, a decrease of 2% compared to the same period last year. R&D expenses were 16.2% of sales, G&A was at 6.3% of sales and Selling was at 3.0% of sales.
The operating result was 34.1 million EUR or 14.3% of sales, almost flat compared to 34.2 million EUR in the same half year of 2019.
The net result was 30.4 million EUR or 0.75 EUR per share, an increase of 3% compared to 29.5 million EUR or 0.73 EUR per share in the first half year of 2019.

Dividend
The Board of Directors decided to pay out an interim dividend of 1.30 EUR gross per share. The Melexis shares will start trading ex coupon on October 20, 2020 (opening of the market). The record date is October 21, 2020 (closing of the market) and the dividend will be payable as from October 22, 2020.

Outlook
Melexis expects sales in the third quarter of 2020 to be around 10% above the level of the second quarter.

Business comment – Françoise Chombar, CEO:
“Despite the COVID-19 pandemic, Melexis was able to post 1H2020 sales growth of 1% versus 1H2019. I am thankful for and proud of how the Melexis team addressed these challenging times. Supply and demand disruptions were tackled in an efficient manner, cost savings were effectively implemented where possible. While customer sentiment and order behavior remain fragile and visibility remains poor, we confirm that the second quarter marks the bottom and we can now look forward to a path to recovery. In the third quarter we expect a sales growth of around 10% compared with the previous quarter, provided that the second COVID-19 wave will not trigger the same financial impact as experienced in the second quarter.
Sales to automotive customers represented 86% of total sales in the second quarter and 89% of total sales in the first half of 2020. The portion of standard product (ASSPs) sales represented 69% of total sales in the second quarter and 67% of total sales in the first half of 2020.
The growth in adjacent markets, both absolute and relative, was produced by multiple product lines. We saw growth for smart drivers, pressure and magnetic sensors for motorcycles, scooters and three-wheelers. Increased traction in gaming applications, as a consequence of the globally increased consumer interest during lockdown, and spurred by the recent release of the next generation gaming GPUs, boosted the demand for our 1-coil fan drivers. Stronger needs of the solar industry raised our current sensor sales. And last but not least, our temperature sensors, being critical components to much of the equipment to overcome the COVID-19 pandemic, continued to be in high demand. The applications range from diagnostics, patient monitoring systems and respiratory devices to a variety of body thermometers. Although all these addressed markets have a tendency to be capricious from quarter to quarter, they cover sustainable business in the long run.”

The statutory auditor PwC bedrijfsrevisoren has confirmed that the review, which is substantially complete, has not to date revealed any material misstatement in the draft interim consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the draft accounts from which it has been derived.

Financial calendar
  • Dividend pay date: October 22, 2020 (ex coupon on October 20, 2020)
  • Publication Q3 Results 2020: October 28, 2020 (at 7 hrs CET)
  • Publication FY 2020 Results: February 3, 2021 (at 7 hrs CET)

The company’s results will be discussed in a conference call on Wednesday, July 29th, 2020 at 10:30 hrs CET. The conference call will be in English. You have to register for this conference call in advance. You can register by clicking here and filling out the requested information.

After registration, you will receive the conference call number, a participant user pin, conference pin and instructions on how to join the conference call. For security purposes, all participants must register individually if they wish to join the call.

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