Melexis Q3 2020 results - sales of 121.6 million EUR
Intermediate declaration by the Board of Directors
Ieper, Belgium – October 28th, 2020, 07.00 hrs CET
Sales for the third quarter of 2020 were 121.6 million EUR, a decrease of 1% compared to the same quarter of the previous year and an increase of 21% compared to the previous quarter. The EUR/USD exchange rate evolution had a negative impact on sales of 2% compared to the same quarter of last year and a negative impact of 2% compared to the previous quarter. The gross result was 44.9 million EUR or 36.9% of sales, a decrease of 9% compared to the same quarter of last year and an increase of 16% compared to the previous quarter. R&D expenses were 15.4% of sales, G&A was at 6.0% of sales and Selling was at 2.6% of sales. The operating result was 15.7 million EUR or 12.9% of sales, a decrease of 14% compared to the same quarter of last year and an increase of 55% compared to the previous quarter. The net result was 14.9 million EUR or 0.37 EUR per share, a decrease of 3% compared to 15.4 million EUR or 0.38 EUR per share in the third quarter of 2019 and an increase of 54% compared to the previous quarter.
Sales for the first nine months of 2020 were 360.1 million EUR, flat compared to the first nine months of 2019. The EUR/USD exchange rate evolution had no impact on sales compared to the first nine months of 2019. The gross result was 139.7 million EUR or 38.8% of sales, a decrease of 4% compared to the same period last year. R&D expenses were 16.0% of sales, G&A was at 6.2% of sales and Selling was at 2.8% of sales. The operating result was 49.8 million EUR or 13.8% of sales, a decrease of 5% compared to 52.3 million EUR in the same nine months of 2019. The net result was 45.3 million EUR or 1.12 EUR per share, an increase of 1% compared to 44.9 million EUR or 1.11 EUR per share in the first nine months of 2019.
Outlook
Melexis expects sales in the fourth quarter of 2020 to be around 15% above the level of the third quarter, taking into account a EUR/USD exchange rate of 1.18 for the remainder of the year.
Business comment – Françoise Chombar, CEO:
“Sales in the third quarter of 2020, up 21% versus the previous quarter, came out higher than anticipated. During the quarter, we noticed an improvement of customer sentiment and, in the course of September, a substantial uptick in orders. Thanks to proactive supply chain and inventory management, Melexis was able to meet increased customer demand. Inventories at customers continue to be estimated at low levels. Based on the current order book, and provided that the current COVID-19 wave will not trigger a significant adverse impact on supply and demand in our industry, we expect a sequential sales growth of around 15% in the fourth quarter. Year to date, our teams have been as productive as in pre-COVID times with regard to product launches, which will even intensify in the last quarter of the year. What I feel to be particularly gratifying is that half of the sensor and driver components launched so far this year were specifically conceived and designed for adjacent markets. They serve applications in industrial environments such as object/obstacle detection and people counting, or multifunction switches, but also home appliances, portable tools and motorcycles. In the automotive space, we continued to expand our linear and 3D magnetic sensing portfolio and our time-of-flight product offering. Our automotive embedded light family now also provides intelligent animated lighting capabilities that help our customers to enhance modern safety features such as driver-assistance prompts and vehicle status information. In the third quarter, the outperforming product lines were embedded motor drivers, temperature sensors and our magnetic sensor product families. Sales to automotive customers represented 88% of total sales in the third quarter of 2020. The portion of standard product (ASSP) sales represented 72% of total sales in the third quarter of 2020.”
Financial comment – Karen van Griensven, CFO:
“The revaluation of the Melexis inventory due to the weakening USD versus the EUR resulted in a negative impact of 2.4% on the third quarter gross profit margin. Although we expect an additional impact in the fourth quarter of 2020, this effect is exceptional.”
Financial Calendar
- Publication FY 2020 Results: February 3, 2021 (at 7 hrs CET)
- Publication Q1 Results 2021: April 28, 2021 (at 7 hrs CET)
- Publication Q2 Results 2021: July 28, 2021 (at 7 hrs CET)
- Publication Q3 Results 2021: October 27, 2021 (at 7 hrs CET)
- Publication FY 2021 Results: February 2, 2022 (at 7 hrs CET)
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Investor Relations
Phone: +32 13 67 07 79
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