Melexis Q2 2017 results – Sales growth of 14%, outlook strengthened

Intermediate declaration by the Board of Directors
Ieper, Belgium – August 2nd, 2017, 07.00 hrs CET

Sales for the second quarter of 2017 were 128.3 million EUR, an increase of 14% compared to the same quarter of the previous year and an increase of 4% compared to the previous quarter.
The EUR/USD exchange rate evolution had a positive impact of 2% compared to the same quarter of last year and a negative impact of 1% compared to the previous quarter.
Gross margin was 59.4 million EUR, an increase of 17% compared to the same quarter of last year and an increase of 5% compared to the previous quarter.
R&D expenses were 13.6% of sales, G&A was at 4.6% of sales and Selling was at 2.3% of sales. The operating result was 33.1 million EUR, an increase of 19% compared to the same quarter of last year and an increase of 5% compared to the previous quarter.
Net income was 30.8 million EUR or 0.76 EUR per share, an increase of 33% compared to 23.1 million EUR or 0.57 EUR per share in the second quarter of 2016 and an increase of 21% compared to the previous quarter.

Sales for the first half year of 2017 were 251.9 million EUR, an increase of 14% compared to the first half year of 2016.
The EUR/USD exchange rate evolution had a positive impact of 2% compared to the first half year of 2016.
Gross margin was 116.0 million EUR, an increase of 16% compared to the same period last year.
The operating result was 64.6 million EUR, compared to 55.2 million EUR in the same half year of 2016, an increase of 17%.
Net income was 56.2 million EUR or 1.39 EUR per share, an increase of 22% compared to 46.0 million EUR or 1.14 EUR per share in the first half year of 2016.

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 24, 2017 (opening of the market). The record date is October 25, 2017 (closing of the market) and the dividend will be payable as from October 26, 2017.

Melexis expects sales in the third quarter of 2017 to be around the level of 129 million EUR. For the full year 2017, Melexis expects sales growth to be between 12% and 14%, a gross profit margin around 45% and an operating margin around 25%, all taking into account a EUR/USD exchange rate of 1.15 for the remainder of the year.

“We are pleased to release a set of very strong second quarter results. The growing order book, as announced at our first quarter publication, was translated into robust sales growth. As we continue to see optimistic customer sentiment and order behavior, we can reinforce our full year outlook, despite a less favorable EUR/USD exchange rate evolution.
Growth drivers, both in the second quarter as well as in the first half year, were position and current sensors as part of the magnetic sensor product family, sensor interfaces and pressure sensors.

The trends both towards electrification of the vehicle and assisted drive will transform the automotive industry in the next 5 to 10 years. This offers tremendous additional opportunities for Melexis to play out our differentiating strengths and to continue outperforming the market. We are experts in the sense and drive technology and capabilities needed for the mentioned trends, such as diagnostics, safety related environments (ASIL), high voltage and high temperature. On top of this, Melexis continues to innovate in many other automotive semiconductor applications. For example we are continuously expanding our LIN RGB portfolio to help designers overcome today's limitations in modern automotive lighting applications. Another recent example is the launch of the world's first dual die latch and switch sensor aimed at automotive applications including transmission, power steering, braking, locks and latches.

Sales to automotive customers represented 89% of total sales in both periods. The portion of standard product (ASSPs) sales represented 62% of total sales in the second quarter and 61% of total sales in the first half of 2017.”

The statutory auditors PwC Bedrijfsrevisoren bcvba, 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.

• Publication Q3 2017 Results: October 25, 2017
• Publication FY 2017 Results: February 7, 2018 

Download press release (PDF - 506 KB)