Melexis Q3 2018 results - Third quarter sales growth of 15%

Intermediate declaration by the Board of Directors
Ieper, Belgium – October 24th, 2018, 07.00 hrs CET

Sales for the third quarter of 2018 were 146.7 million EUR, an increase of 15% compared to the same quarter of the previous year and an increase of 3% compared to the previous quarter.
The EUR/USD exchange rate evolution had no impact on sales compared to the same quarter of last year and a positive impact of 1% compared to the previous quarter.
The gross result was 68.1 million EUR or 46.4% of sales, an increase of 17% compared to the same quarter of last year and an increase of 3% compared to the previous quarter.
R&D expenses were 13.3% of sales, G&A was at 5.3% of sales and Selling was at 2.6% of sales.
The operating result was 36.9 million EUR or 25.1% of sales, an increase of 15% compared to the same quarter of last year and an increase of 4% compared to the previous quarter.
The net result was 30.1 million EUR or 0.74 EUR per share, an increase of 7% compared to 28.1 million EUR or 0.70 EUR per share in the third quarter of 2017 and an increase of 7% compared to the previous quarter.

Sales for the first nine months of 2018 were 427.7 million EUR, an increase of 13% compared to the first nine months of 2017.
The EUR/USD exchange rate evolution had a negative impact on sales of 4% compared to the first nine months of 2017.
Gross result was 197.0 million EUR, an increase of 13% compared to the same period last year.
The operating result was 106.6 million EUR, compared to 96.6 million EUR in the same nine months of 2017, an increase of 10%.
Net income was 87.0 million EUR or 2.15 EUR per share, an increase of 3% compared to 84.4 million EUR or 2.09 EUR per share in the first nine months of 2017.

Melexis now expects a full year 2018 sales growth around 11%, a gross profit margin around 45% and an operating margin around 25%, all taking into account the current EUR/USD exchange rate.

“The Melexis third quarter results are in line with our expectations. Growth drivers for Melexis products continue to solidify as a consequence of the trends towards more electrification, assisted drive and interior differentiation in cars. Melexis’ expertise in “sense and drive” solutions provides an answer to increased customer opportunities in terms of product performance, harshness and integration.
Our adjusted sales guidance for the full year reflects a reduced short term visibility and signs of upcoming inventory corrections at our customers. These inventory corrections are triggered by a mix of reasons, the main one being a more uncertain economic and geopolitical situation caused by global trade tensions. As a result and opposite to last year, customers both in automotive and adjacent markets display more scrutiny towards their inventory levels at year end.
Customers of Melexis express their continued optimism about the growth opportunities in their markets and embrace Melexis developments and product innovations. The key growth drivers in the third quarter were magnetic position sensors, embedded motor drivers and pressure sensors.
Sales to automotive customers represented 92% of total sales in the third quarter. The portion of standard product (ASSPs) sales represented 65% of total sales in the third quarter."

• Dividend pay date: October 25, 2018 (ex coupon on October 23, 2018)
• Analyst Day: December 5, 2018
• Publication FY 2018 Results: February 6, 2019

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