- 44.9% quarterly revenue growth
- 52.3% revenue growth in the first 9 months of 2023
- Quarterly adjusted EBITDA1 of EUR 616 thousand, bringing the
adjusted EBITDA1 for the first 9 months of 2023 to EUR 2,293
thousand (22.7% of revenue)
- Quarterly operating profit of EUR 500 thousand, with a
cumulative operating profit of EUR 1,659 thousand for the first 9
months of 2023 (16.4% of revenue)
- Quarterly net profit of EUR 304 thousand, resulting in a
cumulative net profit of EUR 1,437 thousand for the first 9 months
of 2023 (14.2% of revenue)
- Increased available cash to EUR 5,355 thousand as of
September 30, 2023
- Significant growth in the Group's activities is expected to
continue into the fourth quarter of 2023
- Shareholders and investors video conference - Tuesday,
October 24, 2023 at 09:30 a.m.
Regulatory News:
MEMSCAP (Euronext Paris: MEMS) (Paris:MEMS), leading provider of
high-accuracy, high-stability pressure sensor solutions for the
aerospace and medical markets using MEMS technology (Micro Electro
Mechanical Systems), today announced its earnings for the third
quarter of 2023 ending September 30, 2023.
Analysis of consolidated revenue
Consolidated revenue from continuing operations (non-audited)
for the third quarter of 2023 was EUR 3,011 thousand compared to
EUR 2,078 thousand for the third quarter of 2022, thus a growth of
44.9% and 52.3% for the first 9 months of 2023.
The distribution of consolidated revenue from continuing
operations by market segment for the third quarter of 2023 and for
the first 9 months of 2023 is as follows:
Market segments / Revenue (In
thousands of euros) – Non-audited
Q3 2022 (3 months)
Q3 2022 (%)
Jan.-Sept. 2022 (9 months)
Jan.-Sept. 2022 (%)
Q3 2023 (3 months)
Q3 2023 (%)
Jan.-Sept. 2023 (9 months)
Jan.-Sept. 2023 (%)
Aerospace
1,388
67%
4,880
74%
1,963
65%
6,478
64%
Medical
647
31%
1,659
25%
814
27%
2,523
25%
Optical communications
--
--
--
--
209
7%
1,007
10%
Others (Royalties from licensed
trademarks)
42
2%
94
1%
25
1%
92
1%
Total revenue from continuing
operations
2,078
100%
6,633
100%
3,011
100%
10,100
100%
(Any apparent discrepancies in totals are due to rounding.)
Consolidated sales for the third quarter of 2023 confirmed the
strong momentum across all of the Group's businesses.
The aerospace segment, the Group's largest market, increased by
41.4% compared to the third quarter of 2022. Sales in the medical
segment increased by 25.8% during the same period.
Similar to the previous quarter, deliveries related to the
optical communications business continued to be constrained due to
the ongoing modernization of certain industrial equipment by the
Group's subcontractor. The optical communications division
maintains a particularly high order backlog as of September 30,
2023.
Analysis of consolidated income statement
MEMSCAP’s consolidated earnings for the third quarter of 2023
and the first 9 months of 2023 are given within the following
table:
In thousands of euros –
Non-audited
Q3 2022 (3 months)
Jan.-Sept. 2022 (9 months)
Q3 2023 (3 months)
Jan.-Sept. 2023 (9 months)
Revenue from continuing
operations
2,078
6,633
3,011
10,100
Cost of revenue
(1,230)
(4,071)
(1,723)
(5,754)
Gross margin
848
2 562
1,288
4,346
% of revenue
40.8%
38.6%
42.8%
43.0%
Operating expenses*
(832)
(2,516)
(787)
(2,688)
Operating profit /
(loss)
16
45
500
1,659
Financial profit / (loss)
11
106
(196)
(172)
Income tax expense
(19)
(57)
(1)
(49)
Net profit / (loss) from
continuing operations
8
94
304
1,437
Profit / (loss) after tax from
discontinued operations
(68)
(726)
--
--
Net profit / (loss)
(60)
(631)
304
1,437
* Net of research & development grants. (Any apparent
discrepancies in totals are due to rounding.)
The gross margin rate, representing 42.8% of consolidated
revenue compared to 40.8% in the third quarter of 2022, increased
by 2.0 percentage points and continued to benefit from the growth
in sales volumes and the favourable evolution of the product mix
during the quarter. The gross margin thus amounted to EUR 1,288
thousand compared to EUR 848 thousand for the third quarter of
2022.
Operating expenses, net of research and development grants,
amounted to EUR 787 thousand compared to an amount of EUR 832
thousand for the third quarter of 2022.
For the third quarter of 2023, the Group posted an operating
profit from continuing operations of EUR 500 thousand compared to
an operating profit of EUR 16 thousand for the third quarter of
2022. The financial income for the third quarter of 2023 was mainly
affected by an unfavourable exchange rate effect during this
quarter. The tax expense recognized over the third quarters of 2022
and 2023 corresponded to the change in deferred tax assets. This
tax expense is a non-cash item.
Net profit after tax from continuing operations thus amounted to
EUR 304 thousand in the third quarter of 2023 compared to a net
profit of EUR 8 thousand in the third quarter of 2022.
The Group therefore reported a net profit of EUR 304 thousand in
the third quarter of 2023 (10.1% of consolidated revenue) compared
to a net loss of EUR 60 thousand in the third quarter of 2022
including discontinued operations.
MEMSCAP reported an adjusted EBITDA1 of EUR 616 thousand for the
third quarter of 2023 and EUR 2,293 thousand for the first 9 months
of 2023, representing 22.7% of consolidated revenue. It is noted
that research and development costs were fully recognized as
expenses during this 9-month period and were not capitalized in the
Group's balance sheet.
Over the third quarter of 2023, the Group reported increased
available liquidities (cash and related investments), totalling EUR
5,355 thousand as of September 30, 2023. At that date, the total
amount of financial borrowings, excluding lease obligations, was
limited to EUR 153 thousand.
The increase in available cash reflected the Group's ability to
generate a strong operational cash flow in a context of
hyper-growth and associated working capital requirements.
1 Adjusted EBITDA means operating profit before depreciation,
amortisation, and share-based payment charge (IFRS 2) and including
foreign exchange gains/losses related to ordinary activities.
Perspectives
MEMSCAP’s operational and financial achievements for the first 9
months of 2023 confirm the trajectory to 2026 outlined in the 4G
plan focused on achieving an average annual hyper-growth rate of
20% coupled with high levels of profitability.
Shareholders and investors video conference - Tuesday,
October 24, 2023 at 09:30 a.m.
Thank you for registering and sending your questions in advance
using the following link: https://memscap.com/fr/visio/
Q4 2023 revenue and earnings: January 24, 2024.
About MEMSCAP
MEMSCAP is a leading provider MEMS based pressure sensors,
best-in-class in term of precision and stability (very low drift)
for two market segments: aerospace and medical. MEMSCAP also
provides variable optical attenuators (VOA) for the optical
communications market.
For more information, visit our website at: www.memscap.com
MEMSCAP is listed on Euronext Paris (Euronext Paris - Memscap -
ISIN code: FR0010298620 - Ticker symbol: MEMS)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231023330917/en/
Yann Cousinet Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00
yann.cousinet@memscap.com
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