DOUBLE-DIGIT GROWTH IN AEROSPACE AND OPTICAL
COMMUNICATIONS
GROWTH IN CONSOLIDATED REVENUE DESPITE THE SIGNIFICANT
DECREASE IN IMPLANTABLE SOLUTIONS REVENUE IN MEDICAL
MEMSCAP CONFIRMS ITS TRAJECTORY AND DRIVERS FOR PROFITABLE
GROWTH
- Strong growth in aerospace activities, the Group's largest
market, up by +11%
- Quarterly consolidated revenue of EUR 3,442 thousand, up by
+1%, despite the decrease in implantable solutions revenue
affecting medical activities (-29%)
- Robust performance in optical communications activities, up
by +36%
- Quarterly adjusted EBITDA1 of EUR 582 thousand (17% of
consolidated revenue)
- Quarterly operating profit of EUR 390 thousand euros (11% of
consolidated revenue)
- Quarterly net profit of the consolidated entity of EUR 384
thousand euros (11% of consolidated revenue)
- Intensification of efforts related to the "Engine Control"
development and industrialization program
- Planned emphasis on the Group's technical programs reflected
in operating expenses expected to decrease over the coming
quarter
Regulatory News:
MEMSCAP (Euronext 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 second
quarter of 2024 ending June 30, 2024.
Analysis of consolidated revenue
Consolidated revenue from continuing operations (non-audited)
for the second quarter of 2024 was EUR 3,442 thousand compared to
EUR 3,421 thousand for the second quarter of 2023, thus a growth of
1%.
Over the second quarter of 2024, the distribution of
consolidated revenue from continuing operations by market segment
is as follows:
Market segments / Revenue (In
thousands of euros) – Non-audited
Q1 2023 (3 months)
Q2 2023 (3 months)
Q2 2023 (%)
H1 2023 (6 months)
Q1 2024 (3 months)
Q2 2024 (3 months)
Q2 2024 (%)
H1 2024 (6 months)
Aerospace
2,389
2,126
62%
4,515
2,536
2,363
69%
4,899
Medical
681
1,028
30%
1,709
929
735
21%
1,664
Optical communications
558
240
7%
798
341
326
9%
667
Others (Royalties from licensed
trademarks)
40
27
1%
67
27
18
1%
45
Total revenue from continuing
operations
3,668
3,421
100%
7,089
3,832
3,442
100%
7,275
(Any apparent discrepancies in totals are due to rounding.)
Consolidated sales for the second quarter of 2024 remain driven
by the strong dynamism of aerospace activities, which grew by 11%
compared to the second quarter of 2023. Representing 69% of the
consolidated revenue from continuing operations for the second
quarter of 2024, the Aerospace activity is the Group's leading
market segment.
The significant growth in aerospace sales in the second quarter
of 2024 offsets the decrease in revenue from the Medical sector
(-29% compared to the second quarter of 2023) impacted by the drop
in sales in the implantable solutions segment (-225 thousand euros
compared to the second quarter of 2023).
Furthermore, sales from the Optical communications activity
demonstrated solid performance, with a 36% increase compared to the
second quarter of 2023.
Analysis of consolidated income statement
MEMSCAP’s consolidated earnings for the second quarter of 2024
are given within the following table:
In thousands of euros –
Non-audited
Q1 2023 (3 months)
Q2 2023 (3 months)
H1 2023 (6 months)
Q1 2024 (3 months)
Q2 2024 (3 months)
H1 2024 (6 months)
Revenue from continuing
operations
3,668
3,421
7,089
3,832
3,442
7,275
Cost of revenue
(2,146)
(1,884)
(4,030)
(2,298)
(2,041)
(4,339)
Gross margin
1,522
1,536
3,059
1,534
1,402
2,936
% of revenue
41.5%
44.9%
43.2%
40.0%
40.7%
40.4%
Operating expenses*
(1,017)
(883)
(1,901)
(1,026)
(1,011)
(2,037)
Operating profit /
(loss)
505
653
1,158
508
390
899
Financial profit / (loss)
(1)
24
23
109
2
110
Income tax expense
(34)
(13)
(47)
(9)
(9)
(17)
Net profit / (loss)
470
664
1,134
608
384
992
* Net of research & development grants. (Any apparent
discrepancies in totals are due to rounding.)
The gross margin rate was 40.7% of consolidated revenue compared
to 44.9% in the second quarter of 2023. It is noted that the gross
margin rate for the second quarter of 2023 benefited from a
particularly favourable product mix. The gross margin increased by
0.7 percentage points compared to the first quarter of 2024,
amounting to EUR 1,402 thousand versus EUR 1,536 thousand for the
second quarter of 2023.
Operating expenses, net of research and development grants,
amounted to EUR 1,011 thousand compared to EUR 883 thousand for the
second quarter of 2023. In the second quarter of 2024, these
expenses reflected the emphasis on the Group’s technical programs.
The Group anticipates a decrease in operating costs over the coming
quarter following the non-recurrence of some of these expenses
linked to this significant effort during the first half.
For the second quarter of 2024, the Group posted an operating
profit from continuing operations of EUR 390 thousand (11% of
consolidated revenue) compared to an operating profit of EUR 653
thousand for the second quarter of 2023. The tax expense recognized
over the second quarters of 2023 and 2024 corresponded to the
change in deferred tax assets. This tax expense is a non-cash
item.
The Group therefore reported a net profit of EUR 384 thousand in
the second quarter of 2024 (11% of consolidated revenue) compared
to a net profit of EUR 664 thousand in the second quarter of
2023.
Perspectives
Recording a quarterly adjusted EBITDA1 of EUR 582 thousand in
the second quarter of 2024, representing 17% of the consolidated
revenue (compared to EUR 936 thousand in the second quarter of
2023), and a quarterly net profit of EUR 384 thousand, MEMSCAP
continues to steadily implement its 4C plan, demonstrating the
strength of its business model.
With a recognized expertise and driven by promising and
high-visibility markets, MEMSCAP reaffirms its trajectory through
2026, focused on achieving an average annual hyper-growth rate of
20%. 4G stands for consistent growth, competitive
growth, profitable growth, and responsible growth.
The Company is now concentrating on finalizing its "Engine Control"
development and industrialization program, which is expected to
accelerate growth in the coming years and propel MEMSCAP beyond
2026.
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.
Individual shareholder webinar: Tuesday, July 30, 2024 –
10:00 a.m. Thank you for registering and sending your questions
in advance using the following link:
https://memscap.com/fr/visio/
Half-year 2024 revenue and earnings (including statement of
financial position and cash flow): September 2, 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/20240729891191/en/
Yann Cousinet Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00
yann.cousinet@memscap.com
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