LEOBEN, AUSTRIA -- AT&S reported June quarter consolidated revenue increased 28% to €317.7 million ($377.6 million) on additional capacity and growing demand for ABF substrates.
The net loss for the period was -€5.3 million, versus -€7.9 million a year ago.
Cash and cash equivalents rose to €560.7 million, up about €8 million.
Adjusted EBITDA was €50.8 million, up 24% over last year. EBITDA was €46.3 million, up €6.8 million, on higher revenue. Currency fluctuations of the US dollar and the Chinese renminbi had a negative impact of €18.1 million on earnings. In addition, startup costs for the IC substrate production in Chongqing were incurred. On the market side, a change in product mix in the mobile devices segment had a negative effect on profitability.
EBITDA margin was 14.6% (adjusted EBITDA margin: 16%), falling short of the prior-year level of 15.9% (adjusted EBITDA margin: 16.5%). EBIT declined from -€200,000 to -€400,000. The EBIT margin amounted to -0.1%.
Adjusted for currency effects, the increase in consolidated revenue was 37%. The development was supported by the broader application portfolio for mobile devices and the demand for printed circuit boards for modules. In the AIM segment, all three areas contributed to revenue growth. Although the automotive segment nearly doubled its revenue after a very weak first quarter of the previous year, the shortage of semiconductors will continue.
The printed circuit board fabricator raised its fiscal 2022 guidance to 17 to 19% growth, with adjusted EBITDA margin still expected in the range of 21 to 23%.
“Digitalization continues to drive the demand for our technologies," said Andreas Gerstenmayer, CEO, AT&S. "Markets that showed temporary weakness are increasingly recovering. Strategically, we are still fully on track. The production of IC substrates in particular is running at full speed. The implementation of the capacity expansion in Chongqing is making excellent progress. The first parts of the production equipment have already been qualified as well as be put into operation.”
AT&S spent €31.3 million during the reporting period to prepare for future technologies and pursue its modularization strategy, among other things.
AT&S expects continued strong demand for IC substrates in the medium term. The 5G mobile communication standard will continue to drive growth in the area of mobile devices. An upturn is expected in the automotive segment despite the semiconductor shortage. Driven by the roll-out of the 5G infrastructure, the industrial segment will continue to see a positive development in the coming year. In the medical segment, AT&S expects a positive development for the current financial year.
AT&S now plans investments totaling up to €700 million (previously €630 million) for the 2022 fiscal year. This increase is primarily attributable to activities related to the construction of the new production site for high-end substrates in Kulim, Malaysia. Up to €100 million is budgeted for basic investments (maintenance and technology upgrades) depending on market development, plus another €80 million due to shifts in periods between the financial years.
As part of the strategic projects, the management is planning investments totaling up to €450 million in the current fiscal year, depending on the progress of projects. These are predominantly related to investments in IC substrates in Chongqing and, among other things, expansion measures for production capacity of IC cores at the site in Leoben, which are used for manufacturing IC substrates.
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