Okmetic is a technology company that supplies customised silicon
wafers for the sensor and semiconductor industries and sells its
technological expertise. During the period under review, the
company's net sales amounted to 17.0 million euro (17.3 million
euro). Profit for the period was 1.6 million euro (2.4 million euro).
REVIEW IN BRIEF
- Net sales amounted to 17.0 million euro (17.3 million euro).
- Profit for the period amounted to 1.6 million euro (2.4 million
euro).
- The equity ratio strengthened, amounting to 57.4 percent (51.2%).
- US dollar exchange rate developments and the cost of the main raw
material influenced the result and financial estimates.
- Periodic revenue from technology sales caused significant
variations
in the interim results.
- Net sales for the first half of the year 2008 are expected to
amount
to around 34 million euro and operating profit is expected to
account
for around 12 percent of net sales.
KEY FIGURES
1,000 euro 1.1.- 1.1.- 1.1.- 1.1.- 1.1.-
31.3.08 31.3.07 31.12.07 31.12.06 31.12.05
Net sales 17,034 17,322 64,652 63,694 49,822
Operating profit
2,542 2,677 7,121 9,877 580
% of net
sales 14.9 15.5 11.0 15.5 1.2
Earnings per share, euro
0.10 0.14 0.31 0.41 -0.10
Net cash from operating
activities
2,281 1,628 8,305 17,945 3,125
Return on equity, %
14.2 23.5 12.4 18.6 -5.1
Net gearing ratio, %
15.2 30.5 19.6 31.3 99.5
Equity ratio, %
57.4 51.2 55.3 51.1 41.1
Average number of
personnel during the
period
355 360 362 360 359
PROJECTIONS FOR THE NEAR FUTURE
Okmetic supplies sensor wafers for a variety of applications. Demand
for sensors is expected to grow by 12-16 percent this year (Yole, IC
Insights). In addition to the traditional sensor segments, new
micro-electromechanical sensor products are being introduced onto the
market, the demand for which is anticipated to exceed the standard
growth level of the industry.
Market growth within the semiconductor industry is expected to remain
below ten percent this year (SIA, WSTS, Gartner, IC Insights).
According to the prevailing industry forecasts, the total volume of
silicon wafer supplies is expected to grow by nearly ten percent in
2008. The growth will be most prominent in wafers with a 300 mm
diameter. Market growth in relation to smaller wafer sizes is
expected to be low and to be realised only in the latter part of the
year. Demand for sensor wafers is expected to increase (IC Insights).
Net sales for the first half of 2008 are expected to amount to around
34 million euro and operating profit is expected to account for
around 12 percent of net sales.
MARKETS
Growth within the sensor industry remained steady in the early part
of the year. Demand for micro-mechanical sensors increased reasonably
well. Semiconductor sales were comparable to the corresponding period
in the previous year (SIA, WSTS).
The growth in the demand for silicon wafers has mostly affected
large, 300 mm wafer sizes. Demand for smaller, 100-200 mm
semiconductor wafers, which are important for Okmetic, fell slightly
below the levels of the corresponding period in the previous year,
according to the prevailing market forecasts.
SALES
The group's net sales amounted to 17.0 million euro (17.3 million
euro).
Net sales per customer segment
2008 (2007)
from beginning of year (on average)
Sensors 34% (34%)
Semiconductors 43% (56%)
Technology 23% (10%)
Technology sales, in addition to our own expert manufacturing
services, also include crystal sales. The fact that revenues from
manufacturing expertise sales are recorded in periodic instalments,
and also the fluctuations with respect to the volume of crystal
sales, cause clear variations in the percentage of net sales per
customer group and market area during each quarter.
Sales by Okmetic to the sensor market increased and developed on
target. Sensor wafers are used in the automotive, aviation and
medical industries, for example, as well as in consumer applications.
As a sensor wafer supplier, Okmetic is the global market leader.
Sales of semiconductor wafers decreased slightly. Typically,
semiconductor wafers are used in consumer electronics,
telecommunications and automotive applications. Demand for
semiconductor wafers experienced a decline in the early part of the
year. The position is expected to improve in the latter half of the
year.
Net sales per market area
2008 (2007)
from beginning of year (on average)
North America 40% (48 %)
Europe 42% (32 %)
Asia 18% (20 %)
Fluctuations in the principal invoice currency of each operating area
had a significant effect on the various market area segments.
PROFIT
Okmetic group's profit for the period was 1.6 million euro (2.4
million euro). Earnings per share amounted to 0.10 euro (0.14 euro).
The fact that revenues from technology sales are recorded in periodic
instalments caused significant variations in the interim results.
FINANCE AND INVESTMENT
The group's financial situation is good. Its net cash flow from
operating activities amounted to 2.3 million euro (1.6 million euro).
The value added tax liabilities and receivables resulting from an
internal business acquisition that was concluded in Finland at the
turn of the year have been paid.
The group's investment costs amounted to 0.3 million euro.
At the end of the financial period, cash and cash equivalents
amounted to 15.1 million euro (13.8 million euro). Return on equity
amounted to 14.2 percent (23.5%). The group's equity ratio
strengthened, amounting to 57.4 percent (51.2%). Shareholders' equity
per share amounted to 2.76 euro (2.49 euro).
PRODUCT DEVELOPMENT
Product development accounted for 3.0 percent (2.7%) of the net sales
of Okmetic.
PERSONNEL
The number of employees at Okmetic averaged 355 (360) of whom, at the
end of the financial period, 310 were located in Finland, 46 in the
USA and three in Japan.
OPERATIONAL RISKS
The majority of Okmetic's sales are concluded in US dollars, and a
relatively small proportion in Japanese yen. The US dollar has fallen
significantly since the start of the year. Despite hedging, the
company remains vulnerable to exchange rate fluctuations.
The demand for polycrystalline silicon, the principal raw material of
silicon wafers, has exceeded supply since 2006, thereby reducing its
availability and increasing the cost. The company anticipates that,
throughout 2008, this availability will continue at a low level, and
the price will remain high. The company has secured access to the raw
material through long-term purchase agreements.
The semiconductor market operates in cycles. This cyclical effect is
currently at a low, and the demand for semiconductors is reduced.
Demand is anticipated to increase towards the end of the year.
Technology sales, due to the sales structure, vary significantly
during different periods.
SHARE PRICE DEVELOPMENT AND TRADING
A total of 2.2 million shares (3.2 million shares) were traded in the
period 1.1. - 31.3.2008, representing 12.8 percent (18.9%) of the
total shares of 16.9 million. The lowest quotation of the period was
2.20 euro (3.34 euro) and the highest was 3.14 euro per share (4.38
euro), with an average of 2.63 euro (3.88 euro). The closing
quotation for the period was 2.48 euro (3.85 euro). The total market
value of the share capital amounted to 41.9 million euro (65.0
million euro) at the end of the financial period.
OWN SHARES
The company has not redeemed its own shares and the board of
directors has not been authorised to redeem or surrender the
company's own shares.
OPTIONS
The company has not issued any option rights.
AUTHORITY OF THE BOARD OF DIRECTORS TO INCREASE SHARE CAPITAL
The annual general meeting held on 3.4.2008 authorised the board of
directors to decide on share issue, share option rights or any other
share entitlement pursuant to paragraph 1(10) of the Finnish
Companies Act. The aggregate number of shares issued on the basis of
the authorisation may not exceed 3,377,500 shares, which represents
approximately 20 percent of the total number of shares of the
company. The board of directors is authorised to decide upon any
terms and conditions concerning the issue of shares or share options
or any other share entitlement. The issue of shares or option rights
or any other share entitlement may be effected as a directed issue.
The authorisation will be effective until the following annual
general meeting of shareholders.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING OF OKMETIC OYJ AND
ORGANISATION OF THE BOARD OF DIRECTORS
The annual general meeting of Okmetic Oyj, held on 3.4.2008, ratified
the corporate accounts for 2007, and indemnified the board of
directors and the managing director of the company in that respect.
It was decided to distribute a dividend of 0.10 euro per share for
the year 2007. The dividend was paid on Thursday, 17.4.2008. Further,
the annual general meeting carried the proposal by the board of
directors for the share issue authority to be granted to the board of
directors.
The board of directors will consist of five members. The following
were re-elected as board members until the end of the next annual
general meeting: Mikko J. Aro, Karri Kaitue and Pekka Salmi. The
managing director of Outotec Oyj, Tapani Järvinen, and the managing
director of Tecnomen Oyj, Jarmo Niemi, were appointed as new members.
At the organisational meeting held immediately following the annual
general meeting, the board of directors appointed Mikko J. Aro as
chairman, and Karri Kaitue as deputy chairman. At the annual general
meeting, the current annual fees payable to the board members for
their appointment period were confirmed as follows: chairman 34,800
euro, deputy chairman 26,100 euro and other members 17,400 euro.
Authorised Public Accountants PricewaterhouseCoopers Oy were
appointed as auditors, with the principal auditor being Markku
Marjomaa, Authorised Public Accountant. Payment to auditors will be
effected in accordance with their invoice.
The proposal by the board of directors to authorise the board of
directors to increase share capital as set out above was ratified at
the annual general meeting.
Vantaa, 29.4.2008
Board of directors
For further information, please contact:
President Antti Rasilo, Okmetic Oyj,
tel. +358 40 746 1351, email: antti.rasilo@okmetic.com
Senior Vice President Esko Sipilä, Okmetic Oyj,
tel. +358 9 5028 0286, email: esko.sipila@okmetic.com
Distribution:
OMX Nordic Exchange
Principal media
www.okmetic.com
OKMETIC IN BRIEF
Take it higher
Okmetic is a technology company which supplies tailor-made silicon
wafers for sensor and semiconductor industries and sells its
technological expertise. Okmetic provides its customers with
solutions that boost their competitiveness and profitability.
Okmetic's silicon wafers are part of a further processing chain that
produces end products that improve human interaction and quality of
life. Okmetic's products are based on high-tech expertise that
generates added value for customers, innovative product development
and an extremely efficient production process.
Okmetic has a global customer base and sales network, production
plants in Finland and the US and contract manufacturers in Japan and
China.
Okmetic's shares are listed on OMX's Nordic Stock Exchange under the
code OKM1V. For more information on the company, please visit our
website at www.okmetic.com.