MEMSCAP - EARNINGS FOR THE 2020 FINANCIAL YEAR:
POSITIVE OPERATING CASH FLOW AT +EUR 1.5 MILLION STRONG GROWTH OF THE MEDICAL BUSINESS
RESILIENCE OF THE GROUP IN THE CONTEXT OF THE COVID-19 PANDEMIC
Consolidated revenue at EUR 11.1 million for FY 2020
Positive annual EBITDA at +EUR 0.8 million
Operating loss at -EUR 0.3 million - Net loss at -EUR 0.5 million Consolidated available cash at EUR 4.2 million as of December 31, 2020
Grenoble (France) - March 24, 2021 - 07:30 AM.
MEMSCAP (NYSE Euronext: MEMS), the leading provider of innovative solutions based on MEMS (micro-electro-mechanical systems) technology, today announced its earnings for the 2020 financial year ending December 31, 2020.
Analysis of the consolidated income statement
In line with the previous quarterly press releases, MEMSCAP reported an audited revenue of EUR 11.1 million for FY 2020 (US$ 12.7 million) compared to EUR 12.8 million for FY 2019 (US$ 14.3 million).
It is to be noted that sales made in US dollar represented approximately 66% of the Group's revenue in 2020.
Consolidated revenue distribution by market segment, over FY 2020, is as follows:
Market segments / Revenue (In million euros) | FY 2020 | % | FY 2019 | % |
Aerospace | 4.6 | 41% | 6.8 | 53% |
Optical communications / Adaptive optics | 2.4 | 22% | 3.5 | 27% |
Medical / Biomedical | 3.5 | 32% | 1.7 | 13% |
Others | 0.5 | 5% | 0.8 | 7% |
Total | 11.1 | 100% | 12.8 | 100% |
(Any apparent discrepancies in totals are due to rounding.) |
Despite the impact of the Covid-19 pandemic on the avionics business (-EUR 2.2 million / -32.2% vs. 2019), the consolidated sales of the Standard Products division (Norway - excluding dermo-cosmetics segment) showed a limited decrease of -4.2% vs. 2019 thanks to the strong development of the division's medical segment. The consolidated sales of the medical segment grew by EUR 1.8 million and more than doubled in FY 2020.
The deterioration of the economic context, as well as the unavailability of industrial equipment at the US site following a technical incident at the end of FY 2020, impacted the volumes of the Custom Products division. Custom Products sales decreased by -EUR 1.2 million / -28.8% compared to FY 2019.
* * *
Focus on the MEMSCAP's Norwegian subsidiary
The MEMSCAP's Norwegian subsidiary operates the Standard products division including the Group's avionics and medical businesses (excluding the dermo-cosmetics segment). Despite the impact of the Covid-19 pandemic on the sales of the avionics business, the strong growth in the medical business associated with cost control programs enabled a significant increase in the segment operating profit of the division, which amounted to EUR 1.6 million for FY 2020 against a profit of EUR 0.9 million for FY 2019.
Standard products division* (In million euros)
Segment revenue
Segment operating profit
8.3 0.9
7.9 1.6
-0.3 / -4.2% +0.7 / +73.9%
(Any apparent discrepancies in totals are due to rounding.)
* Excluding the royalties from the dermo-cosmetics segment.
* * *
Analysis of the consolidated income statement
MEMSCAP's consolidated earnings for FY 2020 are given within the following table:
In million euros | FY 2020 | FY 2019 | |
Revenue | 11.1 | 12.8 | |
- | Standard products* | 8.0 | 8.5 |
- | Custom products | 3.1 | 4.3 |
Cost of revenue | (8.0) | (8.7) | |
Gross margin | 3.1 | 4.1 | |
% of revenue | 28% | 32% | |
Operating expenses** | (3.4) | (3.9) | |
Operating profit / (loss) | (0.3) | 0.1 | |
Financial profit / (loss) | (0.2) | (0.0) | |
Income tax expense | (0.1) | (0.1) | |
Net profit / (loss) | (0.5) | (0.0) |
(Financial data were subject to an audit by the Group's statutory auditors who will issue their reports at a later date. On March 23rd, 2021, the MEMSCAP's board of directors authorized the release of the FY 2020 consolidated financial statements. Any apparent discrepancies in totals are due to rounding.)
* Including the royalties from the dermo-cosmetics segment.
** Net of research & development grants.
The volume effect related to the activities of the Custom Products division as well as the decrease in sales relating to the avionics market segment impacted the Group's gross margin rate, which stood at 28.2% compared to 31.8% for from the previous year. The consolidated gross margin thus amounted at EUR 3.1 million compared to EUR 4.1 million for FY 2019.
Thanks to specific cost control programs in FY 2020 in the context of the Covid-19 pandemic, operating expense showed a significant reduction. Operating expenses, net of research and development grants, amounted to EUR 3.4 million compared to EUR 3.9 million for FY 2019. Research and development expenses, net of grants, amounted to EUR 1.3 million for FY 2020 and represented 11.3% of consolidated sales (FY 2019: EUR 1.6 million / 12.4% of consolidated sales). Sales and administrative expenses respectively fell by -14.1% and -6.3%. In addition, the total number of full-time equivalent employees in the Group decreased from 65.3 in FY 2019 to 63.7 in FY 2020, a reduction of -2.4%.
For FY 2020, the Group posted an operating loss of EUR 0.3 million compared to an operating profit of EUR 0.1 million for FY 2019. The net financial loss for FY 2020 (including a net foreign exchange loss of EUR 0.1 million) amounted to EUR 0.2 million in FY 2020 compared with a non-significant net financial loss for FY 2019 (including a net foreign exchange gain of EUR 0.1 million). The tax expense recognized over FY 2020 and FY 2019 corresponded to the change in deferred tax assets. This tax expense had no impact on the Group's cash position.
The Group therefore reported a net loss of EUR 0.5 million for FY 2020 compared to a non-significant net loss for FY 2019.
***
Evolution of the Group's cash / Consolidated shareholders' equity
For FY 2020, the Group posted a positive EBITDA at EUR 0.8 million compared to EUR 1.5 million for the previous year. Including the EUR 0.7 million reduction in the working capital requirement, the positive cash flow from operating activities amounted to EUR 1.5 million against a cash generation of EUR 1,0 million for FY 2019.
On December 31, 2020, the Group reported available cash at EUR 4.2 million (December 31, 2019: EUR 3.4 million) including cash investments (Corporate bonds) recorded under non-current financial assets. In addition to this amount, the available unused credit lines amounted to EUR 0.4 million on December 31, 2020.
MEMSCAP shareholders' equity totalled EUR 15.6 million on December 31, 2020 (December 31, 2019: EUR 16.7 million).
***
Analysis and perspectives / Impact of Covid-19 pandemic
The 2020 financial year was marked by the Covid-19 pandemic which particularly affected the avionics sector, the Group's leading market segment. However, the diversity of its businesses allows MEMSCAP to face the effects of such a major health and economic crisis. The significant growth of the Group's medical business over FY 2020 confirms the impact of this strategy as well as the Group's resilience and adaptation in a particularly degraded context. MEMSCAP Group expects the trend related to the medical business to continue in FY 2021.
MEMSCAP pursues its strategy focused on avionics, medical and optical communications segments, backed by its own intellectual property, as well as the development of an increased flexibility of its production capacities.
***
Q1 2021 earnings: April 27, 2021
Annual meeting of shareholders: May 28, 2021
About MEMSCAP
MEMSCAP is the leading provider of innovative micro-electro-mechanical systems (MEMS)-based solutions.
Contacts Yann Cousinet
MEMSCAP's products and solutions include components, component designs (IP), manufacturing and related services.
Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00yann.cousinet@memscap.com
For more information, visit our website at:www.memscap.com.
MEMSCAP is listed on Euronext Paris ™ - Segment C - ISIN: FR0010298620 - MEMS.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December 2020
31 December | 31 December | |
2020 | 2019 | |
€000 | €000 | |
Assets | ||
Non-current assets | ||
Property, plant and equipment ...................................................................................... | 1 693 | 1 757 |
Goodwill and intangible assets ....................................................................................... | 7 305 | 7 804 |
Right-of-use assets ......................................................................................................... | 5 486 | 5 934 |
Other non-current financial assets ................................................................................. | 1 217 | 1 254 |
Deferred tax asset .......................................................................................................... | 284 | 412 |
15 985 | 17 161 | |
Current assets | ||
Inventories ..................................................................................................................... | 2 604 | 3 111 |
Trade and other receivables ........................................................................................... | 2 558 | 2 938 |
Prepayments .................................................................................................................. | 306 | 186 |
Other current financial assets ........................................................................................ | 58 | 47 |
Cash and short-term deposits ........................................................................................ | 2 952 | 2 204 |
8 478 | 8 486 | |
Total assets | 24 463 | 25 647 |
Equity and liabilities | ||
Equity | ||
Issued capital .................................................................................................................. | 1 869 | 1 867 |
Share premium ............................................................................................................... | 18 783 | 18 775 |
Treasury shares .............................................................................................................. | (133) | (131) |
Retained earnings .......................................................................................................... | (1 752) | (1 204) |
Foreign currency translation .......................................................................................... | (3 178) | (2 601) |
15 589 | 16 706 | |
Non-current liabilities | ||
Lease liabilities ............................................................................................................... | 5 126 | 5 685 |
Interest-bearing loans and borrowings .......................................................................... | 348 | 127 |
Employee benefit liability ............................................................................................... | 35 | 56 |
5 509 | 5 868 | |
Current liabilities | ||
Trade and other payables .............................................................................................. | 2 317 | 2 083 |
Lease liabilities ............................................................................................................... | 582 | 588 |
Interest-bearing loans and borrowings .......................................................................... | 447 | 324 |
Provisions ....................................................................................................................... | 19 | 78 |
3 365 | 3 073 | |
Total liabilities | 8 874 | 8 941 |
Total equity and liabilities | 24 463 | 25 647 |
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Memscap SA published this content on 24 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2021 11:38:12 UTC.