E2v Tech Regulatory News (E2V)

30 January 2012

e2v technologies plc

Interim Management Statement

e2v technologies plc, the specialist provider of technology solutions for high performance systems, is today providing this Interim Management Statement covering the period from 1 October 2011 to 30 January 2012.

Group trading since the half year end of 30 September 2011 is in line with management's expectations. We continue to implement our strategy in our two new application segments, the regional expansion in the US and Asia and moving up the value chain in our core business. Management's expectations for the Group's trading performance for the full year remain unchanged.

In RF Power Solutions, OEM demand in radiotherapy has remained steady, whilst Electronic countermeasures reflects continued lower demand in Europe.  In the US, we have secured further orders for the ALE-55 programme for the F18 Super Hornet, and are progressing development work on one other aircraft programme.  In Industrial processing systems, the first vermiculite system has been installed and we have received two further development orders for mining applications.  The remaining product lines in the division have delivered steady performance, reflecting ongoing end user demand in our commercial and industrial markets.

Within High Performance Imaging Solutions, machine vision has, as anticipated, experienced some softening in demand for industrial process control applications.  Order intake in space has remained strong, with the revenue growth reflecting progress on our technically challenging programmes.  Performance of scientific imaging has been steady.

In Hi-rel Semiconductor Solutions, Semiconductor Lifecycle Management (SLiM™), revenues continue to benefit from existing programmes.  The division's European operation has seen steady demand for its test and packaging services.  In the US, there is some softening of demand for defence applications. 

As part of our geographic expansion, we have purchased a new facility for e2v A&D inc. for £4m in November 2011 and recruitment is on plan in the Asia Pacific region.  Over 50% of our revenue is now with customers outside of Western Europe up 3% from 31 March 2011.

The order book for delivery over the coming 12 months as at 31 December 2011 has increased 9% since the half year to £131m (31 December 2010: £143m), reflecting the anticipated order intake in RF Power Solutions and High Performance Imaging.  The total order book is £156m including £4m for last time buy products (31 December 2010: £166m including £12m for last time buy products).

Net borrowings* at 31 December 2011 were approximately £33m (30 September 2011: £32m) after payment of the interim dividend and the purchase of the new US facility.  We are targeting net borrowings at 31 March 2012 to be around a similar level.

*Note: Net borrowings excludes capitalised borrowing costs

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Notes to editors

1.     Net borrowings exclude capitalised borrowing costs.

2.     All financial information included in this release is sourced from management accounts.

3.     Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.