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13 Oct 2011 07:00
13 October 2011
e2v technologies plc
Period end update
e2v technologies plc, the specialist provider of technology solutions for high performance systems, is today providing this period end update for the six months ended 30 September 2011.
Current Year trading and outlook
Group trading for the first half is expected to be in line with management's expectations and ahead of the comparable period in the previous year. Underlying revenue grew by over 16%, with reported revenue growth of 9%. The difference largely reflects one off revenues of £6m.
The broader macro economic environment remains of concern and there are some signs of softening demand.
We continue to make good progress in executing our strategic plan and our outlook for the full year remains unchanged.
RF Power Solutions
The RF Power Solutions Division has three key applications: radiotherapy, electronic countermeasures and industrial processing.
- Strong growth over the comparable period in radiotherapy reflects steady OEM demand.
- As anticipated, European demand for electronic countermeasures (ECM) continues to be lower. We have secured an order for microwave power modules from a European OEM and are also making good progress with two US ECM programmes.
- In industrial processing systems, agreement has been reached for the first commercial field trial installation of our ProWave™ vermiculite processing system, which is due to be installed shortly. We have made good progress on our development programmes and have recently received a further order for an RF generator to support research into a new potential application in the mining sector.
- The remaining product lines in the division, which serve predominantly commercial and industrial markets, continue to perform well relative to the prior year and steadily on a sequential basis.
High Performance Imaging Solutions
The three key applications of this division are: machine vision, space imaging and scientific imaging.
- The machine vision sector delivered comparable underlying performance with the prior year, although this has shown some recent softness.
- Space imaging has delivered significant growth over the comparable period, reflecting the achievement of milestones on established programmes and progress on new projects. We have received an order for a focal array subsystem for a Korean land based telescope and have been selected to provide the camera for a ground based space science application in Brazil.
- Scientific imaging is also showing good growth arising from stronger end user demand.
- The remaining product lines in the division continue to show good underlying growth.
Hi-rel Semiconductor Solutions
This division addresses two main sectors: Semiconductor Lifecycle Management (SLiM™) and aerospace and defence semiconductors.
- The SLiM™ programme continues to benefit from the successful delivery within its existing programmes and a further four new defence programmes in Europe and the US have been added in the period, as well as the extension of the Raytheon F15 contract to cover further product lines. We also secured our first customer contract to provide extended product availability in collaboration with Maxim Semiconductors Inc.
- For the remaining product lines in the division we have seen improved demand for test and assembly services in Europe and the US compared to the prior year.
Order Book
Our total order book as at 30 September 2011 was £146m (30 September 2010 £167m), whilst our order book for delivery in the coming 12 months as at 30 September 2011 was £120m (30 September 2010 £147m). The reduction in the order book for delivery in the coming 12 months reflects a £7m reduction in the level of 'one-off' orders and the cycle of multiyear radiotherapy orders of £9m. We are also seeing a change in mix, as European defence activity (reduced by £2m) has been replaced with more commercial and industrial business with shorter order cycles.
Net Borrowings
Net borrowings at 30 September 2011 increased from 30 June 2011 by £4m to £32m, with operational cash performance in line with our expectations.
The group's new £80m revolving banking facility became effective 27 July 2011 and expires on 27 July 2015. As at 30 September 2011 the group had available £41m of undrawn committed borrowings from the facility.
The group remains in a sound financial position.
Keith Attwood, Chief Executive, said:
"The group has performed strongly in the first half. The changing order book profile reflects the anticipated change in the mix of our businesses.
The broader macro economic environment remains of concern and there are some signs of softening demand.
We continue to make good progress in executing our strategic plan. We are securing early orders for our industrial processing systems business and repositioning ourselves in the value chain for key applications such as space imaging and electronic counter measures.
Our outlook for the full year remains unchanged."
Further enquiries:
e2v technologies plc | Tel: +44 (0)1245 493 493 |
Keith Attwood, Chief Executive Charles Hindson, Group Finance Director | |
Website: www.e2v.com | |
Pelham Bell Pottinger | Tel: +44 (0)20 7861 3232 |
Archie Berens | |
Clare Gilbey |
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.
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