News

31 March 2009

 

Monocrystal grows 52% in '08, driven by larger sapphire wafers

Monocrystal Inc of Stavropol, Russia, which provides sapphire products and metallization pastes to semiconductor, optical, and photovoltaic industries, has reported revenue of $61m for 2008, up 52% on 2007's $40.1m. The rise reflects the combination of parent company Energomera Corp’s electronic materials business (headed by Monocrystal) and the acquisition in March 2008 of Atlas PCF of Belgorod, Russia, which also manufactures sapphire substrates for HB-LED and RFIC applications (as well as sapphire optics for special application).

The Energomera Electronic Materials business group surpassed 2008 targets, with strong growth supported by each major product segment: sapphire and solar pastes. Growth was driven by higher sales of larger-diameter substrates for LEDs, silicon-on-sapphire wafers, sapphire products for optics, and screen printing pastes for the metallization of solar cells.

"We continued expanding our market and technological leadership by innovating premium-quality products aimed at meeting current and future needs of our clients in the sapphire and solar segments," says Andrey Kravchenko, CEO of Monocrystal and the head of Energomera Electronic Materials group. "In 2008, we introduced and started shipments of the next-generation 8" sapphire substrates for LEDs and RFICs, as well as our unique lead-free RoHS-compliant solar pastes for the contact formation of wafer-based solar cells," he adds.

"We have continued integration of Monocrystal and Atlas sapphire operations and also restructured our Electronic Materials group to further improve corporate and managerial effectiveness," says Vladimir Polyakov, president of Energomera and chairman of Monocrystal.

In 2008, net income was $9.3m, up 73% on 2007's $5.4m. EBITDA ( earnings before interest, taxes, depreciation and amortization ) was $19.3m, almost double 2007's $9.8m.

However, though up 15% on a year ago, fourth-quarter 2008 revenue of $14.9m was down 4% on Q3/2008 due to growing uncertainties about markets.

Continued uncertainty in the global economy makes the projections of Monocrystal's customers extremely short term, mostly not exceeding one-two months ahead, the firm says. This lack of visibility currently makes it difficult for Monocrystal to provide its own guidance for full-year 2009. Management says that it will provide more detailed guidance for 2009 as soon as visibility improves.

"We feel confident about our ability to further develop the group business and continue improving on costs reduction, new product development, and customer service," concludes Kravchenko.

See related items:

Sapphire substrate market to grow at 21% to $400m by 2012

Monocrystal launches 8” c-plane sapphire wafers for LEDs

Search: Monocrystal Sapphire wafers

Visit: www.monocrystal.com