24 July 2014

Riber's first-half revenue down 39% year-on-year to €4.8m

For first-half 2014, Riber S.A. of Bezons, France, which manufactures molecular beam epitaxy (MBE) systems as well as evaporation sources and effusion cells, has reported a drop in revenue of 39% from €7.8m a year ago to €4.8m (71% from Europe, 17% from North America, and 12% from Asia). This includes €3m for second-quarter 2014, up 67% on €1.8m last quarter but down 41% on €5.1m a year ago.

For first-half 2014, MBE Systems revenue was €2.1m (two research systems), less than half the €4.8m a year ago. However, all of this fell in Q2/2014 (with none in Q1), in view of the difficult economic environment and a delivery plan focused on second-half 2014. In first-half 2014 Riber received orders for three systems worth a total of €3.2m which, for contractual reasons, will be delivered and billed during second-half 2014.

First-half 2014 revenue from Services & Accessories was €2.3m (down 10% on €2.5m a year ago). This comprised €0.8m in Q2 and €1.5m in Q1/2014.

First-half 2014 revenue from Cells & Sources was €0.4m (down slightly on €0.5m a year ago). This comprised €0.1m in Q2 and €0.3m in Q1/2014.

The 13% year-on-year drop in revenue for Services & Accessories and Cells & Sources combined is attributed to the weak level of demand from industrial customers. However, this contraction has been limited by the development of sales to research centers and laboratories, driving strong year-on-year growth in the order book.

At the end of June, total order backlog was €8m (including eight systems), down 31% on €11.7m a year ago but up 21% on €6.6m at the end of March. During Q2/2014, Riber received orders for four MBE research systems( from China, Turkey and South Africa). Although the Systems order book was still down 46% on €10.2m a year ago, it rose 22% from €4.5m at the end of Q1 to €5.5m at the end of Q2. Also, an additional order for a research system (to be delivered in 2014) was recorded in July, after the end of Q2. In addition, the Services & Accessories order book rose slightly from €2m at the end of Q1 to €2.1m at the end of Q2, up 68% on €1.3m a year ago. The Cells & Sources order book doubled from €0.2m at the end of Q1 to €0.4m at the end of Q2 (also doubling from €0.2m a year ago).

“The first half of the year was marked by the adoption of the new Compact 21 DZ, as well as an upturn in orders at the end of the second quarter, confirming Riber’s leading position for research markets,” says Frederick Goutard, chairman of the executive board. “However, as these commercial achievements are not expected to offset the sharp contraction affecting industrial markets, our company is rolling out a savings plan in line with the situation, is reducing both manufacturing lead-times and working capital requirements with the introduction of lean manufacturing, and is further strengthening a determined commercial approach across all its product lines, including organic light-emitting diodes (OLED),” he adds. "Faced with a significant market downturn, Riber’s management team is highly focused on facing the operational and business challenges.”

Riber also says that it is moving forward with the implementation of its diversification strategy, signing distribution agreements for thin-film deposition products with complementary technologies to MBE.

First-half earnings and the outlook for the full year will be issued on 26 September.

See related items:

Riber makes profit in 2013 despite revenue falling 14%

Riber’s 2013 revenue to end-September down 39% year-on-year to €10.2m

Riber's first-half losses double after sales fall 17% year-on-year

Riber’s revenue impacted by pause in system sales in Q1, but research system orders continue unabated

Tags: Riber MBE

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