Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mycronic AB (STU:MLT, Financial) reported a strong start to the year with a 25% increase in order intake and a 27% increase in sales compared to the same quarter last year.
- The company achieved a record EBIT of 775 million SEK, corresponding to a margin of 36%, the highest ever for the quarter.
- Two strategic acquisitions were made, enhancing the company's technology portfolio in high-speed testing and PCB signal quality testing.
- The pattern generators division showed strong performance with a 48% increase in order intake and a 43% increase in sales, contributing significantly to the company's growth.
- The high volume division experienced robust demand in China, with a 42% increase in order intake, indicating strong market recovery in the region.
Negative Points
- The high flex division underperformed, with a 12% decline in order intake and a 1% decrease in net sales, partly due to weak demand in Europe.
- New tariffs in the US led to delivery delays and a negative impact of 15 million SEK for the quarter.
- The company faces increased uncertainty due to tariffs and currency fluctuations, impacting the investment climate and sales outlook.
- The die bonding business within the global technologies division experienced a slowdown in order intake, not due to market conditions but fewer customer orders.
- Despite strong performance in some areas, the company revised its sales guidance to a range of 7 to 7.5 billion SEK, reflecting increased market uncertainty.
Q & A Highlights
Q: Can you explain the gross margin strength in the pattern generators division? Was it due to specific orders or something structural? Also, have there been significant changes in demand for pattern generators recently?
A: The gross margin strength was primarily due to a higher proportion of sales in the display industry, which has a different margin profile compared to the semiconductor industry. Demand for pattern generators has remained stable, with no significant changes observed recently. (CFO Pierre Bruchon)
Q: With the updated sales guidance, what factors contributed to the change from 7.5 billion to a range of 7 to 7.5 billion?
A: The updated guidance reflects increased uncertainty in the market, particularly due to exchange rate fluctuations and potential impacts on the investment climate. The change is not due to specific events but rather a general reflection of market conditions. (CFO Pierre Bruchon)
Q: Regarding the new Precision 8,000, do you expect a similar pattern of orders as seen with the Precision 800?
A: Yes, the Precision 8,000 has been well-received in the market, and we expect it to follow a similar order pattern as the Precision 800. The time between launch and the first order was shorter for the 8,000, indicating strong market demand. (CEO Anders Lindquist)
Q: How is the expansion in Southeast Asia, particularly in high volume, progressing? Have there been any changes in the growth outlook there?
A: The expansion in Southeast Asia, especially in Thailand, is proceeding as planned. This region is becoming a significant market, and the expansion is happening faster than expected. We are also considering further expansion into India, although regulatory challenges exist. (CEO Anders Lindquist)
Q: With the strong SEK, are there plans to adjust prices for the pattern generators division? Also, how do recent US export restrictions affect Mycronic?
A: We continuously review pricing strategies, considering factors like currency fluctuations and competitive landscape. Currently, there are no significant changes due to SEK. Regarding US export restrictions, there are no immediate impacts on our operations, and mass writers are exempt from tariffs. (CFO Pierre Bruchon)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
