41% revenue growth and continuing operations at break-even level for full-year 2010.
MEMSCAP (NYSE Euronext: MEMS), the leading provider of innovative solutions based on MEMS (micro-electro-mechanical systems) technology, announced today its earnings for fiscal year 2010.
Solid revenue growth and break-even level for continuing operations
Matching previous quarterly press releases, revenue for fiscal year 2010 amounted to 13.0 million euros (17.3 million US dollar) compared with 9.3 million euros (12.9 million US dollar) for fiscal year 2009, thus a growth of 41% in euro and 34% in US dollar. Consolidated revenue distribution by market segment, over fiscal year 2010 is as follows:
|Optical Communications / Adaptive Optics
|Medical / Biomedical
(Any apparent discrepancies in totals are due to rounding).
Sales for fiscal year 2010 benefited from the significant recovery of the avionic market, particularly in the segment of business jets which was strongly affected over the previous year by the global crisis. Revenue increase also relied on the continued growth of optical communications market as well as the deployment of Group's business activities in the Chinese market.
The strong business growth directly resulted in a favorable volume effect on the Group's fixed cost structure and led to a 10-points increase in gross margin rate. For 2010, gross margin rate was 40% of Group’s revenue compared to a rate of 29% in 2009. This increase of gross margin associated to cost control over operating expenses, led to a slight operating and net profit from continuing activities in 2010 compared to a (3.6) million euros of operating and net losses in 2009.
Over fiscal year 2010, MEMSCAP Group reported a net consolidated loss of (0.4) million euros due to INTUISKIN discontinued operations compared with a (5.1) million euros net loss for full-year 2009.
Highlights of the year
On May 26, 2010, MEMSCAP Group finalized the sale of its INTUISKIN subsidiary in equity within iCosmeceuticals. This transaction allowed MEMSCAP being entirely focused on the aerospace, medical and biomedical, optical communications and adaptive optics market segments, on which its business divisions are strongly active with headquarters expenses significantly reduced.
Following to a consecutive subscription of a new investor within iCosmeceuticals, on December 21, 2010, MEMSCAP stake in this company ended at 14.6%.
Concluded in the beginning of the second half 2010, the North Carolina manufacturing facility lease renewal resulted of a significant extension of the clean-room areas. This extension enabled the Group to centralize all its US operations into a single plant for increased efficiency and to finalize the sale of an unused building located in the same area.
MEMSCAP shareholders’ equity slightly increased up to 18.9 million euros on December 31, 2010, whereas Company financial debt decreased by 1.9 million euros.
The strong recovery of the Group business activities in 2010 as well as the INTUISKIN spin-off enabled MEMSCAP to show a positive cash flow from operating activities of 0.7 million euros compared to a negative cash flow of (2.3) million euros in 2009. Excluding INTUISKIN discontinued activities, total net cash variation resulting from 2010 period ended at (0.2) million euros.
As December 31, 2010, MEMSCAP available cash amounted to 2.2 million euros, including cash investments (mutual funds and bonds) for 1.0 million euros, recorded under IFRS accounting standards under financial assets available for sale.
Shareholders Meeting: June 20, 2011, at 16:00.
Q1 Earnings: April 29, 2011
MEMSCAP is the leading provider of innovative micro-electro-mechanical systems (MEMS)-based solutions. MEMSCAP standard and custom products and solutions include components, component designs (IP), manufacturing and related services. MEMSCAP customers include Fortune 500 businesses, major research institutes and universities. The company's shares are traded on the Eurolist of NYSE Euronext Paris S.A (ISIN: FR0010298620-MEMS) and belong to the CAC small, CAC Mid & Small, CAC All-Tradable and CAC All-Share indexes. More information on the company's products and services can be obtained at www.memscap.com.