Melexis Q2 2007 results

Intermediate declaration by the Board of Directors
Ieper, Belgium - July 31th, 2007, 07.00 hrs CET

Revenues for the second quarter were 50.7 million EUR, a slight increase of 1 % compared to the same quarter of the previous year. Our Opto division showed the highest increase, with revenues up 8%.

Geographically, revenues also remain in the same range as the 2nd quarter of 2006, with a slight rise in our Asian turnover.

Gross margin was 21.2 million EUR, an increase of 1 % as compared to the same quarter last year. Income from operations was 9.5 million EUR, a decrease of 9 % compared to the previous year. This is the result of an increase in operating expenses, compared to flat sales.
R&D expenditures were at 14.5 % of sales, while Selling and G&A rose to 8.5 % of sales. Net profit was 8.5 million EUR, 20 cent per share.

With about 45% of our revenue in USD, the USD/EUR exchange rate has a negative impact. If we would assume the USD to have been stable, the sales growth would have been 4% year on year for the 2nd quarter. If Melexis would be reporting in USD, the main reference currency in the semiconductor market, then the growth would have been 8%.

Rudi De Winter, CEO of Melexis, comments:
“The growth is not as we expected, but it is still better than the semiconductor industry in general. Over the recent years we have seen an increased trend of a widening customer base thanks to our ASSP product offering. These new customers will each grow over the next years. Therefore our confidence in the future remains unaffected.” 

The Board of Directors decided to pay out an interim dividend of 0,6 EUR gross per share. The payment date will be Tuesday October 23rd, 2007. Accordingly, all holders of ordinary shares at the close of the trading hours of Euronext Brussels on Monday, October 22nd, 2007 will be entitled to receive a gross dividend of 0,6 EUR gross per share (0,45 net/share). 
The shares of the Company will be traded 'ex right' on Euronext Brussels as of the start of tradery.