Melexis Q4 and FY 2014 results - highest sales growth since 2000

Intermediate declaration by the Board of Directors
Ieper, Belgium - February 4th, 2015, 07.00 hrs CET

For the year 2014, sales were 332.4 million EUR, an increase of 21% compared to the previous year.
The EUR/USD exchange rate evolution had a negative impact of 2% compared to 2013.
Gross margin was 161.3 million EUR, an increase of 26% compared to 2013.
R&D expenses were 13.7% of sales, G&A was at 4.9% of sales and Selling was at 2.4% of sales. The operating result was 89.2 million EUR, an increase of 40% compared to last year.
Net income was 85.0 million EUR, 2.10 EUR per share, an increase of 54% compared to 55.2 million EUR or 1.37 EUR per share in 2013.

Sales for the fourth quarter of 2014 were 88.1 million EUR, an increase of 17% compared to the same quarter of the previous year and an increase of 2% versus the previous quarter.
The EUR/USD exchange rate evolution had a positive impact of 3% compared to the same quarter of the previous year and a positive impact of 3% compared to the previous quarter.
Gross margin was 43.8 million EUR, an increase of 25% compared to the same quarter of last year.
R&D expenses were 14.5% of sales, G&A was at 5.3% of sales and Selling was at 2.3% of sales. The operating result was 22.0 million EUR, an increase of 22% compared to the same quarter of 2013.
Net income was 20.2 million EUR, 0.50 EUR per share, an increase of 28% compared to 15.8 million EUR or 0.39 EUR per share in the fourth quarter of 2013.

Outlook
Melexis expects sales in the first quarter of 2015 to be around the level of 94 million EUR.
Assuming a stable EUR/USD exchange rate versus 2014, Melexis expects sales growth in 2015 to be between 8% and 14%, a gross profit margin above 47% and an operating margin above 25%. Taking into account a EUR/USD exchange rate of 1.15, the sales growth is expected to be between 18% and 24% with an operating margin above 26%.

Business comment - Françoise Chombar, CEO:
"2014 is the first year since 2000 that Melexis experienced a sales growth of over 20%, except of course for the post-crisis year 2010 which was by all means very exceptional.
For the full year 2014, the main contributors for growth were magnetic sensors and sensor interfaces.
A more than average sales growth was equally noted for temperature sensors, pressure sensors and micro-actuators.
The same product lines were the ones to show an above average performance in the fourth quarter. We saw a better than expected demand in the last weeks of 2014. Combined with a stronger USD rate, this resulted in another quarterly record sales number.
Sales to automotive customers were 89% of sales in the fourth quarter and 88% of sales in 2014.
The portion of ASSP sales in the fourth quarter and full year represented 56%, 3% higher than in the full year 2013."

Financial Calendar

Annual Shareholders Meeting: April 20, 2015
Publication Q1 2015 Results: April 23, 2015
Publication Q2/HY1 2015 Results: July 29, 2015
Publication Q3 2015 Results: October 21, 2015
Publication FY 2015 Results: February 10, 2016

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