Melexis Q1 2020 results - First quarter sales of 138.2 million EUR

Intermediate declaration by the Board of Directors
Ieper, Belgium - April 29th, 2020, 07.00 hrs CET

Sales for the first quarter of 2020 were 138.2 million EUR, an increase of 19% compared to the same quarter of the previous year and an increase of 9% compared to the previous quarter.
The EUR/USD exchange rate evolution had a positive impact on sales of 1% compared to the same quarter of last year and no impact compared to the previous quarter.
The gross result was 56.0 million EUR or 40.6% of sales, an increase of 20% compared to the same quarter of last year and an increase of 11% compared to the previous quarter.
R&D expenses were 14.9% of sales, G&A was at 5.7% of sales and Selling was at 2.7% of sales. The operating result was 24.0 million EUR or 17.4% of sales, an increase of 52% compared to the same quarter of last year and an increase of 31% compared to the previous quarter.
The net result was 20.7 million EUR or 0.51 EUR per share, an increase of 48% compared to 13.9 million EUR or 0.35 EUR per share in the first quarter of 2019 and an increase of 35% compared to the previous quarter.

Outlook
Melexis reiterates its announcement of April 1st to withdraw its full year 2020 outlook, as the economic impact resulting from the COVID-19 pandemic cannot be quantified at this moment.

Business comment - Françoise Chombar, CEO:
“Melexis had a solid start of the year with a 19% year-over-year and a 9% sequential sales growth, which is at the high end of the sales guidance provided at the beginning of the year. Leaving aside the negative impact of COVID-19 at the end of March, sales were heading for more than 140 million EUR.
Melexis continues to serve customers in the best possible way, despite ongoing supply chain disruptions, mainly in chip assembly (packaging). On the demand side, many customers - mainly in Europe and the US - have shut down due to COVID-19 lockdown measures, while mostly Asian customers have restarted operations. The combined impact of disruptions, both on the supply and the demand side, will have a significant negative impact on sales in the second quarter. A positive element, which we expect will soften the impact, is that inventory levels of Melexis’ products at customer level are estimated to be low.
In the first quarter, the outperforming product lines were temperature sensors, pressure sensors, magnetic position sensors and embedded motor drivers.
As announced earlier, stronger demand in temperature sensors is linked to the fact that our products are critical components to much of the equipment to overcome the COVID-19 pandemic, ranging from diagnostics, over fever measurement and respiratory devices.
In the automotive industry, the China 6 norm benefits our pressure sensors in multiple ways, for example in the area of gasoline particulate filters.
New magnetic position sensor content growth comes from the chassis, transmission, and braking areas thanks to x-by-wire operation, additional controls and higher functional safety and reliability. Autonomous driving and electrified powertrains, for example, create new challenges that our 3rd generation Triaxis® sensors are able to meet with their high functional safety level and stray field robust mode.
We observe an increasing trend, both for new energy and for conventional fuel cars, towards small cooling pumps or sensored cooling valves for better thermal management, which is being served with our embedded motor drivers. Melexis has also been benefiting from more sales for air grille shutters which reduce fuel or battery energy consumption.
Sales to automotive customers represented 91% of total sales in the first quarter of 2020. The portion of standard product (ASSPs) sales represented 65% of total sales in the first quarter of 2020.”

Financial calendar

• Annual Shareholders Meeting: May 12, 2020
• Publication Q2 Results 2020: July 29, 2020 (at 7 hrs CET)
• Publication Q3 Results 2020: October 28, 2020 (at 7 hrs CET)
• Publication FY 2020 Results: February 3, 2021 (at 7 hrs CET)

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