COMMUNIQUÉ DE PRESSE

par MEMSCAP (EPA:MEMS)

Inside Information / News release on accounts, results

image

revenue

•       Slight decline in medical activities (-3%) due to the sharp drop in half-year sales relating to implantable solutions (-69%)

•       Half-year adjusted1 EBITDA of EUR 1,410 thousand (19% of revenue)

•       Half-year operating profit of EUR 899 thousand (12% of revenue)

•       Consolidated half-year net profit of EUR 992 thousand euros (14% of revenue)

•       Consolidated available cash at EUR 6,017 thousand as of June 30, 2024

•       Intensification of efforts related to the "Engine Control" development and industrialization program

•       Increase in sales and marketing resources dedicated to medical activities to expand the number of applications and clients, reducing the volatility of this segment

•       Planned emphasis on the Group's sales and technical programs reflected in operating expenses expected to decrease over the coming quarter

Grenoble (France)September 2, 202407:30 a.m.

MEMSCAP (Euronext Paris: MEMS), leading provider of high-accuracy, high-stability pressure sensor solutions for the aerospace and medical markets using MEMS technology (Micro Electro Mechanical Systems), today announced its earnings for the first half of 2024 ending June 30, 2024.

Analysis of consolidated revenue

In accordance with the previous quarterly press releases, consolidated revenue from continuing operations for the first half of 2024 amounted to EUR 7,275 thousand compared to EUR 7,089 thousand for the first half of 2023.

Over the first half of 2024, the distribution of consolidated revenue from continuing operations by market segment is as follows:

Market segments / Revenue

(In thousands of euros)

H1 2023

H1 2023 (%)

H1 2024

H1 2024 (%)

Aerospace

4,515

64%

4,899

67%

Medical

1,709

24%

1,664

23%

Optical communications

798

11%

667

9%

Others (Royalties from licensed trademarks)

67

1%

45

1%

Total revenue from continuing operations 

7,089

100%

7,275

100%

 

(Any apparent discrepancies in totals are due to rounding.)

Consolidated revenue from continuing operations for the first half of 2024 increased by 3% compared to the first half of 2023.

The aerospace segment, the Group's largest market, recorded revenue of EUR 4,899 thousand for the first half of 2024 (first half of 2023: EUR 4,515 thousand euros), representing an increase of more than 8% compared to the first half of 2023. This segment represents 67% of the Group's consolidated revenue in the first half of 2024 (first half of 2023: 64%).

Revenue from the medical sector amounted to EUR 1,664 thousand for the first half of 2024 (first half of 2023: EUR 1,709 thousand), reflecting a 3% decreased compared to the first half of 2023. This evolution is due to the sharp drop in half-year sales relating to implantable solutions (-69% compared to the first half of 2023). The medical segment represents 23% of the Group's consolidated revenue in the first half of 2024 (first half of 2023: 24%).

The optical communications business, which includes the design and commercialization of variable optical attenuators (VOA) under a fabless organization, reported consolidated revenue of EUR 667 thousand for the first half of 2024 (first half of 2023: EUR 798 thousand), accounting for 9% of the Group's consolidated revenue (first half of 2023: 11%).

Royalties from licensed trademarks amounted to EUR 45 thousand for the first half of 2024, a similar level to the first half of 2023 at EUR 67 thousand.

Analysis of consolidated income statement

MEMSCAP’s consolidated earnings for the first half of 2024 are given within the following table:

In thousands of euros

H1 2023

H1 2024

Revenue from continuing operations

7,089

7,275

Cost of revenue

(4,030)

(4,339)

Gross margin

3,059

2 936

% of revenue

43.2%

40.4%

Operating expenses*

(1,901)

(2,037)

Operating profit / (loss)

1,158

899

Financial profit / (loss)

23

110

Income tax expense

(47)

(17)

Net profit / (loss)

1,134

992

 

(Financial data were subject to a limited review by the Group’s statutory auditors. On August 30, 2024, MEMSCAP’s board of directors authorized the release of the interim condensed consolidated financial statements on June 30, 2024. Any apparent discrepancies in totals are due to rounding.) * Net of research & development grants.

For the first half of 2024, the gross margin rate stood at 40.4% of consolidated revenue compared to 43.2% in the first half of 2023. It should be noted that the gross margin rate for the first half of 2023 benefited from a particularly favourable product mix. Thus, the gross margin amounts to EUR 2,936 thousand for the first half of 2024 compared to EUR 3,059 thousand for the first half of 2023.

Operating expenses, net of research and development grants, amounted to EUR 2,037 thousand for the first half of 2024 compared to EUR 1,901 thousand for the first half of 2023. In the first half of 2024, these expenses reflected the emphasis on the Group’s sales and technical programs. The Group anticipates a decrease in operating costs over the coming quarter following the non-recurrence of some of these expenses linked to this significant effort during the first half.

The average full-time equivalent workforce of the Group increased from 51.7 employees in the first half of 2023 to 61.8 employees in the first half of 2024.

For the first half of 2024, the operating profit from continuing operations amounted to EUR 899 thousand (12% of consolidated revenue) compared to an operating profit of EUR 1,158 thousand (16% of consolidated revenue) for the first half of 2023.

The financial income posted a gain of EUR 110 thousand for the first half of 2024, primarily due to the exchange rate fluctuations of the US dollar and the Norwegian krone, compared to a break-even result for the first half of 2023.

The tax expense recorded for the first half of 2024 and 2023 corresponded to the variation in deferred tax assets. This charge has no impact on the Group's cash flow.

The Group therefore posted a consolidated net profit of EUR 992 thousand for the first half of 2024 (14.0% of consolidated revenue) compared to a net profit of EUR 1,134 thousand for the first half of 2023 (16% of consolidated revenue).

Evolution of the Group’s cash / Consolidated shareholders’ equity

Adjusted EBITDA1 from continuing operations for the first half of 2024 amounted to EUR 1,410 thousand (19% of consolidated revenue) compared to EUR 1 677 thousand for the first half of 2023 (24% of consolidated revenue).

As of June 30, 2024, the Group posted available cash of EUR 6,017 thousand (December 31, 2023: EUR 6,237 thousand) including cash investments (Corporate bonds / investment securities) recorded under non-current financial assets. It should be noted that the inventory amount increased by EUR 943 thousand compared to December 31, 2023.

As of June 30, 2024, MEMSCAP shareholders’ equity totalled EUR 18,631 thousand (December 31, 2023: EUR 17,676 thousand).

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1 Adjusted EBITDA means operating profit before depreciation, amortisation, share-based payment charge (IFRS 2) and including foreign exchange gains/losses related    to ordinary activities.

Perspectives

With a recognized expertise and driven by promising and high-visibility markets, MEMSCAP reaffirms its trajectory through 2026, focused on achieving an average annual hyper-growth rate of 20% (4G plan stands for consistent growth, competitive growth, profitable growth, and responsible growth). The Company is now concentrating on finalizing its "Engine Control" development and industrialization program, which is expected to accelerate growth in the coming years and propel MEMSCAP beyond 2026.

Individual shareholder webinar: Monday, September 02, 2024 – 11:00 a.m.

Thank you for registering and sending your questions in advance using the following link:

https://memscap.com/fr/visio/

 

Q3 2024 earnings: October 28, 2024

 

 


 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Interim condensed consolidated financial statements at 30 June 2024

                                                                        30 June

2024

 

31 December

2023

 

image

€000

€000

Assets

Non-current assets

Property, plant and equipment ..................................................................... 

1 165

937

Goodwill and intangible assets ...................................................................... 

6 644

6 682

Right-of-use assets ........................................................................................ 

5 099

5 354

Other non-current financial assets ................................................................ 

1 513

1 436

Employee benefit net asset ........................................................................... 

1

1

Deferred tax asset ......................................................................................... 

88

106

 

image

image

Current assets

Inventories .................................................................................................... 

4 997

4 054

Trade and other receivables .......................................................................... 

3 237

2 714

Prepayments ................................................................................................. 

283

197

Cash and short-term deposits ....................................................................... 

4 504

4 801

image                                                                                                                                         13 021                    11 766

 

image

Total assets

 

 

 

Equity and liabilities

Equity

Issued capital ................................................................................................. 

1 927

1 869

Share premium .............................................................................................. 

17 972

17 972

Treasury shares ............................................................................................. 

(124)

(134)

Retained earnings ......................................................................................... 

2 093

1 095

Foreign currency translation ......................................................................... 

(3 237)

(3 126)

 

image

image

Non-current liabilities

Lease liabilities .............................................................................................. 

4 614

4 646

Interest-bearing loans and borrowings ......................................................... 

--

26

Employee benefit liability .............................................................................. 

86

80

 

image

image

Current liabilities

Trade and other payables ............................................................................. 

3 215

2 780

Lease liabilities .............................................................................................. 

891

937

Interest-bearing loans and borrowings ......................................................... 

77

102

Provisions ...................................................................................................... 

17

35

imageTotal liabilities

Total equity and liabilities

 

CONSOLIDATED STATEMENT OF INCOME

Interim condensed consolidated financial statements at 30 June 2024

               For the six months ended 30 June         2024        2023

                                                 

image

Continuing operations

€000

€000

 

Sales of goods and services ...........................................................................

7 275

7 089

imageRevenue....................................................................................................              7 275                       7 089

Cost of sales ...................................................................................................             (4 339)                    (4 030)

Gross profit ...............................................................................................             2 936                       3 059

Other income .................................................................................................

147

157

Research and development expenses ...........................................................

(903)

(938)

Selling and distribution costs .........................................................................

(520)

(415)

Administrative expenses ................................................................................

(761)

(705)

imageOperating profit / (loss) ............................................................................                                             1 158

image

 

Finance costs ................................................................................................. Finance income ..............................................................................................

Profit / (loss) for the period from continuing operations before tax ..........

Income tax expense .......................................................................................

Profit / (loss) for the period from continuing operations ...........................

Profit / (loss) for the period ......................................................................

Earnings per share:

-

Basic, for profit / (loss) for the period attributable to ordinary equity holders of the parent (in euros) ..............................................................

€ 0.129

€ 0.152

-

Diluted, for profit / (loss) for the period attributable to ordinary equity holders of the parent (in euros) ..............................................................

€ 0.129

€ 0.147

-

Basic, profit / (loss) for the period from continuing operations attributable to ordinary equity holders of the parent (in euros) .............

€ 0.129

€ 0.152

-

Diluted, profit / (loss) for the period from continuing operations attributable to ordinary equity holders of the parent (in euros) .............

€ 0.129

€ 0.147

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Interim condensed consolidated financial statements at 30 June 2024

               For the six months ended 30 June         2024        2023

                                                 

image 

 

Profit / (loss) for the period ........................................................................

Items that will not be reclassified subsequently to profit or loss                                                                        

image

Actuarial gains / (losses) ..................................................................................                   --                             --

Income tax on items that will not be reclassified to profit or loss ..................                   --                             --

Total items that will not be reclassified to profit or loss .............................   image--      --

Items that may be reclassified subsequently to profit or loss                                                                              

Net gain / (loss) on available-for-sale financial assets .....................................                 42                          (34)

Exchange differences on translation of foreign operations ............................               (111)                       (778)

Income tax on items that may be reclassified to profit or loss .......................                   --                             --

imageTotal items that may be reclassified to profit or loss ..................................

Other comprehensive income for the period, net of tax .............................

Total comprehensive income for the period, net of tax ..............................


 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Interim condensed consolidated financial statements at 30 June 2024

 

image

                                                                                                                                                                       

(In thousands of euros, except for number of shares)         Number   Issued      Share       Treasury Retained Foreign    Total        of shares capital                premium shares     earnings currency shareholders’

                                                                                                                                                                                                                                                                                                                                                                                translation              equity

image

                                                                                                                                                            €000                    €000                    €000                                                                                                                               €000                      €000                    €000

                                                                                                               

At 1 January 2023 ............................................................................                7 476 902                    1 869                 17 972                   (144)                                                                                                                                    (242)                      (3 868)                15 587

Profit for the period .............................................................................  Other comprehensive income for the period, net of tax ..................... 

Total comprehensive income ........................................................... 

image
Treasury shares .................................................................................... 

Share-based payment .......................................................................... 

At 30 June 2023 ............................................................................... 

 

At 1 January 2024 ............................................................................ 

imageProfit for the period .............................................................................  --              992 Other comprehensive income for the period, net of tax .....................           --              (69)

Total comprehensive income ...........................................................                                                                                       --                                                                                                                                                                                                   1 034                           923

Capital increase ....................................................................................                     230 000                                                      --                                                                                                                                       (58)                                                         --

Treasury shares ....................................................................................                               --                          --                          --                         10                                                                                                                                              --                          --                         10

Share-based payment ..........................................................................                               --                          --                          --                          --                                                                                                                                             22                         --                         22

image                                                                                               

At 30 June 2024 ............................................................................... 

 

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CONSOLIDATED CASH FLOW STATEMENT

Interim condensed consolidated financial statements at 30 June 2024

 

               For the six months ended 30 June         2024        2023

image
                       

image

 

€000

€000

Operating activities:

Net profit / (loss) for the period ..................................................................................

992

1 134

Non-cash items written back:

       Amortization and depreciation ..............................................................................

401

356

       Loss / (capital gain) on disposal of fixed assets .....................................................

8

(3)

       Other non-financial activities ................................................................................

34

182

Accounts receivable .....................................................................................................

(439)

(1 367)

Inventories ...................................................................................................................

(991)

(597)

Other debtors ..............................................................................................................

(251)

(44)

Accounts payable .........................................................................................................

480

(67)

Other liabilities ............................................................................................................

(1)

296

Net cash flows from / (used in) operating activities - continuing operations .......... 

image

image

Investing activities:

Purchase of fixed assets ...............................................................................................

(144)

(190)

Proceeds from sale / (purchase) of other non-current financial assets .......................

(31)

19

Net cash flows used in investing activities - continuing operations ........................ 

image

image

Financing activities:

 

 

Repayment of borrowings ...........................................................................................

(51)

(50)

Payment of principal portion of lease liabilities ..........................................................

(317)

(242)

Sale / (purchase) of treasury shares ............................................................................

10

26

imageNet cash flows used in financing activities - continuing operations ........................                (358)                       (266)

Net foreign exchange difference .................................................................................

Increase / (decrease) in net cash and cash equivalents .......................................... 

Opening cash and cash equivalents balance ...........................................................  Closing cash and cash equivalents balance ............................................................. 

                                 

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