MEMSCAP – Q4 2021: Quarterly sales up 16%

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GRENOBLE, France–(BUSINESS WIRE)–Regulatory news:

MEMSCAP (NYSE Euronext: MEMS), the leader in innovative solutions based on MEMS (micro-electro-mechanical systems) technology, today announced its results for the fourth quarter ended December 31, 2021.

Analysis of the consolidated income statement

Consolidated revenue for the fourth quarter of 2021 amounted to 3.1 million euros (3.5 million US dollars) compared to 2.7 million euros (3.2 million US dollars) for the fourth quarter of 2020, a significant increase of 16%.

The breakdown of consolidated revenue by market segment for the fourth quarter of 2021 is as follows:

Market segments / Turnover (M€) – Unaudited

Q1

2021

Q2

2021

Q3

2021

Q4

2021

Q4

2020

Var. T4 21 against

Q4 20 (€m)

Var. T4 21 against

Q3 21 (€m)

Aerospace

0.9

1.4

1.4

1.6

0.8

+0.8

+0.2

Optical Communications / Adaptive Optics

0.5

0.5

0.5

0.6

0.2

+0.4

+0.1

Medical / Biomedical

1.3

0.6

0.7

0.7

1.4

-0.7

-0.0

Others

0.1

0.2

0.3

0.2

0.3

-0.1

-0.1

Total

2.7

2.7

2.9

3.1

2.7

+0.4

+0.2

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

MEMSCAP’s consolidated results for the fourth quarter of 2021 are presented in the following table:

In millions of euros – Unaudited

Q1

2021

Q2

2021

Q3

2021

Q4

2021

Q4

2020

Income

2.7

2.7

2.9

3.1

2.7

Standard products*

Custom products

2.2

0.6

2.0

0.6

2.1

0.8

2.3

0.8

2.3

0.4

Revenue cost

(2.0)

(1.9)

(2.1)

(2.2)

(1.9)

Gross margin

0.8

0.8

0.9

0.9

0.8

% of sales

28%

30%

29%

28%

30%

Operating Expenses**

(0.9)

(0.8)

(0.9)

(0.9)

(0.7)

Operating profit / (loss)

(0.1)

(0.0)

(0.0)

(0.0)

0.1

Financial profit / (loss)

(0.0)

(0.0)

(0.0)

(0.0)

(0.1)

income tax expense

(0.0)

(0.0)

(0.0)

0.0

(0.0)

Net profit / (loss)

(0.1)

(0.1)

(0.1)

(0.0)

(0.0)

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

* Including the dermo-cosmetics segment.

** Net of research and development grants.

* * *

Consolidated revenue for the fourth quarter of 2021 confirms the recovery of the Group’s avionics business previously affected by the Covid-19 pandemic. The avionics business posted quarterly revenue of €1.6 million (+€0.8 million compared to the fourth quarter of 2020) and represents 52% of the Group’s quarterly revenue. Consolidated revenue for the optical communications business increased by +0.1 million euros compared to the third quarter of 2021 and by +0.4 million euros compared to the fourth quarter of 2020. quarterly medical activity is in line with that of the third quarter of 2021. It should be noted that the high level of sales of the medical activity during the fourth quarter of 2020 was due to the planning of sales over the financial year and to the volumes deliveries in the fourth quarter of 2020.

For the fourth quarter of 2021, the Group’s gross margin rate stood at 28% of consolidated revenue compared to 30% for the fourth quarter of 2020. It should be noted that in the fourth quarter of 2020, the Group benefited from an exceptional PPP subsidy (Paycheck Protection Program) linked to the production wage costs of the American factory. This subsidy amounts to 0.2 million euros and compensates for the consequences of the Covid-19 pandemic on the Custom Products activity in the fourth quarter of 2020.

Operating expenses amounted to 0.9 million euros for the fourth quarter of 2021 compared to 0.7 million euros for the fourth quarter of 2020. It is reminded that the sales/marketing expenses and the R&D operations of the Group were temporarily reduced in the context of the Covid-19 pandemic during the fourth quarter of 2020.

As a result, the Group posted breakeven operating income for the fourth quarter of 2021 compared to operating income of €0.1 million for the fourth quarter of 2020.

Taking into account the financial result and the change in deferred taxes over the period, the Group’s net result is at breakeven, similar to the fourth quarter of 2020.

EBITDA was €0.2 million for the fourth quarter of 2021. EBITDA was €1.0 million for fiscal year 2021 compared to €0.8 million for the 2020 financial year.

Finally, the Group’s available cash continued to increase and amounted to €5.3 million as of December 31, 2021 compared to €4.2 million as of December 31, 2020.

* * *

Analysis and outlook

The third quarter of 2021 confirms the upward trend in the Group’s avionics activity initiated in the second quarter of 2021. MEMSCAP posted an EBITDA of 1.0 million euros for the 2021 financial year and increased its available liquidities which amounted to 5, 3 million euros as of December 31, 2021.

The potential impact of the pandemic remains highly uncertain based on currently available information. MEMSCAP will continue to regularly assess the impact of the Covid-19 pandemic on its business.

MEMSCAP is pursuing its strategy focused on the avionics, medical and optical communications segments as well as increasing the flexibility of its production capacities.

* * *

Financial statements for fiscal year 2021: March 25, 2022.

About MEMSCAP

MEMSCAP is the leading provider of innovative solutions based on micro-electro-mechanical systems (MEMS).

MEMSCAP’s products and solutions include components, component design (IP), manufacturing and related services.

For more information, visit our website at: www.memscap.com.

MEMSCAP is listed on Euronext Paris™ – Segment C – ISIN code: FR0010298620 MEMS.

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