Recently, LPKF Laser, a leading supplier of innovative laser solutions in Germany, released its performance report for the first half of the 2024 fiscal year as of June 30, demonstrating the company's steady performance and forward-looking layout in a complex market environment.
According to the financial report, LPKF Laser&Electronics SE achieved significant growth in comprehensive revenue in the first half of fiscal year 2024, climbing 15% year-on-year to 55.2 million euros (first half of 2023: 47.9 million euros). Interest and pre tax profit (EBIT) also improved compared to the same period last year, decreasing to -5.5 million euros (first half of 2023: -7.1 million euros). In addition, the adjusted EBIT profit margin is -5.1 million euros.
From the second quarter of 2024, the company achieved a revenue of 29.8 million euros (Q2 2023: 27.7 million euros), a year-on-year increase of 7.6%. The EBIT loss narrowed to -1.1 million euros (Q2 2023: -0.4 million euros), indicating that the company's profitability is gradually improving. The adjusted EBIT for the second quarter is -800000 euros. LPKF's performance is in line with its expectations for the second quarter (revenue: € 28 million to € 33 million, adjusted EBIT: € 3 million to € 2 million).
Orders and Strategic Progress
In terms of order volume, LPKF's order amount reached 61.1 million euros within six months, a decrease of 8% compared to the same period last year (first half of 2023: 66.2 million euros). The backlog of orders has decreased from 81.4 million euros last year to 65.5 million euros.
The company management committee is not very satisfied with the order situation during this period, which reflects the cautious investment of some target market customer groups since the beginning of the year.
LPKF CEO Klaus Fiedler pointed out that in the first six months, the company had particularly difficulty converting customer projects into orders, especially in the areas of development and welding. Faced with investment hesitation in some markets, the positive trends in the semiconductor and solar energy sectors of the company have provided strong support for overall performance. The company is accelerating cooperation with customers and partners from multiple fields to build a rich product portfolio in response to market changes.
It is worth mentioning that LPKF has made a series of important strategic progress in the first half of this year. This leading semiconductor manufacturer has announced a switch from high-performance chip integration materials to glass, which has led to a significant increase in demand for Laser Induced Deep Etching (LIDE) technology for LPKF in the current market. The complex project progress milestones precisely reflect this impressive aspect.
With the help of LPKF's patented Laser Induced Deep Etching (LIDE) technology, semiconductor manufacturers can further improve the performance of microchips. This is particularly important in high-performance computing driven by artificial intelligence. This technology has been applied to the Vitrion 5000 series equipment equipped with glass through-hole (TGV) technology, significantly improving the efficiency and accuracy of glass through-hole processing. Currently, LPKF is collaborating with various clients and partners to establish a wide range of product portfolio businesses.
In addition to providing laser equipment, LPKF also offers OEM services for glass plate processing. This business is provided for customers who produce circuit boards that use glass in small quantities, or as a quality verification test for customers before large-scale application of laser equipment.
Outlook for the future
Looking ahead to the future, LPKF is confident in the prospects of the photovoltaic solar energy field and expects that the growing global demand for thin-film solar module production capacity will bring more orders to the company. At the same time, the company reiterated its mid-term growth target of achieving attractive single digit growth rates for its core businesses, and expects new business plans such as the semiconductor, display, and biotechnology markets to contribute significantly to triple digit total sales in the medium term.
The management committee is working with an experienced external consultant to optimize the group's cost structure and improve profitability. Christian Witt, the Chief Financial Officer of the company, said, "We have begun to identify further opportunities for structural improvements and continue to implement the operational measures already taken. They should bring the first batch of operational improvements this year
For the upcoming third quarter, the management committee expects consolidated revenue to be between 26 million and 31 million euros, with adjusted EBIT ranging from 3 million to 2 million euros.
The continued hesitation of some target markets towards capital expenditures may also have an impact on the second half of the year and lead to more accurate forecasts for the whole year. LPKF now expects a consolidated revenue of 130 million to 135 million euros for the fiscal year 2024 (previously: 130 million to 140 million euros), with an adjusted EBIT profit margin of 4% to 7% (previously: 4% to 8%).
In the medium term, as previously stated, LPKF's goal is to achieve attractive single digit growth rates for its core business. In addition to core businesses, new business plans in the semiconductor, display, and biotechnology markets are expected to contribute triple digit total sales in the medium term. Based on sales growth and the resulting economies of scale, the management committee aims to achieve attractive double-digit EBIT profit margins for LPKF Group in the coming years.
Regarding LPKF Laser
LPKF Laser, founded in 1976, is a leading supplier dedicated to developing innovative laser solutions. The company was listed in Frankfurt in 1998 and is currently one of the high-tech SDAX-150 index companies in Germany.
LPKF Laser has successfully developed specialized technologies and equipment for the electronics, semiconductor, solar photovoltaic, medical, and automotive industries. LPKF laser systems play a crucial role in the process manufacturing of printed circuit boards, microchips, automotive components, solar panels, and many other components. LPKF Laser is headquartered in Garbsen near Hanover, Germany, with its subsidiaries and representative offices active worldwide. The company has representative offices in over 70 countries worldwide, with 11 subsidiaries in Europe, Asia, and North America. The total number of employees worldwide is approximately 750, and the business scope is extensive.
Source: OFweek
