PERFORMANCE IN Q1 2015 AS EXPECTED

TOPSIL SEMICONDUCTOR MATERIALS A/S

Announcement No. 09/2015

Interim report, Q1 2015
Three months ended 31 March 2015                                                                                            

HIGHLIGHTS OF THE QUARTER

• Topsil's revenue was DKK 60.1 million in Q1 2015 against DKK 73.4 million in the year-earlier period (down 18%). Q1 revenue was affected by the fact that no deliveries were made to the customer involved in the complaint case.
   
• EBITDA was a loss of DKK 0.3 million in Q1 2015 against a profit of DKK 3.3 million in Q1 2014. The contribution ratio was 49.9% in Q1, representing a year-on-year increase of 1.2 percentage point.
   
• Cash flows from operating activities were an inflow of DKK 10.3 million in Q1 2015 against an outflow of DKK 10.4 million in the year-earlier period. Working capital stood at DKK 123.4 million at 31 March 2014, representing a reduction of DKK 24.0 million compared to 31 March 2014. Cash flows for investing activities were DKK 2.5 million.
   
• In early January 2015, an existing long-term contract with one of Topsil's biggest FZ customers was extended by two years to and including 2017. 
   
• In January 2015, the staff was reduced by 15 non-production employees in line with the announced cost saving programme. 
   
• In early February, the customer complaint case was settled with the customer and an agreement was made to resume deliveries beginning in Q2 2015. Negotiations about compensation from the third-party contractor are still ongoing.
   
• In March 2015, Topsil renewed the agreement with its principal bankers. Under the agreement, the existing facilities were extended until 1 March 2016.
   
• The remaining production equipment from the old production plant was installed at the new plant in the course of Q1 2015 and is now used in day-to-day production.  
   

 OUTLOOK FOR 2015

The Group retains its guidance for the full year. Topsil expects revenue growth in 2015 of around 0-5% and EBITDA in the range of DKK 10-20 million.

Market volume is expected to grow, but prices are expected to remain squeezed as a result of surplus capacity. The lower selling prices are expected to be offset by efficiency improvements and cost reductions.

         Please direct any questions regarding this announcement to the Company's CEO and CFO through Susanne Hesselkjær, Executive Secretary, tel.: +45 2926 6752, sh@topsil.com.
         
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Vedhæftede filer:

09-15 Q1 2015_UK.pdf