AIXTRON SE (AIXG) Tops Q2 EPS by 2c; Board Recommends Grand Chip Takeover Offer

August 11, 2016 9:08 AM EDT
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AIXTRON SE (NASDAQ: AIXG) reported Q2 EPS of (EUR0.09), EUR0.02 better than the analyst estimate of (EUR0.11). Revenue for the quarter came in at EUR34.1 million versus the consensus estimate of EUR35.79 million.

Additionally has AIXTRON today published the reasoned opinion from the Executive and Supervisory Boards on the takeover offer by Grand Chip Investment GmbH (“GCI”) for all outstanding AIXTRON shares in which both governing bodies recommend acceptance of the offer. In this statement, the GCI offer and the planned transaction is deemed positive as it could provide AIXTRON with the relevant support to successfully develop all targeted technologies to market maturity and to better access growth markets as underlined by the following examples:

  • GCI has committed to support AIXTRON to continue developing existing product lines, for its customers’ benefit and to maintain the existing global set up.
  • GCI has also committed that the IP portfolio is to remain with and be used solely by AIXTRON while protecting sensitive and confidential customer information.
  • GCI has committed to support a regional expansion, especially in China, which would allow better exploitation of the most significant growth opportunities.
  • The fairness opinion of J.P. Morgan supports that the GCI’s takeover offer reflects a fair and adequate offer price.
  • Alternative scenarios for AIXTRON would either be very risky or would result in a smaller AIXTRON with reduced growth potential.

In light of the foregoing, after thoughtful consideration both AIXTRON Boards deem the Takeover Offer as fair to, and in the best interest of AIXTRON and its stakeholders, including AIXTRON Shareholders and AIXTRON Group’s employees. Therefore, the Boards recommend acceptance of the offer. AIXTRON’s work councils also welcome the offer.


Despite the fact that the first half 2016 revenues were 31% weaker compared to the first six months of 2015, Management expects stronger revenues in the second half of 2016 compared to the first half. Total order intake in Q2/2016 as well as equipment backlog were up compared to the previous quarter, supporting Management’s expectation of significant revenue growth for the second half of 2016. Consequently, Management reiterates the full year 2016 revenue guidance given in February 2016.

Based on the assessment of AIXTRON’s current order situation, including current risks and opportunities as well as on the internal budget rate of USD/EUR 1.10, Management expects to achieve for fiscal year 2016 revenues between EUR 170 and 200 million. Total 2016 order intake is expected to be between EUR 180 and 200 million.

Based on the internal budget rate of USD/EUR 1.10 and depending on the successful completion of qualification processes, market entry efforts as well as the achievement of revenues at the high end of the guidance range, Management expects to achieve another improvement of results in 2016. Before transaction related impacts, EBITDA, EBIT, net result and free cash flow are expected to improve slightly compared to 2015 but to remain negative for the full year 2016.

Due to uncertainties in terms of investment requirements for certain product groups, potential restructuring costs or consequences from the transaction, Management will review EBITDA development for 2017.

For earnings history and earnings-related data on AIXTRON SE (AIXG) click here.

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