Egide: 1ST HALF 2020 REVENUE
Bollène, July 23, 2020 - 6:00 p.m. (CET) Press
Release
1ST HALF 2020
REVENUE
- 1st half 2020 revenue at €17.27m (+16.1%
YoY)
- All subsidiaries are growing:
- Egide SA: + 16.3%
- Egide USA: + 20.8%
- Santier: + 10.7%
- OUTLOOK
- Current backlog for S2 2020 is firm and similar to S1.
- Uncertainty of the market forces due to the COVID-19 crisis
make it difficult to predict the situation for S2 2020 and
2021.
***
Egide Group's unaudited consolidated revenue
grew to €17.27 million, an increase of 16.1% compared to H1 2019.
The Egide group's unaudited consolidated revenue for the first half
of 2020 benefited in particular from growth in the thermal
imaging market in Europe, and from Egide’s performance in the power
market in the US.
Commercial activity has been heavily impacted by
the COVID-19 crisis, as since February there has been no ability to
visit customers in person, and no trade show activity. This has
adversely affected our order intake, relative to the revenues in
S1. As a gradual opening of the economy is observed, Egide is
preparing for new commercial activity. In the frame of its
worldwide sales strategy to develop Egide’s export business, Egide
has relaunched in June its actions to increase its international
network coverage, particularly in Russia with the signing of a new
distribution agreement for this area. It has brought on a new
representative in Germany, plan a similar in Spain and has added an
additional sales manager in the US.
The impact of the Covid-19 remained minimal on
the production and delivery requirements from customers worldwide.
The Group operates in structurally resilient markets such as
Defense, Telecom or Medical. The industrial facilities in Cambridge
and San Diego are considered essential for defense as they provide
products for DX/DO rated programs. Similarly, the Bollène site
produces and contributes to advanced research projects for the
French and European defense and aerospace sectors.
From the beginning of the crisis, the Egide
Group has taken the necessary initiatives to minimize the risks, in
particular by securing its supply chain with a 2nd qualified source
on at least 2 continents and by implementing strict health rules in
all its plants.
The purchasing department is still in regular
contact with key suppliers and strictly monitors delivery times.
For the 1st half and to date, no major supply disruptions in Europe
and the United States have been seen.
Sales denominated in dollars now account for
63.7% of the group's total turnover in the first half of 2020.
HIGHLIGHTS BY BUSINESS UNIT
In Million of Euros |
H1 2019 |
H1 2020 * |
Var. % |
Comp. Var. % ** |
Egide SA |
5.38 |
6.27 |
+16.3% |
16.3% |
Egide USA |
5.01 |
6.05 |
+20.8% |
17.7% |
Santier |
4.47 |
4.95 |
+10.7% |
7.7% |
Group |
14.87 |
17.27 |
+16.1% |
14.3% |
* unaudited ** At constant
exchange rates
For information, the average euro / dollar
parity in H1 2020 was 1.102 compared to 1.1298 in H1 2019.
REVENUE PER APPLICATION
In Million of Euros |
H1 2019 |
H1 2020 * |
Var. % |
Comp. Var.% ** |
Power |
4.29 |
5.54 |
+29.1% |
26.2% |
RF/MW |
2.01 |
3.41 |
+69.7% |
66.1% |
Optronics |
2.78 |
2.13 |
-23.4% |
-24.7% |
Thermal Imaging |
4.22 |
4.46 |
+5.7% |
5.6% |
Others |
1.57 |
1.73 |
+10.2% |
7.9% |
Group |
14.87 |
17.27 |
+16.1% |
14.3% |
* unaudited ** At constant
exchange rates
Thermal ImagingMajor customers
in the EU and the middle east, in difficulty in 2019, recovered in
the late H2 2019, and continued to in S1 2020. In the U.S., demand
decreased due to realignment of our customers priorities from
defense related to commercial applications. The US sites are
currently working on next generation commercial applications, while
keeping current on the defense applications. For the full year
2020, we anticipate worldwide, good market conditions in this
business segment.
RF/MWAs anticipated, after a
difficult year 2019 due to the postponement of some satellite
programs in both Europe and the United States, the market picked up
again in H1 2020. As expected, these applications are not affected
by the Covid-19 crisis.
PowerStrong demand from Egide
customers in this business sector was supported by both revenue
growth and the recovery in orders. Demand growth was seen in all
Egide's product segments: transport, defense and satellite. This
trend is expected to continue in 2020.
OptronicsWhile demand on few
legacy telecom projects is slowing down, the key metro and
long-distance fiber optic programs, on which Egide is qualified,
performed as promised and generated additional revenues. In the
optical telecommunications market, we are seeing a real trend to
qualify new sources such as Egide. The full impact of this new
trend is expected from 2021 (usual and lengthy qualification
process).
OthersRevenue in new markets
grew from entries in new applications such as industrial equipment,
sensors, etc.… Commercial activities focus in these diversification
areas remains a priority to generate new revenue streams.
MAIN EVENTS SINCE JUNE 30,
2020On July 1, 2020, there was a fire at the EGIDE USA
facility in Cambridge, Maryland, USA which was contained within the
plating department. Priority was given to remediation of the
various hazard materials associated with the plating operation. The
hazardous material has been removed and contained without release
to the surrounding community.During the week of July 20, a partial
opening of the facility with assembly and cleaning operations is
underway. The reconstruction of the plating operation has
necessitated that plating processes will need to be transferred to
our affiliated companies – Santier, Inc. which is AS9100 certified
and NADCAP certified for plating; and EGIDE SA, which is ISO 9001
certified. Replacement equipment for the plating operation is
underway with the cooperation of our engineering team and
vendors.
OUTLOOK
The impact of the fire in Cambridge will
adversely affect Q3, but there will be a rebound in Q4.
Remediation efforts in the facility are on track and a fully new
and more efficient operation is expected by the 4th quarter.
Due to the Covid-19 crisis, commercial activity
continues to be by video or telephone conference, and we are seeing
a slight slowdown from a relatively few customers.
The group is not currently able to precisely
quantify these various potential impacts. Based on these elements,
Egide Group remains prudent on the full-year outlook, however, the
PPP (Payroll Protection Plan) loan forgiveness in the USA and the
insurance coverage in Cambridge will help mitigating the risks from
a profitability stand point.
FINANCIAL
CALENDARSeptember 29, 2020: Press release
2020 Half-year results (after French market
closure)September 30, 2020: Half Year 2020 Results
presentation to analysts - By Visio conference - Login information
will be provided later.
CONTACTSEGIDE – Luc
Ardon – CFO - +33 4 90 30 35 94 –
luc.ardon@fr.egide-group.com FIN’EXTENSO – Press Relations
- Isabelle Aprile - +33 1 39 97 61 22 –
i.aprile@finextenso.fr
About Egide -
www.egide-group.com
Egide is a group with
an international dimension, specialized in the manufacture of
hermetic packages and heat dissipation solutions for sensitive
electronic components. It operates in cutting edge markets with
strong technology barriers to entry in all critical industry
segments (Thermal Imaging. Optronics. High-Frequency. Power
Units…). Egide is the only pure player in this market niche with
manufacturing bases in France and the United States.
Egide’s
eligibility for tax efficient French innovation-focused mutual
funds (FCPI) was renewed on May 14,
2018.
Egide is listed on
Euronext Paris™- Segment C - ISIN code: FR0000072373 – Reuters:
EGID.PA – Bloomberg: GID
- Egide-PR-2020-HY-Revenue-07232020