Further Financial Impact of Arbitration Proceedings With a Supplier
06 Octobre 2022 - 6:00PM
Business Wire
Regulatory News:
Publication of inside information pursuant to Article 17 of the
Market Abuse Regulation
As reported in the second quarter results release dated July 28,
2022 and in the half-year report published on September 6, 2022,
X-FAB recorded a provision in its condensed consolidated financial
statements totaling USD 13.8 million in the second quarter of 2022
for expenses relating to interest payments to be paid to a supplier
and for associated legal fees. The provision was required as a
consequence of an arbitration decision concerning a trade dispute
with a supplier for the supply of materials.
Following additional final clarification by the arbitrator, and
contrary to X-FAB’s initial interpretation of the arbitration
award, it has now become clear that the supplier is not obliged to
supply the disputed materials in return for the further USD 36.8
million that was paid to the supplier in the third quarter based on
the arbitration award. This will have a one-off negative impact of
USD 36.8 million on the third quarter’s operating profit (EBIT) and
EBITDA, since this further expense was not recorded as an expense
in the short-term earnings guidance previously provided in the
second quarter results release. Accordingly that guidance for
earnings and cash flows is lowered by the amount of this one-off
additional expense of USD 36.8 million.
X-FAB will provide more detailed information on the financial
results of the third quarter on October 27, 2022 as part of its
regular financial reporting.
The full impact of the arbitration has now been accounted for.
The dispute relates to the years 2019 and 2020 and does not affect
X-FAB’s positive long-term business outlook and guidance.
About X-FAB
X-FAB is the leading analog/mixed-signal and MEMS foundry group
manufacturing silicon wafers for automotive, industrial, consumer,
medical, and other applications. Its customers worldwide benefit
from the highest quality standards, manufacturing excellence and
innovative solutions by using X-FAB’s modular CMOS processes in
geometries ranging from 1.0 to 0.13 µm, and its special silicon
carbide and MEMS long-lifetime processes. X-FAB’s analog-digital
integrated circuits (mixed-signal ICs), sensors and
micro-electro-mechanical systems (MEMS) are manufactured at six
production facilities in Germany, France, Malaysia, and the US.
X-FAB employs more than 4,000 people worldwide. For more
information, please visit www.xfab.com.
Forward-looking information
This press release may include forward-looking statements.
Forward-looking statements are statements regarding or based upon
our management’s current intentions, beliefs or expectations
relating to, among other things, X-FAB’s future results of
operations, financial condition, liquidity, prospects, growth,
strategies or developments in the industry in which we operate. By
their nature, forward-looking statements are subject to risks,
uncertainties and assumptions that could cause actual results or
future events to differ materially from those expressed or implied
thereby. These risks, uncertainties and assumptions could adversely
affect the outcome and financial effects of the plans and events
described herein.
Forward-looking statements contained in this press release
regarding trends or current activities should not be taken as a
report that such trends or activities will continue in the future.
We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, unless legally required. You should not place undue
reliance on any such forward-looking statements, which speak only
as of the date of this press release.
The information contained in this press release is subject to
change without notice. No re-report or warranty, express or
implied, is made as to the fairness, accuracy, reasonableness or
completeness of the information contained herein and no reliance
should be placed on it.
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version on businesswire.com: https://www.businesswire.com/news/home/20221006005633/en/
X-FAB Press Contact
Uta Steinbrecher Investor Relations X-FAB Silicon Foundries
+49-361-427-6489 uta.steinbrecher@xfab.com
X-FAB Silicon Foundries (EU:XFAB)
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