Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Singulus Technologies AG (SGTSY, Financial) reported a strong gross margin of 34.6%, which is above their target of 30%.
- The company has a diversified revenue stream across solar, semiconductor, and life sciences sectors.
- Singulus Technologies AG (SGTSY) is managing its cash flow effectively, with a focus on tight working capital management.
- The company is strategically integrating its vacuum and wet chemical technology platforms to create unique market propositions.
- Singulus Technologies AG (SGTSY) has a stable workforce with low staff turnover, which is considered a key asset.
Negative Points
- Q1 2025 revenues were lower than expected at 16.4 million, compared to 20.6 million in the previous year.
- The company is facing challenges with cash availability, partly due to restricted cash for bank guarantees.
- Singulus Technologies AG (SGTSY) has a negative net asset position of 50.4 million, which needs improvement.
- Order intake was low in Q1 2025 at 6.4 million, reflecting market uncertainties and delayed customer decisions.
- The solar segment, which is crucial for the company, only accounted for 15% of sales, with some delays in project fulfillment.
Q & A Highlights
Q: Do you expect to execute the full backlog orders this year, and what is the average lead time for your solutions?
A: We do not expect to turn the full backlog into revenues this year, but anticipate converting about 75-80%. We expect more orders to come in, and typically, the lead time from order to delivery is around 6 to 12 months. We are confident in achieving our revenue objectives for the year. — Unidentified_2
Q: Can you provide more details on the recent order from Wea Germany? Is it a one-off project or part of a broader engagement?
A: The order is based on a new technology applicable in the semiconductor space. It's the first machine sold to this customer, and we expect further applications in this area. — Unidentified_3
Q: Please give an update on financing and loan issues.
A: We have refinanced key parts of our debt structure, extending loans from Chinese banks and a super senior loan. The bond due in July next year is under discussion for refinancing, and we are exploring efficient options. — Unidentified_2
Q: Why was the order intake low year over year, especially before the tariff announcement?
A: The low order intake is due to market uncertainties and hesitancy from customers to make quick decisions. Investors are cautious about the boundary conditions under which they operate, leading to delays in executing projects. — Unidentified_3
Q: Could you provide an update on CNBM projects?
A: We have delivered key CNBM projects and are in close contact with them. Currently, there are no projections for new projects, but we maintain a good dialogue regarding the existing ones. — Unidentified_3
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
