Melexis stacks up records again in the third quarter of 2010

Gross margin was 28.5 million EUR, an increase of 106% compared to the same quarter last year and an increase of 10% compared to the previous quarter.

The operating result was at 17 million EUR, compared to 3.4 million EUR in the same quarter the previous year and 14.8 million EUR in the previous quarter. This represents an increase of 14% compared to the previous quarter.

Net profit was 15.2 million EUR, 35 cent per share, up from 3 cent per share in the third quarter of 2009. Net profit increased by 26% compared to the previous quarter.

R&D expenses were 12,5% of sales, Selling was 3% of sales and G&A was at 5% of sales.

For the 2nd quarter in a row, Melexis is breaking a number of historic records:
- highest ever quarterly sales;
- highest ever gross profit margin at 48.3%;
- highest ever operating margin at 28.7%;
- highest ever quarterly operating result and net profit in absolute figures;
- highest ever ASSP (application specific standard products) sales at 54.6%;
- sales in Asia continues to grow and, in absolute figures, ended up in the third quarter at an all time high with 25.6 million EUR.

Melexis purchased 129.000 shares during the third quarter at an average price of 10,24 EUR. As a result, the total amount of treasury shares was 1.854.943 at the end of the third quarter.

Rudi De Winter, CEO of Melexis comments:
“The Melexis Shanghai office is now fully deployed to serve the local market. We were extremely pleased by the high customer presence and interest at the Melexis technology days both in Shanghai and Shenzhen last September. China is clearly eager to adopt the newest automotive technologies.”

Françoise Chombar, CEO of Melexis comments:
“Melexis products are now anchoring on a broader customer base. The excellent growth path is being enabled mainly by Melexis own IP (ASSPs), profoundly fostered by our people’s innovative spirit.”

Outlook Q4 2010
We expect sales in the fourth quarter of 2010 to be at about the same level as the current quarter despite the weaker EUR/USD exchange rate.

Outlook 2011
For 2011, we expect high single digit growth in sales, our gross profit margin to solidify above 45% and operating margin to remain above 23% taking into account a EUR/USD exchange rate of 1.40.