LPKF Expects to Make Profit Again in 2017

LPKF closed the 2016 financial year with revenue of EUR 91 million (+4.4% year-on-year) and earnings before interest and taxes (EBIT) of EUR -6.8 million.

EBIT was negatively impacted by unscheduled write-downs, among other factors. Without one-off effects, EBIT amounted to EUR +0.4 million. The fourth quarter of 2016 was particularly strong, with revenue of EUR 30 million and adjusted EBIT of EUR 3 million.

As has already been published, orders on hand at the end of the year were up 110% year-on-year at EUR 28 million. Incoming orders amounted to EUR 106 million in 2016, which also represented an increase on the previous year (+28%). The positive trend in incoming orders has also continued over the past few weeks.

As a result of the systematic implementation of several measures, LPKF succeed-ed in lowering the break-even point to around EUR 90 million at the beginning of 2017. At the same time, the company continued to fire on all cylinders in development and has launched several new products and methods that are expected to contribute to revenue growth in the future. These include a method for precision machining of glass known as laser-induced deep etching (LIDE). The LIDE method makes it possible to create extremely precise holes (through glass via = TGV) and structures at very high speeds, thereby paving the way for increased use of glass as a material for microsystems technology.

“Looking back, a second financial year with losses certainly does not represent a reason to celebrate,” says CEO Dr. Ingo Bretthauer. “Nonetheless, we have done everything possible to create the right conditions for new, profitable growth. The 2017 financial year has got off to a promising start with a good level of incoming orders and gives us cause for optimism again.”

The Management Board is forecasting revenue of EUR 92-100 million and an EBIT margin of between 1% and 5% for the current financial year. In the following years, the company intends to increase its revenue further. The Management Board is aiming to generate EBIT margins of at least 10% again in the medium term.

The full annual report is available in German and English. LPKF will publish its report on the first three months of 2017 on May 11, 2017.