Trading Update: RoodMicrotec announces total income for the third quarter of 2020

RoodMicrotec N.V., a leading independent company for semiconductors supply and quality services, today releases its trading update for the third quarter of 2020. The total income for the quarter was EUR 3.0 million, which is in line with the total income for the third quarter of 2019. COVID-19 is still impacting the business of RoodMicrotec, but the short-term demand from our customers is back to the level of last year. The leading indicator, the book-to-bill ratio, was above one for the third quarter after a drop in the second quarter. For the first 9 months of 2020, the total book-to-bill ratio is above one.

“We are continuing our tight control of operational expenses and are pleased to see that the cash position at the end of the third quarter is maintained at a good level”, says Martin Sallenhag, CEO of RoodMicrotec. “These measures along with the level of total income have generated a quarter with break-even net result which is very encouraging.”

RoodMicrotec is maintaining a very tight control of the personnel expenses through short-time work when appropriate and possible, as well as a temporary salary waiver of the management. All operational expenses are reviewed in detail and only absolutely necessary costs for delivering our high-quality services to the customers are approved. There is still sufficient capacity within the operational departments, so no additional capital investments are necessary.

Outlook
At this stage, it is still not possible to forecast either the duration of the COVID-19 disruption or the impact of the currently increasing number of new COVID-19 infections in Europe. If there are no further lock-downs, RoodMicrotec expects to generate a total income in the range of EUR 3.2 million to EUR 3.6 million in the fourth quarter of 2020, thus offsetting the temporary drop in total income compared to 2019. The second-half of the year is then expected to generate a positive net result.