!!! Press Release !!!

AIXTRON AG continues its fast pace of growth as the world market leader in MOCVD equipment, the key technology for the production of compound semiconductors. The company has further strengthened its position as world leader in the last few months and clearly shows stronger growth than its main competitor from the US. Compound semiconductors, comprising several chemical elements, are the key components of numerous electronic applications. The huge worldwide demand for these products is reflected in the excellent business results for the first half of 1998. The company posted total revenues of DM 54 mil., according to US-GAAP, up 44% on the same period in 1997. Pre-tax profits increased to DM 14.1 mil. while consolidated earnings ran to DM 6.4 mil.

Net earnings for the first half of 1998 according to HGB (German accounting standards) rose to DM 5.9 mil., compared to DM 4.2 mil. for the corresponding period in 1997. The forecast results for the first half of 1998 have therefore been exceeded by 18 per cent. At the end of the 2nd quarter ´98 operating and financing income stood at DM 13 mil., which is almost the same level as that of the entire previous year.

Due to the excellent interim results which exceeded forecast results, the forecast for the entire year will be increased. Management expects year-end revenues of DM 105 mil. and pre-tax profits according to HGB of DM 21.8 mil. Net earnings are expected to rise to DM 10.5 mil. corresponding to earnings per share of DM 2.10. This represents an increase of 64 per cent on the DVFA results for 1997 of DM 6,4 mil. Revenues and profit forecasts for the second half of 1998 are based on an average exchange rate of DM 1.65. For the first half of 1998 an average exchange rate of DM 1.81 was used. As previously, 60 per cent of the revenues of the company will be dollar-based.

Orders too, are booming, promising further growth. Already, they have led to a 109 per cent increase in the first half of 1998 compared to the same period in 1997. Asia remains the company’s strongest market. In 1997 AIXTRON earned 37 per cent of its revenues from this region. In the first quarter of 1998 this proportion rose to 39 per cent and in the 2nd quarter to 41 per cent. Japan and Taiwan are AIXTRON´s most important business partners in the Far East. The financial crisis hitting several of the Asian Tiger Economies has not negatively affected AIXTRON´s business. There have been no order cancellations, nor are non-payment problems expected as, with every order placed, customers generally pay a deposit of 50 per cent. In addition, all Asian business activities are covered by letters of credit backed by German banks.

The extent of customer satisfaction with the process and economic efficiencies of AIXTRON equipment is underlined by the recent follow-up order from Hewlett Packard, San Jose. The company has ordered additional Planetary Reactors^® in order to increase their production of compound semiconductors for blue and green LEDs.

AIXTRON itself is also expanding. In line with one of its objectives indicated during its IPO last Fall, AIXTRON is currently expanding its production, research and service capacity at its headquarters in Aachen-Laurensberg. In addition, the company has purchased land in the Technology Center Herzogenrath, which will be used to expand production capacity over the next few years.

For further information please contact:

© AIXTRON AG, August 19, 1998

Homepage | Contact | About Aixtron | Products & Services | Customer Support | R & D | Production Results | What's new | Events

© 1996 - 2003 by AIXTRON AG