MEMSCAP Q3 2015: Increase of Profitability

Regulatory News:

Memscap (Paris:MEMS) (NYSE Euronext: MEMS), the leading provider of innovative solutions based on MEMS (micro-electro-mechanical systems) technology, today announced its earnings for the third quarter ending September 30, 2015.

Consolidated revenue for the third quarter of 2015 was 3.0 million euros (3.3 million US dollars) compared to 3.1 million euros (4.1 million US dollars) for the third quarter of 2014.

Consolidated revenue distribution by market segment, over the third quarter of 2015, is as follows:

(Any apparent discrepancies in totals are due to rounding.)

MEMSCAP’s consolidated earnings for the third quarter of 2015 are given by the following table:

(Any apparent discrepancies in totals are due to rounding.)
* Including the dermo-cosmetic segment.
** Net of research & development grants.

* * *

Cumulated net profit of 0.7 million euros for the nine-month period ending September 30, 2015

The Group’s gross margin rate for the third quarter of 2015 was 37% of the quarterly consolidated sales, an increase of 8 points compared to the third quarter of 2014.

The amount of the operating expenses during the third quarter of 2015, net of research & development grants, remained similar to the third quarter of 2014 at 0.9 million euros.

Due to the significant increase in the gross margin rate in line with the previous quarters, the operating profit amounted to 0.2 million euros. This operating profit represents 7% of the quarterly consolidated sales compared to operating earnings at break-even level for the third quarter of 2014.

The Group’s net profit for the third quarter of 2015 amounted to 0.2 million euros versus net earnings at break-even level for the third quarter of 2014. Thus, MEMSCAP shows a cumulated net profit of 0.7 million euros for the nine-month period ending September 30, 2015.

Finally, the strong growth of the consolidated net profit directly led to an increase of more than 1.0 million euros in net cash minus financial liabilities over the nine-month period ending September 30, 2015. At the end of September 2015, net cash minus financial liabilities amounted to 1.9 million euros. At September 30, 2015, total available liquidities amounted to 3.4 million euros plus 0.4 million euros of available non-used credit lines.

Analysis and perspectives

MEMSCAP financial performance over the third quarter of 2015 confirmed the growth of the Group’s profitability in line with the previous quarters. Consequently, net cash minus financial liabilities has significantly increased and represents 11% of the consolidated shareholders’ equity at September 30, 2015.

In addition to its business strategy focused on high value-added markets, MEMSCAP intends to continue its efforts to develop its trade relationships and intellectual property on related market segments.

Q4 2015 revenue and earnings: January 28, 2016

About MEMSCAP

MEMSCAP is the leading provider of innovative micro-electro-mechanical systems (MEMS)-based solutions. MEMSCAP standard and custom products and solutions include components, component designs (IP), manufacturing and related services. MEMSCAP customers include Fortune 500 businesses, major research institutes and universities. The company's shares are traded on the Eurolist of NYSE Euronext Paris (ISIN: FR0010298620-MEMS) and belong to the CAC small, CAC Mid & Small, CAC All-Tradable and CAC All-Share indexes. More information on the company's products and services can be obtained at www.memscap.com.

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