Quarterly revenue growth of more than 19%, reflecting the dynamics of the avionics and medical businesses

Quarterly operating profitability of continuing operations of 7%

Quarterly EBITDA from continuing operations of €0.4 million

Quarterly net profit of €1.7 million

Finalization of the FABLITE program transforming MEMSCAP’s profitability profile

Expected strengthening of the growth rate

GRENOBLE, France, 25 January 2023—(BUSINESS WIRE)–Regulatory News:

MEMSCAP (NYSE Euronext: MEMS), a leading provider of high-precision, high-stability pressure sensor solutions for the avionics and medical markets using MEMS1 technology, today announced earnings for the fourth quarter ending December 31, 2022.

Analysis of the consolidated income statement

In accordance with IFRS 5 Non-current assets held for sale and discontinued operations, income from US operations is excluded from income from continuing operations and is included in the consolidated income statement through the after-tax loss from discontinued operations. Consolidated revenue for the fourth quarter of 2022, excluding US operations, was €2.7 million (US$2.8 million), compared with €2.3 million (US$2.6 million) in the fourth quarter quarter of 2021. Including sales from discontinued operations, consolidated revenues amounted to €3.0 million (US$3.1 million) in the fourth quarter of 2022.

The consolidated revenue breakdown by market segment in the fourth quarter of 2022 and presented in accordance with IFRS 5 is as follows:

Market segments / Revenue
(In millions of euros) – Unaudited

Q1 21

(Overstated)

Q221

(Overstated)

Q3 21

(Overstated)

Q4 21

(Overstated)

Q4 21

%

Q1 22

Q222

Q3 22

Q4 22

Q4 22
%

Cosmonautics

0.9

1.4

1.4

1.6

71%

1.7

1.8

1.4

1.8

68%

medical

1.2

0.6

0.6

0.6

27%

0.6

0.4

0.6

0.8

30%

others

0.0

0.0

0.1

0.0

2%

0.0

0.0

0.1

0.0

1%

Total income from continuing operations

2.2

2.0

2.1

2.3

100%

2.3

2.3

2.1

2.7

100%

Income from discontinued operations

– IFRS 5 (US operations)

0.6

0.6

0.8

0.8

0.4

0.7

0.4

0.3

(Any apparent discrepancies in the totals are due to rounding. In accordance with IFRS 5, items relating to the 2021 financial year have been restated to present comparative information for discontinued operations.)

MEMSCAP’s consolidated earnings for the fourth quarter of 2022 and presented in accordance with IFRS 5 are given in the following table:

In millions of euros – Unaudited

Q1 21

(Overstated)

Q221

(Overstated)

Q3 21

(Overstated)

Q4 21

(Overstated)

Q1 22

Q222

Q3 22

Q4 22

Income from continuing operations

2.2

2.0

2.1

2.3

2.3

2.3

2.1

2.7

Revenue expenditure

(1.1)

(1.2)

(1.2)

(1.4)

(1.4)

(1.4)

(1.2)

(1.6)

Gross profit

1.0

0.8

0.9

0.9

0.8

0.9

0.8

1.1

% of revenue

49%

39%

43%

39%

37%

38%

41%

41%

Operating expenses*

(0.8)

(0.7)

(0.8)

(0.8)

(0.8)

(0.9)

(0.8)

(0.9)

Operating profit / (loss)

0.3

0.1

0.1

0.1

0.0

(0,0)

0.0

0.2

Financial gain / (loss)

(0,0)

(0,0)

(0,0)

(0,0)

(0,1)

0.2

0.0

(0,1)

Income tax expense

(0,0)

(0,0)

(0,0)

0.0

0.0

(0,0)

(0,0)

(0,0)

Net profit/(loss) from continuing operations

0.3

0.0

0.1

0.1

(0,0)

0.1

0.0

0.1

Profit / (loss) after tax from discontinued operations

(0.4)

(0,1)

(0.2)

(0.2)

(0.4)

(0.3)

(0,1)

1.6

Net Profit / (Loss)

(0,1)

(0,1)

(0,1)

(0,0)

(0.4)

(0,1)

(0,1)

1.7

(Any apparent discrepancies in the totals are due to rounding. In accordance with IFRS 5, items relating to the 2021 financial year have been restated to present comparative information for discontinued operations.)

* No grants for research and development.

* * *

(In accordance with IFRS 5, the items related to the financial year 2021 have been restated to present comparative information on discontinued operations related to the Group’s US operations.)

The avionics segment, the Group’s largest business, accounted for 68% of total revenue from continuing operations in the fourth quarter of 2022. The avionics and medical businesses showed growth of +14% and +34%, respectively, compared to the fourth quarter of 2021 .

The Group’s gross margin ratio stood at 41% of consolidated sales compared to 39% for the fourth quarter of 2021.

The amount of operating expenses of €0.9 million for the fourth quarter of 2022 remains in line with the previous quarters.

The Group therefore reported a consolidated operating profit from continuing operations of €0.2 million in the fourth quarter of 2022 compared to a consolidated operating profit of €0.1 million in the fourth quarter of 2021. After taking into account the consolidated financial income and deferred tax expense, the Group reported a quarterly net profit from continuing operations of €0.1 million for the fourth quarter of 2022, similar to the fourth quarter of 2021.

Including the capital gain related to the sale of the foundry business assets (custom products) of the Group’s US subsidiary (FABLITE program), the consolidated quarterly net profit amounted to EUR 1.7 million compared to the net profits for the fourth quarter of 2021 Mr.

EBITDA from continuing operations amounted to +0.4 million euros for the fourth quarter of 2022, thus +1.4 million euros for the financial year 2022. On 31 December 2022, the Group reported available cash of €5.5 million, including cash investments (Corporate bonds / investment securities) recorded as non-current financial assets of €1.3 million.

* * *

Finalizing the FABLITE program

As previously announced, MEMSCAP completed in December 2022 the sale of its foundry business assets (custom products). These assets, previously held by the Group’s US subsidiary, include the US manufacturing plant, teams, equipment, technology and related customers.

As part of this transaction, MEMSCAP entered into a strategic variable optical attenuator (VOA) supply agreement with the acquirer of the foundry business and finalized the implementation of its factory-less VOA organization.

Following this new industrial organization, MEMSCAP retains the design and distribution of VOAs and fully outsources the manufacturing of these products intended for the optical communications market.

* * *

Analysis and perspectives

FY2022 appears to be an important step in the history of MEMSCAP. The completion of the strategic FABLITE program within the planned deadline has profoundly transformed the Group’s profitability profile.

MEMSCAP is now primarily positioned in the avionics and medical businesses. In parallel, the Group should significantly increase its profitability in the optical communications business thanks to the new organization without factory data.

In the next financial year, MEMSCAP should benefit from its investment in research and development, the intensification of its marketing activity and the momentum of its high value-added markets and thus expects to grow its operations.

* * *

Financial statements for the financial year 2022: 29 March 2023.

About MEMSCAP

MEMSCAP is a leading MEMS supplier1 based pressure sensors, best in class in terms of precision and stability (very low drift) for two market segments: aerospace and medical.

MEMSCAP also provides variable optical attenuators (VOAs) for the optical communications market.

MEMSCAP became the world’s first listed MEMS company in March 2001.

1 Micro electromechanical systems

For more information visit our website at:

www.memscap.com.

MEMSCAP is listed on Euronext Paris™
Section C – ISIN code: FR0010298620 MEMS.

Check out the source version on businesswire.com: https://www.businesswire.com/news/home/20230124005991/en/

Contacts

Jan Cousin
Chief Financial Officer
Tel.: +33 (0) 4 76 92 85 00
[email protected]

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