Apr 27, 2006
- Net sales: EUR 19.0 (16.3) million, 16% up on Q1 of previous year.
- Operating profit before goodwill amortization and depreciation (EBITDA) was EUR 2.4 (2.0) million
- Demand for Electronic Stability Control products for Automotive Business Unit remained good
- Strong growth for Sensing Solutions Business Unit
- VTI expects its growth to continue through the year 2006
VTI Group's net sales for January-March were EUR 19.0 million (16.3 million). Net sales of Sensing Solutions Business Unit improved by 86% to EUR 2.2 (1.2) million. Net sales of Automotive Business Unit grew by 11% to EUR 16.8 (15.1) million.
Sales outside Finland accounted for 99.8% (99.8%) of total net sales.
The gross profit of VTI Group was EUR 6.9 (5.5) million, representing 36.4% (33.5%) of net sales. This is EUR 1.4 million higher than the year before, due mainly to an improved product mix and higher productivity.
The operating result of the Group was EUR -0.6 (-0.6) million, which includes depreciation of goodwill of EUR 1.4 million. The goodwill was created when EQT acquired VTI in 2002. The profit before goodwill amortization (EBITA) was EUR 0.8 (0.8) million. The result was impacted by expenses in relation to the new office and production facility as well as by increased depreciation.
Research and development expenses were EUR 3.7 (2.8) million, which is 19.3% (17.1%) of net sales. New R&D personnel were hired in 2005 to strengthen the development of new products especially for Sensing Solutions Business Unit to ensure future growth.
Net financing costs for the period were EUR 0.2 (0.4) million. The corresponding period last year includes interest in the amount of EUR 0.2 million related to the new facility.
The Group's result for the period was EUR -0.8 (-1.0) million.
VTI's business is divided into the Automotive Business Unit and Sensing Solutions Business Unit. The latter serves customers in several application areas; Medical & Instruments, Sports & Wellness and Terminals.
The cornerstone of VTI's technology, 3D-MEMS, is a highly unique technology platform and enables the design and manufacture of industry-leading sensors in all six degrees of freedom. It involves an innovative combination of surface and bulk micro machining to shape silicon and glass into three-dimensional structures. VTI's technology produces accurate, small, low-power and cost competitive acceleration, pressure and angular rate sensors.
The net sales of the Automotive Business Unit improved 11% to EUR 16.8 (15.1) million. During the review period, the positive development in demand for ESC systems continued. It is estimated that ESC penetration in automobiles will increase in the future.
The Automotive Business Unit supplies the automotive industry with motion and pressure sensors, used in applications such as vehicle stability control (ESC), electronic parking brake (EPB), hill start aid (HSA), anti-lock braking systems (ABS), electronically controlled suspension (ECS) and various alarm and control applications. Tire pressure measurement (TPMS) and the so-called Run Flat Tire (RFT) are new growth areas for VTI sensors. VTI sensors are being used by the majority of automotive manufacturers.
Net sales of the Sensing Solutions Business Unit grew by 86% over the preceding year to EUR 2.2 (1.2) million. The increase in sales was generated by the growing demand for medical and instrument applications using VTI sensors.
The Sensing Solutions Business Unit is expected to grow rapidly in the future due to increasing demand in medical applications, as well as consumer applications for the sports & wellness segment and handheld terminals. Examples include pacemakers, GPS equipment, sports watches and diving equipment.
VTI focuses on applications where it can provide added value to its customers with low power, small size and high performance sensor products combined with a competitive price.
Gross investments by the Group for the period were EUR 3.6 (1.7) million. The investments were allocated to new equipment and improvements in production capacity, performance and new production technologies.
The Group's solvency ratio remained strong at 64.1% (68.0%).
The Group's interest-bearing liabilities amounted to EUR 21.6 (18.1) million.
VTI's largest shareholder is the EQT III Private Equity Fund (former EQT Northern Europe).
The VTI Group had 758 (719) employees at the end of the review period. 67.4% (70.8%) of the personnel worked in Finland. The average number of employees during the review period was 776 (661).
The company is expected to report its figures in accordance with IFRS for the first time on 31 December 2006.
VTI operates in the two billion euro market of micro-electro-mechanical (MEMS) inertial and pressure sensors. In addition to the automotive industry, inertial and pressure sensors are increasingly being used in medical, industrial and consumer electronics, providing an attractive growth opportunity for VTI. The MEMS market is expected to grow over 10% annually. VTI intends to grow faster than the market in general.
VTI has systematically developed enablers for further growth through investments in R&D, production, personnel, operating systems and its customer interface. In addition to growth, VTI focuses on improving its operational efficiency in 2006 and VTI expects its growth to continue through the year.
Vantaa, 27 April 2006
VTI Technologies Oy
Board of Directors
VTI develops and produces silicon-based capacitive sensors using its proprietary 3D-MEMS (MicroElectroMechanical System) technology, with application areas in acceleration, inclination, shock, vibration, angular rate and pressure measurement.
VTI is owned by EQT III private equity fund. VTI's net sales in 2005 totaled EUR 74.7 million and the company had approx. 800 employees. Along with the head office in Finland and the global partner network, VTI's international sales and marketing network includes offices in Germany, USA, Japan and China. Besides Finland, VTI also has manufacturing operations in Mexico. More information: www.vti.fi.
Distribution
Principal media
VTI Q1 appendices (PDF 42 kb)
1. Profit and Loss Account
2. Balance sheet
3. Source and Application of funds
4. Key performance indicators
VTI Group's quarterly report January-March 2006
VTI's growth continues
- Net sales: EUR 19.0 (16.3) million, 16% up on Q1 of previous year.
- Operating profit before goodwill amortization and depreciation (EBITDA) was EUR 2.4 (2.0) million
- Demand for Electronic Stability Control products for Automotive Business Unit remained good
- Strong growth for Sensing Solutions Business Unit
- VTI expects its growth to continue through the year 2006
Net sales and result
VTI Group's net sales for January-March were EUR 19.0 million (16.3 million). Net sales of Sensing Solutions Business Unit improved by 86% to EUR 2.2 (1.2) million. Net sales of Automotive Business Unit grew by 11% to EUR 16.8 (15.1) million.
Sales outside Finland accounted for 99.8% (99.8%) of total net sales.
The gross profit of VTI Group was EUR 6.9 (5.5) million, representing 36.4% (33.5%) of net sales. This is EUR 1.4 million higher than the year before, due mainly to an improved product mix and higher productivity.
The operating result of the Group was EUR -0.6 (-0.6) million, which includes depreciation of goodwill of EUR 1.4 million. The goodwill was created when EQT acquired VTI in 2002. The profit before goodwill amortization (EBITA) was EUR 0.8 (0.8) million. The result was impacted by expenses in relation to the new office and production facility as well as by increased depreciation.
Research and development expenses were EUR 3.7 (2.8) million, which is 19.3% (17.1%) of net sales. New R&D personnel were hired in 2005 to strengthen the development of new products especially for Sensing Solutions Business Unit to ensure future growth.
Net financing costs for the period were EUR 0.2 (0.4) million. The corresponding period last year includes interest in the amount of EUR 0.2 million related to the new facility.
The Group's result for the period was EUR -0.8 (-1.0) million.
Development by business units
VTI's business is divided into the Automotive Business Unit and Sensing Solutions Business Unit. The latter serves customers in several application areas; Medical & Instruments, Sports & Wellness and Terminals.
The cornerstone of VTI's technology, 3D-MEMS, is a highly unique technology platform and enables the design and manufacture of industry-leading sensors in all six degrees of freedom. It involves an innovative combination of surface and bulk micro machining to shape silicon and glass into three-dimensional structures. VTI's technology produces accurate, small, low-power and cost competitive acceleration, pressure and angular rate sensors.
Automotive Business Unit
The net sales of the Automotive Business Unit improved 11% to EUR 16.8 (15.1) million. During the review period, the positive development in demand for ESC systems continued. It is estimated that ESC penetration in automobiles will increase in the future.
The Automotive Business Unit supplies the automotive industry with motion and pressure sensors, used in applications such as vehicle stability control (ESC), electronic parking brake (EPB), hill start aid (HSA), anti-lock braking systems (ABS), electronically controlled suspension (ECS) and various alarm and control applications. Tire pressure measurement (TPMS) and the so-called Run Flat Tire (RFT) are new growth areas for VTI sensors. VTI sensors are being used by the majority of automotive manufacturers.
Sensing Solutions Business Unit
Net sales of the Sensing Solutions Business Unit grew by 86% over the preceding year to EUR 2.2 (1.2) million. The increase in sales was generated by the growing demand for medical and instrument applications using VTI sensors.
The Sensing Solutions Business Unit is expected to grow rapidly in the future due to increasing demand in medical applications, as well as consumer applications for the sports & wellness segment and handheld terminals. Examples include pacemakers, GPS equipment, sports watches and diving equipment.
VTI focuses on applications where it can provide added value to its customers with low power, small size and high performance sensor products combined with a competitive price.
Investments and finance
Gross investments by the Group for the period were EUR 3.6 (1.7) million. The investments were allocated to new equipment and improvements in production capacity, performance and new production technologies.
The Group's solvency ratio remained strong at 64.1% (68.0%).
The Group's interest-bearing liabilities amounted to EUR 21.6 (18.1) million.
Shares and shareholders
VTI's largest shareholder is the EQT III Private Equity Fund (former EQT Northern Europe).
Personnel
The VTI Group had 758 (719) employees at the end of the review period. 67.4% (70.8%) of the personnel worked in Finland. The average number of employees during the review period was 776 (661).
Preparations for changeover to IAS/IFRS accounting
The company is expected to report its figures in accordance with IFRS for the first time on 31 December 2006.
Outlook 2006
VTI operates in the two billion euro market of micro-electro-mechanical (MEMS) inertial and pressure sensors. In addition to the automotive industry, inertial and pressure sensors are increasingly being used in medical, industrial and consumer electronics, providing an attractive growth opportunity for VTI. The MEMS market is expected to grow over 10% annually. VTI intends to grow faster than the market in general.
VTI has systematically developed enablers for further growth through investments in R&D, production, personnel, operating systems and its customer interface. In addition to growth, VTI focuses on improving its operational efficiency in 2006 and VTI expects its growth to continue through the year.
Vantaa, 27 April 2006
VTI Technologies Oy
Board of Directors
More information:
Tiina Hansson, Vice President, Corporate Communications, VTI Technologies Oy, tel. +358 9 8791 8240, mobile +358 40 827 8844.VTI in brief
VTI Technologies is a global market leader of low-g acceleration sensors for automotive industry applications and Cardiac Rhythm Management (CRM). Application areas for the company's motion and pressure sensors include the Automotive industry, Sports & Wellness, Medical & Instruments as well as handheld Terminals.VTI develops and produces silicon-based capacitive sensors using its proprietary 3D-MEMS (MicroElectroMechanical System) technology, with application areas in acceleration, inclination, shock, vibration, angular rate and pressure measurement.
VTI is owned by EQT III private equity fund. VTI's net sales in 2005 totaled EUR 74.7 million and the company had approx. 800 employees. Along with the head office in Finland and the global partner network, VTI's international sales and marketing network includes offices in Germany, USA, Japan and China. Besides Finland, VTI also has manufacturing operations in Mexico. More information: www.vti.fi.
Distribution
Principal media
APPENDICES (in the attachement)
VTI Q1 appendices (PDF 42 kb)
1. Profit and Loss Account
2. Balance sheet
3. Source and Application of funds
4. Key performance indicators