Tronics Microsystems Achieves Annual Net Profit of 1.3 Million Euros;; Solid Profit Underscores Tronics' Success and Efficiency in Executing End-to-End Development and High-Yield Manufacturing Services for Custom Products
Business Wire, April 8, 2008 Tuesday 5:00 AM GMT
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Tronics Microsystems SA, a leading global manufacturer of high value-add and highly differentiated custom MEMS components and microsystems, announced today that it achieved a 56 percent increase in annual revenue, to 10.5 million Euros ($15.4 million) in its fiscal year ended Dec. 31, 2007, and posted a net profit of 1.3 million Euros ($1.9 million) representing 12 percent of total revenue.
In releasing its full-year results, the privately held company confirmed the forecast it presented to the press last October, when it said 2007 revenue would exceed 2006 revenue by 50 percent. The full-year and fourth-quarter results also extend Tronics' net profitability to six consecutive quarters.
Eighty percent of its 2007 revenue stemmed from production of custom components for a select customer base, an unusually high ratio for the still-emerging MEMS industry. In an industry driven by yield and characterized by high infrastructure costs, the results reflect both Tronics' proven ability to produce high-yield MEMS devices and its cost-efficient operations.
"Tronics' performance once again underscores the effectiveness of our business model and the quality of our complete design-to-manufacturing services that our customers rely on to integrate MEMS-based solutions in their products," said Tronics CEO Peter Pfluger. "We are committed to building on this momentum and I expect 2008 to be another year of steady, managed growth. It will be fueled in part by our increased value-add in products now ranging from custom MEMS chips to smart microsystems and our expansion in the U.S. market and the medical field."
Tronics' 56 percent growth in revenue is almost twice the rate of the overall MEMS contract manufacturing and foundry business, which achieved an estimated CAGR of 30 percent in 2007, according to YOLE Développement, the French-based market research company and world leader in the MEMS market analysis. The French MEMS manufacturer attributed its growth in part to increased penetration of its MEMS-based geophones for the seismic oil exploration industry and a growing number of projects involving other inertial MEMS devices.
"Tronics' revenue growth clearly signals that the industry is maturing and we foresee a further 30 percent CAGR for the industry in 2008 and a stronger growth after 2009," said Jean-Christophe Eloy, general manager and founder of YOLE Développement. "But profitability of the majority of independent MEMS manufacturers and MEMS units of IC manufacturers is yet to be proven. Tronics' consistently profitable performance underscores its leadership in manufacturing specialized high performance products with high-yield, while maintaining a lean and efficient business.
For the past four years, Tronics has been recognized as one of the fastest-growing technology companies in Europe, the Middle East and Africa in the Deloitte Technology Fast 500 EMEA. The awards are based on five-year average percentage revenue growth.
About Tronics Microsystems SA
Tronics Microsystems is a custom developer and manufacturer of highly differentiated, high value-add MEMS components and microsystems. Collaborating with customers from concept to implementation, Tronics provides solutions and expertise in the productization and supply chain management of smart components. The company is the No. 1 provider of custom products based on SOI MEMS technologies. It has been ranked among the fastest-growing companies in Europe, the Middle East and Africa by the Deloitte Technology Fast 500 EMEA survey for four consecutive years, and as the fastest-growing semiconductor/equipment company in France for the past two years. Tronics' production facility is based in Crolles, France, and includes a 150mm-wafer MEMS manufacturing line and full product characterization, assembly, packaging and test capabilities. Visitwww.tronics.eufor more information.
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