Elmos Semiconductor (ELG) Q4 2023 earnings summary

Executive summary

• FY 2023 sales rose 28.6% YoY to a record €575.0m; EBIT reached a record €150.7m, up 36.8%, with a 26.2% margin.

• Design wins spanned all application fields; expanded testing capacity supported product launches and deliveries in H2.

• The planned fabless transition advanced through the sale of the Dortmund wafer fab to Littelfuse; regulatory approvals were granted without conditions in August 2023.

Financial highlights

• FY 2023 gross profit was €271.3m, up 30.7% YoY; gross margin rose to 47.2% from 46.4%.

• FY 2023 net income was €99.1m, up 38.8%; basic EPS increased to €5.79 from €4.17.

• Q4 sales rose 24.7% YoY and 3.3% QoQ to a record €156.6m; EBIT was €43.2m, up from €35.7m YoY.

• Q4 EBIT margin was 27.6% versus 28.4% YoY; gross margin was 48.3% versus 50.4%, influenced by typical year-end effects.

Outlook and guidance

• FY 2024 sales guidance is €605m ± €25m; operating EBIT margin is 25% ± 2 percentage points, excluding fab-sale closing effects.

• FY 2024 CAPEX guidance is 12% ± 2 percentage points of sales, net of capitalized development costs; operating adjusted free cash flow is expected positive and significantly above FY 2023’s -€24.3m.

• Guidance assumes an average exchange rate of €1.10/$1; closing of the Littelfuse fab sale is expected by end-December 2024.