(new: comments from analyst conference call in first and last paragraph)

HERZOGENRATH (dpa-AFX) - Aixtron is trying to alleviate investor concerns about a possible dip in demand for silicon carbide (SiC) semiconductor manufacturing equipment. Further new customers in this area have been acquired, in particular one from the top 5 manufacturers, as the chip industry supplier announced on Thursday in the course of presenting its quarterly figures. Nevertheless, incoming orders fell in the first quarter. The Aixtron management team led by CEO Felix Grawert confirmed the targets for 2024. Under certain circumstances, however, attention is now also turning to the lower end of the annual target range.

Aixtron's share price turned negative after an initial rise to 23.18 euros. In the afternoon, the shares were among the biggest losers in the MDax, falling by 4.3 percent to EUR 21.85. It now remains to be seen whether a continuation of the bottoming out at 21 to 23 euros will be successful.

According to the company, the order volume in the first quarter fell by 14% year-on-year to just over EUR 120 million. Compared to the previous quarter, the decline was even greater. However, Aixtron had still benefited greatly from capacity expansion by chip companies in 2023.

SiC-based electronic chips are more efficient and more temperature-resistant than traditional silicon chips, which is a prerequisite for fast-charging technology for electric cars, for example. High-voltage SiC components are also becoming more interesting in view of the expansion of alternative energies. However, power and high-frequency electronic chips based on gallium nitride (GaN) are also on the agenda. These have now replaced conventional silicon components in fast-charging power supply units for smartphones, for example. Further applications are likely to follow.

According to Aixtron, order intake in the first quarter was balanced across all end markets. There was strong momentum for systems for the production of MicroLEDs, which accounted for more than a third of order intake. Here, customers are investing money primarily in development and pilot systems.

After a MicroLED project cancellation at customer AMS-Osram in February made experts nervous, this could now be seen as a positive signal. However, according to industry experts, MicroLEDs only promise greater potential in the longer term, as the technology still has to establish itself. Investors are therefore focusing primarily on the specific demand for SiC systems.

Analyst Olivia Honychurch from investment firm Jefferies believes that concerns about a loss of market share for SiC systems are exaggerated and referred to the new customers mentioned by the company. Nevertheless, incoming orders failed to meet market expectations in the first quarter. This is probably due to the fact that existing SiC customers are likely to have scaled back their expansion plans.

From January to the end of March, the MDax group increased its turnover by a good half year-on-year to around 118 million euros. However, the lack of export licenses had spoiled the company's start to the previous year. Compared to the final quarter of 2023, earnings fell by almost half.

Earnings before interest and taxes amounted to 9.9 million euros and a surplus of 10.8 million euros. This is roughly three times as much as a year ago, but also significantly less than in the final quarter of 2023. Analysts had not expected quite as much turnover, but more profit.

Earnings of 630 to 720 million euros are still planned for 2024. Of this, around 24 to 26 percent is expected to remain as earnings before interest and taxes. For the second quarter, CEO Grawert expects sales of 120 to 140 million euros.

At the end of February, the manager said that the situation regarding export licenses would normalize towards the end of 2023. However, as it could not be ruled out that this would change again and due to the uncertainties surrounding the consequences of slower growth in electromobility, the outlook for the year is broad. If everything runs "normally", the upper half of the targeted sales range should be achieved, Grawert said at the time.

In a conference call with analysts on Thursday, the Aixtron CEO put this into perspective when asked. The annual target is not only based on export licenses. If the certain weakness in orders for certain systems for line semiconductors continues, this could bring the lower end of the annual target into focus./mis/tih/nas/jha/he