Semiconductor equipment provider AIXTRON revealed its financial results for the first half and the second quarter of 2019.

The 1H19 revenue of AIXTRON increased by 12% YoY to EUR 132 million (US$147.11 million), gross profit also grew by 4% YoY to EUR 52.4 million (US$ 58.4 million) despite that its order intake dropped by 36% YoY to EUR 98.3 million (US$109.22 million).

AIXTRON noted that customer’s reluctance to invest in production expansion due to the ongoing US-China trade dispute has led to order intake decrease for the first half of 2019. LED systems accounted for 45% of the revenue which was the largest share while revenues from MOCVD systems for optoelectronics declined to 32%.

The German equipment maker sees market development in the rising use of laser for 3D sensor technology and optical data transmission, indicating that “a progressive expansion of the 5G network and an increasing use of energy-efficient power electronics remain positive and are only affected for a short time by the current tensions.”

AIXTRON expects an increase in demand from Asia and looks forward to improved profitability for 2019 with its full year guidance for sales and orders confirmed.

Dr. Bernd Schulte, President of AIXTRON SE, commented, "We are pleased with the improved profitability in the first half of 2019, but this also reflects the expected customer reluctance to invest in new production capacity, which was further exacerbated in the short term by the US sanctions against Huawei. We are optimistic that order intake will improve in the second half of the year, in particular due to an expected recovery in demand from Asia. In combination with our strong order backlog, we plan to meet our forecast for the year. Especially in the areas of lasers, power electronics and special LEDs, we continue to see three strong growth drivers that are important building blocks for global megatrends such as the next generation of 5G wireless networks, 3D sensors for mobile phones and power electronics for electromobility and renewable energies, as well as next-generation Micro LED displays."