- Operational leverage driving profit growth -
- Business outlook remains positive for 2010 -
- 2010 guidance raised to EUR 650m-700m revenues and circa 30% EBIT -

AIXTRON AG, worldwide leading provider of deposition equipment to the semiconductor industry, today announced the consolidated financial results for the first quarter of 2010.

Financial Highlights
Continuing healthy demand, beneficial volume effects, and a stronger US Dollar have all contributed to the positive business performance in Q1/2010. The steadily increasing revenue growth is underlined by a 31% sequential revenue increase in Q1/2010 to EUR 154.5m. The gross margin in Q1/2010 was 3 percentage points higher at 50% compared to Q4/2009. The Q1/2010 operating result increased sequentially by 38% to EUR 46.4m with a one percentage point higher EBIT margin of 30%, leading to a net result of EUR 31.8m or 21% return on sales. The Q1/2010 net income was 30% up quarter on quarter.

In a year on year comparison; AIXTRON revenues increased by 234% and the gross margin increased by 5 percentage points from 45%. The EBIT margin nearly doubled from 16% to 30% and the net income has improved by 478% with a 9 percentage points increase of net income to revenues since Q1/2009.

Q1/2010 was the fourth sequential quarter of rising order intake and revenues and the third sequential quarter of rising EBIT performance.

At the current high levels, order visibility remains healthy with the Q1/2010 order intake of EUR 168.5m representing a 3% sequential increase and a 440% increase year on year.

While the compound backlog to revenue conversion rate has been improving to 76%, the total equipment order backlog of EUR 229.9m at March 31, 2010 was 13% higher than the EUR 203.8m recorded as of December 31, 2009, and 20% higher than the subsequently revalued opening order backlog as of January 1, 2010 of EUR 190.9m.

Management Review
Paul Hyland, President & Chief Executive Officer at AIXTRON, comments: “It is always good to start the year with a strong set of results, and these Q1 figures build on what was already an excellent foundation for a record performance year in 2010. Our consistent performance over the last 12 months has clearly demonstrated that our flexible business model and our product development strategy enables us to not only meet huge rises in demand but also to increasingly drive our profitability through operational leverage.

Following the product launch in February, and the very encouraging market response to our latest generation IC 2 platform system with our Generation 5 Planetary and CRIUS® II reactor technologies on board, we are increasingly confident that the timely market-led decisions we have made previously, on technology development and product launch timing, exactly match the current market dynamics.

We are the market leader in this complex space, because we are the technology leader and our new R&D center, which is currently being built, is another important element of our determination to remain the key-enabling technology player in this market. Our customers and shareholders stand to be the main beneficiaries of that determination.”

Outlook
Reflecting the current healthy climate, the AIXTRON Executive Board has raised the full year 2010 guidance to a range of EUR 650m-700m revenues with an EBIT margin of circa 30%.