Annual results as of March 31, 2018Published on June 13, 2018
Tronics, a TDK Group Company that designs and manufactures innovative nano and microsystems, has announced its results as of March 31, 2018, over an exceptional extended period from January 1, 2017, to March 31, 2018 (15 months)) .
Tronics’ Management Board met on June 13, 2018 and approved the accounts as of March 31, 2018, which were presented to the Supervisory Board on the same day.
In parallel, Tronics presents its annual results over its new fiscal period, from April 1, 2017, to March 31, 2018 (12 months). As the Group’s activity is not subject to any seasonal effects, the comparison with the results from the past fiscal year (from January 1 to December 31, 2016) remains relevant.
CONSOLIDATED ANNUAL RESULTS
Audit procedures were performed. The issuance of the audit report is in process.
12 months pro forma consolidated results
12 months pro forma consolidated revenue as of March 31, 2018 totalled €5,366k, a decrease of 15% compared to the previous year. The transfer of the activities at Dallas to a new production facility was a burden on the company’s revenue. This punctual slowdown of the activities in the United States has been compensated by a sustained growth in Crolles, France, in both manufacturing and engineering.
The manufacturing activities realized a revenue of €2,589k (versus €2,373k in 2016), sustained by the growth of the activity related to optical components and by the success of the standard high-performance inertial products with 3 design wins. Engineering activities generated revenue of €2,777k (versus €3,923k in 2016) and were impacted by the transfer to the new facility in Dallas.
Over the fiscal year, the operating costs, as announced, have strongly increased as a result of the deployment of the new production site in the United States and the associated staff increase.
The Group also maintained a high investment level regarding the R&D programs in Crolles, aiming to prepare the launch of new standard and custom products.
Consequently, the 12 months pro forma consolidated operating income as of the end of March 2018 was minus €9,110k, and the Group share of net income was minus €9,124k.
15 months consolidated results
Over the period of January 1, 2017, to March 31, 2018 (15 months), the consolidated revenue came to €6,819k  (versus €6,296k over the period from January 1 to December 31, 2016), for an operating income of minus €10,956k. The Group share of net income over the fiscal year (15 months) was minus €10,910k.
As of March 31, 2018, the equity of Tronics stood at €181k, including the important losses generated by the Group on the two production units during the fiscal year.
The gross debt (mainly related to the debt towards its parent company to finance the investments on the American site) reached €12,996k for an available cash of €2,476k, mainly reflecting the investments for the internal financing of the Group and the deployment of the new site at Dallas.
As a subsidiary of EPCOS, Tronics has the support of the TDK Group with its solid financial basis.
For the new period, which is now in progress, Tronics is aiming to continue its momentum in growth initiated in Crolles and to return to growth in the United States. In order to accomplish this, the Group will rely on its new MEMS production unit in Dallas to address the needs of the BioMEMS market in North America. One year after the opening of the facility, the installation of the equipment and the requalification of the processes are nearly finalized.
Tronics will be rapidly able to use the full production capacity of this new facility to provide custom MEMS services for medical applications (diagnostic chips, microfluidics, lab-on-chips) and industrial applications (chemical sensors, infrared sensors and optical networks).
Tronics is an innovative competence center within TDK’s MEMS Sensors Business Group. This positioning enables the company to benefit from the new global distribution agreements recently signed for its high performance standard inertial products and to generate technological and commercial synergies for international customers in the MEMS field.
 The General Assembly meeting on May 24, 2017, approved the modification of the closing date of Tronics’ fiscal year to the March 31 of each year (versus December 31 as of today), in order to bring it into line with that of TDK Corporation and EPCOS AG. Consequently, the fiscal year that began on January 1, 2017, will have an exceptional duration of 15 months and will close on March 31, 2018.
 The estimated revenue published in April 2018 was €6,795k. The difference is a result of the average EUR/USD exchange rate taken into account.