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Annual revenue as of March 31, 2018

Published on April 18, 2018
Link to ActusNews

Tronics, a TDK Group Company that designs and manufactures innovative nano and microsystems, has announced its revenue as of March 31, 2018, over an exceptional extended period from January 1, 2017, to March 31, 2018 (15 months) [1].

In parallel, Tronics presents for the first time its revenue over its new fiscal period, from April 1, 2017, to March 31, 2018 (12 months), and, for comparison purposes, shares the revenue for the same period of the previous year from April 1, 2016, to March 31, 2017.

CONSOLIDATED ANNUAL REVENUES

12 months pro forma consolidated revenue

12 months pro forma consolidated revenue as of March 31, 2018 totalled nearly €5.4M, a decrease of 15% compared to the same period of the previous year. The transfer of the activities at Dallas to a new production facility was a burden on the company’s revenue. One year after the opening of the facility, the installation of the equipment as well as the requalification of the processes is coming to an end. The resulting lower revenue has been partially compensated by a sustained growth in Crolles, France. Here, manufacturing activities increased significantly by +68% over the same period.

The Group’s manufacturing activities realized a revenue of €2.6M (versus €2.5M over the period from April 1, 2016 to March 31, 2017), and now represent 48% of Tronics’ overall revenue (versus 40% over the previous 12-month period). This increase, which is consistent with Tronics’ strategy to accelerate its production activities, is specifically sustained by the growth of the activities related to optical components (40% higher over 12 months) and by the success of the standard high-performance inertial products with 3 design wins.

Engineering activities accounted for €2.8M of the revenue (versus €3.8M over the period from April 1, 2016 to March 31, 2017) and were impacted by the transfer to the new facility in Dallas.

Geographically speaking, Group revenue in the United States as of March 31, 2018, therefore shows a pronounced decline and represented 4% of the sales over the period (versus 17% over the previous 12-month period).

As a result, the Group should announce significant losses for the period ending on March 31, 2018, given the continued R&D investments and the expenses related to the move and required recruitments for the deployment of the new American production unit, in compliance with the pursued strategy.

15 months consolidated revenue

Over the period of January 1, 2017, to March 31, 2018 (15 months), the consolidated revenue came to €6.8M (versus €6.3M over the period from January 1 to December 31, 2016). It is impacted by the declining sales of the subsidiary in the United States, related to the transfer of the manufacturing activities in Dallas to a new production unit, despite dynamic activities in France.

The manufacturing activities at Group level achieved a revenue of €3.2M (versus €2.4M over the 2016 period published), representing 47% of the revenue over the period (versus 38% in 2016), while the revenue related to engineering activities totalled €3.6M (versus €3.9M over the period ending on December 31, 2016).

OUTLOOK

For the new period on going, Tronics is aiming to continue its momentum in growth initiated in Crolles and to return to growth at Dallas by relying on its new production unit to address the needs of the BioMEMS market. The objective of Tronics remains to increase the revenue related to its manufacturing activities. The engineering projects currently being finalized for several customers are expected to enable the Group to produce innovative MEMS sensors for high-performance inertial applications, as well as for life sciences and industrial applications.

[1The 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.