E2V.L Regulatory News (E2V)

RNS Number : 1376U

e2v technologies PLC

11 October 2010

 

11 October 2010

 

e2v technologies plc

Period end update

 

e2v technologies, the specialist provider of technology solutions for high performance systems, is today providing a period end update for the six months ended 30 September 2010 and an updated outlook for the financial year ending 31 March 2011.

 

Outlook for financial year ending 31 March 2011

 

Given the expected first half performance outlined below and the closing order book at 30 September 2010, we expect trading to continue at the current run rate. Therefore the trading performance for this financial year is now anticipated to be ahead of our previous expectations.

 

Period end update for six months ended 30 September 2010

Group trading since the financial year end was significantly ahead of the comparable period in 2009/10. The unusually high level of overdue orders, caused by the industrial disruption in the latter part of 2009/10, have been delivered in the period. In addition, we have benefited from orders arising from the restructuring programmes, in particular, due to the closure of the wafer fabrication facility in Grenoble. As expected, underlying sales in the period (excluding these one time deliveries) were maintained at the same level as the comparable period in 2009/10.

 

In the RF power solutions division, radiotherapy was ahead of the comparable period with continued strong demand from our customers. Order placement for electronic counter measures continues to be weak compared to last year. The remaining business in the division experienced some growth reflecting a recovery in underlying commercial and industrial markets.

 

Within High performance imaging solutions, our machine vision products experienced continuing strong demand for industrial process control applications. There has also been modest sales decline in scientific imaging, whilst space imaging sales were significantly lower due to specific programme related technical issues, although the order book remains strong.

 

In Hi-rel semiconductor solutions, our semiconductor lifecycle management offering has benefited from strong demand for the 68k-series microprocessor for the Eurofighter Typhoon programme. Aerospace and defence semiconductors has seen lower end user demand in the US but stronger demand for its test and assembly services in Europe.

 

The order book at 30 September 2010 was £167m (30 September 2009: £130m), of which £12m is for last time buy products. Order intake in the period was £115m, (comparable period 2009/10: £85m), resulting in an order book at 30 September 2010 for delivery over the coming 12 months of £147m (30 September 2009: £98m).

 

The group's restructuring activities have continued to progress in line with plan, as previously announced. In the light of the higher than planned level of demand for last time buy products associated with the Grenoble based wafer fabrication facility, we are reviewing the most appropriate point in 2011 for its closure.

 

Net borrowings (see note 1) at 30 September 2010 were approximately £40m (30 June 2010: £50m), with operating cash flow being used to fund the restructuring activities.

 

Keith Attwood, Group CEO, said:

"Whilst we are mindful of completing the remaining activities for our industrial restructuring programme, our strategic attention is now focused on the strategy for growth, communicated to our shareholders on 26 July 2010."

 

e2v will announce half year results for the period ended 30 September 2010 on 15 November 2010.

 

 

Enquiries:

e2v technologies plc Tel: +44 (0)1245 493 493

Keith Attwood/Charles Hindson

www.e2v.com

 

Financial Dynamics Tel: +44 (0)20 7831 3113

Jon Simmons/Susanne Yule

 

 

Notes to editors

 

1. Net borrowings excludes capitalised borrowing costs.

2. All financial information included in this release is sourced from management accounts.

3. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.

 

Further notes to editors

 

e2v is a leading global provider of technology solutions for high performance systems.

 

e2v is headquartered in the UK, employs approximately 1500 people, has design and production facilities across Europe and North America, and has a global network of sales and technical support offices. e2v reported sales for the year ended 31 March 2010 of over £200m and is listed on the London Stock Exchange.

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