May 14 2009
ZMD AG sees itself as well-positioned in the tough market environment of the semiconductor industry and is maintaining a high level of investments despite expected decreases in turnover. Due to its successful business model since separating from the foundry, in addition to solid capital resources with an equity ratio of over 50 percent, ZMD is in a position to make anti-cyclical investments and overcome the challenges of 2009. At the beginning of 2007, ZMD sold its wafer production, thereby anticipating a general trend in the industry. Altogether about 15 million euro will be invested in research and development in 2009.
At the same time, ZMD looks back at a successful 2008 financial year. As the company announced today, turnover increased to about 56 million euro in 2008, following 55 million euro in the previous year. Earnings before interest and taxes (EBIT) improved from about 4 million euro in the previous year to 4.4 million euro in 2008. Thus, ZMD achieved its goals for the 2008 financial year overall. By the end of 2008, ZMD employed 270 staff members worldwide - 30 more than in the year before.
Thilo von Selchow, CEO of ZMD AG said, "ZMD is moving well in a difficult market environment. At the same time, we look back on 2008 - a successful year in which we accomplished our goals. We gave ourselves a head start over the competition with our separation from the wafer production. Our solid financial foundation provides the basis for further developing our successful business model. ZMD is able to make anti-cyclical investments and handle the repercussions of the expected decline in turnover over the whole year. Furthermore, due to our flexible structure and high level of technical expertise, ZMD is also capable of using chances for new growth quickly in an adverse environment."
The company's positive development in 2008 was the result of fine business performance in the first nine months, as well as of a delightful development in the business of mobile medical diagnostic devices, in particular. In 2008 the share of turnover from the automotive industry dropped by about a total of 50 percent. The share of turnover generated abroad was approximately 75 percent for 2008, as it was in the previous year. Altogether, over 30 percent of turnover was invested in research and development in 2008.
Outlook
Looking towards the coming months, ZMD sees itself confronted with an adverse market and industry environment that is shaped by lower volumes for top customers and project postponements due to curbed vehicle production in the automotive industry. This is offset by newly obtained development projects in the medical and automotive areas, which will not be relevant to turnover until 2012, however. ZMD is counteracting the continuing recession with strict cost management and measures to increase efficiency, besides goal-oriented investments in the development of new products and solutions. In doing so, 15 new positions will be created as planned, predominantly in product marketing and development.
Further high levels of uncertainty in the markets and the global economic crisis allow for only a limited concrete forecast for the whole year. From a present-day perspective, the company expects turnover to decrease by about 30 percent for the full year 2009. Simultaneously the company is preparing for a negative result in the range of about 5 million euro, at which point the equity ratio will continue to be well above 50 percent.
Mr. von Selchow stated, "2009 is the anticipated difficult year. With an equity ratio of over 50 percent, we are in a position to handle the burdens of the current year. As things now stand, we assume that we will reach the level of 2008 again in 2011."
Securing innovative strength by means of goal-oriented investments is described by von Selchow as "key to securing the future". ZMD will further keep an eye on the future developments in the relevant markets and will check its structure for efficiency and customer demands continuously.
With a view to products, ZMD will focus increasingly on the topic of "energy efficiency" in the future. In this field, ZMD has a high level of technical expertise and successful products at its disposal. Likewise, "energy efficiency" is among the central topics of the future for customers. Beyond that, the company will position itself as more clearly international with a new brand identity in the future.