In spite of the currently difficult market conditions the long-term market trends, the technology and the product pipeline remain strong. Sensirion consequently confirms its mid- and longterm growth perspectives.
Reduced outlook for financial year 2019, gross margin stable
Sensirion adjusts its outlook for financial year 2019 as a result of the challenging market conditions. Under the updated outlook, we expect for financial year 2019 revenue of CHF 160-170 million (previously CHF 175-190 million), adjusted EBITDA margin of 9-12% (previously 15-16%) and unchanged strong gross margin of 52-54%.
The current crisis in the automotive industry, the significantly weaker than expected global industrial production as well as the continuing global trade disputes negatively impact demand in all end markets. In contrast to the assessment at the beginning of the year, we do not see any signals from our customers pointing to the originally expected recovery in the second half of 2019. Furthermore, the start of production of an important customer project was postponed by the customer by a few months into the first half of 2020, which additionally impacts revenue in 2019. EBITDA margin suffers disproportionately under reduced revenue because of the low variable costs of our products. Newly won business cannot yet fully compensate for this demand reduction because typically two to three years pass from project win to start of mass production.
Half-year revenue at approximately CHF 83.5 million
For the first half of 2019, revenue amounts to approx. CHF 83.5 million (c. -7% year-over-year and -1% compared to the previous period). Further details on the half-year results will follow with their publication on 21 August 2019.
Strategy and mid-term growth perspectives confirmed
In spite of the currently difficult market conditions the long-term market trends, the technology and the product pipeline remain strong. Sensirion consequently confirms its mid- and long-term growth perspectives: In the automotive market, we could achieve important design-wins for modules in the past months, which will contribute to revenue in approximately three years from now. In the industrial market, we see an increasing demand for higher-value combo-modules, which make possible measuring several environmental parameters with one unit. Both of these expansions of our product portfolio enable us to increase the content in important customer applications. As a result of existing customer projects and these positive mid- and long-term growth opportunities we maintain our current R&D-intensity and the ongoing expansion of our production site in China.