Viscom AG: Highest incoming orders in a first quarter since company’s founding; business performance continues to rise

Incoming orders: € 25,463 thousand (previous year: € 20,741 thousand); +22.8 %
Order backlog: € 33,585 thousand (previous year: € 24,016 thousand); +39.8 %
Revenue: € 20,815 thousand (previous year: € 15,664 thousand); +32.9 %
EBIT: € 180 thousand (previous year: € -203 thousand)

Hanover, 11 May 2022 – The positive business performance of Viscom AG (ISIN DE0007846867) continued in the first three months of 2022. Business activity remains encouragingly brisk and, at € 25,463 thousand, led to the Hanover mechanical engineering company’s highest incoming orders in a first quarter since the company was founded. The increase of around 22.8 % as against the previous year (€ 20,741 thousand), in conjunction with the higher order backlog of € 33,585 thousand (previous year: € 24,016 thousand), will allow excellent capacity utilisation in production at Viscom AG for the coming months. At € 20,815 thousand, revenue was 32.9 % higher than the previous year’s level in the first quarter (€ 15,664 thousand). EBIT improved to € 180 thousand in the first three months of 2022 after
€ -203 thousand in the same period of the previous year.

In the European region, there was a sustained market recovery in the first quarter of 2022 that was reflected in encouraging incoming orders. This makes Viscom optimistic for the coming quarters. Europe remained by far the Viscom Group’s strongest region, accounting for around 42 % of its revenue. The Europe region generated revenue of
€ 8,843 thousand in the first quarter of the 2022 financial year, a drop down from the previous year’s level (€ 11,320 thousand). Revenue in Germany amounted to € 5,201 thousand (previous year: € 7,975 thousand). Segment earnings in the Europe region amounted to € -1,496 thousand (previous year: € 43 thousand), corresponding to a margin of -16.9 % (previous year: 0.4 %). This development was largely caused by the decline in the region’s revenue and higher expense items.

Customer enquiries in the Americas region are on the rise in all sectors, including the automotive, battery and consumer industries. The situation is stabilising in all areas and customers are returning to normality. The supply chain disruption is still negatively affecting sectors in the Americas region, though the trend towards improvement is making progress. Viscom enjoyed good visitor numbers at the APEX trade fair at the end of January 2022 and forged new contacts. Customer enquiries and talks are still becoming more frequent. Viscom is feeling positive about its business prospects in the Americas region for the rest of 2022. Segment revenue in the Americas region more than tripled year-on-year
from € 1,525 thousand to € 5,194 thousand. Segment earnings improved very rapidly to € 726 thousand (previous year: € -70 thousand), corresponding to a margin of 14.0 % (previous year: -4.6 %).

In the first quarter of 2022, customers placed significantly more orders for their factories in Asia than in the first quarter of the previous year. More and more customers, especially in the consumer segment, are expecting 24/7-support from Viscom at more and more locations. A further branch was therefore established in the Asia region in the previous year, at Huizhou, China. Viscom inspection systems are also provided for training and demonstrations purposes at the premises here. Moreover, the new Indian branch will commence business activities in Bangalore in the second quarter of 2022 to ensure adequate support from Viscom on this region’s growing local market. Viscom’s ongoing business performance in the Asia region is difficult to predict with the geopolitical situation as it is, particularly in light of the new lockdown in the Shanghai region. Revenue in the Asia region amounted to € 6,778 thousand in the first quarter of 2022, more than double the previous year’s level (previous year: € 2,819 thousand). Segment earnings improved significantly to € 643 thousand (previous year: € -156 thousand), corresponding to a margin of 9.5 % (previous year: -5.5 %).

Viscom AG is confident for the 2022 financial year, in which many new, concrete projects are planned, particularly with existing customers. Demand for the iX7059 product family for automated X-ray inspection, which was introduced last year, has been especially high. Viscom has received several major orders in Device Inspection; the iX7059 has also allowed us to land new customers in Module Inspection. The supply chain shortages remain a challenge. Ensuring the full supply of parts is requiring more organisational and personnel effort, and is increasingly leading to delays in deliveries and thus revenue recognition. However, it is important to Viscom AG to maintain close contact with its customers as well as open and honest communications with them. An impact on customers’ production processes has largely been avoided to date. In the months ahead it will remain Viscom’s goal to provide its customers with optimal support and to ensure a smooth, punctual production start-up.

In order to minimise its dependence on key technologies and the current supply shortages for the frames needed to manufacture inspection systems, Viscom AG acquired a long-standing supplier for the manufacture of metal frames by way of purchase agreement dated 28 March 2022 and effective 1 April 2022. This company will work exclusively for Viscom AG.

The tragic events in Ukraine are causing great suffering to the people there. However, the long-term economic repercussions of the Russia/Ukraine war are still nigh on impossible to predict. The increasingly high inflation and disruption of supply chains are affecting Viscom AG as well. To date, the sanctions against Russia have not had any notable impact on Viscom. Viscom AG’s management continues to anticipate target revenue and incoming orders of between € 90 million and € 95 million in the 2022 financial year. The EBIT-Margin will be between 5% and 10%, with EBIT of between € 4.5 million and € 9.5 million.

The Group interim report as at 31 March 2022 is available for download now in the Investor Relations section of the website at www.viscom.com.

OPERATING FIGURES

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About Viscom
Viscom AG develops, manufactures and sells high-quality inspection systems. Its product range covers the full range of optical inspection and X-ray inspection. The company is a leading global provider in the field of assembly inspection for electronics manufacturing. Viscom’s systems can be configured for each individual customer and networked. Its headquarters and manufacturing site are in Hanover. With a large network of branches, application centres, service centres and representatives, Viscom is represented all over the world. Established in 1984, Viscom AG has been listed on the Frankfurt Stock Exchange since 2006 (ISIN: DE0007846867). Further information can be found at www.viscom.com.

Any forecasts, expectations or statements concerning the future included in this release may be subject to risk or uncertainty. We therefore cannot guarantee that the expectations will prove correct. Actual results and developments may differ significantly from the expectations and assumptions expressed. The factors that could cause such deviations include changes in the general economic and competitive situation, exchange rate and interest rate fluctuations and changes in national and international law. The company assumes no obligation to update the forward-looking statements in this release.