Stäfa, Switzerland, 11 July 2019
Sensirion: Reduced Outlook for Financial Year 2019, mid-term growth perspectives confirmed
Sensirion reduces its outlook for 2019 as a result of the current crisis in the automotive industry and the continuing trade disputes. 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.
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.
|Financial year 2019
(07 March 2019)
(11 July 2019)
|Revenue (in millions of CHF)
||175 - 190
||160 - 170
|Gross margin (in % of revenue)
||52 - 54%
||52 - 54%
|Adjusted EBITDA margin (in % of revenue)
||15 - 16%
||9 - 12%
Conference call on the press release
Today, Thursday, 11 July 2019, at 10:00 CEST / 09:00 BST / 04:00 EDT, a conference call on the press release will be held. The conference call will be held in English. You will have the opportunity to ask questions during the telephone conference following an introduction.
Please register for the conference call with the following link.
21 August 2019 Half-year 2019 results and interim report
Director Investor Relations
Tel: +41 44 927 11 40
About Sensirion Holding AG
Sensirion Holding AG (SIX Swiss Exchange: SENS), headquartered in Stäfa, Switzerland, is a leading manufacturer of digital microsensors and systems. The product range includes gas and liquid flow sensors, differential pressure sensors and environmental sensors for the measurement of humidity and temperature, volatile organic compounds (VOC), carbon dioxide (CO2), and particulate matter (PM2.5). An international network with sales offices in China, Europe, Japan, South Korea, Taiwan, and the US supplies international customers with standard and custom sensor system solutions for a vast range of applications. Sensirion sensors can commonly be found in the automotive, medical, industrial, and consumer end markets. For further information, visit www.sensirion.com.
Certain statements in this document are forward-looking statements, including, but not limited to, those using words such as "believe", "assume", "expect", and other similar expressions. Such forward-looking statements are based on assumptions and expectations and, by their nature, involve known and unknown risks, uncertainties, and other factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Such factors include, but are not limited to, future global economic conditions, changed market conditions, competition from other companies, effects and risks of new technologies, costs of compliance with applicable laws, regulations, and standards, diverse political, legal, economic and other conditions affecting markets in which Sensirion operates, and other factors beyond the control of Sensirion. In view of these uncertainties, you should not place undue reliance on forward-looking statements. Sensirion disclaims any intention or obligation to update any forward-looking statements, or to adapt them to future events or developments.
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