EQS-News: STEMMER IMAGING: expectedly challenging market environment in Q1 2024 - positive signals in order intake – Full-year forecast confirmed

Puchheim, May 8, 2024

STEMMER IMAGING: expectedly challenging market environment in Q1 2024 - positive signals in order intake – Full-year forecast confirmed

Puchheim, May 8, 2024 – STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ) publishes its figures for the first quarter of 2024 today.

• Increase in order intake to EUR 33.1 million compared to the two previous quarters
• Due to market conditions revenue reduced by 31.9% to EUR 27.5 million (Q1 2023: EUR 40.4 million) compared to strong prior-year quarter
• Further increase in gross margin to 39.9% (Q1 2023: 39.1%)
• EBITDA margin at 14.9% (Q1 2023: 18.2%): EBITDA at EUR 4.1 million (Q1 2023: EUR 7.4 million, -44.4%)
• Operating cash flow up by 70.6% to EUR 9.4 million (Q1 2023: EUR 5.5 million)
• Full-year forecast confirmed
• Successful closing of the acquisition of Phase 1 Technology Corp., New York, USA

As expected, STEMMER IMAGING navigated through a challenging market environment in the first quarter 2024. Order income increased to EUR 33.1 million compared to the third and fourth quarters of 2023, providing positive signals for the further course of business. At the same time, revenue reduced by 31.9% to EUR 27.5 million compared to a strong first quarter of the previous year. The renewed gross margin increase to 39.9% and the improved cost structure resulting from the efficiency measures implemented in the last fiscal year (quarterly effect of EUR 1.6 million) had a mitigating effect on the profitability caused by the decline in business, resulting the EBITDA to reduce by 44.4% to EUR 4.1 million. The company once again reported strong key figures with an operating cash flow of EUR 9.4 million. The acquisition of Phase 1 Technology Corp. in New York, USA, was successfully completed as planned at the beginning of May 2024. The full-year forecast is confirmed.

In a challenging market environment, STEMMER IMAGING was able to increase its order intake to EUR 33.1 million compared to the previous quarters of the second half of 2023 (Q3 2023: EUR 30.1 million, Q4 2024: EUR 25.0 million). Incoming orders in Factory Automation stabilized at a low level compared to the two last quarters. Important strategic projects were won in the automotive market despite generally weak demand. In the industrial Machine Vision market, Metrology performed well. In addition, the Artificial Vision market recorded some positive developments, particularly in new customer business for Sports & Entertainment and in a continuously growing demand in the Medical and Food & Agriculture markets.

As expected, the previously reported decline in demand in the prior quarters resulted in lower revenue in the first quarter. In the first three months of 2024, revenues of EUR 27.5 million were generated, which corresponds to a decline of 31.9% compared to the strong prior-year figure (EUR 40.4 million). This revenue decrease was the result of a slowdown across almost all end markets. The acquisition of new customers only partially mitigated this deterioration. The positive business development in Latin America could only marginally compensate for the decline in Europe.

The gross margin once again developed positively. It manifested at a strong 39.9% compared to 39.1% in the same period of the previous year and underlines the company's value proposition even in phases of weaker market demand. The efficiency measures implemented in the last fiscal year had a positive impact, reducing OPEX by EUR 1.6 million (excluding the positive currency effect of EUR 0,3 million) compared to the same period in the previous year. The company was thus able to partially mitigate the decline in revenue in the profitability effect and reported an EBITDA of EUR 4.1 million (Q1 2023: EUR 7.4 million, -44.4% compared to the previous year). The EBITDA margin was 14.9% (Q1 2023: 18.2%).  EBIT amounted to EUR 3.1 million (Q1 2023: EUR 6.3 million). Earnings per share declined to EUR 0.34 (Q1 2023: EUR 0.71).

STEMMER IMAGING’s operating cashflow again developed strongly at EUR 9.4 million (Q1 2023: EUR 5.5 million). The inventory value was reduced from EUR 12.7 million at the end of the 2023 fiscal year to EUR 11.4 million as of March 31, 2024.

Thanks to the further developed sales structures and the comprehensively revised service offering SI More, STEMMER IMAGING considers itself an attractive strategic partner for machine vision technology customers in the areas of engineering and operational services. The organizational ONE initiatives further enhance the flexibilization of capacities.  

With the closing of the acquisition of Phase 1 Technology Corp., New York at the beginning of May, the company will report consolidated figures as of May. The positive customer and supplier feedback received after the announcement of the acquisition confirms STEMMER IMAGING's strategic approach of expanding its activities in the area of value-added services in North America. Expanding the portfolio by image sensor technology in the North American market is holding a strategically significant growth potential. Collaborating with Sony enables STEMMER IMAGING to explore new areas for AI applications on increasingly powerful decentralized processor platforms.

Despite the still challenging market conditions, marked by temporary investment reluctance in significant end markets, the Executive Board expects a continued positive trend in order intake. It is anticipated that deliveries will steadily improve no later than from the third quarter onwards. Based on this outlook, the Executive Board reaffirms the previously projected revenue range of EUR 140 to EUR 157 million for the current fiscal year and confirms the EBITDA forecast of EUR 24 to 31 million.

Arne Dehn, CEO of STEMMER IMAGING, explains: "We were aware - and we already communicated this last year - that the start of 2024 in particular would be challenging. Our sharpened service offerings and the focused go-to-market initiatives are showing success with important order wins. The efficiency measures have aligned our organization not only in terms of a further scalable cost structure, but above all in terms of taking advantage of market opportunities. True to the motto "Never miss a crisis", STEMMER IMAGING has already shown in past recessionary market phases that we can emerge much stronger from them."

The quarterly report of STEMMER IMAGING as of March 31, 2024 is digitally available on the company's website in the Investors section (Investors - Financial reports | STEMMER IMAGING (stemmer-imaging.com)).

Today (May 8, 2024) at 16:00 CEST, a webcast on the financial results for the first quarter will be held for analysts, institutional investors, and members of the press.

About STEMMER IMAGING

STEMMER IMAGING is the leading international systems house for machine vision technology.

With a background of all-round engineering expertise, STEMMER IMAGING delivers the entire spectrum of machine vision services for both, industrial and non-industrial applications – from value-added services to the development of subsystems and its own products, based on an extensive commercial range of products.

Contact:
STEMMER IMAGING AG

Michael Bülter

Chief Financial Officer

Gutenbergstr. 9-13

82178 Puchheim

Germany

Phone +49 89 80902-196
[email protected]
www.stemmer-imaging.com