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Riber’s FY19 revenue numbers show a 7% year-on-year increase to €33.4m, with a more than doubling in revenues from molecular beam epitaxy (MBE) systems offsetting substantially lower evaporator sales. The order book at the end of December 2019 totalled €28.7m, which is 76% of our FY20 revenue estimate. We will leave our estimates unchanged until the full results are announced in April.
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Riber |
FY19 revenue growth driven by MBE system sales |
FY19 revenue results |
Tech hardware & equipment |
10 February 2020 |
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Business description
Analysts
Riber is a research client of Edison Investment Research Limited |
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Riber’s FY19 revenue numbers show a 7% year-on-year increase to €33.4m, with a more than doubling in revenues from molecular beam epitaxy (MBE) systems offsetting substantially lower evaporator sales. The order book at the end of December 2019 totalled €28.7m, which is 76% of our FY20 revenue estimate. We will leave our estimates unchanged until the full results are announced in April.
Year end |
Revenue |
PBT* |
EPS* |
DPS* |
P/E |
Yield |
12/17 |
30.5 |
4.0 |
0.13 |
0.05 |
15.4 |
2.5 |
12/18 |
31.3 |
2.0 |
0.07 |
0.05 |
28.6 |
2.5 |
12/19e |
35.3 |
1.5 |
0.05 |
0.05 |
40.0 |
2.5 |
12/20e |
37.7 |
3.0 |
0.10 |
0.05 |
20.0 |
2.5 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
MBE system sales grew by 140% year-on-year to €23.0m (€23.5m estimate) as the company delivered seven production machines and five R&D machines compared with only three production and three R&D systems in FY18. This growth is attributable to strong demand for electronic and optoelectronic devices used in 5G networks. Revenues from evaporators fell from €11.6m to €1.0m (€1.0m estimate), reflecting a lull in investment in the OLED screen industry. Although sales of services and accessories had been 23% ahead year-on-year for the nine months ended September 2019, billing issues meant that revenues for the full year ended December 2019 were 7% lower than FY18 at €9.4m (€10.8m estimate).
While the order book at the end of December 2019 is 4% lower than a year previously, the FY18 total included two MBE systems where deliveries had slipped into Q119. The FY19 year-end order book is composed of €21.8m for MBE systems, and €6.9m for services and accessories with no new evaporator orders as yet. The MBE systems are for research into CIGS thin-film solar cells, hybrid nanostructures, high-power lasers for laser cutting, high brightness LEDs and topological materials, and high-frequency lasers for biomedical applications and for the production of electronic and optoelectronic devices. Our estimates model only €1.6m revenues from evaporators during FY20, and there is still ample time to receive an order of this magnitude and fulfil it.
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The contrasting trends observed in Q3 continued into Q4. While Custom Engineering Solutions (CES) sales stalled, Smart Product Solutions (SPS) grew substantially (doubling q-o-q). Guidance for SPS to rise ‘at least’ 20% in FY20 appears prudent given current uncertainties over China. However, it probably understates the commercial progress made in the last six months. We trim our FY20 top-line forecast, but with financial closure on the Ivory Coast contract achieved, Fluence should still be EBITDA positive.