RECORD QUARTERLY SALES FOR THE AEROSPACE BUSINESS

INCREASE IN NET PROFIT (15.9% OF REVENUE)

INCREASE IN ADJUSTED EBITDA1 (21.6% OF REVENUE)

(Non-audited data)

  • Quarterly revenue of EUR 3,832 thousand, up by 4.5% despite the significant volatility in optical communications
  • Growth of 12.8% in aerospace and medical businesses, the Group's growth and profitability drivers
  • Strong growth in the medical segment at 36.4% driven by new applications, and historical record in the aerospace business
  • Quarterly adjusted EBITDA1 of EUR 827 thousand (21.6% of revenue)
  • Quarterly operating profit of EUR 508 thousand (13.3% of revenue)
  • Quarterly net profit of EUR 608 thousand (15.9% of revenue)
  • 5th consecutive quarter of execution on the 4G plan
  • Shareholders and investors video conference - Tuesday, April 30, 2024 at 09:00 a.m.

Regulatory News:

MEMSCAP (Euronext Paris: MEMS), leading provider of high-accuracy, high-stability pressure sensor solutions for the aerospace and medical markets using MEMS technology (Micro Electro Mechanical Systems), today announced its earnings for the first quarter of 2024 ending March 31, 2024.

Analysis of consolidated revenue

Consolidated revenue from continuing operations (non-audited) for the first quarter of 2024 was EUR 3,832 thousand compared to EUR 3,668 thousand for the first quarter of 2023, thus a growth of 4.5%.

The distribution of consolidated revenue from continuing operations (non-audited) by market segment for the first quarter of 2024 is as follows:

Market segments / Revenue (In thousands of euros) – Non-audited

Q1 2023 (3 months)

Q1 2023 (%)

Q1 2024 (3 months)

Q1 2024 (%)

Aerospace

2,389

65%

2,536

66%

Medical

681

19%

929

24%

Optical communications

558

15%

341

9%

Others (Royalties from licensed trademarks)

40

1%

27

1%

Total revenue from continuing operations

3,668

100%

3,832

100%

(Any apparent discrepancies in totals are due to rounding.)

As in previous quarters, sales from the aerospace and medical segments, the Group's growth and profitability drivers, continued to grow by 12.8% and maintained their development momentum.

With a 6.1% growth this quarter, sales in the aerospace segment, the Group's largest market, reached a record quarterly high of EUR 2,536 thousand. Sales in the medical segment increased by 36.4% to EUR 929 thousand.

The optical communications segment continued to exhibit significant volatility due to the Asian context and investments dedicated to optical fiber. Sales for the first quarter of 2024 amounted to EUR 341 thousand compared to EUR 558 thousand for the first quarter of 2023. Thanks to its fabless organization, this business remains a profitability support factor for the Group, regardless of the activity levels in this market.

Analysis of consolidated income statement

MEMSCAP’s consolidated earnings (non-audited) for the first quarter of 2024 are given within the following table:

In thousands of euros – Non-audited

Q1 2023 (3 months)

Q1 2024 (3 months)

Revenue from continuing operations

3,668

3,832

Cost of revenue

(2,146)

(2,298)

Gross margin

1,522

1,534

% of revenue

41.5%

40.0%

Operating expenses*

(1,017)

(1,026)

Operating profit / (loss)

505

508

Financial profit / (loss)

(1)

109

Income tax expense

(34)

(9)

Net profit / (loss)

470

608

* Net of research & development grants. (Any apparent discrepancies in totals are due to rounding.)

The gross margin rate stood at 40.0% of consolidated revenue compared to 41.5% in the first quarter of 2023. This rate is notably impacted for the quarter by the integration and training of new hires in the production department. The gross margin thus amounted to EUR 1,534 thousand compared to EUR 1,522 thousand for the first quarter of 2023.

Operating expenses, net of research and development grants, remained stable at EUR 1,026 thousand compared to EUR 1,017 thousand for the first quarter of 2023, demonstrating the Group's control over its structural costs.

For the first quarter of 2024, the Group posted an operating profit from continuing operations of EUR 508 thousand (13.3% of consolidated revenue) compared to an operating profit of EUR 505 thousand for the first quarter of 2023.

The financial income for the first quarter of 2024 benefited from a favourable exchange rate effect and amounted to EUR 109 thousand. The tax expense recognized over the first quarters of 2023 and 2024 corresponded to the change in deferred tax assets. This tax expense is a non-cash item.

Net profit after tax thus amounted to EUR 608 thousand (15.9% of consolidated revenue) for the first quarter of 2024, compared to a net profit of EUR 470 thousand for the first quarter of 2023.

MEMSCAP reported an adjusted EBITDA1 (non-audited) of EUR 827 thousand (21.6% of consolidated revenue) for the first quarter of 2024, an increase compared to the first quarter of 2023 (741 thousand euros, 20.2% of consolidated revenue). It is noted that research and development costs were fully recognized as expenses and were not capitalized in the Group's balance sheet.

1 Adjusted EBITDA means operating profit before depreciation, amortisation, and share-based payment charge (IFRS 2) and including foreign exchange gains/losses related to ordinary activities.

Perspectives

With this quarter, MEMSCAP achieves its 5th consecutive quarter of execution on the 4G plan driven by the dynamism of its aerospace and medical businesses.

MEMSCAP also demonstrates that the volatility in the optical communications segment does not impact its trajectory, and that this business, through its fabless organization, continues to support the profitability of the group regardless of its sales levels.

During this quarter, MEMSCAP improves its net profitability and EBITDA despite the increase in production resources and sales team.

The MEMSCAP group thus maintains its course on the 4G plan while preparing for the post-2026 period through the development of new clients.

Shareholders and investors video conference - Tuesday, April 30, 2024 at 09:00 a.m. Thank you for registering and sending your questions in advance using the following link: Registration for the video conference

MEMSCAP general shareholders’ meeting: May 31, 2024.

Q2 2024 earnings: July 29, 2024.

About MEMSCAP

MEMSCAP is a leading provider MEMS based pressure sensors, best-in-class in term of precision and stability (very low drift) for two market segments: aerospace and medical.

MEMSCAP also provides variable optical attenuators (VOA) for the optical communications market.

For more information, visit our website at: www.memscap.com

MEMSCAP is listed on Euronext Paris (Euronext Paris - Memscap - ISIN code: FR0010298620 - Ticker symbol: MEMS)

Yann Cousinet Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00 yann.cousinet@memscap.com

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