World News: 17:05 GMT Friday 12th July 2019. [EGIDE via Globe Newswire via SPi World News]
Revenue amounted to €14.871 million, down 8.5% compared to H1 2018. unaudited consolidated turnover for the first half of 2019 was impacted by a difficult European Defense market due to the strengthening of export rules for military equipment, a complex geopolitical environment (partly related to China-US relations) and lower than anticipated sales to Israel. At the same time, order in-take increased to €18.83 million, up 23% compared to H1 2018. This was driven by the European and US thermal imaging markets, as well as the power market in the US for which demand is driven primarily by commercial aviation.
US subsidiaries’ sales now account for 63.8% of the group.
The sharp drop in sales of ceramic products related to the weakness of both the thermal imaging and microwave markets led to a 29% fall in Egide SA's sales and accounts for most of the slowdown in the Group's revenue during the 1st half.
US revenues (Egide USA + Santier) are up +10% (+2.5% at constant exchange rate) vs. H1-2018, even though market environment was still difficult at Santier. USA HTCC ceramics sales more than doubled in H1 (+119%) but from an insufficient basis to offset the sharp drop in sales at Egide SA and the slowdown in Santier at S1. Sales of Glass to Metal products at Egide USA also recorded a good performance and supported Group sales in H1-2019.
The average euro / dollar parity in H1 2019 was 1.12975 against 1.21072 in H1 2018.
The transaction was 103.2% oversubscribed and amounted to a total of €2.6 million. As a reminder, Vatel Capital subscribed for €2 million, which represents 19% of the capital after the increase.
The reorganization of Egide SA will help mitigate the impact of the drag on revenue. An action plan to reorganize Egide SA and optimize operations was launched at the very end of this first semester and is expected to be completed by the end of the year, with most of its operational impact being felt from Q1 2020.
New product offerings in thermal battery applications, solid oxide fuel cells, RF/MW applications and near infra-red detectors will provide opportunities for revenue growth in the coming years.
Egide is listed on Euronext Paris™- Segment C - ISIN code: FR0000072373 – Reuters: EGID.PA – Bloomberg : GID
Globe Newswire: 17:05 GMT Friday 12th July 2019
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