OKMETIC OYJSTOCK EXCHANGE RELEASE1 APRIL 2016 AT 9.15 A.M. OKMETIC SELLS ITS EPI PLANT IN THE UNITED STATES INSTEAD OF THE WIND-DOWN ANNOUNCED EARLIER AND REVISES ITS GUIDANCE FOR NET SALES Okmetic has sold its production plant focusing on epitaxial ...
OKMETIC OYJ STOCK EXCHANGE RELEASE 1 APRIL 2016 AT 9.15 A.M.
OKMETIC SELLS ITS EPI PLANT IN THE UNITED STATES INSTEAD OF THE WIND-DOWN ANNOUNCED EARLIER AND REVISES ITS GUIDANCE FOR NET SALES
Okmetic has sold its production plant focusing on epitaxial deposition of silicon wafers, located in Allen in the United States, to American company Epitek Silicon instead of the wind-down announced earlier. Okmetic announced of the wind-down of the unprofitable unit by the end of 2016 in its stock exchange release published on 9 December 2015. With the now found buyer the plant will continue its operations.
The purchase price is 9.5 million US dollars (around 8.5 million euros). As a result of the sale the business, production facility, equipment, inventories as well as majority of the personnel of Okmetic's US-based subsidiary Okmetic Inc. will transfer to the buyer. The financing conditions are as follows: 0.25 million US dollars were paid at the signing of the agreement on 31 March 2016 and the rest of the purchase price is financed by a vendor note. According to the agreement, 1.5 million US dollars of the vendor note is paid back in parts on a monthly basis by the use of inventories mostly or totally during 2016, 5.75 million US dollars in July 2016, 1.0 million US dollars will be paid 12 months after the signing of the agreement and 1.0 million US dollars 24 months after the signing of the agreement. Okmetic records a non-recurring profit of approximately six million euro based on the transaction.
The American company Epitek Silicon was created to focus on serving customers in the high value-added epitaxial silicon wafer segment, and its owners are part of the executive management of Silicon Quest International LLC (SQI). However, the two companies will operate independently. SQI was founded in 1991 and it supplies oxidation, sputtering and wafer reclaim services for the semiconductor industry. SQI is not a competitor to Okmetic but they have some common customers. Although the epi plant in Allen will operate as a separate company from SQI both companies will benefit from more efficient use of space as well as customer synergies.
In line with the agreement, Okmetic Inc. has transferred the plant to the buyer on 31 March 2016. As a result of the sale the majority of the 43 employees of Okmetic Inc., the US-based subsidiary of the parent company Okmetic Oyj, will transfer to the service of Epitek Silicon. Okmetic Inc. continues as a North American sales office as announced earlier.
Okmetic acquired Allen plant in 1999. The plant further processes the silicon wafers manufactured at the company's plant in Vantaa by making an epitaxial deposition on the surface of the wafers. In 2015, the net sales of Okmetic Inc. were 12.3 million euros. Okmetic has agreed with Epitek Silicon that Okmetic will deliver wafers for epitaxial deposition at least for five years time after the transaction.
The sale of the Allen plant enables the company to focus on high value-added silicon wafers in line with its strategy. "We are very pleased with this acquisition, which will support the implementation of the strategic focus defined earlier, as well as with being able to sell the plant to a buyer, who will continue the operation of the plant. The change of ownership will not have a significant impact on the business operations of our customers as the quality of the products and operations will remain at the current, high level," says President Kai Seikku.
Okmetic revises its guidance for net sales in conjuction with the transaction
Okmetic revises its guidance for the 2016 net sales based on the sale of the epi plant. In 2016, the net sales are estimated to decline from the level of 2015 and operating profit without non-recurring items to exceed the level of 2015. According to the earlier guidance, the net sales and operating profit without non-recurring items were estimated to exceed the level of 2015 in 2016.
For further information, please contact:
President Kai Seikku
tel. +358 9 5028 0232, email: email@example.com
Senior Vice President, Finance, IT and Communications Juha Jaatinen
tel. +358 9 5028 0286, email: firstname.lastname@example.org
Okmetic supplies tailored, high value-added silicon wafers to be used in the manufacture of sensors as well as discrete semiconductors and analog circuits. Okmetic's strategic objective is profitable growth driven by a product portfolio designed to meet customers' current and future technology needs. The core of the company's operations is being genuinely close to the customers and understanding their needs and processes.
Okmetic's global sales network, extensive portfolio of high value-added products, in-depth knowledge of crystal growing, long-term product development projects, as well as efficient and flexible production create prerequisites for achieving the strategic targets. The company's headquarters is located in Finland, where the majority of the company's silicon wafers is manufactured. In addition to in-house manufacture, Okmetic has contract manufacturing in Japan and China. Okmetic's shares are listed on Nasdaq Helsinki Ltd under the code OKM1V. For more information on the company, please visit our website at www.okmetic.com.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Okmetic Oyj via Globenewswire
Source(s) : Okmetic Oyj
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