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Singulus' bright BD line business does not make up for weak solar activities

While generating sales of €31.6 million in the 3rd quarter 2010, up from €28.8 million in the same quarter one year ago, optical disc replication line manufacturer Singulus Technology produced revenues of €81 million in the first nine months of the current business year, a drop from the previous year’s €95.9 million.

Given the insufficient order intake in the solar segment in which it is now actively involved, Singulus says it is not expecting to achieve its full-year sales target of €130-135 million and breakeven in earnings. The Executive Board has adjusted sales forecast for 2010 to €118-125 million, and is expecting an operating loss for the full year.

The company’s Blu-ray line business is encouraging. The order intake of €29.9 million in the 3rd quarter 2010 was significantly higher than in the previous year (€15.2 million). As a result, the order book in the first nine months of 2010 also rose to €97.3 million (previous year: €56.0 million). The order backlog as of 30 September 2010 increased significantly to €43.7 million compared to last year’s €30.3 million.

Prospects for 2011 are good, says the company. “With Blu-ray disc production expected to growth by more than 70% in 2010, the supply of Singulus' replication line should grow even faster, as Sony DADC’s disc manufacturing steadily loses market share.” Singulus expects to be selling 32 Blu-ray lines this year and 45 in 2011.

However, against the backdrop of current overall developments, Singulus’ Executive Board will be pursuing value adjustments, write-offs and restructuring measures amounting to €67.8 million in total. All optical disc activities will be centralised in Kahl to realise further cost reductions. First steps were already implemented with the integration of the injection molding activities in Kahl. Now, essential parts of the mastering activities will be relocated from Eindhoven to Kahl.

Story filed 10.11.10

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