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Nov. 16 (Bloomberg) -- Aixtron SE, a maker of equipment for the semiconductor and lighting-technology industries, predicts demand won’t recover much in the near future as some customers struggle to access subsidies in China.
“I don’t see it in the short term,” Chief Executive Officer Paul Hyland said at a Morgan Stanley conference in Barcelona. “We don’t see any substantial recovery this quarter.”
Customers began delaying orders after difficulties in obtaining subsidies promised by the Chinese government, he said. The company cut its full-year revenue forecast in September to 600 million euros ($810 million) to 650 million euros after customers in Asia deferred orders. As recently as July, Hyland had predicted revenue as high as 900 million euros.
Still, customers including Royal Philips Electronics NV and Samsung Electronics Co. are increasing investments in LEDs as well as organic lighting and semiconductors and the company is continuing to invest in research and development, Hyland said.
“We have a range of crops in the ground,” Hyland said. “We’re harvesting LEDs.”
The company, based in Herzogenrath, Germany, reported third-quarter revenue declined 58 percent from a year earlier to 69.8 million euros as equipment orders dropped.
--Editors: Robert Valpuesta, Simon Thiel.
To contact the reporter on this story: Amy Thomson in Barcelona via firstname.lastname@example.org
To contact the editor responsible for this story: Kenneth Wong at email@example.com