Grenoble, France and Dallas, TX, USA – April 18, 2018 Tronics, a TDK Group Company that designs and manufactures innovative nano and microsystems, has announced its revenue as of March 31, 2018, over an exceptional extended period from January 1, 2017, to March 31, 2018 (15 months).
In parallel, Tronics presents for the first time its revenue over its new fiscal period, from April 1, 2017, to March 31, 2018 (12 months), and, for comparison purposes, shares the revenue for the same period of the previous year from April 1, 2016, to March 31, 2017.
Consolidated annual revenues
|in €K (IFRS) - unaudited||December 2016 published||March 2018 published||March 2017 |
|March 2018 |
|From January 1 to December 31, 2016||From January 1, 2017, to March 31, 2018||From April 1, 2016, to |
March 31, 2017
|From April 1, 2017, to March 31, 2018|
|12 months||15 months||12 months||12 months|
12 months pro forma consolidated revenue
12 months pro forma consolidated revenue as of March 31, 2018 totalled nearly €5.4M, a decrease of 15% compared to the same period of the previous year. The transfer of the activities at Dallas to a new production facility was a burden on the company's revenue. One year after the opening of the facility, the installation of the equipment as well as the requalification of the processes is coming to an end. The resulting lower revenue has been partially compensated by a sustained growth in Crolles, France. Here, manufacturing activities increased significantly by +68% over the same period.
The Group's manufacturing activities realized a revenue of €2.6M (versus €2.5M over the period from April 1, 2016 to March 31, 2017), and now represent 48% of Tronics' overall revenue (versus 40% over the previous 12-month period). This increase, which is consistent with Tronics' strategy to accelerate its production activities, is specifically sustained by the growth of the activities related to optical components (40% higher over 12 months) and by the success of the standard high-performance inertial products with 3 design wins.
Engineering activities accounted for €2.8M of the revenue (versus €3.8M over the period from April 1, 2016 to March 31, 2017) and were impacted by the transfer to the new facility in Dallas.
Geographically speaking, Group revenue in the United States as of March 31, 2018, therefore shows a pronounced decline and represented 4% of the sales over the period (versus 17% over the previous 12-month period).
As a result, the Group should announce significant losses for the period ending on March 31, 2018, given the continued R&D investments and the expenses related to the move and required recruitments for the deployment of the new American production unit, in compliance with the pursued strategy.
15 months consolidated revenue
Over the period of January 1, 2017, to March 31, 2018 (15 months), the consolidated revenue came to €6.8M (versus €6.3M over the period from January 1 to December 31, 2016). It is impacted by the declining sales of the subsidiary in the United States, related to the transfer of the manufacturing activities in Dallas to a new production unit, despite dynamic activities in France.
The manufacturing activities at Group level achieved a revenue of €3.2M (versus €2.4M over the 2016 period published), representing 47% of the revenue over the period (versus 38% in 2016), while the revenue related to engineering activities totalled €3.6M (versus €3.9M over the period ending on December 31, 2016).
For the new period on going, Tronics is aiming to continue its momentum in growth initiated in Crolles and to return to growth at Dallas by relying on its new production unit to address the needs of the BioMEMS market. The objective of Tronics remains to increase the revenue related to its manufacturing activities. The engineering projects currently being finalized for several customers are expected to enable the Group to produce innovative MEMS sensors for high-performance inertial applications, as well as for life sciences and industrial applications.
About Tronics Microsystems
Tronics Microsystems is a division of TDK's Temperature & Pressure Sensors Business Group and a recognized technological leader in the sector of nano- and microsystems. Addressing high-growth markets relying on increasing miniaturization of electronic devices, the company provides custom and standard products especially to the industrial, aeronautics, security, and medical markets. Founded in 1997, Tronics is located in Crolles, near Grenoble (France) and in Dallas, Texas (United States), and has around 100 employees, most of them engineers and scientists. Following a tender offer ending January 2017, EPCOS AG, a TDK Group Company, now holds 74 percent of Tronics' shares.
* ISIN code: FR0004175099 ALTRO
About TDK Corporation
TDK Corporation is a leading electronics company based in Tokyo, Japan. It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's portfolio includes passive components, such as ceramic, aluminum electrolytic and film capacitors, ferrites and inductors, high-frequency products, and piezo and protection components, as well as sensors and sensor systems and power supplies. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK's further main product groups include magnetic application products, energy devices, and flash memory application devices. TDK focuses on demanding markets in the areas of information and communication technology and automotive, industrial and consumer electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2017, TDK posted total sales of USD 10.5 billion and employed about 100,000 people worldwide.
 The General Assembly meeting on May 24, 2017, approved the modification of the closing date of Tronics' fiscal year to the March 31 of each year (versus December 31 as of today), in order to bring it into line with that of TDK Corporation and EPCOS AG. Consequently, the fiscal year that began on January 1, 2017, will have an exceptional duration of 15 months and will close on March 31, 2018.