Melexis Announces Results for the Year 2003

Company reports 13% growth in revenues and profit

Ieper, Belgium -- Melexis NV has announces its financial results for the fiscal year 2003.

For the 2003, revenues were 133.5 million €, an increase of 13% compared to the previous year. If the dollar would have been stable in relation to the €, the YoY increase would have been 20%. Net profit was 24.6 million €, 13.5% more than the previous year. The impact of the $ weakness on the profit during 2003 was limited.

Revenues in the 4th quarter of 2003 were 35.6 million €, 12% more than the 4th quarter of 2002, while net profit profit was 6 million €, an increase of 3% compared to the same quarter last year. The operating result increased to 7.1 million € or 20% of revenues in the 4th quarter of 2003, compared to 5.8 million € or 18% of revenues in the 4th quarter of 2002. This improvement in operating margin is on the one hand due to improved gross margins as a result of yield improvement and change in product mix and on the other hand due to SG&A costs well under control.

The financial result was a loss of 0.9 million € in the 4th quarter of 2003, compared to 0.3 million € profit in the 4th quarter the previous year. The main reason for the decrease infinancial result is the cash position change as a result of the payment of the dividend.

Rudi De Winter, CEO, commented: "The Melexis track record of continued growth and profitability, unique in the worldwide semiconductor market, is due to our outstanding engineers, a well defined strategy and an excellent company spirit. However, although we believe to have the best products in the world for many automotive applications, only one out of five automotive engineers are aware of them. We need to spend more resources to inform and help the other four out of five automotive engineers design vehicles with better and safer semiconductor products."

For 2004, Melexis expects a continuation of the trend seen in 2003.

The Melexis Board of Directors also agreed with a proposal to the extraordinary shareholder's meeting on April 20 to decide on the cancellation of the purchased own shares (958.482 shares) and on the renewal of the mandate given to the BOD to purchase own shares.

Source: Melexis