Acquistion boosts e2v, more in pipline -

Acquistion boosts e2v, more in pipline

LONDON — The acquisition of Atmel's Grenoble facility in July 2006 boosted e2v technologies plc financial performance in the year to March 31, 2007. The developer of sensors, semiconductors and electronic tubes saw sales grow by 54.9 percent to £173.9 million (around €256.5 million) with the Grenoble acquisition contributing £52.7 million (around €78 million).

Sales in the sensors and semiconductors group grew by 107.9 percent in the year, of which 2.8 percent was organic and the remainder from the Grenoble acquisition. The electronic tube group saw organic sales growth of 12.1 percent.

Gross profit increased to £59.1 million (€87 million) from £37.8 million in 2006 (€56 million), of which the Grenoble acquisition contributed £19.3 million (€28.5 million) .

E2v's (Chelsford, England) order book at March 31, 2007 was £137.2 million (€202 million), of which the Grenoble acquisition contributed £43.8 million (€65 million).

The company saw growth in U.K. sales of 19.3 percent, driven both from sales through the Grenoble acquisition and organically (10.9 percent) with this organic growth was predominantly in the aerospace and defense market. Sales to the U.S. were £51.3 million (€75.6 million) up from £37.5 million (€55 million) with 5.2 percent coming from organic growth.

Sales to mainland Europe at £66.9 million (€98.5 million) grew by 103.1 percent of which the Grenoble acquisition contributed £31.8million (€47 million), with 6.4 percent from organic growth.

During the year, e2V opened a sales office in Hong Kong to support the increased activity and sales to the Asia Pacific region increased to £15 million from £9.2 million), of which the Grenoble acquisition contributed £4.5 million.

Expenditure on capital equipment and software was £10.9million (€16 million) up from £7.8million (€11.5 million), of which £1.9 million (€2.8 million) covers expenditure in Grenoble. The group's Research and Development spend into product maintenance/support and new products was £11.2million (€16.5 million) (compared with £5.4 million (€8 million)in 2006, of which £4.0million (€5.9 million) was spent in Grenoble.

“Over the coming year our imaging and semiconductor business will focus on extending our reach into the industrial imaging markets in the Asia Pacificregion and exploiting synergies between our Chelmsford and Grenoble facilities,” said Keith Attwood, chief executive officer of e2v. “We also continue to support the e2v Centre for Electronic Imaging at Brunel University which underpins new technology developments for longer term applications.”

“Our electronic tube business is further developing opportunities to move into sub-systems. Underpinning development in RF power systems development is athree-year U.K. Department of Trade and Industry supported collaborative research and development programme with Nottingham University for £1.4 million (€2 million).

Further acquisitions are a possibility according to Attwood. “Following the successful integration of our second acquisition since flotation, the pipeline of further targets for consideration remains buoyant as we continue to pursue a number of suitable targets.”

Since the end of it financial year E2v Technologies plc has acquired MiCS MicroChemical Systems SA, a company that designs and manufactures specialist semiconductors primarily focused in air quality used in automotive and industrial applications, for £5 million (around €7 million).Following the integration of the Grenoble facility, e2V has approximately doubled the number of global distributors supporting the Group.

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