April 8, 2008 — Tronics Microsystems SA, the MEMS foundry that stirred controversy last Fall when it claimed that its sustained profitability validates the pure-play custom MEMS foundry model, said today that it achieved a 56 percent increase in annual revenue, to 10.5 million Euros ($15.4 million) in its fiscal year ended Dec. 31, 2007, and posted a net profit of 1.3 million Euros ($1.9 million) representing 12 percent of total revenue.
The privately held Tronics, which calls itself a “global manufacturer of high value-add and highly differentiated custom MEMS components and microsystems,” said the full-year and fourth-quarter results extend Tronics’ net profitability to six consecutive quarters.
The company says that 80 percent of its 2007 revenue stemmed from production of custom components for a select customer base. Tronics says this is “an unusually high ratio for the still-emerging MEMS industry” that is “driven by yield and characterized by high infrastructure costs,” and that the results prove Tronics’ ability to produce high-yield MEMS devices and its cost-efficient operations.
Tronics says its 56 percent growth in revenue is almost twice the rate of the overall MEMS contract manufacturing and foundry business, which achieved an estimated CAGR of 30 percent in 2007, according to market research firm Yole Développement. Tronics attributed its growth in part to increased penetration of its MEMS-based geophones for the seismic oil exploration industry and a growing number of projects involving other inertial MEMS devices.
“Tronics’ revenue growth clearly signals that the industry is maturing and we foresee a further 30 percent CAGR for the industry in 2008 and a stronger growth after 2009,” said Jean-Christophe Eloy, general manager and founder of YOLE Développement. “But profitability of the majority of independent MEMS manufacturers and MEMS units of IC manufacturers is yet to be proven.”
For the past four years, Tronics has been recognized as one of the fastest-growing technology companies in Europe, the Middle East and Africa in the Deloitte Technology Fast 500 EMEA. The awards are based on five-year average percentage revenue growth.