Swiss Micronas, a semi company focussing on automotive (>90% of sales) and hence a peer and (in certain segments) competitor to Melexis, loweredits FY sales outlook due to the Japanese events.
Micronas is counting on FY sales of CHF 150m to CHF 155m, while CSS was expecting CHF 172m.
At its investor day in late May, Melexis’ CEO declared that there will probably be some impact from the Japanese events in 2Q and 3Q but this will only be a timing effect (i.e. only postponements and not cancellations). The exact impact remains very hard to quantify however, and will most likely not be material enough to make Melexis change the FY11 sales guidance (high single digit sales growth), the company said at the time. Nevertheless, taking into account the Micronas comments, the downside risks seem to be increasing.
2Q results will be published next week on Thursday. Pending the release we reiterate our Buy rating and € 16 target.