Melexis puts the pedal to the metal in Q1 2020

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Melexis seems to have found its groove in the face of the COVID-19 pandemic. While businesses around the globe struggle to cope with the corona health crisis, the Ypres-based company was strong off the starting blocks in Q1 2020. The automotive semiconductor expert has revealed that first-quarter sales were up 19 percent from the year prior, totaling 138.2 million euros. Even better for the Belgian company was its net profit, which was reported at 20.7 million euros, an increase of 48 percent year over year, and 35 percent sequentially.

Credit: Melexis

Despite this strong start to the year, Melexis remains realistic about results for Q2. Given the market volatility, the company withdrew its 2020 outlook due to the unquantifiable impact of COVID-19. “Melexis had a solid start of the year, which is at the high end of the sales guidance provided at the beginning of the year. Leaving aside the negative impact of COVID-19 at the end of March, sales were heading for more than 140 million euros,” says CEO Françoise Chombar. “Melexis continues to serve customers in the best possible way, despite ongoing supply chain disruptions, mainly in chip assembly. On the demand side, many customers – mainly in Europe and the US – have shut down due to COVID-19 lockdown measures, while mostly Asian customers have restarted operations. The combined impact of disruptions, both on the supply and the demand side, will have a significant negative impact on sales in the second quarter.”