Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Corporation: Favorable First Half Earnings with

  Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec
  Corporation: Favorable First Half Earnings with Recovery to Profits, FY3/14
  Estimates Call for Continued Improvement in Profitability

NOTE TO EDITORS: The following is an investment opinion issued by Investment

Business Wire

TOKYO -- January 21, 2014

Investment Bridge, one of Japan’s leading IR services companies, has issued a
“Bridge Report” on Ferrotec Corporation (JASDAQ:6890) reviewing its first half
earnings results and full year FY3/14 earnings estimates.

Report Highlights

  *Ferrotec’s first half FY3/14 sales remained in line with the previous
    first half, but the promotion of business restructuring plans and other
    efforts contributed to a large margin of decline in expenses and allowed
    operating income to recover from a loss in the previous term to an
    operating income of JPY159 million.
  *Ferrotec’s earnings estimates for the full FY3/14 call for sales to rise
    by 9.3% year-over-year and an operating income to recover a step further
    to JPY1.0 billion on the back of improvement in operating conditions in
    all of its business segments.
  *The most recently issued Bridge Report calls attention to Ferrotec’s
    potential to enter a new growth phase in fiscal year March 2015 and to
    realize recovery in operating income to JPY1.5 to JPY2.0 billion on the
    back of recoveries in capital investments in the semiconductor and the
    photovoltaic industries.

Ferrotec Corporation manufactures and sells single and multi crystal silicon
ingot manufacturing equipment and other products in the photovoltaic related
segment. Ferrotec also supplies various parts, consumables and equipments for
semiconductor, flat panel display (FPD), and LED applications in equipment
related segment, and various thermoelectric temperature controllers for
automobile seat and home appliances in electronic device segment.

Sales rose by 0.9% year-over-year to JPY20.2 billion during the first half of
FY3/14 on the back of favorable sales of the electronic device business
segment due to demand for thermoelectric modules used in automobile seat
heating and other consumer applications and favorable sales of the equipment
related applications to smartphone memory and logic manufacturers. The
disappearance of valuation losses arising from the implementation of lowest
cost accounting, progress in the business restructuring plans, and declines in
doubtful account reserves allowed operating income to improve from the loss of
JPY2.153 billion in the previous first half to a profit of JPY159 million in
the current first half.

During the second half, a recovery in semiconductor related investments is
expected to allow equipment related business sales to rise strongly. Moreover,
strong demand for thermoelectric modules from automobile seat automated
heating applications is expected to lead to favorable sales of electronic
device business sales. Consequently, sales are expected to rise by 9.3%
year-over-year to JPY42.0 billion, and operating income is expected to recover
to JPY1.0 billion in the current term from the loss of JPY3.6 billion recorded
in FY3/13.

The most recently issued Bridge Report highlights the potential for Ferrotec’s
earnings to bottom in the current term and to begin a period of renewed growth
from fiscal year March 2015, with a potential recovery in operating income to
JPY1.5 to JPY2.0 billion in the future.

To view the full report, please go to the website at the URL listed below.

About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate
and objective information about the earnings, business strategies, and other
information of publicly traded Japanese companies.


Investment Bridge Co., Ltd.
Kaoru Hosaka for Ferrotec Corporation
+81-3-5842-5765 (Japanese correspondence only) (English and Japanese correspondence)
Press spacebar to pause and continue. Press esc to stop.