Aixtron, the manufacturer of CVD machines, has announced today that it is writing-down EUR 51.5 million worth of inventory, due to a slow recovery of demand. This means that the prices of CVD machines will have to be lowered so that the company earns the said 51.5 million less than it expected from the machines. The company further states that the amount of machines in stock is inappropriately high for the current demand. As a consequence, the company will not report a profit for the current year.
This is bad news for Aixtron investors, but we already knew that the stock was overvalued, due to the high price to earnings ratio. It could be good news for those looking to purchase Aixtron’s CVD machines for growth of graphene, as the price of those instruments is expected to fall.
Aixtron news release: click here