Tronics is reporting that it is growing strongly again. After an uninspiring 2009 and 2010, business started picking up in late 2010, and remained very healthy throughout 2011. The company had a revenue of $15.2 million in 2011, with a net profit of $1.24 million. Tronics said that it secured important new foundry and custom MEMS contracts during the year and its revenues grew significantly in its three key regions: Europe, United States, and China. With a strong balance sheet that includes more than $4 million cash and a debt-to-equity ratio below 30 percent, Tronics said it is well positioned to continue its expansion in 2012 and beyond. A 20-30% growth is expected in 2012 with further improvement of the company's profitability. According to Tronics, a very substantial portion of the 2012 revenues is already firmly secured.
During the downturn, Tronics was able to broaden its customer base in two key areas: one is Tronics historical core business of advanced MEMS for harsh environments, the other one is the more traditional MEMS foundry business, where Tronics was able to win new projects in a variety of applications such as consumer, bioMEMS, optical and industrial.
With fabs in Grenoble and Dallas, and partnerships being put in place for projects requiring 8-inch wafers, Tronics claims that it offers the most flexible and versatile process portfolio, to customers worldwide.
In parallel, and reportedly without any need for fresh financial injections, Tronics has developed two inertial product platforms; a high-performance MEMS gyro platform, and a 3-axis accelerometer platform. Customers worldwide are reacting positively to this offering that reduces their risks and time to market.
With its existing contracts, Tronics said that it has the potential to triple its revenues over the next 3 to 5 years. A significant part of this growth will come from its US branch in Dallas, and from demand in China and other Asian countries. According to the company, the current customer portfolio is quite diverse and resistant to volatility of specific markets.
Peter Pfluger, CEO of Tronics, commented: "This is by far the most exciting time for the company since its inception in 1997. Although the next few years will be demanding on our teams, we have the opportunity to grow past the critical size for a MEMS specialist company. Thanks to our careful conservative financial approach over the years, we have the privilege of entering this phase of our development free of any financial or institutional burden."