ASM INTERNATIONAL N.V. REPORTS SECOND QUARTER 2019 RESULTS

 

 

Almere, The Netherlands

July 23, 2019, 6 p.m. CET

 

ASM INTERNATIONAL N.V. REPORTS

SECOND QUARTER 2019 RESULTS

 

ASM International N.V. (Euronext Amsterdam: ASM) today reports its second quarter 2019 operating results (unaudited) in accordance with IFRS.

 

FINANCIAL HIGHLIGHTS

EUR million	Q2 2018		Q1 2019		Q2 2019
New orders	175.9		235.0		373.1
Net sales	208.7		248.8		363.3
Gross profit margin %	42.1	%	41.3	%	59.0	%
Operating result	38.3		47.0		150.2
Result from investments (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013)	21.6		3.1		2.0
Amortization intangible assets (resulting from the sale of ASMPT stake in 2013)	(3.0	)	(3.4	)	(3.4	)
Net earnings	59.4		49.4		121.6
Normalized net earnings (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013 and result from sale of ASMPT shares)	62.4		52.8		125.0

 

•    New orders were €373 million. Excluding €103 million related to the patent litigation settlement new orders were €270 million.

•     Net sales for the second quarter 2019 were €363 million. Excluding €103 million related to the patent litigation settlement, net sales were €260 million and increased 5% compared to the previous quarter.

•    Gross profit margin was 59.0% in Q2 2019 and 42.8% excluding the patent litigation settlement compared to 41.3% in the previous quarter.

•    Operating result increased to €150 million. Excluding the patent litigation settlement operating result was stable at €47 million compared to the previous quarter.

•   Normalized net earnings, including the patent litigation settlement, for the second quarter 2019 increased by €72 million compared to Q1 2019. Besides the positive impact of the patent litigation settlement net earnings in Q2 were negatively impacted by adverse currency effects and the increase in taxes due to the full utilization of the remaining net operating losses in the Netherlands. Results from investments decreased to €2 million.

 

 

COMMENT

Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:

"In Q2 we realized sales of €363 million. Excluding the €103 million related to the reported patent litigation settlement, the sales of €260 million showed a 25% sales increase year-on-year, reaching the highest level ever, driven by continuous high demand in the logic/foundry segment. Our order intake, at €373 million (€270 million excluding the patent litigation settlement) was again very strong. Sales as well as order intake were above our guidance of respectively €230-250 million and €240-260 million. The high order intake in Q2 was led by logic. Our cash position in the quarter increased substantially and still excludes the cash proceeds from the litigation settlement which will come in in the next quarters. Based on this we today announced the authorization of a new €100 million share buyback program."

 

 

OUTLOOK

For Q3, on a currency comparable level, we expect sales of €250-270 million while bookings, on a currency comparable level, are expected to also be in the range of €250-270 million. For 2019, general expectations are now that the wafer fab equipment (WFE) market will decline with a high teens percentage. While expectations for the memory-segment have further weakened, the healthy demand in the logic and foundry segments in the first half is expected to continue in the second half of 2019. Based upon this current market view, we maintain our expectation to meaningfully outperform the WFE market in 2019.

 

 

SHARE BUYBACK PROGRAM

ASMI announced today that its Management Board authorized the repurchase of up to €100 million of the Company's common shares within the 2019-2020 time frame. This buyback program will be executed by intermediaries and will end as soon as the aggregate purchase price of the common shares acquired by ASMI has reached €100 million.

 

On May 20, 2019 the General Meeting of Shareholders authorized ASMI for a period of 18 months to acquire common shares up to 10% of its then issued capital.

 

The repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders.

 

 

ASMI further announces that the withdrawal of 5 million treasury shares has become effective as of July 23, 2019. As of that date, the number of issued shares is 51,297,394.

 

 

About ASM International

ASM International NV, headquartered in Almere, the Netherlands, its subsidiaries and participations design and manufacture equipment and materials used to produce semiconductor devices. ASM International, its subsidiaries and participations provide production solutions for wafer processing (Front-end segment) as well as for assembly & packaging and surface mount technology (Back-end segment) through facilities in the United States, Europe, Japan and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASMI's website at www.asm.com.

 

Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, epidemics and other risks indicated in the Company's reports and financial statements. The Company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.

 

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

 

ASM International will host an investor conference call and web cast on Wednesday, July 24, 2019 at 15:00 Continental European Time (9:00 a.m. - US Eastern Time).

 

The teleconference dial-in numbers are as follows:

 

• United States:          +1 631 510 7495
• International:            +44 (0) 844 571 8892 
• The Netherlands:      +31 (0)20 714 3545
• Access Code:          1164706

 

A simultaneous audio webcast and replay will be accessible at www.asm.com.

 

CONTACT

Investor contact:

Victor Bareño

T: +31 88 100 8500

E: [email protected]

 

Media contact:

Ian Bickerton

T: +31 625 018 512

 

 

 

Attachment

• ASM International Reports Second Quarter 2019 Results

ASM International Reports Second Quarter 2019 Results