ASM INTERNATIONAL N.V. REPORTS THIRD QUARTER 2016 RESULTS
October 26 2016 - 12:10PM
ASM International N.V. (Euronext Amsterdam: ASM) today reports
its third quarter 2016 operating results (unaudited) in accordance
with IFRS.
REPORTING 2016
With the 2015 Q4 earnings release, published on
February 23, 2016, ASMI announced that as of January 1, 2016, it
will report its financial results in accordance with IFRS. Up until
the last reporting regarding 2015, ASMI's primary external and
internal reporting has been based on US GAAP. In addition ASMI
issued quarterly reconciliations of net earnings and shareholders'
equity and (semi) annual financial statements prepared in
accordance with International Financial Reporting Standards (IFRS).
Following the voluntary delisting from NASDAQ, August 2015, ASMI
migrated to IFRS as its only internal and external reporting
standard from January 1, 2016 and discontinued the use of US GAAP
as of the same date. During 2016 comparable results based on US
GAAP will be presented, as from 2017 results based on IFRS
only will be reported.
The main deviations between IFRS and US GAAP are
explained in Annex 2.
FINANCIAL HIGHLIGHTS
ASMI results based on IFRS.
|
Quarter |
EUR
million |
Q3 2015 |
Q2 2016 |
Q3 2016 |
New orders |
148.1 |
|
159.1 |
|
122.6 |
|
Net sales |
162.0 |
|
138.7 |
|
144.2 |
|
Gross profit margin
% |
43.4 |
% |
43.8 |
% |
44.2 |
% |
Operating result |
30.6 |
|
16.7 |
|
16.8 |
|
Result from investments
(excl. Amortization intangible assets resulting from the sale of
the 12% stake of ASMPT) |
8.6 |
|
16.4 |
|
26.7 |
|
Amortization intangible
assets resulting from the sale of the 12% stake of ASMPT |
(6.7 |
) |
(6.7 |
) |
(6.7 |
) |
Net earnings |
42.8 |
|
35.6 |
|
33.1 |
|
Normalized net earnings (excl. Amortization intangible assets
resulting from the sale of the 12% stake of ASMPT) |
49.5 |
|
42.3 |
|
39.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net sales for the third quarter 2016 were €144 million, an
increase of 4% compared to the previous quarter. Year-on-year net
sales decreased with 11%.
- New orders at €123 million were 23% below the Q2 2016
level.
- Normalized net earnings for the third quarter 2016 decreased by
€2 million compared to the second quarter 2016. Operating result
was stable at €17 million. The financing result included €3 million
negative effects from currencies compared to €8 million positive
effects in the second quarter. The result from investments
increased with €8 million.
COMMENT
Commenting on the results, Chuck del Prado,
President and Chief Executive Officer of ASM international said:
"Both Q3 revenues at €144 million, and order intake at €123 million
came in within our guidance of respectively €135-150 million and
€100-130 million. Gross margin remained stable at around the 44%.
Net result in Q3 was €40 million and decreased slightly, due to
unfavorable currency developments on cash held in foreign
currencies, partly compensated by the strong performance of
ASMPT."
OUTLOOK
After its strong growth in the previous years, and as also
communicated with our Q2-results in July, the single wafer ALD
market is expected to show a double-digit decline in 2016, driven
by the Memory business:
- In Memory, the NAND market is shifting from Planar NAND to 3D
NAND. This shift has significantly reduced the demand in NAND for
additional multi patterning-related single wafer ALD capacity.
Non-patterning related single wafer ALD demand is increasing as
next generation 3D NAND gradually ramps into high volume. We expect
that this will lead to a double digit increase of the 3D NAND
single wafer ALD market in 2017 as compared to 2016.
- In Memory, DRAM industry capacity demand was high in 2015
and has declined strongly in 2016. Based on current visibility
the demand for new DRAM-related single wafer ALD capacity is
believed to recover in 2017 but not before the middle of the
year.
In Logic/Foundry the transition to the 10
nm technology node has started in 2016 and fuels substantially
higher single wafer ALD-equipment demand than the previous nodes.
It is expected that this demand will remain high in 2017.
The above-mentioned market developments will
lead to a contraction of the single wafer ALD market in 2016. This
market is expected to clearly improve again in 2017.
For Q4 we expect sales between €150 - 170
million, while we expect an order intake of €130-160 million, both
on a currency comparable level.
SHARE BUYBACK PROGRAM
October 28, 2015 ASMI announced that its
Management Board authorized the repurchase of up to €100 million of
the Company's common shares within the 2015-2016 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, but ultimately on November 20,
2016.
On May 25, 2016 the General Meeting of
Shareholders authorized ASMI to acquire shares for a period of 18
months. The repurchase program is part of ASMI's commitment to use
excess cash for the benefit of its shareholders.
The program started on November 26, 2015. On
September 30, 2016, 94% of the program was completed at an average
share price of €35.87.
Since we are now approaching the finalization of
this program, the Management Board, as part of its commitment to
use excess cash for the benefit of its shareholders, has authorized
the repurchase of up to €50 million of the Company's common shares
within the 2016-2017 time frame under the same conditions as the
share buyback program announced at October 28, 2015.
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.
ASM International will host an investor conference call and web
cast on Thursday, October 27, 2016 at 15:00 Continental European
Time (9:00 a.m. - US Eastern Time).
The teleconference dial-in numbers are as
follows:
- United
States:
+1 646 254 3367
- International:
+44 (0)20 3427 1900
- The
Netherlands:
+31 (0)20 716 8256
- Access Code:
2990659
A simultaneous audio webcast and replay will be
accessible at www.asm.com.
CONTACT
Investor contact:
Victor Bareño T: +31 88 100 8500 E: victor.bareno@asm.com
Media contact:
Ian Bickerton T: +31 625 018 512
Press Release Third Quarter 2016 Results
http://hugin.info/132090/R/2051713/767686.pdf
ASM International NV (EU:ASM)
Historical Stock Chart
From Mar 2024 to Apr 2024
ASM International NV (EU:ASM)
Historical Stock Chart
From Apr 2023 to Apr 2024