Almere, The
Netherlands
October 26, 2016
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
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ASM International NV via Globenewswire
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