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BE Semiconductor Industries N.V. Announces Q3-20 Results

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BE Semiconductor Industries N.V.
·25 min read
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Q3-20 Revenue of € 108.3 Million and Net Income of € 34.0 Million, Respectively
Nine Months 2020 Revenue and Net Income Up 22.8% and 84.0%, Respectively, vs. Prior Year

DUIVEN, The Netherlands, Oct. 22, 2020 (GLOBE NEWSWIRE) -- BE Semiconductor Industries N.V. (the “Company" or "Besi") (Euronext Amsterdam: BESI; OTC markets: BESIY, Nasdaq International Designation), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the third quarter and nine months ended September 30, 2020.

Key Highlights Q3-20

  • Revenue of € 108.3 million, down 12.9% vs. Q2-20, consistent with seasonal trends. At favorable end of guidance range. Up 20.7% vs. Q3-19 primarily due to higher shipments for mobile applications to US and Asian customers

  • Orders of € 94.9 million, down 6.3% vs. Q2-20. Up 15.5% vs. Q3-19 due to increased demand for high end mobile applications related to new product introductions and 5G capabilities

  • Gross margin reached 60.8% and exceeded guidance. Down 1.2 points vs. Q2-20 but up 5.7 points vs. Q3-19 primarily due to a more favorable product mix and increased labor efficiencies

  • Net income of € 34.0 million decreased € 5.8 million (-14.6%) vs. Q2-20 due to lower revenue levels. Up strongly (+€ 14.8 million or +77.1%) vs. Q3-19 primarily due to significantly higher revenue and gross margins combined with reduced overhead levels related to cost control efforts

  • Net margin again exceeded 30%, reaching 31.3% vs. 32.0% in Q2-20. Substantial increase vs. 21.4% realized in Q3-19

  • Net cash rose strongly to € 158.7 million, up € 65.1 million (+69.6%) vs. June 30, 2020

  • Agreement signed with Applied Materials, Inc. to jointly develop industry’s first complete and proven die based hybrid bonding equipment solution for customers

Key Highlights YTD-20

  • Revenue of € 323.9 million, up 22.8 % vs. YTD-19 primarily reflecting improved market conditions and higher demand for mobile applications from US and Chinese customers

  • Similarly, orders of € 314.8 million grew € 66.6 million (+26.8%) vs. YTD-19

  • Gross margin reached 60.1%, up 4.4 points vs. YTD-19 primarily due to Besi’s strong advanced packaging market position, a more favorable product mix and increased labor efficiencies

  • Net income of € 87.6 million increased € 40.0 million (+84.0%) vs. YTD-19. Net margin rose to 27.1% vs. 18.0% in YTD-19

Outlook

  • Q4-20 revenue estimated to be flat to down 15% vs. Q3-20 primarily due to seasonal influences and concerns as to the development of the COVID-19 pandemic. Gross margin anticipated between 58%-60%

(€ millions, except EPS)

Q3-
2020

Q2-
2020

Δ

Q3-
2019


Δ

YTD-
2020

YTD-
2019

Δ

Revenue

108.3

124.3

-12.9%

89.7

+20.7%

323.9

263.8

+22.8%

Orders

94.9

101.3

-6.3%

82.2

+15.5%

314.8

248.2

+26.8%

Operating Income

42.0

48.4

-13.2%

25.3

+66.0%

109.2

65.1

+67.7%

EBITDA

46.5

53.1

-12.4%

30.2

+54.0%

123.5

79.8

+54.8%

Net Income

34.0

39.8

-14.6%

19.2

+77.1%

87.6

47.6

+84.0%

EPS (basic)

0.47

0.55

-14.5%

0.26

+80.8%

1.21

0.65

+86.2%

EPS (diluted)

0.43

0.50

-14.0%

0.25

+72.0%

1.12

0.63

+77.8%

Net Cash & Deposits

158.7

93.6*

+69.6%

106.9

+48.5%

158.7

106.9

+48.5%

*Reflects cash dividend payments of € 73.5 million in Q2-20

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“Besi reported solid results for Q3-20 and the first nine months of the year. For the quarter, revenue and net income reached € 108.3 million and € 34.0 million, respectively, increases of 20.7% and 77.1% versus Q3-19. Q3-20 orders of € 94.9 million grew by 15.5% versus Q3-19. Besi’s operating profit of € 42.0 million was at the high end of prior guidance as we had better than anticipated shipments for mobile applications, maintained gross margins in excess of 60% and exceeded our operating expense reduction target. As a result, Besi recorded a net margin of 31.3% in Q3-20, the second consecutive quarter in which profit margins exceeded the annual level achieved during our last 2017 cyclical peak.

Results for the first nine months of 2020 were also strong, with revenue of € 323.9 million up 22.8% and net income of € 87.6 million, up 84.0% year over year. Similarly, orders of € 314.8 million grew 26.8% versus the comparative period of 2019. Besi’s business prospects have improved this year as demand for mobile applications by US and Asian customers grew significantly in light of new product introductions and expanded 5G capabilities. Growth in mobile end user markets has more than compensated for relatively stable demand for computing applications and continued weak demand experienced for automotive applications reflecting the current economic environment.

The execution of strategic initiatives has also benefited our 2020 performance. A 2.1% reduction in fixed headcount increased labor efficiencies at both the gross and operating margin levels and pro-active supply chain management has limited inventory development and improved cash flow generation. This year, we have also enhanced our CSR strategy with new short and medium-term targets and KPIs set. Long term ambitions include a 60% reduction in Besi’s Scope 1 and 2 carbon foot-print by 2030 and for renewable sources to represent 65% of our global energy needs by such date.

Besi’s liquidity position continued to expand with growth in cash and deposits reaching € 564.5 million at the end of Q3-20, an increase of 54.0% versus June 30, 2020. Increased cash levels were primarily due to Besi’s issuance of € 150 million of its 0.75% Convertible Notes in August and strong cash flow from operations of € 60.9 million generated during the quarter. Similarly, net cash and deposits grew to € 158.7 million at quarter end, an increase of 69.6% versus the end of Q2-20. Of note, we will cancel 1.5 million shares held in treasury in Q4-20 so we have sufficient room within our current authorization to increase quarterly share repurchases from approximately € 3 million to € 10 million.

Looking ahead, we estimate that Q4-20 revenue will be flat to down 15% due to typical seasonal influences, lower demand for mobile applications post the capacity build this year and concerns as to the development of the COVID-19 pandemic. Besi’s gross margin is estimated to range between 58-60% in Q4-20 based on the forecasted product mix. Operating expenses are expected to increase by 0-5% versus Q3-20.

Longer-term, we are encouraged about Besi’s prospects in the next investment cycle given our strong performance during the last industry downturn and the current pandemic and by strong secular growth drivers. As chip functionality, complexity and density increase and geometries shrink, Besi’s advanced packaging solutions are ever more important to customers.

As such, we are increasing our engagement with leading mobile, memory and logic players to expand our addressable market. In particular, we see significant market opportunities from the current 5G roll-out and initial orders from global memory producers for high volume, high accuracy flip chip systems versus traditional wire bonding solutions. In addition, Besi and Applied Materials, Inc. announced in a separate press release today an agreement to develop the industry’s first complete and proven equipment solution for die based hybrid bonding. The collaboration harnesses each firm’s respective expertise in front and back end process technology for next generation applications such as high-performance computing, AI, 5G mobile, data storage and automotive.”

Third Quarter Results of Operations

Q3-2020

Q2-2020

Δ

Q3-2019

Δ

Revenue

108.3

124.3

-12.9%

89.7

+20.7%

Orders

94.9

101.3

-6.3%

82.2

+15.5%

Book to Bill Ratio

0.9

0.8

+0.1

0.9

-

Q3-20 revenue of € 108.3 million declined 12.9% versus Q2-20 and was at the favorable end of prior guidance (-10% to -25%). Versus Q3-19, revenue increased by 20.7% primarily due to higher shipments for mobile applications to US and Asian customers.

Orders of € 94.9 million declined 6.3% versus Q2-20 consistent with seasonal trends. However, compared to Q3-19, orders grew by 15.5% primarily due to improved market conditions and increased demand for high end mobile applications. Per customer type, IDM orders decreased € 0.9 million, or 2.0%, versus Q2-20 and represented 46% of total orders. Subcontractor orders decreased by € 5.5 million, or 9.7%, versus Q2-20 and represented 54% of total orders.

Q3-2020

Q2-2020

Δ

Q3-2019

Δ

Gross Margin

60.8%

62.0%

-1.2

55.1%

+5.7

Operating Expenses

23.9

28.6

-16.4%

24.2

-1.2%

Financial Expense/(Income), net

3.2

2.7

+18.5%

3.3

-3.0%

EBITDA

46.5

53.1

-12.4%

30.2

+54.0%

Besi’s gross margin reached 60.8% in Q3-20 which exceeded guidance (58-60%) and represented a decrease of 1.2 points versus Q2-20. Versus Q3-19, gross margin increased by 5.7 points primarily due to Besi’s strong advanced packaging position, more favorable product mix and increased labor efficiencies associated with lower fixed Asian production headcount.

Q3-20 operating expenses declined by € 4.7 million (-16.4%) versus Q2-20 and were better than prior guidance (-10% to -15%). The decrease was primarily due to (i) a € 1.9 million reduction in variable compensation expense, (ii) € 1.3 million lower sales related warranty and commission expenses and (iii) favorable forex influences. Operating expenses declined € 0.3 million (-1.2%) versus Q3-19 despite Besi’s 20.7% revenue increase as a result of strategic cost control initiatives including a 2.1% fixed headcount reduction between Q3-19 and Q3-20 and lower travel expenses.

Financial expense, net, increased by € 0.5 million (+18.5%) versus Q2-20 primarily due to Besi’s issuance in August of € 150 million of 0.75% Convertible Notes due 2027.

Q3-2020

Q2-2020

Δ

Q3-2019

Δ

Net Income

34.0

39.8

-14.6%

19.2

+77.1%

Net Margin

31.3%

32.0%

-0.7

21.4%

+9.9

Tax Rate

12.4%

12.9%

-0.5

12.7%

-0.3

Net income of € 34.0 million declined by € 5.8 million (-14.6%) versus Q2-20 due primarily to a 12.9% revenue decrease and lower gross margins partially offset by a € 4.7 million reduction in operating expenses. Versus Q3-19, net income increased € 14.8 million (+77.1%) primarily due to significantly higher revenue and gross margin levels realized combined with cost control efforts which limited operating expense development. Similarly, Besi’s net margin grew to 31.3% in Q3-20, a significant increase versus the 21.4% realized in Q3-19.

Nine Months Results of Operations

YTD-2020

YTD-2019

Δ

Revenue

323.9

263.8

+22.8%

Orders

314.8

248.2

+26.8%

Gross Margin

60.1%

55.7%

+4.4

Operating Income

109.2

65.1

+67.7%

Net Income

87.6

47.6

+84.0%

Net Margin

27.1%

18.0%

+9.1

Tax Rate

13.0%

13.0%

-

For the nine months ended September 30, 2020, Besi’s revenue rose to € 323.9 million, up € 60.1 million, or 22.8% versus the comparable period of the prior year. The increase reflects improved industry conditions generally and particular strength in shipments for mobile applications to both US and Chinese customers. Similarly, orders of € 314.8 million grew by € 66.6 million (+26.8%) versus the prior year earlier period.

Besi’s operating income of € 109.2 million grew by 67.7% year over year primarily due to (i) revenue growth which significantly outpaced a 4.5% increase in operating expenses and (ii) a gross margin expansion of 4.4 points associated with Besi’s strong advanced packaging market position, more favorable product mix and increased labor efficiencies. Similarly, Besi’s net income of € 87.6 million increased € 40.0 million, or 84.0% and net margins grew by 9.1 points to reach 27.1%.

Financial Condition

Q3
2020

Q2
2020

Δ

Q3
2019

Δ

YTD-
2020

YTD-
2019


Δ

Total Cash and Deposits

564.5

366.6

+54.0%

383.7

+47.1%

564.5

383.7

+47.1%

Net Cash and Deposits

158.7

93.6

+69.6%

106.9

+48.5%

158.7

106.9

+48.5%

Cash flow from Ops.

60.9

22.9

+165.9%

38.8

+57.0%

110.3

83.8

+31.6%

At the end of Q3-20, cash and deposits aggregated € 564.5 million, an increase of € 197.9 million compared to Q2-20 principally as a result of the net proceeds received from Besi’s Convertible Note offering in August 2020. In addition, net cash and deposits increased by € 65.1 million compared to Q2-20 due primarily to € 60.9 million of cash flow from operations including a € 14.5 million reduction in working capital partially offset by (i) € 4.3 million of capitalized development spending and (ii) € 3.3 million of share repurchases.

On August 5, 2020, Besi issued € 150 million principal amount of 0.75% Senior Unsecured Convertible Notes due August 2027 (the “Convertible Notes”). The Convertible Notes convert into approximately 2.9 million Besi ordinary shares at a conversion price of € 51.56 (subject to adjustment). Besi may redeem the Convertible Notes at any time from August 26, 2024 provided that the price of its ordinary shares exceeds 130% of the then effective conversion price for a specified period of time.

The Convertible Notes may be redeemed at the option of the holder (i) on August 5, 2025 at their principal amount plus accrued interest and (ii) in the event of a change of control, at the principal amount plus accrued interest. The net proceeds from the offering totaled € 147.8 million which will be used to continue the development of next generation advanced packaging technologies and to further expand Besi´s Asian manufacturing operations. In addition, the balance of the net proceeds may be used for general corporate purposes including acquisitions and share buybacks.

Share Repurchase Activity/Cancellation of shares
During the quarter, Besi repurchased 84,219 of its ordinary shares at an average price of € 38.61 per share for a total of € 3.3 million. Cumulatively, as of September 30, 2020, 3.3 million shares have been purchased under the current € 125 million share repurchase program at an average price of € 22.98 per share for a total of € 76.5 million. As of such date, Besi held approximately 7.4 million shares in treasury at an average cost of € 15.75, equal to 9.2% of its shares outstanding.

Besi will cancel 1.5 million of its 7.4 million ordinary shares held in treasury in Q4-20. Upon such cancellation, total shares outstanding, excluding treasury shares, will decline to 78.6 million and shares held in treasury will reduce to 5.9 million. As a result of the additional capacity created by the share cancellation, Besi intends to increase its share repurchases to approximately € 10 million per quarter.

Outlook
Based on its September 30, 2020 order backlog and feedback from customers, Besi forecasts for Q4-20 that:

  • Revenue will be flat to down 15% vs. the € 108.3 million reported in Q3-20.

  • Gross margin will range between 58-60% vs. the 60.8% realized in Q3-20.

  • Operating expenses will increase by 0-5% vs. the € 23.9 million reported in Q3-20.

Investor and media conference call
A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 am EDT). The dial-in for the conference call is (31) 20 531 5851. To access the audio webcast and webinar slides, please visit.

Basis of Presentation

The accompanying condensed Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2019 Annual Report, which is available on www.besi.com.

About Besi
Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY Nasdaq International Designation) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

Contacts:

Richard W. Blickman, President & CEO

CFF Communications

Hetwig van Kerkhof, SVP Finance

Frank Jansen

Tel. (31) 26 319 4500

Tel. (31) 20 575 4024

investor.relations@besi.com

besi@cffcommunications.nl

Caution Concerning Forward Looking Statements
This press release contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”, “will”, “would”, and similar expressions are intended to identify forward looking statements, although not all forward looking statements contain these identifying words. The financial guidance set forth under the heading “Outlook” contains such forward looking statements. While these forward looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; the extent and duration of the COVID-19 pandemic and measures taken to contain the outbreak, and the associated adverse impacts on the global economy, financial markets, and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2019 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

Consolidated Statements of Operations

(euro in thousands, except share and per
share data)


Three Months Ended
September 30,
(unaudited)

Nine Months Ended
September 30,
(unaudited)

2020

2019

2020

2019

Revenue

108,343

89,694

323,949

263,801

Cost of sales

42,466

40,249

129,339

116,982

Gross profit

65,877

49,445

194,610

146,819

Selling, general and administrative expenses

16,312

15,617

59,970

54,801

Research and development expenses

7,598

8,551

25,457

26,872

Total operating expenses

23,910

24,168

85,427

81,673

Operating income

41,967

25,277

109,183

65,146

Financial expense, net

3,197

3,312

8,500

10,451

Income before taxes

38,770

21,965

100,683

54,695

Income tax expense

4,814

2,800

13,054

7,119

Net income

33,956

19,165

87,629

47,576

Net income per share – basic

0.47

0.26

1.21

0.65

Net income per share – diluted

0.43

0.25

1.12

0.63


Number of shares used in computing per share amounts:
- basic
- diluted 1


72,705,062

84,386,221


72,643,210
82,971,344


72,471,117

83,217,565


72,794,337
83,367,934


Consolidated Balance Sheets

(euro in thousands)

September
30, 2020

(unaudited)

June 30,
2020
(unaudited)

March 31,
2020

(unaudited)

December 31,
2019

(audited)

ASSETS

Cash and cash equivalents

339,459

251,621

347,639

278,398

Deposits

225,071

115,000

80,000

130,000

Trade receivables

95,925

117,158

91,797

81,420

Inventories

52,051

52,122

46,872

46,578

Other current assets

11,029

12,768

14,598

13,854

Total current assets

723,535

548,669

580,906

550,250

Property, plant and equipment

26,675

27,142

29,067

30,383

Right of use assets

8,769

9,678

10,264

11,132

Goodwill

44,880

45,262

45,423

45,289

Other intangible assets

47,802

46,101

44,380

42,593

Deferred tax assets

12,117

13,225

14,607

14,978

Other non-current assets

1,058

1,094

1,097

2,255

Total non-current assets

141,301

142,502

144,838

146,630

Total assets

864,836

691,171

725,744

696,880

Notes payable to banks

-

-

487

476

Current portion of long-term debt

91

91

513

515

Accounts payable

38,715

45,939

34,310

30,278

Accrued liabilities

55,225

51,382

61,769

55,359

Total current liabilities

94,031

97,412

97,079

86,628

Long-term debt

405,736

272,932

278,299

277,067

Lease liabilities

5,831

6,438

7,104

7,859

Deferred tax liabilities

12,437

8,480

8,376

8,858

Other non-current liabilities

18,122

18,228

18,197

17,960

Total non-current liabilities

442,126

306,078

311,976

311,744

Total equity

328,679

287,681

316,689

298,508

Total liabilities and equity

864,836

691,171

725,744

696,880


Consolidated Cash Flow Statements

(euro in thousands)

Three Months Ended
September 30,

(unaudited)

Nine Months Ended
September 30,

(unaudited)

2020

2019

2020

2019

Cash flows from operating activities:

Income before income tax

38,770

21,965

100,683

54,695

Depreciation and amortization

4,495

4,909

14,343

14,682

Share based payment expense

981

865

9,014

6,206

Financial expense, net

3,197

3,312

8,500

10,451

Changes in working capital

14,546

8,346

(10,197)

15,962

Income tax paid

(221)

(316)

(8,974)

(15,423)

Interest paid

(865)

(295)

(3,045)

(2,729)

Net cash provided by operating activities

60,903

38,786

110,324

83,844

Cash flows from investing activities:

Capital expenditures

(1,250)

(956)

(2,600)

(1,819)

Capitalized development expenses

(4,286)

(3,169)

(12,268)

(9,082)

Repayments of (investments in) deposits

(110,127)

-

(95,127)

50,000

Net cash provided by (used in) investing activities

(115,663)

(4,125)

(109,995)

39,099

Cash flows from financing activities:

Proceeds from (payments of) bank lines of credit

-

-

(434)

(2,812)

Proceeds from (payments of) debt

-

(45)

(416)

(34)

Proceeds from convertible notes

147,757

-

147,757

-

Payments of lease liabilities

(853)

(860)

(2,622)

(2,641)

Dividends paid to shareholders

-

-

(73,486)

(122,419)

Purchase of treasury shares

(3,259)

(13,333)

(9,457)

(38,853)

Net cash provided by (used in) financing activities

143,645

(14,238)

61,342

(166,759)

Net increase (decrease) in cash and cash equivalents

88,885

20,423

61,671

(43,816)

Effect of changes in exchange rates on cash and
cash equivalents


(1,047
)


1,575


(610
)


2,004

Cash and cash equivalents at beginning of the
period


251,621


231,729


278,398


295,539

Cash and cash equivalents at end of the period

339,459

253,727

339,459

253,727


Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE

Q1-2019

Q2-2019

Q3-2019

Q4-2019

Q1-2020

Q2-2020

Q3-2020

Per geography:

Asia Pacific

58.6

72

%

68.6

74

%

67.3

75

%

63.8

69

%

77.6

85

%

105.7

85

%

86.6

80

%

EU / USA

22.8

28

%

24.1

26

%

22.4

25

%

28.6

31

%

13.7

15

%

18.6

15

%

21.7

20

%

Total

81.4

100

%

92.7

100

%

89.7

100

%

92.4

100

%

91.3

100

%

124.3

100

%

108.3

100

%

ORDERS

Q1-2019

Q2-2019

Q3-2019

Q4-2019

Q1-2020

Q2-2020

Q3-2020

Per geography:

Asia Pacific

55.9

67

%

61.2

74

%

59.2

72

%

80.4

80

%

102.0

86

%

88.1

87

%

75.9

80

%

EU / USA

27.5

33

%

21.5

26

%

23.0

28

%

20.1

20

%

16.6

14

%

13.2

13

%

19.0

20

%

Total

83.4

100

%

82.7

100

%

82.2

100

%

100.5

100

%

118.6

100

%

101.3

100

%

94.9

100

%

Per customer type:

IDM

57.5

69

%

55.4

67

%

43.6

53

%

58.3

58

%

47.4

40

%

44.6

44

%

43.7

46

%

Subcontractors

25.9

31

%

27.3

33

%

38.6

47

%

42.2

42

%

71.2

60

%

56.7

56

%

51.2

54

%

Total

83.4

100

%

82.7

100

%

82.2

100

%

100.5

100

%

118.6

100

%

101.3

100

%

94.9

100

%

HEADCOUNT

Mar 31, 2019

Jun 30, 2019

Sep 30, 2019

Dec 31, 2019

Mar 31, 2020

Jun 30, 2020

Sep 30, 2020

Fixed staff (FTE)

Asia Pacific

1,174

72

%

1,155

72

%

1,093

71

%

1,081

70

%

1,071

70

%

1,067

70

%

1,054

70

%

EU / USA

452

28

%

450

28

%

453

29

%

453

30

%

458

30

%

455

30

%

459

30

%

Total

1,626

100

%

1,605

100

%

1,546

100

%

1,534

100

%

1,529

100

%

1,522

100

%

1,513

100

%

Temporary staff (FTE)

Asia Pacific

11

16

%

54

49

%

34

39

%

8

13

%

42

46

%

121

72

%

95

63

%

EU / USA

58

84

%

57

51

%

54

61

%

54

87

%

50

54

%

48

28

%

57

37

%

Total

69

100

%

111

100

%

88

100

%

62

100

%

92

100

%

169

100

%

152

100

%

Total fixed and temporary staff (FTE)

1,695

1,716

1,634

1,596

1,621

1,691

1,665

OTHER FINANCIAL DATA

Q1-2019

Q2-2019

Q3-2019

Q4-2019

Q1-2020

Q2-2020

Q3-2020

Gross profit

45.5

55.9

%

51.9

56.0

%

49.4

55.1

%

52.0

56.3

%

51.7

56.7

%

77.0

62.0

%

65.9

60.8

%

Selling, general and admin expenses

21.7

26.7

%

17.5

18.9

%

15.6

17.4

%

16.7

18.1

%

23.5

25.7

%

20.1

16.2

%

16.3

15.1

%

Research and development expenses:

As reported

9.0

11.1

%

9.3

10.0

%

8.6

9.6

%

8.5

9.2

%

9.4

10.3

%

8.4

6.8

%

7.6

7.0

%

Capitalization of R&D charges

2.9

3.6

%

3.0

3.2

%

3.2

3.6

%

4.1

4.4

%

3.7

4.1

%

4.3

3.5

%

4.3

4.0

%

Amortization of intangibles

(2.5

)

-3.1

%

(2.5

)

-2.7

%

(2.6

)

-2.9

%

(2.6

)

-2.8

%

(2.6

)

-2.8

%

(2.1

)

-1.7

%

(2.1

)

-2.0

%

R&D expenses as adjusted

9.4

11.5

%

9.8

10.6

%

9.2

10.3

%

10.0

10.8

%

10.5

11.5

%

10.6

8.5

%

9.8

9.0

%

Financial expense (income), net:

Interest expense (income), net

2.4

2.4

2.7

2.5

2.6

2.5

3.1

Hedging results

1.3

0.7

0.8

0.7

0.7

0.5

0.3

Foreign exchange effects, net

0.2

0.1

(0.2

)

0.1

(0.7

)

(0.3

)

(0.2

)

Total

3.9

3.2

3.3

3.3

2.6

2.7

3.2

Operating income (loss)

as % of net sales

14.7

18.1

%

25.1

27.1

%

25.3

28.2

%

26.8

29.0

%

18.8

20.6

%

48.4

39.0

%

42.0

38.8

%

EBITDA

as % of net sales

19.7

24.2

%

30.0

32.4

%

30.2

33.7

%

31.9

34.5

%

24.0

26.3

%

53.1

42.7

%

46.5

42.9

%

Net income (loss)

as % of net sales

9.5

11.6

%

18.9

20.4

%

19.2

21.4

%

33.7

36.5

%

13.9

15.2

%

39.8

32.0

%

34.0

31.3

%

Income per share

Basic

0.13

0.26

0.26

0.47

0.19

0.55

0.47

Diluted

0.13

0.25

0.25

0.43

0.19

0.50

0.43

__________________

1) The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding