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BE Semiconductor Industries N.V. Announces Annual and Q4-18 Results

2018 Revenue and Net Income of € 525.3 Million and € 136.3 Million, Respectively
Q4-18 Revenue and Net Income of € 92.5 Million and € 22.7 Million, Respectively
Proposed Dividend of € 1.67 per Share for Fiscal 2018

DUIVEN, the Netherlands, Feb. 20, 2019 (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 fourth quarter and year ended December 31, 2018.

Key Highlights Q4-18

  • Revenue of € 92.5 million is within prior guidance. Down 20.7% and 39.6% vs. Q3-18 and Q4-17, respectively, due primarily to weakness in mobile applications and less favorable market conditions
  • Orders of € 83.1 million declined 23.0% vs. Q3-18 due to lower bookings for mobile applications and typical seasonality partially offset by growth in cloud applications. Down 44.4% vs. Q4-17
  • Gross margin decreased to 56.4% vs. 58.0% in Q3-18. Exceeded guidance. Up vs. 56.3% in Q4-17 as production overhead re-aligned to meet lower demand levels
  • Operating expenses decreased € 3.2 million (-11.0%) vs. Q3-18. Better than guidance. Down € 8.3 million (-24.3%) vs. Q4-17
  • Net income of € 22.7 million decreased by € 6.6 million (-22.5%) vs. Q3-18 while net margins were 24.5% (25.1% in Q3-18) despite adverse market environment
  • Net cash increased by € 39.3 million vs. Q3-18 (+24.5%) to reach € 199.4 million

Key Highlights FY 2018

  • Revenue of € 525.3 million declined 11.4% vs. 2017 primarily as a result of lower die bonding revenue for mobile applications partially offset by growth in computing and automotive end markets
  • Orders decreased by 29.0% due primarily to reduced demand for high end smart phone capacity post significant 2017 ramp and less favorable market conditions
  • Gross margin decreased slightly to 56.8% vs. 57.1%
  • Net income of € 136.3 million declined 21.3% vs. 2017. Net margin of 25.9% vs. 29.2%
  • Proposed dividend of € 1.67 per share. 91% pay-out ratio

Outlook 

  • Q1-19 revenue estimated to decline approximately 15% vs. Q4-18 as difficult market conditions continue in traditionally weakest quarter of the year. Gross margin expected to remain in 55%-57% range as cost reduction initiatives continue to align overhead with customer demand
(€ millions, except EPS) Q4-
2018
Q3-
2018
Δ Q4-
2017
 

Δ
FY
2018
FY
2017
 

Δ
Revenue 92.5 116.7 -20.7% 153.2 -39.6% 525.3 592.8 -11.4%
Orders 83.1 107.9 -23.0% 149.4 -44.4% 483.1 680.9 -29.0%
Operating Income 26.3 38.6 -31.9% 52.1 -49.5% 172.7 209.4 -17.5%
EBITDA 30.5 42.4 -28.1% 55.5 -45.0% 187.7 222.8 -15.8%
Net Income 22.7 29.3 -22.5% 43.6 -47.9% 136.3 173.2 -21.3%
EPS (basic) 0.30 0.39 -23.1% 0.58 -48.3% 1.83 2.32 -21.1%
EPS (diluted) 0.29 0.37 -21.6% 0.54 -46.3% 1.68 2.17 -22.6%
Net Cash & Deposits 199.4 160.1 +24.5% 247.6 -19.5% 199.4 247.6 -19.5%


Richard W. Blickman, President and Chief Executive Officer of Besi, commented:

“Besi’s 2018 results reflected solid performance and strategic execution in an assembly equipment market significantly more challenging than 2017. Revenue of € 525.3 million and net income of € 136.3 million declined by 11.4% and 21.3%, respectively, vs. 2017. Our 2018 revenue development was primarily affected by a second quarter slow-down in high-end mobile demand followed by broad weakness in memory and other end user markets starting in the third quarter of the year. Revenue development was also adversely affected by forex headwinds from a 4.5% average decrease in the value of the dollar vs. the euro. In retrospect, it appears that Besi’s second quarter order weakness was an early indication of an industry downturn post an extended upward trajectory which began in the second half of 2016.

In the current downturn, we rapidly aligned production, supply chain and personnel in response to adverse market conditions. As a result, Besi was able to maintain peer leading metrics of profitability such as gross and net margins (56.8% and 25.9%) and return on equity (33.8%). In fact, gross margins exceeded 56% in each quarter of 2018 despite a revenue decline of 42.6% between the second and fourth quarters of the year. Further, we successfully reduced costs in the face of decreased customer demand due to the ongoing execution of strategic initiatives, continued reductions of European fixed overhead and the realignment of temporary Asian production personnel to a changing market environment.

For Q4-18, revenue of € 92.5 million and net income of € 22.7 million compared favorably to expectations. A higher than anticipated gross margin of 56.4% and decreased sequential operating expenses helped us exceed operating profit guidance despite a 20.7% revenue decrease vs. Q3-18. Cash generation was also strong with net cash increasing by € 39.3 million vs. Q3-18 (+24.5%) to reach € 199.4 million.

Our results over the past two years demonstrate the improved scalability and profitability of Besi’s business model both in strong industry upcycles such as 2017 as well as in the sharp industry downdraft experienced in the second half of 2018. We also have a solid liquidity base of cash and deposits of € 475.5 million at year end (€ 5.68 per diluted share) which puts us in a good position to take advantage of future opportunities regardless of the industry environment.  

In addition, our capital allocation policy continues to reward shareholders for their investment in Besi. In 2018, € 209.5 million was returned to shareholders in the form of dividends and share repurchases. Since 2011, total dividends and share repurchases have aggregated € 483.6 million (or € 6.57 per share). Given our solid cash flow generation and future prospects, we initiated a new € 75 million share repurchase program in July 2018. Moreover, share repurchase activities since 2011 have enabled us to accumulate approximately 6.5 million shares in treasury by year end 2018 at an average cost per share of € 13.75. Further, given profits earned in 2018 and Besi’s solid financial position, we propose to pay a cash dividend of € 1.67 per share for approval at our AGM on April 26, 2019. The proposed distribution is the eighth consecutive annual dividend paid and reflects a pay-out ratio of 91%.

Looking to Q1-19, we estimate that revenue will be approximately 15% lower than Q4-18 as difficult market conditions continue in what is traditionally our weakest quarter of the year. We expect gross margin to remain in the 55%-57% range as we further adjust overhead levels to customer demand. At present, the 2019 outlook for the assembly equipment market is hard to predict. There are many factors which could influence the outlook and timing of any anticipated rebound this year such as slowing global growth and trade frictions between the US and China.  

Longer term, there are many reasons to be optimistic about Besi’s prospects. We have a leading position in the advanced packaging space whose outlook is bright as an important enabler of the digital society and the new applications which will be generated along with it. The advent of 5G capabilities, artificial intelligence, automotive electronics and the ever increasing amounts of advanced logic and memory capacity necessary for the build out of cloud infrastructure should be strong drivers of innovation and growth in the next customer investment round.“

Fourth Quarter Results of Operations

  Q4-2018 Q3-2018 Δ Q4-2017 Δ
Revenue 92.5 116.7 -20.7% 153.2 -39.6%
Orders 83.1 107.9 -23.0% 149.4 -44.4%
Book to Bill Ratio 0.9x 0.9x - 1.0x -0.1x

Besi’s Q4-18 revenue decreased by 20.7% vs. Q3-18 and by 39.6% vs. Q4-17 due primarily to lower die bonding shipments for high end mobile capacity following significant customer investment in 2017. The revenue decrease was broad based by customer type and by end market application and consistent with an industry downturn that began at the end of Q2-18.  

Orders of € 83.1 million were down 23.0% vs. Q3-18 due primarily to lower demand for mobile applications and typical seasonal influences partially offset by increased orders for cloud server applications. Orders decreased by 44.4% vs. Q4-17 due primarily to less favorable market conditions and broad based booking weakness per end user market application. Per customer type, IDM orders decreased sequentially by € 17.2 million, or 21.0%, while subcontractor orders decreased by € 7.6 million, or 29.4%. IDM and subcontractor orders represented 78% and 22%, respectively, of total Q4-18 bookings vs. 76% and 24%, respectively, in Q3-18.

  Q4-2018 Q3-2018 Δ Q4-2017 Δ
Gross Margin 56.4% 58.0% -1.6 56.3% +0.1
Operating Expenses 25.9 29.1 -11.0% 34.2 -24.3%
Financial Expense/(Income), net 4.2 4.2 - 3.3 +27.3%
EBITDA 30.5 42.4 -28.1% 55.5 -45.0%

Besi’s gross margin of 56.4% in Q4-18 was 1.6 points lower than Q3-18 but above prior guidance (54%-56%). The sequential decline was primarily due to significantly lower revenue levels. Gross margin was slightly higher than Q4-17 despite a 39.6% revenue decrease vs. Q4-18 as temporary production overhead and supply chain activities were adjusted in a rapid manner to changing industry conditions.  

Q4-18 operating expenses decreased by € 3.2 million, or 11.0%, vs. Q3-18 and were better than prior guidance primarily as a result of lower warranty expense and favorable one-time, year-end recordings. Excluding variable compensation, restructuring, forex effects and one-time benefits/charges, estimated base line operating expenses decreased from € 26.3 million in Q3-18 to € 25.7 million in Q4-18 (-2.3%). Operating expenses also decreased by € 8.3 million, or 24.3%, vs. Q4-17 principally resulting from lower warranty costs and decreased personnel expenses associated with reduced headcount levels as well as the absence of favorable year-end recordings in Q4-17. Similarly, estimated base line operating expenses decreased by € 5.5 million, or 17.6%, vs. Q4-17. Total headcount at December 31, 2018 decreased by 8.1% vs. September 30, 2018 and by 13.8% vs. December 31, 2017 primarily due to a reduction in temporary Asian production personnel and, to a lesser extent, lower levels of fixed European headcount.

Financial expense, net of € 4.2 million was roughly equal to Q3-18 but increased by € 0.9 million vs. Q4-17 due to higher interest expense associated with Besi’s December 2017 Convertible Note issuance.


 
Q4-2018 Q3-2018 Δ Q4-2017 Δ
Net Income 22.7 29.3 -22.5% 43.6 -47.9%
Net Margin 24.5% 25.1% -0.6 28.4% -3.9
Tax Rate -2.9% 14.9% -17.8 10.6% -13.5

Besi’s net income decreased by € 6.6 million (-22.5%) vs. Q3-18 principally due to its 20.7% revenue decrease and lower gross margins partially offset by reduced operating expenses and a net tax benefit recorded in Q4-18. The benefit was mainly due to € 4.8 million in tax credits associated with the Innovation Box program for the period 2015-2018.

Full Year Results of Operations

  FY 2018 FY 2017 Δ
Revenue 525.3 592.8 -11.4%
Orders 483.1 680.9 -29.0%
Gross Margin 56.8% 57.1% -0.3
Operating Income 172.7 209.4 -17.5%
Net Income 136.3 173.2 -21.3%
Net Margin 25.9% 29.2% -3.3
Tax Rate 12.1% 13.1% -1.0

For the full year 2018, Besi’s revenue decreased by 11.4% primarily due to lower die bonding shipments for smart phone applications partially offset by higher revenue for Besi’s packaging, plating and spares/service activities. The revenue decrease was also negatively influenced by a 4.5% average decrease in the value of the US dollar vs. the euro during the year.

Similarly, 2018 orders decreased by 29.0% vs. 2017. The order decrease was broad based across product lines and end user applications. There was particular order weakness in die bonding orders for smart phone applications by IDM customers and their respective supply chains post the significant 2017 capacity build. Orders by IDMs and subcontractors represented 68% and 32%, respectively, of Besi’s total 2018 orders vs. 65% and 35%, respectively, in 2017.

Besi’s 2018 net income of € 136.3 million decreased by € 36.9 million, or 21.3%, vs. 2017 primarily as a result of an 11.4% year over year revenue decrease, a € 7.6 million increase in net financial expense and slightly lower gross margins. Such negative influences were partially offset by a reduction in the effective tax rate from 13.1% to 12.1% and € 3.5 million of lower operating expenses.

Financial Condition

  Q4
2018
Q3
2018
Δ Q4
2017
Δ FY
2018
FY
2017
 
Δ
Net Cash and Deposits 199.4 160.1 +24.5% 247.6 -19.5% 199.4 247.6 -19.5%
Cash flow from Ops. 56.6 65.7 -13.9% 77.8 -27.2% 184.1 168.2 +9.5%

In Q4-18, Besi generated cash flow from operations of € 56.6 million which was utilized to fund (i) € 12.5 million of share repurchases, (ii) € 10.0 million of debt retirement, (iii) € 2.7 million of capitalized development spending and (iv) € 1.4 million of capital expenditures.

At the end of Q4-18, cash and deposits aggregated € 475.5 million vs. € 443.5 million at the end of Q3-18. Net cash of € 199.4 million increased by € 39.4 million, or 24.5%, vs. Q3-18. At year-end 2018, net cash declined by € 48.2 million, or 19.5%, vs. year end 2017 primarily due to the utilization of € 209.5 million of cash and deposits for the payment of dividends and share repurchases.

Share Repurchase Activity
During Q4-18, Besi repurchased 708,012 of its ordinary shares at an average price of € 18.19 per share for a total of € 12.9 million. For all of 2018, Besi repurchased a total of 1.6 million shares at an average price of € 21.79 per share for a total of € 35.5 million. The value of shares repurchased in 2018 represents an increase of € 12.0 million, or 51.5%, vs. 2017 levels.

Dividend

Due to its earnings, cash flow generation and prospects, Besi’s Board of Management has proposed a cash dividend of € 1.67 per share for the 2018 year for approval at its AGM on April 26, 2019. The proposed dividend will be payable from May 6, 2019 and represents a pay-out ratio of approximately 91%.

Outlook 

Based on its December 31, 2018 order backlog and feedback from customers, Besi forecasts for Q1-19 that:

  • Revenue will decline by approximately 15% vs. the € 92.5 million reported in Q4-18.
  • Gross margin will range between 55-57% vs. the 56.4% realized in Q4-18.
  • Operating expenses will increase by approximately 25-30% vs. the € 25.9 million reported in Q4-18 primarily due to increased share based compensation expense of approximately € 3.5 million and the absence of favorable one-time, year-end recordings in Q4-18.

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 EST). The dial-in for the conference call is (31) 20 531 5851. To access the audio webcast and webinar slides, please visit www.besi.com.

Important Dates 2019  
  • Publication Annual Report 2018
March 15, 2019
  • Publication Q1 results
April 26, 2019
  • Annual General Meeting of Shareholders
April 26, 2019, (9:30 am CET)
  • Publication Q2/semi-annual results
July 25, 2019
  • Publication Q3/nine month results
October 24, 2019
  • Publication Q4/full year results
February 2020
   
Dividend Information  
  • Proposed ex-dividend date
April 30, 2019*
  • Proposed record date
May 2, 2019*
  • Proposed payment of 2018 dividend
Starting May 6, 2019*
*Subject to approval at Besi’s AGM on April 26, 2019  

About Besi

Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries focusing primarily on the advanced packaging segment of the market. 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 infrastructure, 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 (BESIY). 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
Cor te Hennepe, SVP Finance Frank Jansen
Tel. (31) 26 319 4500 Tel. (31) 20 575 4024
investor.relations@besi.com  besi@cffcommunications.nl

Statement of Compliance

The accounting policies applied in the condensed consolidated financial statements included in this press release are the same as those applied in the Annual Report 2018, which will be published on March 15, 2019. These consolidated financial statements to be included in the Annual Report 2018 were authorized for issuance by the Board of Management and Supervisory Board on February 19, 2019. In accordance with Article 393, Title 9, Book 2 of the Netherlands Civil Code, Ernst & Young Accountants LLP has issued an unqualified auditor’s opinion on the Annual Report 2018. The Annual Report 2018 will be published on March 15, 2019 and still has to be adopted by the Annual General Meeting on April 26, 2019.

The condensed financial statements included in this press release have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union. However, these condensed financial statements do not include all of the information required for a complete set of IFRS financial statements. Selected explanatory notes are included in this press release to explain events and transactions that are significant to an understanding of the change in the Group’s financial position and performance since the annual consolidated financial statements for the year ended December 31, 2018.

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, backlog, 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; 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, 2017 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
December 31,
(unaudited)
Year Ended
December 31,
(audited)
  2018 2017 2018 2017
         
Revenue 92,514 153,244 525,256 592,785
Cost of sales 40,370 67,010 226,793 254,160
         
Gross profit 52,144 86,234 298,463 338,625
         
Selling, general and administrative expenses 17,959 24,618 90,284 93,316
Research and development expenses 7,898 9,535   35,451 35,876
         
Total operating expenses 25,857 34,153 125,735 129,192
         
Operating income 26,287 52,081 172,728 209,433
         
Financial expense, net 4,193 3,345 17,784 10,222
         
Income before taxes 22,094 48,736 154,944 199,211
         
Income tax expense (benefit) (639) 5,152 18,688 26,056
         
Net income 22,733 43,584 136,256 173,155
         
Net income per share – basic 0.30 0.58 1.83 2.32
Net income per share – diluted 0.29 0.54 1.68 2.17
         
Number of shares used in computing per share amounts1:
- basic
- diluted [2]
74,620,675
84,788,387
74,632,710
82,259,714
 74,440,864
84,754,069
74,673,574
81,645,744
         

______________________________

(1)  Share amounts in 2017 and 2018 have been adjusted for the 2-for-1 stock split effective May 4, 2018.
(2)  The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of the Convertible Notes.

Consolidated Balance Sheets

(euro in thousands) December 31,
2018

(audited)
September 30,
2018
(unaudited)
June 30,
2018
(unaudited)
March 31,
2018
(unaudited)
December 31,
2017
(audited)
ASSETS          
           
Cash and cash equivalents 295,539 263,492 215,457 440,983 527,806
Deposits 130,000 180,000 180,000 130,000 -
Accounts receivable 106,347 148,585 185,647 159,624 151,654
Inventories 60,237 65,910 78,415 81,575 70,947
Income tax receivable 159 688 325 304 370
Other current assets 11,337 9,704 11,033 11,894 11,652
           
Total current assets 603,619 668,379 670,877 824,380 762,429
           
           
Property, plant and equipment 28,551 26,580 27,098 26,918 26,517
Goodwill 45,099 44,964 44,937 44,443 44,687
Other intangible assets 38,334 37,680 36,889 34,604 34,140
Deferred tax assets 4,769 4,550 4,830 4,707 4,660
Deposits 50,000 - - - -
Other non-current assets 2,317 2,289 2,818 2,746 2,520
           
Total non-current assets 169,070 116,063 116,572 113,418 112,524
           
Total assets 772,689 784,442 787,449 937,798 874,953
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
           
Notes payable to banks 2,812 1,261 4,114 969 1,742
Current portion of long-term debt
  and financial leases
 

1,502
 

11,481
 

11,552
 

11,547
 

11,228
Accounts payable 33,158 40,247 62,600 73,428 62,721
Accrued liabilities 63,454 66,849 66,677 81,942 70,595
           
Total current liabilities 100,926 119,838 144,943 167,886 146,286
           
Other long-term debt and
  financial leases
 

271,824
 

270,686
 

269,548
 

268,415
 

267,274
Deferred tax liabilities 10,244 14,047 13,875 12,045 10,050
Other non-current liabilities 17,507 15,618 16,162 17,125 17,211
           
Total non-current liabilities 299,575 300,351 299,585 297,585 294,535
           
Total equity 372,188 364,253 342,921 472,327 434,132
           
Total liabilities and equity 772,689 784,442 787,449 937,798 874,953
           


Consolidated Cash Flow Statements

(euro in thousands)

 
Three Months Ended
December 31,

(unaudited)
Year Ended
December 31,
(audited)
  2018 2017 2018 2017
         
Cash flows from operating activities:        
Income before income tax 22,094 48,736 154,944 199,211
         
Depreciation, amortization and impairment 4,282 3,461 15,008 13,364
Share based payments expense 742 1,052 9,991 6,863
Financial expense, net 4,193 3,345 17,784 10,222
Other non-cash items (832) (1,273) (832) 11
         
Changes in working capital 30,766 25,705 11,241 (54,514)
Income tax received (paid) (2,433) (1,685) (19,432) (3,953)
Interest received (paid) (2,241) (1,543) (4,592) (3,051)
         
Net cash provided by (used in) operating activities

56,571
77,798  

184,112
168,153
         
Cash flows from investing activities:        
Capital expenditures (1,420) (2,429) (6,573) (5,034)
Capitalized development expenses (2,693) (1,840) (11,449) (6,662)
Investment in deposits - - (180,000) (25,000)
Repayment of deposits - 80,000 - 105,000
Net cash used in investing activities (4,113) 75,731 (198,022) 68,304
         
Cash flows from financing activities:        
Proceeds from (payments of) bank lines of credit 1,552 (6,258) 1,070 (10,113)
Proceeds from (payments of) debt and financial leases  

(9,994)
172,281  

(9,771)
170,115
Dividends paid to shareholders - - (174,018) (65,302)
Purchase of treasury shares (12,467) (6,000) (35,467) (23,500)
Purchase minority interest (321) - (321) -
Net cash provided by (used in) financing activities (21,230) 160,023 (218,507) 71,200
         
Net increase (decrease) in cash and cash equivalents  

31,228
313,552  

(232,417)
307,657
Effect of changes in exchange rates on cash and
  cash equivalents
 

819
(3,102)  

150
(4,641)
Cash and cash equivalents at beginning of the
  Period
 

263,492
217,356  

527,806
224,790
         
Cash and cash equivalents at end of the period 295,539 527,806 295,539 527,806
         

Supplemental Information (unaudited)
(euro in millions, unless stated otherwise)

REVENUE Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018
                                 
Per geography:                                
Asia Pacific 89.4 81% 112.4 66% 103.5 65% 111.8 73% 120.5 78% 88.6 55% 71.2 61% 66.6 72%
EU / USA 20.9 19% 57.6 34% 55.8 35% 41.4 27% 34.4 22% 72.5 45% 45.5 39% 25.9 28%
                                 
Total 110.3 100% 170.0 100% 159.3 100% 153.2 100% 154.9 100% 161.1 100% 116.7 100% 92.5 100%
                                 
ORDERS  Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018
                                 
Per geography:                                
Asia Pacific 153.5 64% 109.8 84% 114.3 71% 116.5 78% 120.8 59% 47.5 55% 70.1 65% 61.5 74%
EU / USA 86.3 36% 20.3 16% 47.3 29% 32.9 22% 85.0 41% 38.8 45% 37.8 35% 21.6 26%
                                 
Total 239.8 100% 130.1 100% 161.6 100% 149.4 100% 205.8 100% 86.3 100% 107.9 100% 83.1 100%
                                 
Per customer type:                                
IDM 196.6 82% 83.3 64% 88.8 55% 74.7 50% 111.1 54% 70.8 82% 82.0 76% 64.8 78%
Subcontractors 43.2 18% 46.8 36% 72.7 45% 74.7 50% 94.7 46% 15.5 18% 25.9 24% 18.3 22%
                                 
Total 239.8 100% 130.1 100% 161.5 100% 149.4 100% 205.8 100% 86.3 100% 107.9 100% 83.1 100%
                                 
HEADCOUNT  Mar 31, 2017  Jun 30, 2017  Sep 30, 2017  Dec 31, 2017  Mar 31, 2018  Jun 30, 2018  Sep 30, 2018 Dec 31, 2018
                                 
Fixed staff (FTE)                                
Asia Pacific 1,112 69% 1,164 70% 1,199 70% 1,222 71% 1,254 71% 1,259 72% 1,255 72% 1,230 73%
EU / USA 505 31% 505 30% 502 30% 502 29% 500 29% 495 28% 483 28% 462 27%
                                 
Total 1,617 100% 1,669 100% 1,701 100% 1,724 100% 1,754 100% 1,754 100% 1,738 100% 1,692 100%
                                 
Temporary staff (FTE)                                
Asia Pacific 211 79% 269 80% 247 74% 229 72% 290 76% 257 75% 108 61% 6 9%
EU / USA 55 21% 67 20% 85 26% 87 28% 93 24% 86 25% 68 39% 61 91%
                                 
Total 266 100% 336 100% 332 100% 316 100% 383 100% 343 100% 176 100% 67 100%
                                 
Total fixed and temporary staff (FTE) 1,883   2,005   2,033   2,040   2,137   2,097   1,914   1,759  
                                 
OTHER FINANCIAL DATA Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018
Gross profit                                
As reported   61.4 55.7%   97.4 57.3%   93.6 58.8%   86.2 56.3%   87.6 56.5%   91.1 56.5%   67.6 57.9%   52.1 56.4%
Restructuring charges / (gains)   0.0 0.0%   (0.0) -0.0%   -  -   -  -   -  -   0.4 0.2%   (0.0) -0.0%   -  -
Gross profit as adjusted   61.4 55.7%   97.4 57.3%   93.6 58.8%   86.2 56.3%   87.6 56.5%   91.5 56.8%   67.6 57.9%   52.1 56.4%
                                 
Selling, general and admin expenses:                                
As reported   22.2 20.1%   25.5 15.0%   21.0 13.2%   24.6 16.1%   29.2 18.8%   22.7 14.1%   20.3 17.4%   18.0 19.5%
Amortization of intangibles   (0.1) -0.1%   (0.1) -0.1%   (0.1) -0.1%   (0.1) -0.1%   (0.1) -0.1%   (0.1) -0.1%   (0.1) -0.1%   (0.2) -0.2%
Impairment charges   -  -   -  -   -  -   -  -   -  -   -  -   -  -   (0.4) -0.4%
Restructuring gains / (charges)   (0.0) 0.0%   0.0 0.0%   (0.0) 0.0%   0.0 0.0%   0.0 0.0%   (0.1) -0.1%   (0.4) -0.3%   (0.2) -0.2%
SG&A expenses as adjusted   22.1 20.1%   25.4 14.9%   20.9 13.1%   24.5 16.0%   29.1 18.8%   22.5 14.0%   19.8 17.0%   17.2 18.6%
                                 
Research and development expenses:                                
As reported   8.3 7.5%   8.7 5.1%   9.3 5.8%   9.5 6.2%   9.8 6.3%   9.0 5.6%   8.7 7.5%   7.9 8.5%
Capitalization of R&D charges   1.9 1.7%   1.8 1.1%   1.1 0.7%   1.8 1.2%   2.6 1.7%   3.4 2.1%   2.7 2.3%   2.7 2.9%
Amortization of intangibles   (2.0) -1.8%   (2.0) -1.2%   (2.0) -1.3%   (2.1) -1.4%   (2.1) -1.4%   (2.1) -1.3%   (2.4) -2.1%   (2.4) -2.6%
R&D expenses as adjusted   8.2 7.4%   8.5 5.0%   8.4 5.3%   9.2 6.0%   10.3 6.6%   10.3 6.4%   9.0 7.7%   8.2 8.9%
                                 
Financial expense (income), net:                                
Interest expense (income), net 1.1   1.2   1.6   1.0   2.5   2.4   2.4   2.3  
Foreign exchange effects 0.9   1.4   0.7   2.3   1.8   2.7   1.8   1.9  
                                 
Total 2.0   2.6   2.3   3.3   4.3   5.1   4.2   4.2  
                                 
Operating income (loss)                                
  as % of net sales 30.8 27.9% 63.3 37.2% 63.2 39.7% 52.1 34.0% 48.6 31.4% 59.3 36.8% 38.6 33.1% 26.3 28.4%
                                 
EBITDA                                 
  as % of net sales 34.2 31.0% 66.6 39.2% 66.5 41.7% 55.5 36.2% 52.0 33.6% 62.8 39.0% 42.4 36.3% 30.5 33.0%
                                 
Net income (loss)                                
  as % of net sales 24.3 22.0% 52.4 30.7% 52.9 33.2% 43.6 28.5% 37.1 23.9% 47.2 29.3% 29.3 25.1% 22.7 24.5%
                                 
Income per share                                
Basic 0.33   0.70   0.71   0.58   0.50   0.63   0.39   0.30  
Diluted 0.30   0.65   0.65   0.54   0.46   0.58   0.37   0.29