ASM International N.V. reports first quarter 2023
Almere, The Netherlands April 25, 2023, 6 p.m. CETASM
International N.V. (Euronext Amsterdam: ASM) today reports its
first quarter 2023 operating results (unaudited).
Strong Q1 revenue with lower orders reflecting softening
market conditions
Financial highlights
€ million |
Q1 2022 |
Q4 2022 |
Q1 2023 |
New orders |
705.7 |
828.6 |
647.4 |
YoY change % at constant currencies |
65% |
26% |
(6) % |
Revenue |
516.9 |
724.8 |
710.0 |
YoY change % at constant currencies |
25% |
42% |
40% |
Normalized gross profit margin 1) |
47.8% |
46.9% |
51.1% |
Normalized operating result 1) |
143.0 |
189.8 |
221.2 |
Normalized operating result margin 1) |
27.7% |
26.2% |
31.2% |
Share in income of investments in associates (excluding
amortization intangible assets resulting from the sale of ASMPT
stake 2013) |
23.7 |
8.3 |
9.4 |
Amortization intangible assets (resulting from the sale of ASMPT
stake in 2013) |
(3.2) |
(3.5) |
(3.4) |
Reversal of impairment of investments in associates |
— |
106.1 |
215.4 |
Net earnings |
142.5 |
236.6 |
380.4 |
Normalized net earnings 2) |
145.7 |
142.4 |
183.0 |
1 Excluding amortization of fair value adjustments from purchase
price allocations (before tax)2 Excluding amortization of fair
value adjustments from purchase price allocations (net of tax),
change in fair value of the contingent consideration (LPE earn-out)
and impairment reversal of ASMPT
- New orders of €647 million for the first quarter 2023 decreased
by 6% at constant currencies compared to the same period last year
(decreased 11% as reported).
- Year-on-year revenue growth for the first quarter 2023 was 40%
at constant currencies (37% as reported).
- Normalized gross profit margin of 51.1%, excluding PPA expenses
in the first quarter 2023, improved compared to 47.8% in the same
quarter last year, mainly explained by mix.
- Normalized operating result for the first quarter 2023,
excluding PPA expenses, improved from €143 million last year to
€221 million this year due to strong revenue growth.
- Net earnings included a non-cash reversal of €215 million, with
the previous impairment of the ASMPT stake fully reversed at the
end of Q1, reflecting the recovery in the market valuation of
ASMPT.
- Net earnings included a negative impact of €15 million (net of
tax) relating to PPA expenses. Normalized net earnings for the
first quarter 2023 were €183 million, up from €146 million in Q1
last year, and included a translation loss of €7 million compared
to a translation gain of €9 million in Q1 2022 and a translation
loss of €36 million in Q4 2022.
- Details of (estimated) amortization and earn-out expenses (PPA
expenses) relating to the 2022 acquisitions of LPE and Reno are
found in Annex 2.
Comment
“ASM delivered good first quarter results. Revenue increased 40%
at constant currencies to €710 million,” said Benjamin Loh,
President and CEO of ASM. “Revenue exceeded previous guidance of
€660-700 million due to some systems that were delivered in Q1
instead of Q2 at the request of customers, and supported by the
strong order backlog at the end of Q4. Gross margin increased to
51% due to an exceptionally strong mix. With operating expenses
under control, operating profit increased by 17% compared to
previous quarter to a record high of €221 million. Supported by
improved profitability, free cash flow increased to €155 million.
At €647 million, orders in Q1 were still at healthy level, but down
6% at constant currencies year on year and reflected softening
market conditions towards the end of the quarter.
Demand in the memory market further weakened in Q1 and is
expected to remain at low levels in the remainder of the year.
Logic/foundry demand for the advanced nodes is relatively more
resilient, but recently we have also seen a number of push-outs in
this segment reflecting softer end-market conditions and some
delays in new customer fab readiness. These push-outs will impact
our expected orders in Q2 and Q3. Following expected growth in the
first half of the year, we expect a decrease in the second half
sales of 10% or more compared to the first half, which is a lower
level of revenue in the second half than we previously
projected.
For the full year 2023, we expect revenue to show a single digit
increase, at constant currencies and including the consolidation of
LPE. This compares to overall wafer equipment spending which is now
forecasted to decline by approximately a high teens percentage this
year.
ASM remains well positioned for the next nodes. In logic/foundry
we expect the transition to the next generation gate-all-around
(GAA) technology to drive meaningful share of wallet gains, and to
support our order intake as per the end of 2023.
Outlook
On a currency-comparable level, we expect revenue of a €650-690
million for Q2. Based on the current visibility, and reflecting
aforementioned order push-outs, we project, following expected
growth in the first half, a decrease in sales in the second half of
10% or more compared to the first half of the year. Wafer fab
equipment (WFE) is expected to drop by a high teens percentage in
2023, down from a previous forecast of a mid to high teens
percentage drop. We expect to again outperform the WFE market this
year.Memory WFE is expected to decline by a significant
double-digit percentage. In the logic/foundry market, spending on
the advanced nodes is still expected to be at a good level in 2023,
but lower than previously expected, particularly in the second half
of the year. This is partly offset by stronger market spending in
the older node segments of the logic/foundry market.
Annual General Meeting
On March 31, 2023, ASM published the agenda, convocation and
other materials for the 2023 Annual General Meeting (AGM), to be
held on May 15, 2023, which, as also earlier announced, includes
amongst others:
- A new remuneration policy for the Management Board;
- declare a regular dividend of €2.50 per common share over
2022;
- re-appoint KPMG Accountants N.V. for the financial year 2023
and 2024; and
- approve the annual accounts of 2022.
Please refer to the AGM documents available on our website for
more detailed information.
Share buyback program
In February 2022, ASM announced a new share buyback program of
up to €100 million to be executed within the 2022/2023 time frame.
ASM announces today that this program will commence on April 27,
2023, and will end as soon as the aggregate purchase price of the
common shares acquired by ASM has reached €100 million, but
ultimately on November 15, 2023. ASM has the intention to reduce
its capital by withdrawing the shares repurchased as part of this
share buyback program, save for such number of treasury shares as
maybe necessary to fund ongoing share and option programs for
employees and board members. The repurchase program is part of
ASM's commitment to return excess cash to our shareholders through
share buybacks.
Progress of the share buyback program will be updated on a
weekly basis, starting on May 1, 2023. This information will be
published on our website.
About ASM International
ASM International N.V., headquartered in Almere, the
Netherlands, and its subsidiaries design and manufacture equipment
and process solutions to produce semiconductor devices for wafer
processing, and have facilities in the United States, Europe, and
Asia. ASM International's common stock trades on the Euronext
Amsterdam Stock Exchange (symbol: ASM). For more information, visit
ASM'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, changes in import/export
regulations, 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 will host the quarterly earnings conference call and webcast
on Wednesday, April 26, 2023, at 3:00 p.m. CET.
Conference call participants should pre-register using this link
to receive the dial-in numbers, passcode and a personal PIN, which
are required to access the conference call.
A simultaneous audio webcast, and replay will be accessible at
this link.
Contact
Investor and media relations
Victor BareñoT: +31 88 100 8500 E:
investor.relations@asm.com
- 20230425 ASM ANNOUNCES Q1 2023 RESULTS
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