Almere, Netherlands
July 20, 2022 at 6 p.m. CET
ASM International NV (Euronext Amsterdam: ASM) today announces its second quarter 2022 operating results (unaudited).
Record order intake and sales expected in Q2 with continued sales growth for the remainder of the year
FINANCIAL HIGHLIGHTS
| million Euro | Q2 2021 | Q1 2022 | Q2 2022 |
| New orders | 515.7 | 705.7 | 942.7 |
| % change from prior year as reported / at constant exchange rates | 73% / 86% | 72% / 65% | 83% / 73% |
| revenue | 411.7 | 516.9 | 559.5 |
| % change from prior year as reported / at constant exchange rates | 20% / 29% | 31% / 25% | 36% / 30% |
| gross profit margin % | 48.1% | 47.8% | 47.5% |
| operating result | 118.4 | 143.0 | 147.6 |
| Operating Income Margin % | 28.7% | 27.7% | 26.4% |
| Share of income from investments in associates (excluding amortization of intangible assets as a result of the sale of the ASMPT investment in 2013) | 19.3 | 23.7 | 26.9 |
| Amortization of intangible assets (resulting from the sale of the ASMPT stake in 2013) | (3.0) | (3.2) | (3.4) |
| net earnings | 108.4 | 142.5 | 160.4 |
| Normalized net income (excluding amortization of intangible assets from sale of ASMPT stake in 2013 and result from sale of ASMPT stake) | 111.4 | 145.7 | 163.8 |
- Record new orders of €943 million for the second quarter of 2022, up 73% on a currency-neutral basis compared to the same period last year (83% as reported).
- Currency-neutral revenue growth for the second quarter of 2022 was 30% (36% as reported).
- Gross profit margin of 47.5% in the second quarter of 2022 was slightly lower than 48.1% in the same quarter last year, which featured a stronger mix.
- Operating profit for the second quarter of 2022 improved to €148 million this year from €118 million last year, again driven by strong revenue growth partially offset by an increase in operating expenses.
- Normalized net income for the second quarter of 2022 was €164 million and included a translation gain of €26 million compared to a translation loss of €2 million in the second quarter of 2021 and a translation gain of €9 million in the first quarter of 2022.
COMMENT
“ASM delivered another very strong quarter of record orders, revenue and earnings,” said Benjamin Loh, President and Chief Executive Officer of ASM International. “In the second quarter, revenue increased 30% currency-neutral to EUR 560 million, at the higher end of the EUR 540-570 million range, as our team once again demonstrated solid performance in close collaboration with suppliers and customers in a continued challenging environment in the supply chain.
While parts of the semiconductor end markets, mainly PCs and smartphones, have slowed recently due to weaker macroeconomic trends, overall demand for wafer fab equipment remains strong and broad-based. Our order intake rose 73% currency adjusted to a new record high of €943 million in the second quarter. Our orders have been fueled by robust spending on new nodes in the logic/foundry segment and our recent successes in memory, particularly ALD gap filling in 3D NAND and the continued adoption of HKMG in DRAM.
R&D and SG&A continued to increase in the second quarter as we continue to invest in the growth of our business and prepare for much higher anticipated revenue levels as evidenced by the increase in orders. At the same time, operating profit improved by 25% and free cash flow was a healthy €121 million in the second quarter.
Finally, we are very pleased with the recent announcement that we have reached an agreement to acquire LPE, adding another high growth company to ASM’s portfolio.”
OUTLOOK
Supply chain conditions have improved at a slower pace than previously forecast and are therefore expected to remain challenging in the third quarter. For the third quarter, we expect currency-adjusted sales of EUR 570 to 600 million. Based on a record high order backlog, we continue to expect an improvement in our sales for the second half of the year compared to the first half of the year. Assuming some improvement in the supply situation towards the end of the year, we expect sales to be higher in Q4 than in Q3. As supply shortages will limit the extent of the increase in our shipments in the second half of the year, we expect our backlog to remain at a high level through the end of 2022.
We remain confident of exceeding previously communicated expectation of a mid- to high-teens percentage increase for wafer fab equipment (WFE) spending in 2022, although WFE growth is likely to moderate this year due to the industry will be towards the lower end of this range -wide supply chain constraints.
AGREEMENT TO ACQUIRE LPE
On July 18, 2022, ASM announced an agreement to acquire all outstanding shares of LPE SpA (“LPE”), an Italy-based manufacturer of silicon carbide (SiC) and silicon epitaxial reactors. The acquisition will complement ASM’s leadership in silicon epitaxial solutions for the power electronics, analog and wafer markets with LPE’s offering of advanced SiC epitaxial tools.
ASM will fund the transaction with a combination of cash and shares, representing an enterprise value of €425 million at the time of signing, free of cash and debt. An additional amount of up to EUR 100 million will be paid in the form of an earn-out based on certain performance indicators over a period of two years after the closing of the transaction. Earn Outs are to be paid out in cash only.
The transaction is subject to FDI and antitrust approvals in a limited number of countries and other customary closing conditions, which are expected to be satisfied by the long stop date of November 10, 2022. Further reference is made to the press release issued on July 18th, 2022.
INTERIM FINANCIAL REPORT
ASM International NV (Euronext Amsterdam: ASM) also releases today its interim financial report for the six months ended 30 June 2022.
This report contains an interim report by the Management Board and a condensed consolidated interim financial statement that was prepared in accordance with IAS 34 (interim financial reporting). The interim financial report contains required information within the meaning of the Dutch Financial Markets Authority Act (“Wet op het Financieel Toezicht”) and is available in its entirety on our website www.asm.com.
About ASM International
Headquartered in Almere, The Netherlands, ASM International NV and its subsidiaries design and manufacture semiconductor device manufacturing equipment and process solutions for wafer processing and have offices in the United States, Europe and Asia. ASM International’s common shares are traded on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit the ASM website at www.asm.com
Cautionary Note Regarding Forward-Looking Statements All matters discussed in this press release, other than historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry in general and the timing of industry cycles in particular, currency fluctuations, corporate transactions, funding and liquidity matters, the success of restructurings, the timing of major orders, market acceptance of new ones Products, competitive factors, litigation related to intellectual property, shareholders or other issues, trade and economic disruption due to natural disasters, terrorist activities, armed conflicts or political instability, changes in import/export regulations, epidemics and other risks specified in the Company reports and accounts. The Company undertakes no obligation and does not intend to update or revise any forward-looking statements to reflect future developments or circumstances.
This press release contains insider information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
ASM International will host the quarterly earnings conference call and webcast on Thursday, July 21, 2022 at 3:00 p.m. CET.
Conference call participants should pre-register here shortcut to obtain the dial-in numbers and a personal PIN required to access the conference call.
A simultaneous audio webcast and replay are available at www.asm.com/investors/webcasts-presentations/2022/second-quarter-earnings.
CONTACT
Investor and media contact:
Victor Bareno
T: +31 88 100 8500
E: [email protected]
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