ASM International N.V. reports first quarter 2023
ASM International N.V. reported strong Q1 2023 results, with revenues reaching €710 million, a 40% year-over-year increase at constant currencies. However, new orders dropped to €647 million, reflecting a 6% decline due to softening market conditions. The normalized gross profit margin improved to 51.1%, while the normalized operating result rose to €221 million. Net earnings for the quarter were €380.4 million, boosted by a non-cash reversal of €215 million related to ASMPT stake impairment. Despite positive growth, the company anticipates a decrease in sales for the second half of 2023 by at least 10% compared to the first half. Overall, ASM expects a single-digit revenue growth for the full year, amidst a declining wafer equipment market.
- Q1 2023 revenue increased by 40% YoY to €710 million.
- Improved normalized gross profit margin at 51.1%.
- Normalized operating result rose to €221 million in Q1 2023.
- Net earnings included a €215 million reversal of impairment.
- New orders fell by 6% YoY to €647 million, indicating softening demand.
- Company projects a sales decrease of 10% or more in the second half of 2023.
- Weakening demand in memory market expected to persist through the year.
Almere, The Netherlands
April 25, 2023, 6 p.m. CET
ASM 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 | | | (6) % |
Revenue | 516.9 | 724.8 | 710.0 |
YoY change % at constant currencies | | | |
Normalized gross profit margin 1) | | | |
Normalized operating result 1) | 143.0 | 189.8 | 221.2 |
Normalized operating result margin 1) | | | |
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 by6% at constant currencies compared to the same period last year (decreased11% 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 to47.8% 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
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
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
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
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 Bareño
T: +31 88 100 8500
E: investor.relations@asm.com
Attachment
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