ASM International N.V. reports second quarter 2023
- ASM International reports revenue growth of 21% in Q2 2023, with a gross profit margin of 49.0%.
- New orders in Q2 2023 decreased by 48% compared to last year.
Almere, The Netherlands
July 25, 2023, 6 p.m. CET
ASM International N.V. (Euronext Amsterdam: ASM) today reports its second quarter 2023 operating results (unaudited).
Continued revenue growth and lower orders in Q2 reflecting softer market conditions; outlook for revenue growth for the year maintained
Financial highlights
€ million | Q2 2022 | Q1 2023 | Q2 2023 |
New orders | 942.7 | 647.4 | 485.8 |
YoY change % at constant currencies | | ( | ( |
Revenue | 559.5 | 710.0 | 669.1 |
YoY change % at constant currencies | | | |
Normalized gross profit margin 1) | | | |
Normalized operating result 1) | 148.0 | 221.2 | 180.1 |
Normalized operating result margin 1) | | | |
Share in income of investments in associates (excluding amortization intangible assets resulting from the sale of ASMPT stake 2013) | 26.9 | 9.4 | 9.2 |
Amortization intangible assets (resulting from the sale of ASMPT stake in 2013) | (3.4) | (3.4) | (0.2) |
Reversal of impairment of investments in associates | 0.0 | 215.4 | 0.0 |
Net earnings | 160.4 | 380.4 | 151.2 |
Normalized net earnings 2) | 164.1 | 183.0 | 160.7 |
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
€486 million for the second quarter 2023 decreased by48% compared to the same period last year, both at constant currencies and as reported. The decrease reflected softening market conditions, and push-outs in logic/foundry as earlier indicated with the Q1 2023 report. - Year-on-year revenue growth for the second quarter 2023 was
21% at constant currencies (20% as reported). - Normalized gross profit margin of
49.0% , excluding PPA expenses in the second quarter 2023, improved compared to47.5% in the same quarter last year, mainly explained by mix. - Normalized operating result for the second quarter 2023, excluding PPA expenses, improved from
€148 million last year to€180 million this year due to strong revenue growth and higher gross margin. - Net earnings included a negative impact of
€9 million (net of tax) relating to PPA expenses. Normalized net earnings for the second quarter 2023 were€161 million , down from€164 million in Q2 last year, and included a translation gain of€8 million compared to a translation gain of€26 million in Q2 2022 and a translation loss of€7 million in Q1 2023. - 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
“Against a backdrop of slowing market conditions, ASM delivered a resilient performance in the second quarter,” said Benjamin Loh, President and CEO of ASM. “Revenue increased
Orders dropped by
Demand in the memory market continued to be weak in Q2 and is not expected to recover in the remainder of the year. Logic/foundry orders dropped in Q2. Despite the near-term market softening, ASM remains well positioned for the next nodes. As our logic/foundry customers are preparing for the transition to gate-all-around (GAA) device technology we are confident that this transition will drive a meaningful double-digit increase in served available markets, with continued ALD leadership for ASM and opportunities for share gains in silicon Epi. We continue to expect a first meaningful contribution from GAA pilot-line orders in Q4 2023.
Demand in the mature node markets remained solid in Q2. For our company, these markets are a smaller part of revenue and mainly a selective play in the power, analog and wafer manufacturer segments. Combined with solid momentum of new product introductions, such as our Sonora vertical furnace, we expect solid growth in this part of our business this year.
Our silicon carbide Epi business increased substantially in Q2 and remains on track to achieve more than
Outlook
On a currency-comparable level, we project revenue of
Wafer fab equipment (WFE) is now expected to drop by a mid-to-high-teens percentage in 2023. Memory WFE is expected to show the sharpest drop and leading-edge logic/foundry is impacted by push-outs and weaker market conditions, while the trend in mature node spending remains more positive. We expect to again outperform the WFE market this year.
Share buyback program
On April 25, 2023, ASM announced the start of the
Investor Day
We will host our 2023 Investor Day on September 26. Speakers will include our CEO, CFO and CTO, and other members of ASM’s senior management team. Further details will be announced later.
Interim financial report
ASM today also publishes its Interim Financial Report for the six month period ended June 30, 2023.
This report includes an Interim Management Board Report and condensed consolidated interim financial statements prepared in accordance with IAS 34 (Interim Financial Reporting). The Interim Financial Report comprises regulated information within the meaning of the Dutch Financial Markets Supervision Act (“Wet op het Financieel Toezicht”) and is available in full on our website www.asm.com.
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, July 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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