Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Netherlands
  4. Euronext Amsterdam
  5. ASM International N.V.
  6. News
  7. Summary
    ASM   NL0000334118

ASM INTERNATIONAL N.V.

(ASM)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

ASM International N : ASM INTERNATIONAL N.V. REPORTS SECOND QUARTER 2021 RESULTS

07/28/2021 | 03:53am EDT

Almere, The Netherlands

July 27, 2021, 6 p.m. CET

ASM INTERNATIONAL N.V. REPORTS

SECOND QUARTER 2021 RESULTS

Continued robust market demand fuels strong quarterly performance

ASM International N.V. (Euronext Amsterdam: ASM) today reports its second quarter 2021 operating results (unaudited) in accordance with IFRS.

FINANCIAL HIGHLIGHTS

EUR million

Q2 2020

Q1 2021

Q2 2021

New orders

298.0

410.6

515.7

Revenue

341.8

394.0

411.7

Gross profit margin %

48.3

49.5

48.1

Operating result

87.6

124.5

118.4

Operating result margin %

25.6

31.6

28.7

Result from investments (excluding amortization intangible assets resulting from the

10.7

13.9

19.3

sale of ASMPT stake in 2013)

Amortization intangible assets (resulting from the sale of ASMPT stake in 2013)

(3.3)

(3.0)

(3.0)

Net earnings

74.1

122.5

108.4

Normalized net earnings (excluding amortization intangible assets resulting from

the sale of ASMPT stake in 2013 and result from sale of ASMPT shares)

77.4

125.5

111.4

  • New orders of €516 million for the second quarter 2021 increased by 73% compared to the same period last year. This is consistent with our announcement on July 1, 2021, that order intake in the second quarter clearly exceeded the previous guidance.
  • Year-on-yearrevenue growth for the second quarter 2021 was 29% at constant currencies (20% as reported).
  • Gross profit margin of 48.1% was close to last year's margin of 48.3%.
  • Operating result for the second quarter 2021 improved from €88 million last year to €118 million this year mainly driven by strong revenue growth.
  • Normalized net earnings for the second quarter 2021 were €111 million, a significant improvement compared to same quarter last year.

1 of 3

COMMENT

"Our company delivered again a strong quarter," said Benjamin Loh, President and Chief Executive Officer of ASM International. "Order intake surged to a new quarterly record of €516 million on the back of continued strong logic/foundry demand and our ALD product leadership. As already announced on 1 July, 2021, the order intake exceeded the previous guidance of €420-440 million, mainly driven by customers pulling in orders into Q2 that were previously expected to be received in Q3. Compared to the same period last year, sales in the second quarter increased by 29% at constant currencies and 20% as reported. Revenue, at €412 million, was slightly above the high end of the guidance of €390-410 million. While we benefited from our expanded manufacturing capacity in Singapore, supply chain conditions further tightened during the quarter, also due to new lockdown measures in parts of Southeast Asia. Thanks to great efforts by ASM's team and our supply chain partners, we were still able to meet customer requirements."

OUTLOOK

For Q3, on a currency comparable level, we expect sales of €400-430 million. Q3 bookings, on a currency comparable level, are expected to be in a range of €510-530 million, and also include orders that are planned to be shipped in 2022. Continued tight supply chain conditions are reflected in our sales guidance for Q3 and, based on the current visibility, are also expected to have some impact in Q4, although we do expect Q4 sales to increase compared to the level in Q3. Based upon the current market developments, the wafer fab equipment (WFE) market is expected to grow by a high twenties to low thirties percentage in 2021.

SHARE BUYBACK PROGRAM

On April 20, 2021, ASMI announced the authorization of a new share buyback program of up to €100 million within the 2021/2022 time frame. ASMI announces today that this program commences on, July 28, 2021, and will end as soon as the aggregate purchase price of the common shares acquired by ASMI has reached €100 million, but ultimately on November 16, 2022. This repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders.

The share buyback program will take place within the limitations of the authority granted by the shareholders during the Annual General Meeting which was held on May 17, 2021. This share buyback program will be executed by a third party. ASMI has the intention to reduce its capital by withdrawing the shares repurchased as part of this new €100 million share buyback program, save for such number of treasury shares as may be necessary to fund ongoing share and option programs for employees and board members.

Progress of the share buyback program will be updated on a weekly base, starting on August 2, 2021. This information will be published on the ASMI website (www.asm.com).

WITHDRAWAL OF TREASURY SHARES

ASMI further announces that the withdrawal of 500,000 treasury shares, as earlier approved by the AGM 2021, has become effective as of July 21, 2021. As of that date, the number of issued shares is 49,297,394.

INVESTOR DAY

We confirm our plan to host our Investor Day on September 28, 2021. In view of the recent rise in COVID-19 cases in parts of Europe and the rest of the world and the resulting uncertainty we will decide on the format of the event in the first half of September. We will host our Investor Day either in the form of an in-person event, or as a fully virtual event if the situation would still not allow to hold an in-person event. Speakers will include our CEO and CFO and other members of ASM's Senior Management Team. The event will be in the afternoon of September 28, 2021, and will be webcasted. Further details will be announced later.

2 of 3

About ASM International

ASM International NV, headquartered in Almere, the Netherlands, its subsidiaries and participations design and manufacture equipment and materials used to produce semiconductor devices. ASM International, its subsidiaries and participations provide production solutions for wafer processing (Front-end segment) as well as for assembly & packaging and surface mount technology (Back-end segment) through facilities in the United States, Europe, Japan and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASMI'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 International N.V will host an investor conference call and webcast on Wednesday, July 28, 2021, at 3 p.m. Continental European Time (9 a.m. - US Eastern Time).

The teleconference dial-in numbers are as follows:

United States:

+1 631 5107 495

International:

+44 (0) 8445 718 892

  • The Netherlands: +31 (0) 20 71 435 45

• Access Code: 3968920

A simultaneous audio webcast and replay will be accessible at www.asm.com.

CONTACT

Investor and media contact:

Victor Bareño

T: +31 88 100 8500

E: victor.bareno@asm.com

3 of 3

ANNEX 1

OPERATING AND FINANCIAL REVIEW

Bookings

The following table shows the level of new orders for the second quarter of 2021 and the backlog at the end of the second quarter of 2021, compared to the previous quarter and the comparable quarter previous year:

EUR million

Q2 2020

Q1 2021

Q2 2021

Backlog at the beginning of the period

365.3

323.6

344.5

New orders for the period

298.0

410.6

515.7

Revenue for the period

(341.8)

(394.0)

(411.7)

FX-effect for the period

(4.1)

4.3

(3.0)

Backlog at the end of the period

317.4

344.5

445.6

Book-to-bill ratio (new orders divided by revenue)

0.9

1.0

1.3

YTD 2020 YTD 2021

351.2 323.6

631.6 926.3

(667.0) (805.7)

1.5 1.4

317.4 445.6

0.9 1.1

The backlog increased from €345 million at the end of the first quarter 2021 to €446 million as per June 30, 2021. The book-to- bill ratio for Q2 was 1.3. In terms of customer segments, new orders in the second quarter 2021 were led by foundry, followed by logic and then memory.

Revenue

EUR million

Q2 2020

Q1 2021

Q2 2021

Equipment revenue

264.4

319.1

334.9

Spares & service revenue

77.4

74.9

76.8

Revenue

341.8

394.0

411.7

YTD 2020 YTD 2021

533.7 654.0

133.2 151.7

667.0 805.7

Revenue for the second quarter 2021 increased to €412 million, up 29% year-on-year at constant currencies (20% as reported). Compared to the previous quarter, revenue increased 5% at constant currencies (4% as reported). Revenue in the second quarter was led by foundry followed by memory and then logic.

Equipment revenue in the second quarter increased by 36% year-on-year at constant currencies (27% as reported). Compared to the previous quarter, equipment revenue increased 6% at constant currencies (5% as reported).

Spares & service revenue in the second quarter grew marginally by 3% year-on-year at constant currencies (1% decrease as reported). Sales in the second quarter of last year were at a relatively high level, in part because COVID-related uncertainty led to customers ordering additional spares as a safety buffer in that quarter. Compared to the previous quarter, spares & service revenue grew at 2% at constant currencies (2% as reported).

Gross profit margin

EUR million

Q2 2020

Q1 2021

Q2 2021

Gross profit

165.1

195.0

197.9

Gross profit margin

48.3 %

49.5 %

48.1 %

YTD 2020 YTD 2021

  1. 392.9
  1. % 48.8 %

Gross profit margin of 48.1% in the second quarter 2021 was close to last year's margin of 48.3%. While slightly down from 49.5% in the first quarter, the gross margin in the second quarter was still at a very solid level and again supported by a positive mix. The impact of currency changes on the gross profit for the second quarter was neutral quarter to quarter and a decrease of 6% year- on-year.

1 of 8

Selling, general and administrative expenses

EUR million

Q2 2020

Q1 2021

Q2 2021

YTD 2020

YTD 2021

SG&A expenses

41.0

39.9

45.8

76.8

85.8

Selling, general and administrative (SG&A) expenses increased by 15% compared to the relatively lower level in the first quarter, and increased by 12% year on year. As a percentage of revenue, the SGA expenses decreased from 12% in Q2 last year to 11% in the same period this year. The impact of currency changes for the second quarter was an increase of 1% quarter-on-quarter and a decrease of 3% year-on-year.

Research and development expenses

EUR million

Q2 2020

Q1 2021

Q2 2021

Research and development expenses

42.2

42.7

47.3

Capitalization of development expenses

(15.8)

(17.4)

(20.3)

Amortization of capitalized development expenses

5.3

5.3

5.7

Impairment capitalized development expenses

4.8

-

1.1

R&D expenses

36.5

30.6

33.7

YTD 2020 YTD 2021

83.1 90.0

(31.4) (37.7)

10.9 11.0

4.9 1.1

67.4 64.3

R&D expenses increased by 10% compared to Q1 and dropped by 8% year-on-year. The decrease compared to Q2 last year was mainly explained by lower impairment charges, which dropped from €5 million to €1 million, and higher capitalization, which increased from €16 million to €20 million. Excluding impairments and IFRS effects, the underlying research and development expenses increased by 12% year-on-year. The impact of currency changes for the second quarter was neutral quarter-on- quarter and a decrease of 6% year-on-year.

Operating result

EUR million

Q2 2020

Q1 2021

Q2 2021

Operating result

87.6

124.5

118.4

Operating result margin

25.6 %

31.6 %

28.7 %

YTD 2020 YTD 2021

  1. 242.9
  2. % 30.1 %

The operating margin in the second quarter 2021 was 28.7%, an improvement of 3.1% points compared to the same period last year but down 2.9% points compared to the first quarter of 2021 due to slightly lower gross margins and higher operating expenses. The impact of currency changes for the second quarter was a decrease of 1% quarter to quarter and a decrease of 8% year-on- year.

Financing costs

Financing costs are mainly related to translation results. The Q2 2021 results included a translation loss of €2 million compared to a gain of €16 million included in the Q1 2021 results and a loss of €6 million included in the Q2 2020 results. The translation results are mainly related to movements in the US dollar in the respective periods. A substantial part of ASMI's cash position is denominated in US dollar.

2 of 8

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

ASM International NV published this content on 27 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2021 07:52:03 UTC.


ę Publicnow 2021
All news about ASM INTERNATIONAL N.V.
09/21ASM INTERNATIONAL N : ASMI Share Buyback Update September 13 -17, 2021
PU
09/20ASM INTERNATIONAL N : ASMI Share Buyback Update September 13 -17, 2021
AQ
09/14ASM INTERNATIONAL N : ASMI Share Buyback Update September 6 -10, 2021
PU
09/13ASM INTERNATIONAL N : ASMI Share Buyback Update September 6 -10, 2021
AQ
09/08ANALYST RECOMMENDATIONS : Adobe, Broadcom, Chipotle Mexican Grill, Netflix, Vodafone...
09/07ASM INTERNATIONAL N : ASMI Share Buyback Update August 30 – September 3, 2021
PU
09/07ANALYST RECOMMENDATIONS : Amgen, Banner, Merck, Oracle, Phoenix...
09/06ASM INTERNATIONAL N : ASMI Share Buyback Update August 30 – September 3, 2021
AQ
09/03ASM INTERNATIONAL N : Announces details of upcoming investor day
AQ
08/31ASM INTERNATIONAL N : Publishes interim financial report
AQ
More news
Analyst Recommendations on ASM INTERNATIONAL N.V.
More recommendations
Financials
Sales 2021 1 676 M 1 964 M 1 964 M
Net income 2021 446 M 523 M 523 M
Net cash 2021 542 M 635 M 635 M
P/E ratio 2021 38,7x
Yield 2021 0,71%
Capitalization 16 791 M 19 662 M 19 676 M
EV / Sales 2021 9,70x
EV / Sales 2022 8,23x
Nbr of Employees 2 780
Free-Float 90,6%
Chart ASM INTERNATIONAL N.V.
Duration : Period :
ASM International N.V. Technical Analysis Chart | ASM | NL0000334118 | MarketScreener
Technical analysis trends ASM INTERNATIONAL N.V.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 13
Last Close Price 350,20 €
Average target price 378,23 €
Spread / Average Target 8,00%
EPS Revisions
Managers and Directors
Gek Lim Loh President & Chief Executive Officer
Paul A. H. Verhagen Chief Financial Officer
Jan C. Lobbezoo Chairman-Supervisory Board
Martin C. J. van Pernis Vice Chairman-Supervisory Board
Stefanie Kahle-Galonske Independent Member-Supervisory Board