Wednesday, July 26, 2017

ASM report strong order intake in ALD for 3D-NAND and Foundry in its 2Q 2017 report

For 2017, the leading ALD equipment manufacturer ASM International expect a clear improvement in the single wafer ALD market and they forecast the single wafer ALD market to reach a size of about USD 1.5 billion by 2020-2021. As a comparasion the ALD market as a whole was estimated to USD 1.4 to 1.5 billion in 2016 (Gartner, VLSI Research, TECHCET), including all segments (e.g. Semi, MEMS, PV, OLED and R&D).

ASM International N.V. (Euronext Amsterdam: ASM) today reports its second quarter 2017 operating results (unaudited) in accordance with IFRS. (LINK)

Investor presentation Q2 2017
  • New orders at €206 million were 1% above the Q1 2017 level and 29% above last year's Q2 level.
  • Net sales for the second quarter 2017 were €202 million, an increase of 40% compared to the previous quarter. Year-on-year net sales increased with 46%.
  • Net earnings of €132 million in the second quarter included a result of €84 million from the 5% sale and dilution of the ASMPT stake.
  • Normalized net earnings for the second quarter 2017 increased by €14 million compared to the first quarter 2017. Operating result increased to €38 million. The financing result included €11 million negative effects from currencies compared to €7 million negative effects in the first quarter. The result from investments decreased with €4 million due to the dilution of our stake in ASMPT. Moreover the ASMPT results in the first quarter included a one-off non-cash gain of €10 million related to the revaluation of the convertible bond.


Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said: 

"In Q2 we realized sales of €202 million, which was slightly above our guidance and at a historical high quarterly level. The order intake for Q2, at €206 million, came in at the high end of the forecast and was also at the highest level in the company's history. Order intake in ALD was primarily strong from the 3D-NAND and Foundry segments. We also received several Intrepid Epitaxy orders in Q2."


OUTLOOK
Based on our current assessment, we continue to expect a clear year-on-year improvement in the single wafer ALD market in 2017, with demand in the Logic/Foundry segment remaining healthy and a strong increase in the 3D-NAND segment.

For Q3 we expect a sales level of €170-190 million, on a currency comparable level, while for the second half of 2017 as a whole we expect a sales level higher than in the first half of 2017. After the very strong orders in the past two quarters we expect order intake in Q3 at a still healthy level of €150-170 million, on a currency comparable level.