Saturday, April 21, 2018

ASM International N.V. Reports First Quarter 2018 Results

ASM International N.V. (Euronext Amsterdam: ASM) reports its first quarter 2018 operating results (unaudited) in accordance with IFRS. (Almere, The Netherland April 19, 2018 FinanzNachrichten.de LINK)

From the ASMI Q1/2018 investor presentations : LINK
  • New orders at €206 million were at the highest level ever and 2% above the Q4 2017 level and 1% above the level of Q1 2017.
  • Net sales for the first quarter 2018 were €159 million, a decrease of 12% compared to the restated previous quarter.
  • Gross profit margin was 37.8% in Q1 2018. The margin was beside the effects of new product introductions impacted by sales mix and preparation for anticipated higher activity levels.
  • Operating result decreased to €12 million compared to the previous quarter. The decrease is mainly the result of the lower sales level.
  • Normalized net earnings for the first quarter 2018 decreased by €18 million compared to the fourth quarter 2017.



COMMENT

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

"In Q1 we realized sales of €159 million and an order intake of €206 million. Our sales were at the lower end of our guidance while order intake was at the higher end of our guidance. The gross margin in Q1 at 38% was impacted by an unfavorable product mix and costs related to our preparation for further growth. We estimate our gross margin in Q2 to show a substantial improvement bringing it back again in the range of low to mid 40's."

ASMI operates in the Deposition segments (e.g. PVD, CVD, ALD) of the semiconductor equipment market (ASMI Q1/2018 investor presentations : LINK)


OUTLOOK

For Q2, on a currency comparable level, we expect sales of €200-230 million, and we expect an order intake of €160-200 million. The broad ranges for Q2 reflect some uncertainty around the exact timing of individual tools.
Gartner estimates the Wafer Fab Equipment market grew 32% in 2017 and forecasts a modest decline in 2018 (ASMI Q1/2018 investor presentations : LINK)

For 2018, market watchers currently expect the wafer fab equipment market to increase with, on average, a high single digit percentage. We aim to outgrow the wafer fab equipment market in 2018. 

Investor presentations : LINK

 More insights can be found by reading the Investor call transcript : LINK (Seeking Alpha)