Thursday, October 29, 2020

ASM International report strong quarterly results driven by continued logic/foundry demand

Strong quarterly results driven by continued logic/foundry demand and an exceptionally high gross margin.
  • New orders at €303 million were 2% above the level of last quarter and 4% above the level of last year.
  • Revenue for the third quarter 2020 was €315 million and decreased 8% compared to the previous quarter, half of that decrease is caused by exchange rate translation differences.
  • Gross profit margin was 49.9% in Q3 2020 compared to 48.3% in the previous quarter, driven by an exceptionally strong mix. Operating result was €84 million compared to €88 million in the previous quarter, mainly due to lower sales, partly compensated by a higher margin percentage and lower costs.
  • Normalized net earnings for the third quarter 2020 were lower at €61 million compared to €77 million in Q2 2020. Main reasons for the decline are the depreciation of the US dollar causing a translation result of €14 million negative as compared to the €6 million negative in Q2 and the €4 million lower result from investments.

“ASM continued to deliver strong results in Q3,” said Benjamin Loh, President and Chief Executive Officer of ASM International. “Supply chain and logistical conditions were largely back at normal levels during the quarter. In Q3, despite adverse exchange rate developments, we realized sales of €315 million which is at the high end of the guidance of €300-320 million and down 8% from the level in Q2 but still 16% above the level of Q3 last year. The sales level was again driven by continuous high demand in the logic/foundry segment. Our Q3 order intake, at €303 million, was slightly higher than our guidance of €280-300 million. Supported by again an exceptionally strong mix in the quarter, our gross margin increased to 49.9%.”


For Q4, on a currency comparable level, we expect revenue of €330 - €350 million. Q4 bookings, on a currency comparable level, are expected to be in the range of €340 - €360 million. 

VLSI Research now expects WFE to increase by 11% in 2020, up from a forecast of +9% last July and a drop of 7% expected last March. For 2021, VLSI forecasts a further increase of 5% in WFE

Supported by a continued healthy market development in the second half we now expect the wafer fab equipment (WFE) market to grow with a high single to low double digit percentage in 2020. We expect to outgrow the WFE market in 2020.

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