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ASM INTERNATIONAL N.V. REPORTS THIRD QUARTER 2019 RESULTS

Almere, The Netherlands
October 30, 2019, 6 p.m. CET

ASM International N.V. (Euronext Amsterdam: ASM) today reports its third quarter 2019 operating results (unaudited) in accordance with IFRS.

FINANCIAL HIGHLIGHTS

EUR millionQ3 2018Q2 2019*Q3 2019
New orders258.0373.1291.8
Net sales195.7363.3271.2
Gross profit margin %40.9%59.0%42.4%
Operating result28.0150.250.6
Result from investments (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013)16.82.06.5
Amortization intangible assets (resulting from the sale of ASMPT stake in 2013)(3.1)(3.4)(3.5)
Net earnings39.1121.653.5
Normalized net earnings (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013 and result from sale of ASMPT shares)42.2125.056.9

* Including effects of litigation settlement

  • New orders of €292 million driven by foundry and logic, 8% above Q2 2019 (€270 million excluding patent litigation settlement).
  • Net sales for the Q3 2019 were €272 million, 4% up compared to the previous quarter (€260 million excluding patent litigation settlement).
  • Gross profit margin was 42.4% in Q3 2019 compared to 59.0% Q2 2019 (42.8% excluding patent litigation settlement).
  • Operating result of €51 million up €4 million compared to the previous quarter (€47 million excluding patent litigation settlement).
  • Normalized net earnings for the third quarter 2019 decreased by €68 million compared to Q2 2019, excluding the patent litigation settlement net earnings in Q3 showed an increase.

COMMENT

Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:
"In Q3 we realized sales of €271 million. Excluding the litigation settlement, this is 4% above the Q2 level, reaching again a new record level, driven by continuous high demand in the logic/foundry segment. Our order intake, at €292 million was well above our guidance of €250-270 million driven by strong pull-ins from our logic/foundry customers. Our cash position in the quarter increased again substantially, partly due to the receipt of 50% of the US$115 million cash proceeds from the litigation settlement."

OUTLOOK

For Q4, on a currency comparable level, we expect sales of €310-330 million while bookings, on a currency comparable level, are expected to be in the range of €290-310 million. This guidance for both sales as well as orders does not include the proceeds of US$61 million related to the settlement of the arbitration proceeding with Kokusai Electric Corporation, which will be added to those numbers in Q4. For 2019, general expectations are now that the wafer fab equipment (WFE) market will decline with a mid-teens percentage. Market demand in the memory segment generally continues to be weak while visibility remains limited. Market demand in the logic and foundry segments is solid in 2019, driven by spending on the most advanced nodes, and expected to continue into the first part of 2020. We expect to strongly outperform the WFE market in 2019.

SHARE BUYBACK PROGRAM

The execution on the €100 million share buyback program, announced on July 23, 2019, will start as from early November.

INTERIM DIVIDEND

ASMI announces today an interim dividend of €1.00 per common share. In view of the recent strong increases in the cash position, the Board decided this year to bring forward part of the 2019 dividend in the form of an interim dividend. The final dividend proposal, which will be in line with ASMI’s policy to pay a sustainable dividend, will be announced as part of the fourth quarter 2019 and full year results 2019.

The relevant dates for this interim dividend payment are:

Ex-dividend date share Euronext and OTC US    November 5, 2019
Record date                                                      November 6, 2019
Payment date                                                    November 12, 2019

ARBITRATION SETTLEMENT

As announced on October 29, 2019, ASMI has entered into a settlement agreement with Kokusai Electric Corporation (“KEC”) concerning all the matters of the arbitration proceeding relating to the license agreement which expired in November 2017. KEC will pay an amount of US$61 million to ASM. This settlement of the arbitration proceeding is separate from the settlement of the patents lawsuits and invalidation proceedings as announced on July 1, 2019.

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, 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 will host an investor conference call and web cast on Thursday, October 31, 2019 at 15:00 Continental European Time (10:00 a.m. - US Eastern Time).

The teleconference dial-in numbers are as follows:

  • United States:          +1 631 510 7495
  • International:            +44 (0) 844 571 8892 
  • The Netherlands:      +31 (0)20 714 3545
  • Access Code:          5295597

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

CONTACT

Investor contact:

Victor Bareño
T: +31 88 100 8500
E: victor.bareno@asm.com

Media contact:

Ian Bickerton
T: +31 625 018 512

Press Release Q3_ 2019 -FINAL