With the 2015 Q4 earnings release, published on February 23, 2016, ASMI announced that as of January 1, 2016, it will report its financial results in accordance with IFRS. Up until the most recent reporting period, ASMI's primary external and internal reporting has been based on US GAAP. In addition ASMI issued quarterly reconciliations of net earnings and shareholders' equity and (semi) annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS). Following the voluntary delisting from NASDAQ, August 2015, ASMI will migrate to IFRS as its only internal and external reporting standard from January 1, 2016 and will discontinue the use of US GAAP as of the same date. During 2016 comparable results based on US GAAP will be presented, as from 2017 only results based on IFRS will be reported. The main deviations between IFRS and US GAAP are explained in Annex 2.

FINANCIAL HIGHLIGHTS

As from 2016 ASMI reports its results based on IFRS instead of US GAAP.

Quarter
EUR million Q1 2015 Q4 2015 Q1 2016
New orders 158.3 135.4 163.8
Net sales 162.0 144.7 142.4
Gross profit margin % 43.1 % 44.8 % 43.9 %
Operating result 31.1 4.0 18.8
Result from investments (excl. Amortization intangible assets resulting from the sale of the 12% stake of ASMPT) 13.0 1.6 6.3
Amortization intangible assets resulting from the sale of the 12% stake of ASMPT
(6.6 ) (7.1 ) (6.8 )
Net earnings 61.8 10.8 5.4
Normalized net earnings (excl. Amortization intangible assets resulting from the sale of the 12% stake of ASMPT) 68.4 17.9 12.2

Net sales for the first quarter 2016 were €142 million, a decrease of 2% compared to the previous quarter. Year-on-year net sales decreased with 12%.
New orders at €164 million were 21% above the Q4 2015 level.
Normalized net earnings for the first quarter 2016 decreased by €6 million compared to the fourth quarter 2015. Operating result improved €15 million, mainly as a consequence of the fact that Q4, 2015 included a one-off charge due to the write-off of the remaining 450mm assets (€13 million). The financing result included €11 million negative effects from currencies compared to €6 million positive effects in the fourth quarter. The Q4 result included €5 million one-off benefits resulting from the recognition of tax losses, incurred in the past, in the Netherlands. The result from investments increased with €5 million.

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

"Q1 revenues at €142 million came in within our guidance of €135-€145 million for the quarter, while our new orders at €164 million were at the high end of our guidance. Our gross margin at 44% remains healthy. The net result was unfavorably impacted by the adverse US dollar/euro development at the end of the quarter since our cash is held for the main part in US dollar."

OUTLOOK
For Q2 we expect sales between €130-€140 million, while we expect an order intake of €145-€165 million, both on a currency comparable level. Based upon the current visibility, we expect a much stronger second half as compared to the first half of 2016.

SHARE BUYBACK PROGRAM
October 28, 2015 ASMI announced that its Management Board authorized the repurchase of up to €100 million of the Company's common shares within the 2015-2016 time frame. This buyback program will be executed by intermediaries 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 20, 2016.

On May 21, 2015 the General Meeting of Shareholders authorized ASMI to acquire shares for a period of 18 months. The repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders.

The program started on November 26, 2015. On March 31, 2016 of the program 42% was repurchased.