ASM International N.V. (Euronext Amsterdam: ASM) today reports its first quarter 2017 operating results (unaudited) in accordance with IFRS.
ASMI results based on IFRS.
Quarter EUR million
Q1 2016 Q4 2016 Q1 2017
New orders 163.8 176.9 204.2
Net sales 142.4 172.6 144.5
Gross profit margin % 43.9 % 44.9 % 43.5 %
Operating result 18.8 29.9 14.8
Result from investments (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT) 6.3 18.4 35.4
Amortization intangible assets resulting from the sale of the 12% stake of ASMPT
(6.8 ) (7.0 ) (5.8 )
Net earnings 5.4 61.5 35.9
Normalized net earnings (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT) 12.2 68.5 41.6
· New orders at €204 million were 15% above the Q4 2016 level.
· Net sales for the first quarter 2017 were €144 million, a decrease of 16% compared to the previous quarter. Year-on-year net sales increased with 1%.
· Normalized net earnings for the first quarter 2017 were €42 million compared to €69 million in the fourth quarter 2016. Operating result decreased to €15 million. The financing result included €7 million negative effects from currencies compared to €19 million positive effects in the fourth quarter. The result from investments increased with €17 million.
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said: "In Q1 we realized sales of €144 million, which was at the high end of our guidance. The order intake for Q1, at €204 million, came in better than forecasted and was the highest level ever. This was supported by an increasing contribution from the 3D NAND segment. We also saw in Q1 the first high volume manufacturing order intake for our Intrepid tool, an Epitaxy tool addressing the CMOS market."
The single wafer ALD market dropped in 2016, although not as much as we earlier expected. This is caused by a few smaller segments of the ALD market where we have not been engaged, mainly in non-patterning related DRAM. As a result, our single wafer ALD market share decreased. Our ALD revenue in 2016 ended up well in line with the assessment we made in July 2016. 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 Q2 we expect a sales level of €180-200 million, on a currency comparable level. The order intake in Q2 is expected to remain at a high level of €190-210 million, also on a currency comparable level.
On October 26, 2016, ASMI announced a share buyback program for the repurchase of up to €50 million of the Company's common shares within the 2016-2017 time frame. On March 2, 2017, ASMI announced that its Management Board authorized an increase in this program to €100 million.
On May 25, 2016, the Annual 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 2016-2017 share buyback program started on December 13, 2016. On March 31, 2017, 36.5% of the program was completed at an average share price of €46.61.
As per March 31, 2017 ASMI held 4.32 million treasury shares, which is more than sufficient to cover our outstanding options and restricted/performance shares. Hence, as announced on March 2, 2017, ASMI proposes to the Annual General Meeting, to be held on May 22, 2017, to cancel 1.5 million treasury shares.