Duiven, the Netherlands, February 24, 2011 - BE Semiconductor Industries N.V. ("the Company" or "Besi") (NYSE Euronext: BESI; OTCQX: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the fourth quarter and year ended December 31, 2010.
Key Highlights FY 2010
• Record 2010 revenue of € 351.1 million more than double € 147.9 million revenue in 2009
• Record net income of € 47.3 million in 2010 vs. € 5.4 million in 2009
• Besi business and financial transformation continues
• Dividend proposal of € 0.20 per share, payable either in cash or in shares
Key Highlights Q4 2010
• Q4-10 revenue € 104.4 million up 3.8% vs. Q3-10 and above prior guidance
• Net income of € 19.4 million in Q4-10 vs. € 15.0 million in Q3-10
• Cash increased by € 14.3 million vs. Q3-10. Net cash improved to € 22.9 million vs. € 5.1 million
• Improved order intake to date in Q1-11 after slowdown in H2-10
(€ millions) Q4-2010 Q3-2010 Δ Q4-2009 Δ 2010 2009 Δ
Revenue 104.4 100.6 3.8% 53.2 96.2% 351.1 147.9 137.4%
Operating income (loss) 17.4 19.5 -10.8% (13.0) NM 49.9 8.3 501.2%
EBITDA 20.9 22.2 -5.9% (10.6) NM 60.5 17.9 238.0%
Net income (loss) 19.4 15.0 29.3% (13.5) NM 47.3 5.4 775.9%
EPS (diluted) 0.50 0.39 28.2% (0.40) NM 1.25 0.16 618.3%
Orders 57.4 88.1 -34.8% 59.2 -3.0% 376.5 162.5 131.7%
Backlog 76.4 123.6 -38.2% 51.0 49.8% 76.4 51.0 49.8%
Cash flow (deficit) from ops. 19.0 10.5 81.0% 7.4 156.8% 12.2 (3.9) NM
Cash 69.3 55.0 26.1% 73.1 5.2% 69.3 73.1 -5.2%
Total Debt 46.4 49.9 -7.0% 53.5 13.3% 46.4 53.5 -13.3%
Richard W. Blickman, President and Chief Executive Officer of Besi, commented: “2010 marked the most successful year in our history as a public company. Our ability to scale our business with an expanded portfolio of advanced packaging systems in the most recent industry upturn combined with our ongoing cost reduction efforts resulted in record revenue and net income of € 351.1 million and € 47.3 million, respectively.
Our growth in 2010 represents the most visible evidence of the strategic progress we’ve made in transforming Besi into a broad based assembly equipment supplier efficiently serving both mainstream and niche assembly markets. Our focus on developing a leading edge portfolio for use in array connect and wafer level packaging applications has positioned us to capitalize on opportunities resulting from increased demand currently for smart phones, tablets, personal productivity devices and automotive electronics. In addition, our restructuring efforts and ongoing transfer of production from Europe to Asia has significantly reduced our manufacturing costs and improved margins.
In Q4-10, revenue and operating profit exceeded guidance due to higher than anticipated die attach shipments as certain customers deployed capacity earlier than anticipated. The industry outlook for 2011 is increasingly more optimistic based on higher incoming order trends to date in Q1-11. Our customers are now seeking capacity for advanced packaging applications after a temporary slowdown in the second half of 2010. Given Besi's earnings and cash flow generation in 2010, the Board of Management has recommended the payment of a dividend to shareholders equal to € 0.20 per share for approval at our AGM on April 28, 2011.”

Full Year Results 2010
For the full year 2010, Besi’s revenue increased to € 351.1 million as compared to € 147.9 million in 2009. Increased revenue growth was due to: (i) an industry recovery which commenced in the second quarter of 2009 and expanded in 2010, (ii) increased revenue contributed by its full line of die attach systems and, to a lesser extent, packaging systems, and (iii) Besi’s ability to align its production capacity sufficiently to meet elevated industry demand. Similarly, orders in 2010 were € 376.5 million, up 231.5% as compared to € 162.6 million recorded in 2009. Customer orders in 2010 were divided equally between IDMs and subcontractors.
In 2010, Besi recorded net income of € 47.3 million (€ 1.25 per share diluted) as compared to € 5.4 million (€ 0.16 per share diluted) in 2009. On an adjusted basis, net income was € 41.6 million (€ 1.11 per share diluted) in 2010 as compared to an adjusted net loss of € 28.0 million, or (€ 0.85) per share diluted, in 2009. The year over year net income improvement was due primarily to (i) significantly higher revenue, (ii) significantly improved gross margins as a result of an increased % of higher margin die attach systems in its product mix, increased production and supply chain efficiencies and benefits from its product line restructuring and (iii) substantially reduced operating expense as % of revenue as Besi was able to ramp revenue with only a limited increase in overhead levels due to its restructuring and Esec integration efforts. Set forth below is a reconciliation of Besi’s reported and adjusted net income (loss) for each of the respective annual periods.

Financial Condition
Cash and cash equivalents increased by € 14.3 million to € 69.3 million at December 31, 2010 as compared to € 55.0 million at September 30, 2010 while total debt and capital leases declined sequentially by € 3.5 million to € 46.4 million at December 31, 2010. The € 17.9 million sequential increase in Besi’s net cash position at December 31, 2010 was primarily due to cash flow generated from operations of € 23 million and a favourable exchange rate benefit of € 2.1 million partially offset by an investment in working capital of € 3.9 million, net capital expenditures of € 1.8 million and € 1.6 million of capitalized development costs.
At year end 2010, Besi’s net cash position increased to € 22.9 million from € 19.7 million at December 31, 2009. The increase was due primarily to € 60.5 million of cash flow from operations generated during the period plus a positive exchange rate benefit of € 4.3 million partially offset by (i) an investment in working capital of € 48.3 million necessary to support its 138% year over year revenue growth, (ii) € 6.0 million of capitalized development costs, and (iii) net capital expenditures of € 6.6 million.
Dividend
In view of Besi's positive earnings, Besi intends to distribute 14.4% of its net income as a dividend. The choice of dividend form (either in cash or in shares) takes into account Besi's desired balance sheet structure and the interests of its shareholders. In light of this, Besi will propose to the Annual General Meeting of Shareholders intended to be held on April 28, 2011, that a dividend of € 0.20 per share be distributed in the form of ordinary shares, unless the shareholder opts for a distribution in cash. The dividend will be payable as from May 31, 2011.

Outlook
Based on our December 31, 2010 backlog and feedback from customers, we forecast for Q1-11 that:
• Revenue will decrease by approximately 20% as compared to the € 104.4 million reported in Q4-10.
• Gross margins will range between 38.5-40.5% as compared to the 40.2% realized in Q4-10.
• Operating expenses will decrease by approximately 10% as compared to the € 24.6 million reported in Q4-10.
• Capital expenditures will be approximately € 2 million as compared to € 1.8 million in Q4-10.
According to VLSI Research, a leading independent research analyst for the semiconductor equipment industry, the semiconductor assembly equipment industry reached $ 4.5 billion in 2010, representing growth of 129% in 2010 versus 2009. VLSI and Gartner Group (another leading independent research analyst) now expect growth of 3% and 7%, respectively, in 2011, based on more optimistic capital spending forecasts by the leading semiconductor producers in Q1-11. Besi has experienced a broad based order increase in Q1-11 as customers seek to add capacity for smart phones, tablets, personal productivity devices and automotive electronics after a temporary slowdown in the second half of 2010.