* Net Sales and Bookings up 49.8% and 57.8%, Respectively, over First Quarter of 2004 *
* Net Income of Eur 0.7 Million or Eur 0.02 per Share versus Net Loss of
Eur 1.4 Million or Eur 0.04 per Share in First Quarter of 2004 *
* Backlog up 30.1% over March 31, 2004 and up 56.3% over December 31, 2003 *
Drunen, the Netherlands, July 20, 2004, BE Semiconductor Industries N.V. ("the Company" or "Besi")
(Nasdaq: BESI; Euronext: BESI), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its financial results for the second quarter of 2004.
Net sales for the second quarter of 2004 were Eur 33.1 million, an increase of 49.8% from Eur 22.1 million for the first quarter of 2004 and an increase of 39.7% as compared to net sales of Eur 23.7 million for the second quarter of 2003. Net income for the second quarter of 2004 was Eur 0.7 million, or Eur 0.02 per share, versus a net loss of Eur 1.4 million, or Eur 0.04 per share, for the first quarter of 2004 and a net loss of Eur 1.6 million, or Eur 0.05 per share, for the second quarter of 2003.
Net bookings for the quarter ended June 30, 2004 were Eur 47.5 million, an increase of 57.8% as compared to the first quarter of 2004 and 117.9% as compared to the second quarter of 2003.
Backlog increased by 30.1% to Eur 62.2 million at June 30, 2004 from Eur 47.8 million at March 31, 2004 and by 56.3% as compared to Eur 39.8 million at December 31, 2003. The book-to-bill ratio stood at 1.44 in the second quarter of 2004 as compared to 1.36 in the first quarter of 2004 and 0.92 in the second quarter of 2003.
Gross margin for the second quarter of 2004 was 33.9% compared to 32.2% in the first quarter of 2004 and 33.5% in the second quarter of 2003.
For the six months ended June 30, 2004, net sales were Eur 55.2 million, up 24.3% as compared to net sales of Eur 44.4 million for the six months ended June 30, 2003. Net loss for the six months ended June 30, 2004 was Eur 0.6 million, or Eur 0.02 per share, as compared to a net loss of Eur 4.6 million, or Eur 0.15 per share, for the six months ended June 30, 2003.
Richard W. Blickman, President and Chief Executive Officer of the Company, commented: "The growth in our net sales, bookings and backlog this quarter as compared to the first quarter of 2004 and the comparable quarter of the prior year reflect increased customer demand for assembly equipment across all product lines. Substantially increased net sales combined with continued progress in managing our costs and operating expenses enabled us to return to profitability this quarter as compared to net losses in the first quarter of 2004 and the second quarter of 2003. We experienced growth in backlog for each of our product lines with particularly strong bookings in the quarter for molding systems and singulation systems. Based on our backlog and current order trends, we expect increased net sales and improved results of operations for the second half of 2004 as compared to the first half of 2004."
BE Semiconductor Industries N.V. designs, develops, manufactures, markets and services die sorting, flip chip die-attach, molding, trim and form, singulation and plating systems for the semiconductor industry’s assembly operations. Its customers consist primarily of leading U.S., European, Asian, Korean and Japanese semiconductor manufacturers and subcontractors.

Caution Concerning Forward Looking Statements
This press release contains forward-looking statements, which are found in various places throughout the press release, including statements relating to expectations of future revenues, product shipments, expenses and operating results. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, those listed or discussed in our Annual Report on Form 20-F for the year ended December 31, 2003, as well as the
risk that anticipated orders may not materialize or that orders received may be postponed or canceled, generally without charges; the volatility in the demand for semiconductors and our products and services; acts of terrorism and violence; overall global economic conditions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations; potential instability in foreign capital markets; the risk of failure to successfully manage our expanding and more diverse operations; and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including those with the United States Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise.