ASM International N.V. (NASDAQ: ASMI and Euronext Amsterdam: ASM) reports today its third quarter 2011 (unaudited) operating results in accordance with US GAAP.
Highlights
Net sales for the third quarter 2011 were EUR 376 million, a decrease of 21% quarter-to-quarter and up 8% year-on-year. Excluding the acquired SEAS business, net sales decreased 29% quarter-to-quarter. Net sales of our Front-end segment decreased 14% quarter-to-quarter while comparable Back-end sales decreased by 36%.

Result from operations for Q3 were EUR 149 million and included a net gain of EUR 98 million on the bargain purchase of the SEAS business. Result from operations in Q2 2011 was EUR 104 million while the third quarter of 2010 showed a profit of EUR 101 million. Result from operations excluding this gain were EUR 51 million in Q3 2011;

The Front-end segment's operating profit was EUR 13.5 million compared to EUR 20.8 million quarter-to-quarter. Q3 2010 showed an operating profit of EUR 4.9 million (including EUR 2.4 million restructuring charges);
The Back-end segment operating profit was EUR 37.8 million compared to EUR 83.2 million quarter-to-quarter. The third quarter of 2010 showed an operating profit of EUR 96.5 million.

Third quarter 2011 net earnings were EUR 81 million compared to net earnings of EUR 50 million for the second quarter of 2011 and EUR 34 million for the third quarter of 2010. The net earnings include a gain from bargain purchase related to the acquired SEAS business of EUR 51 million. Net earnings of the third quarter last year included effects of the revaluation of the conversion option. Excluding this revaluation net earnings were EUR 43 million.

Book to bill in the third quarter was 0.8. For the Front-end the book to bill was 0.9 and for the Back-end segment 0.8. The Backlog decreased from Euro 436 million at the end of the second quarter to EUR 397 million at the end of the third quarter.

Comment
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International, said: "The third quarter revenues clearly reflect the current market uncertainty, which is driven by macro-economic and political factors. The third quarter also showed for the sixth consecutive quarter a double digit operating margin in Front-end. Although in Back-end margins came down, margins at the recently acquired surface mount technology business, ASM Assembly Systems, have improved significantly in the last quarters".

Outlook
Customer cautiousness in Q3, that led to low order intake especially in Back-end, will not improve in Q4. Combined with present backlog levels, we expect this will lead to lower sales for both Front- and Back-end operations in the current quarter.

Visibility remains low for the semiconductor and semiconductor equipment industries, making it difficult for both customers and suppliers to formulate plans for 2012. We are working closely with our customers to synchronize our production levels with their requirements for the next twelve months, but it is too early in the planning process to comment beyond the current quarter.