Besi Reports Q1-16 Revenue and Net Income of € 79.0 Million and € 8.0 Million, Respectively. Q1-16 Orders Increase by 34.4% Sequentially vs. Q4-15. Net Cash Position Increases to € 148.4 Million.
Duiven, the Netherlands, April 29, 2016 - BE Semiconductor Industries N.V. (the “Company" or "Besi") (Euronext Amsterdam: BESI; OTC markets: BESIY, Nasdaq International Designation), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the first quarter ended March 31, 2016.


Key Highlights
Revenue of € 79.0 million, up 1.5% vs. Q4-15 as market conditions firmed and sales for certain smart phone applications increased. Down 16.8% vs. Q1-15 due to H2-15 industry downturn
Orders of € 103.9 million, up 34.4% vs. Q4-15 due primarily to growth by Chinese and Taiwanese subcontractors for smart phone applications as well as higher IDM demand for high end memory and cloud server applications. Flat vs. Q1-15
Gross margins of 49.2%, above prior guidance. Down vs. 50.0% in Q4-15 due to restructuring charges and increased personnel costs but above 49.0% gross margin reached in Q1-15
Net income of € 8.0 million down € 1.7 million vs. Q4-15 and € 9.5 million vs. Q1-15 (down € 5.5 million as adjusted)
Net cash increased by € 15.3 million (11.5%) year over year to reach € 148.4 million

Outlook
Q2-16 revenue expected to be +20-25% vs. Q1-16 based on strong Q1-16 order intake. Sequential operating profit significantly higher than Q1-16 due to anticipated revenue growth

(€ millions, except EPS)
Q1-2016 Q4-2015 Δ Q1-2015 Δ
Revenue 79.0 77.8 +1.5% 94.9 -16.8%
Orders 103.9 77.3 +34.4% 104.2 -0.3%
EBITDA 13.4 16.9 -20.7% 24.4 -45.1%
Net Income 8.0 9.7 -17.5% 17.5 -54.3%
Adjusted Net Income* 8.7 10.9 -20.2% 14.2 -38.7%
EPS (diluted) 0.21 0.25 -16.0% 0.46 -54.3%
Net Cash 148.4 136.5 +8.7% 133.1 +11.5%
* Adjustments include € 0.7 million of restructuring charges in Q1-16, € 1.2 million primarily related to deferred taxes in Q4-15 and € 3.3 million of net restructuring benefits in Q1-15

Besi’s Q1-16 revenue increased by 1.5% vs. Q4-15 and was slightly above the mid-point of prior guidance primarily due to strength in sales of certain die attach and packaging systems for a variety of smart phone applications. Revenue growth was partially offset by lower system sales for high end memory and PC/tablet related applications by North American IDMs. The 16.8% decline vs. Q1-15 was broad based due to the H2-15 industry downturn. Orders increased by 34.4% vs. Q4-15 due primarily to growth by Chinese and Taiwanese subcontractors for smart phone applications as well as higher IDM demand for high end memory and cloud server applications. Orders were roughly flat as compared to Q1-15. Per customer type, subcontractor orders increased sequentially in Q1-16 by € 25.7 million, or 79.1%, while IDM orders increased by € 0.9 million, or 2.0%.

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“In Q1-16, Besi realized solid revenue and operating profit levels that met expectations while continuing to increase its net cash position. Revenue grew by 1.5% vs. Q4-15 as market conditions firmed and business increased for certain smart phone applications. Gross and net margins of 49.2% and 10.1% were attractive from an industry perspective post a significant H2-2015 order downturn. Net cash continued to build reaching a record level of € 148.4 million. In addition, we enhanced shareholder value via share repurchases aggregating € 5.2 million in Q1-16 and € 9.2 million since program inception last fall which represent approximately half of Besi’s current 1.0 million share repurchase authorization.
Orders grew sequentially by 34.4% vs. Q4-15 in the face of an uncertain macro environment which has adversely affected many semiconductor producers. However, a new technology cycle is underway for sub 20 nanometer devices which along with increased Chinese and Taiwanese purchases of leading edge advanced packaging capacity has helped improve Besi’s first half 2016 business outlook. Specifically, we experienced strong demand by Chinese and Taiwanese subcontractors for die attach and packaging systems used in smart phone applications with particular strength in bookings for flip chip and epoxy die bonding equipment. Besi also benefited from increased IDM demand for high end memory and cloud server applications continuing a favourable trend started in 2015.
Based on higher Q1-16 bookings, Besi guides for Q2-16 revenue growth of 20-25% vs. Q1-16. Similarly, sequential operating profit will increase significantly as gross margins remain at attractive levels. In addition, existing cost control measures will limit overhead growth relative to revenue development even with the large Q2-16 production ramp and the ongoing transfer of personnel, supply chain and administrative functions from Europe to Asia.
From a strategic perspective, initiatives continue to increase revenue generation and the profitability of Besi’s business model. Actions include developing enhancements to TCB and wafer level processing systems, expanding die bonding production for the local Chinese market, increasing the capabilities of Besi’s Singapore die bonding development center and transferring die sorting production from Europe to Malaysia.”

Q1-2016 Q4-2015 Δ Q1-2015 Δ
Gross Margin 49.2% 50.0% -0.8 49.0% +0.2
Operating Expenses 29.2 26.5 +10.2% 25.3 +15.4%
Financial Expense/ (Income), net 0.2 0.2 - 1.1 -81.8%
EBITDA 13.4 16.9 -20.7% 24.4 -45.1%
Besi’s gross margin in Q1-16 decreased by 0.8 points vs. Q4-15 due to charges of € 0.3 million related to European restructuring activities and increased personnel costs in support of higher order levels. Gross margins increased by 0.2% vs. Q1-15 due to material cost efficiencies and net forex benefits from changes in the valuation of the USD and Malaysian ringgit vs. the euro. Such positive factors were partially offset by the absence of net benefits from Besi’s European restructuring activities aggregating € 0.7 million in Q1-15.

Besi’s Q1-16 operating expenses increased by € 2.7 million, or 10.2%, vs. Q4-15 due primarily to increased incentive compensation expense of € 2.5 million. Operating expenses grew by € 3.9 million vs. Q1-15 due primarily to (i) the absence of a € 2.9 million net restructuring benefit in Q1-15 and (ii) € 1.1 million increased incentive compensation expense. Total fixed headcount at March 31, 2016 decreased by 1.0% vs. December 31, 2015 and by 3.0% vs. March 31, 2015 due to continued reductions in European based personnel associated with the transfer of additional functions to its Asian operations.
see and read more

http://www.besi.com/uploads/tx_news/Q1-2016.pdf

tijd 09.03
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