Q2-18 Revenue and Net Income Increase by 4.0% and 27.2%, Respectively, vs. Q1-18
Strong H1-18 with Revenue and Net Income Up 12.8% and 9.9%, Respectively
New € 75 Million Share Repurchase Program Initiated
DUIVEN, the Netherlands, July 26, 2018 (GLOBE NEWSWIRE) -- 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 second quarter and first half year ended June 30, 2018.
Key Highlights Q2-18
- Revenue of € 161.1 million up 4.0% vs. Q1-18 and in line with revised guidance due to higher shipments for mobile and automotive applications. Down 5.2% vs. Q2-17 due to lower die bonding shipments for high end mobile applications partially offset by growth in Besi’s automotive and computing end user markets
- Orders of € 86.3 million, down 58.1% vs. Q1-18 and 33.7% vs. Q2-17 due primarily to reduced demand by customer supply chains for high end smart phone applications after the significant 2017 and Q1-18 capacity build
- Gross margin of 56.5% equal to Q1-18 and down 0.8 points vs. Q2-17 due primarily to adverse forex influences. At high end of prior guidance
- Operating expenses down 18.7% vs. Q1-18 due primarily to lower share based compensation and warranty expense. Down 6.7% vs. Q2-17. Better than prior guidance
- Net income of € 47.2 million, up € 10.1 million vs. Q1-18 as strategic execution continues to generate high levels of profitability. Down € 5.2 million (-9.9%) vs. Q2-17
- Similarly, net margin rose to 29.3% vs. 23.9% in Q1-18. Down by 1.5% vs. Q2-17 (30.8%)
Key Highlights H1-18
- Revenue of € 316.0 million, up 12.8% vs. H1-17 reflecting broad based growth across all product groups and end user application markets
- Orders decreased by 21.0% due primarily to lower die bonding bookings for high end smart phone and, to a lesser extent, high end server applications
- Gross margin decreased slightly to 56.5% vs. 56.7% despite adverse forex influences from decline of USD vs. euro
- Net income of € 84.3 million grew € 7.6 million vs. H1-17 (+9.9%). Net margin of 26.7% vs. 27.4% in H1-17
Outlook
- Q3-18 revenue estimated to decrease 25-30% vs. Q2-18 due primarily to lower die bonding revenue for mobile applications and typical H2 seasonal patterns
- New € 75 million share repurchase program initiated through October 2019
(€ millions, except EPS) |
Q2-
2018 | Q1-
2018 | Δ | Q2-
2017 |
Δ |
H1-
2018 | H1-
2017 |
Δ | |||
Revenue | 161.1 | 154.9 | +4.0% | 170.0 | -5.2% | 316.0 | 280.2 | +12.8% | |||
Orders | 86.3 | 205.8 | -58.1% | 130.1 | -33.7% | 292.1 | 369.9 | -21.0% | |||
Operating Income | 59.3 | 48.6 | +22.0% | 63.3 | -6.3% | 107.8 | 94.1 | +14.6% | |||
EBITDA | 62.8 | 52.0 | +20.8% | 66.6 | -5.7% | 114.8 | 100.8 | +13.9% | |||
Net Income | 47.2 | 37.1 | +27.2% | 52.4 | -9.9% | 84.3 | 76.7 | +9.9% | |||
EPS (basic) | 0.63 | 0.50 | +26.0% | 0.70 | -10.0% | 1.13 | 1.03 | +9.7% | |||
EPS (diluted) | 0.58 | 0.46 | +26.1% | 0.65 | -10.8% | 1.03 | 0.94 | +9.6% | |||
Net Cash & Deposits | 110.2* | 290.1 | -62.0% | 131.5* | -16.2% | 110.2* | 131.5* | -16.2% |
*Reflects cash dividend payments of € 174.0 million and € 65.3 million in Q2-18 and Q2-17, respectively.
Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“Besi’s first half 2018 results showed continued year over year improvement in revenue and net income of 12.8% and 9.9%, respectively. The solid results reflected the extension of favorable industry trends from 2017, additions to advanced packaging capacity by customers and Besi’s ongoing execution of strategic initiatives. Revenue growth in H1-18 was broad based with contributions from each of our principal end user markets. First half net income of € 84.3 million combined with peer leading gross and net margins of 56.5% and 26.7% highlight the success of Besi’s products in the market place and the efficiency of our business model. Q2-18 financial metrics were also favorable with sequential revenue up 4.0% vs. Q1-18, gross margin at the high end of guidance, net income growing sequentially by 27.2% and a net margin of 29.3%.