BE Semiconductor Industries N.V. Announces Q3-24 Results
Q3-24 Revenue of € 156.6 Million and Net Income of € 46.8 Million Up 27.0% and 33.7%, Respectively, vs. Q3-23Orders of € 151.8 Million Up 19.2% vs. Q3-23. Hybrid Bonding Adoption Continues
YTD-24 Revenue of € 454.1 Million and Net Income of € 122.7 Million Orders of € 464.8 Million Up 21.7% vs. YTD-23
DUIVEN, the Netherlands, Oct. 24, 2024 (GLOBE NEWSWIRE) -- BE Semiconductor Industries N.V. (the "Company" or "Besi") (Euronext Amsterdam: BESI; OTC markets: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the third quarter and nine months ended September 30, 2024.
Key Highlights Q3-24
Revenue of € 156.6 million up 3.6% vs. Q2-24 and 27.0% vs. Q3-23 due to increased demand by computing end user markets for hybrid bonding, photonics and other AI applications partially offset by ongoing weakness in automotive and Chinese end user markets
Orders of € 151.8 million up 19.2% vs. Q3-23 due to increased hybrid bonding orders. Down 18.0% vs. Q2-24 due primarily to fluctuations in hybrid bonding order patterns by customers
Gross margin of 64.7% decreased by 0.3 points vs. Q2-24 but was up 0.1 point vs. Q3-23. Gross margin development in the comparable periods was adversely affected by net forex influences
Net income of € 46.8 million increased 11.7% vs. Q2-24 and 33.7% vs. Q3-23 primarily due to higher revenue levels and cost control efforts which limited baseline operating expense growth. Q3-24 net margin rose to 29.9% vs. 27.7% in Q2-24 and 28.4% reported in Q3-23
Net cash of € 110.7 million at quarter-end increased by € 36.3 million (48.8%) vs. Q2-24 and € 20.5 million (22.7%) vs. Q3-23
Key Highlights YTD-24
Revenue of € 454.1 million increased 8.3% vs. YTD-23 principally due to higher demand by computing end user markets, particularly for hybrid bonding and photonics applications and by Taiwanese and Korean subcontractors partially offset by weakness in mobile and automotive markets
Orders of € 464.8 million increased 21.7% vs. YTD-23 due to increased demand for hybrid bonding and photonics applications partially offset by lower bookings for automotive and, to a lesser extent, mobile applications and ongoing weakness in Chinese end user markets
Gross margin of 65.6% increased by 0.8 points vs. YTD-23 due to more favorable AI advanced packaging product mix
Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins were offset by higher R&D spending and share-based compensation expense. Besi's net margin decreased to 27.0% vs. 29.1% in YTD-23
Q4-24 Outlook
Revenue expected to be flat plus or minus 10% vs. the € 156.6 million reported in Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24
Gross margin expected to range between 63-65% vs. the 64.7% realized in Q3-24
Operating expenses expected to be flat to up 5% vs. the € 46.2 million reported in Q3-24
(€ millions, except EPS)
Q3-2024
Q2-2024
Δ
Q3-2023
Δ
YTD-2024
YTD-2023
Δ
Revenue
156.6
151.2
+3.6%
123.3
+27.0%
454.1
419.2
+8.3%
Orders
151.8
185.2
-18.0%
127.3
+19.2%
464.8
381.9
+21.7%
Gross Margin
64.7%
65.0%
-0.3
64.6%
+0.1
65.6%
64.8%
+0.8
Operating Income
55.1
49.3
+11.8%
42.7
+29.0%
145.0
147.3
-1.6%
EBITDA
62.4
56.2
+11.0%
48.9
+27.6%
166.2
166.4
-0.1%
Net Income*
46.8
41.9
+11.7%
35.0
+33.7%
122.7
122.2
+0.4%
Net Margin*
29.9%
27.7%
+2.2
28.4%
+1.5
27.0%
29.1%
-2.1
EPS (basic)
0.59
0.53
+11.3%
0.45
+31.1%
1.56
1.57
-0.6%
EPS (diluted)
0.59
0.53
+11.3%
0.45
+31.1%
1.55
1.54
+0.6%
Net Cash and Deposits
110.7
74.4
+48.8%
90.2
+22.7%
110.7
90.2
+22.7%
* Excluding share-based compensation expense, net income (net margin) would have been € 50.2 million (32.1%), € 48.5 million (32.1%) and € 36.6 million (29.7%) in Q3-24, Q2-24 and Q3-23, respectively and € 148.8 million (32.8%) in YTD-24 vs. € 137.6 million (32.8%) in YTD-23
Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
"Besi reported significant growth in revenue, orders and net income in Q3-24 versus the comparable quarter of last year as we continue to benefit from strength in our advanced packaging product portfolio for AI applications despite continued headwinds in mainstream and Chinese assembly equipment markets. For the quarter, revenue of € 156.6 million and orders of € 151.8 million grew by 27.0% and 19.2%, respectively, versus Q3-23 due primarily to strong growth by computing end user markets including hybrid bonding, photonics and other AI applications. Such growth was partially offset by weakness in automotive and Chinese end user markets continuing trends we have experienced this year. Net income of € 46.8 million grew by € 11.8 million, or 33.7%, reflecting a number of favorable trends including increased advanced packaging system revenue, increased gross margins related thereto and better than forecast operating expense levels despite continued growth in R&D spending for next generation hybrid bonding and TCB systems.
For the first nine months of 2024, revenue of € 454.1 million and orders of € 464.8 million increased by 8.3% and 21.7%, respectively. Growth was due to significantly higher demand by computing end user markets, particularly for AI-related hybrid bonding and photonics applications and from Taiwanese and Korean subcontractors. Net income of € 122.7 million was approximately equal to YTD-23 as higher revenue and gross margins this year were offset by higher R&D spending in support of wafer level assembly development and share-based compensation expense.
Our financial position improved as well in Q3-24 with net cash increasing to € 110.7 million at quarter-end, an improvement of € 36.3 million (+48.8%) versus Q2-24 and € 20.5 million (+22.7%) versus Q3-23 despite increased share buy-back activity. Total cash and deposits at quarter end grew to € 637.4 million including net proceeds from our Senior Note offering in July 2024 which positions us favorably for anticipated growth in the next market upcycle.
During Q3-24, Besi continued to receive substantial orders for hybrid bonding systems from existing and new customers. At quarter-end, total revenue producing hybrid bonding orders since 2021 exceeded 100 systems highlighting the importance of this new technology for 3-D AI-related assembly applications. We anticipate additional orders in Q4-24 from a variety of customers as adoption continues to expand globally. We have also received increased interest for Besi's TCB Next system from leading logic and memory customers which positions us favorably for anticipated growth in next generation 2.5D and HBM applications.
As such, we have taken steps recently to expand our advanced packaging production capacity in anticipation of future growth. In 2025, we intend to approximately double the cleanroom capacity of our Malaysian production facilities and increase R&D and process development for our hybrid bonding and thermo compression bonding capabilities and customer support at our Singapore facility.
Looking forward to Q4-24, we expect expanded adoption for hybrid bonding applications to be mitigated by ongoing weakness in mainstream assembly markets. For Q4-24, we forecast that revenue will be flat plus or minus 10% versus Q3-24 partially due to shipment delays by a customer for certain hybrid bonding systems scheduled for delivery in Q4-24. In addition, gross margins are anticipated to range between 63-65% based on our projected product mix. Aggregate operating expenses are forecast to be flat to up 5% versus Q3-24."
Share Repurchase Activity
During the quarter, Besi repurchased approximately 230,000 of its ordinary shares at an average price of € 120.45 per share or a total of € 27.8 million. In August 2024, Besi completed its prior € 60 million share repurchase program and initiated a new € 100 million share repurchase program with an anticipated completion date of October 2025. Cumulatively, as of September 30, 2024, a total of € 7.0 million has been purchased under the new share repurchase program at an average price of € 110.55 per share. As of September 30, 2024, Besi held approximately 1.6 million shares in treasury equal to 2.0% of its shares outstanding.
Investor and media conference call
A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 am EDT). To register for the conference call and/or to access the audio webcast and webinar slides, please visit www.besi.com.
Important Dates
• Publication Q4/Full year 2024 results
February 20, 2025
• Publication Q1-2025 results
April 23, 2025
• Besi's 2025 AGM
April 23, 2025
Basis of Presentation
The accompanying Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2023 Annual Report, which is available on www.besi.com.
Contacts:
Richard W. Blickman, President & CEOAndrea Kopp-Battaglia, Senior Vice President Finance Claudia Vissers, Executive Secretary/IR coordinatorEdmond Franco, VP Corporate Development/US IR coordinator
Tel. (31) 26 319 About Besi
Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi's ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.
Caution Concerning Forward-Looking Statements
This press release contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as "anticipate", "estimate", "expect", "can", "intend", "believes", "may", "plan", "predict", "project", "forecast", "will", "would", and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The financial guidance set forth under the heading "Outlook" contains such forward-looking statements. While these forward-looking statements represent our judgments and 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 those contained in forward-looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; the extent and duration of the COVID-19 and other global pandemics and the associated adverse impacts on the global economy, financial markets, global supply chains and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; consolidation activity and industry alliances in the semiconductor industry that may result in further increased customer concentration, inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, conflict minerals regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region where we have a substantial portion of our production facilities; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2023 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
Consolidated Statements of Operations
(€ thousands, except share and per share data)
Three Months EndedSeptember 30,(unaudited)
Nine Months EndedSeptember 30,(unaudited)
2024
2023
2024
2023
Revenue
156,570
123,320
454,060
419,227
Cost of sales
55,325
43,709
156,276
147,374
Gross profit
101,245
79,611
297,784
271,853
Selling, general and administrative expenses
27,318
23,310
97,473
81,679
Research and development expenses
18,874
13,614
55,296
42,907
Total operating expenses
46,192
36,924
152,769
124,586
Operating income
55,053
42,687
145,015
147,267
Financial expense, net
1,560
1,758
3,194
4,974
Income before taxes
53,493
40,929
141,821
142,293
Income tax expense
6,719
5,889
19,123
20,104
Net income
46,774
35,040
122,698
122,189
Net income per share, basic
0.59
0.45
1.56
1.57
Net income per share, diluted
0.59
0.45
1.55
1.54
Number of shares used in computing per share amounts:
- basic
79,630,787
77,374,933
78,701,287
77,656,542
- diluted1
81,876,505
82,444,358
81,978,112
83,038,212
______________________1) The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding
Consolidated Balance Sheets
(€ thousands)
September 30, 2024(unaudited)
June30, 2024(unaudited)
March31, 2024(unaudited)
December31, 2023(audited)
ASSETS
Cash and cash equivalents
307,448
127,234
232,053
188,477
Deposits
330,000
130,000
215,000
225,000
Trade receivables
169,266
174,601
150,192
143,218
Inventories
104,103
99,291
99,384
92,505
Other current assets
44,731
36,346
34,756
39,092
Total current assets
955,548
567,472
731,385
688,292
Property, plant and equipment
44,220
43,571
41,328
37,516
Right of use assets
16,419
16,821
16,901
18,242
Goodwill
45,278
45,710
45,613
45,402
Other intangible assets
94,855
92,627
90,241
93,668
Deferred tax assets
8,610
9,517
11,444
12,217
Other non-current assets
1,316
1,239
1,252
1,216
Total non-current assets
210,698
209,485
206,779
208,261
Total assets
1,166,246
776,957
938,164
896,553
Current portion of long-term debt
2,241
3,033
984
3,144
Trade payables
49,211
51,620
52,382
46,889
Other current liabilities
87,739
73,023
100,606
87,200
Total current liabilities
139,191
127,676
153,972
137,233
Long-term debt
524,527
179,801
265,142
297,353
Lease liabilities
13,033
13,448
13,625
14,924
Deferred tax liabilities
11,619
10,396
12,136
12,959
Other non-current liabilities
12,449
11,352
12,914
12,671
Total non-current liabilities
561,628
214,997
303,817
337,907
Total equity
465,427
434,284
480,375
421,413
Total liabilities and equity
1,166,246
776,957
938,164
896,553
Consolidated Cash Flow Statements
(€ thousands)
Three Months EndedSeptember 30,(unaudited)
Nine Months EndedSeptember 30,(unaudited)
2024
2023
2024
2023
Cash flows from operating activities:
Income before income tax
53,493
40,929
141,821
142,293
Depreciation and amortization
7,388
6,248
21,181
19,155
Share based payment expense
3,400
1,575
27,216
16,300
Financial expense, net
1,560
1,758
3,194
4,974
Changes in working capital
6,031
15,697
(43,914)
(2,581)
Interest (paid) received
(1,996)
(2,649)
(19,513)
(27,948)
Income tax paid
2,156
1,582
7,218
