Almere, The Netherlands
March 2, 2017
ASM International N.V. (Euronext Amsterdam: ASM) today reports its fourth quarter 2016 operating results (unaudited) in accordance with IFRS.
With the 2015 Q4 earnings release, published on February 23, 2016, ASMI announced that as of January 1, 2016, it will report its financial results in accordance with IFRS. Up until the last reporting regarding 2015, ASMI's primary external and internal reporting has been based on US GAAP. In addition ASMI issued quarterly reconciliations of net earnings and shareholders' equity and statutory interim reports prepared in accordance with International Financial Reporting Standards (IFRS). Following the voluntary delisting from NASDAQ, August 2015, ASMI migrated to IFRS as its only internal and external reporting standard from January 1, 2016, and discontinued the use of US GAAP as of the same date. During 2016 comparable results based on US GAAP were presented; as from 2017 results based on IFRS only will be reported.
The main deviations between IFRS and US GAAP are explained in Annex 2.
ASMI results based on IFRS.
|EUR million||Q4 2015||Q3 2016||Q4 2016|
|Gross profit margin %||44.8||%||44.2||%||44.9||%|
|Result from investments (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT)||1.6||26.7||18.4|
|Amortization intangible assets resulting from the sale of the 12% stake of ASMPT||(7.1||)||(6.7||)||(7.0||)|
|Normalized net earnings (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT)||17.9||39.8||68.5|
· Net sales for the fourth quarter 2016 were €173 million, an increase of 20% compared to the previous quarter. Year-on-year net sales increased with 19%.
· New orders at €177 million were 44% above the Q3 2016 level.
· Normalized net earnings for the fourth quarter 2016 increased by €29 million compared to the third quarter 2016. Operating result increased to €30 million. The financing result included €19 million positive effects from currencies compared to €3 million negative effects in the third quarter. The result from investments decreased with €8 million.
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said: "The strong overall market climate for semiconductor equipment towards the end of 2016 led to better sales and a higher order intake for Q4 than forecasted. The net cash position of ASMI remained strong. In addition to a stable proposed dividend of €0.70 per share, we announce today an increase in our current share buyback program from € 50 million to €100 million."
We continue to expect a clear improvement in the single wafer ALD market in 2017:
- Demand in the Logic/Foundry segment is expected to remain healthy.
- We believe the 3D-NAND contribution to the single wafer ALD market will show a strong increase in 2017, leading to increased orders for ASMI.
- The DRAM segment is expected to show a modest recovery in 2017.
We expect that the single wafer ALD market experienced a double digit decline in 2016. Based upon that we forecast the single wafer ALD market to reach a size of approx. US$1.5 billion in 2020-2021.
We project a year-on-year sales increase for the first half of 2017, whereby we expect a sales level of €135-145 million for Q1 and €160-200 million for Q2, both on a currency comparable level. The order intake in Q1 is expected to remain healthy at a level of €170-190 million, also on a currency comparable level.
SHARE BUYBACK PROGRAM
On October 26, 2016, ASMI announced a share buyback program for the repurchase of up to €50 million of the Company's common shares within the 2016-2017 time frame. Today, ASMI announces that its Management Board authorized an increase in this program to €100 million.
On May 25, 2016, the Annual General Meeting of Shareholders authorized ASMI to acquire shares for a period of 18 months. The repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders.
The program started on December 13, 2016. On December 31, 2016, 12.9% of the program was completed at an average share price of €42.31.
At the end of 2016 ASMI held 3.98 million treasury shares, which is more than sufficient to cover our outstanding options and restricted/performance shares. Hence ASMI will propose to the Annual General Meeting, to be held on May 22, 2017, to cancel 1.5 million treasury shares.
In December 2016, ASMI finalized the renewal of the current standby revolving credit facility. The security of the previous credit agreement has been released. The maturity date of the new credit commitment of €150 million is December 16, 2021, with an extension option for up to two years. As per December 31, 2016, this facility was undrawn.
The credit facility of €150 million includes two financial covenants:
- Minimum consolidated tangible net worth; and
- Consolidated total net debt/total equity ratio.
These financial covenants are measured twice each year, on June 30 and December 31. We were in compliance with these financial covenants as per December 31, 2016.
About ASM International
ASM International NV, headquartered in Almere, the Netherlands, its subsidiaries and participations design and manufacture equipment and materials used to produce semiconductor devices. ASM International, its subsidiaries and participations provide production solutions for wafer processing (Front-end segment) as well as for assembly & packaging and surface mount technology (Back-end segment) through facilities in the United States, Europe, Japan and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASMI's website at www.asm.com.
Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, epidemics and other risks indicated in the Company's reports and financial statements. The Company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.
ASM International will host an investor conference call and web cast on Friday, March 03, 2017 at 15:00 Continental European Time (9:00 a.m. - US Eastern Time).
The teleconference dial-in numbers are as follows:
· United States: +1 212 444 0895
· International: +44 (0)20 3427 1913
· The Netherlands: +31 (0)20 716 8295
· Access Code: 8413062
A simultaneous audio webcast and replay will be accessible at www.asm.com.
T: +31 88 100 8500
T: +31 625 018 512
Source:ASM International N.V.