ASM International NV 2019 Q2 Results - Earnings Call

ASM International N.V. (Euronext Amsterdam: ASM) today reports its second quarter 2019 operating results (unaudited) in accordance with IFRS.

• New orders were €373 million. Excluding €103 million related to the patent litigation settlement new orders were €270 million.

• Net sales for the second quarter 2019 were €363 million. Excluding €103 million related to the patent litigation settlement, net sales were €260 million and increased 5% compared to the previous quarter.

• Gross profit margin was 59.0% in Q2 2019 and 42.8% excluding the patent litigation settlement compared to 41.3% in the previous quarter.

• Operating result increased to €150 million. Excluding the patent litigation settlement operating result was stable at €47 million compared to the previous quarter.

• Normalized net earnings, including the patent litigation settlement, for the second quarter 2019 increased by €72 million compared to Q1 2019. Besides the positive impact of the patent litigation settlement net earnings in Q2 were negatively impacted by adverse currency effects and the increase in taxes due to the full utilization of the remaining net operating losses in the Netherlands. Results from investments decreased to €2 million.

ASM INTERNATIONAL N.V. REPORTS SECOND QUARTER 2019 RESULTS

"Logic bookings increased compare to Q1 and were primarily driven by 10 nanometer related demand and early tools for 7nm. Foundry orders decreased so much compared to the record high level in Q1 and primarily reflected its further investments into 5 nm node. Memory orders during the second quarter increased compared to a low level in Q1 mainly driven by DRAM, The increased DRAM bookings during the quarter were largely related to specific customer demands, and in our view not indicative of a broad base recovery in spending in this segment. 

 

Looking at the bookings by product line, while ALD was again our largest product line, we also experienced healthy demand in for instance LPCVD and Epi business in the quarter. In terms of product lines ALD continues to be a solid driver for our company. 

 

The long-term outlook remains strong. The current most advanced nodes 10-nanometer in logic and 5-nanometer in foundry have been a major inflection in terms of ALD needs, driven by further miniaturization, new materials, and by new more complex device architecture, that are on the industry's roadmap, the need for additional ALD applications at future nodes will only further increase. This will support continuing healthy growth in these segments of the ALD market over the longer-term. 

 

Our focus in the memory segments of the ALD market remains the expansion of our swift available market, or so called SAM. We continue to invest in broadening our portfolio of ALD applications for future DRAM and 3D NAND device technology. In 3D NAND for instance as the industry moves to higher stacks of the 96 layers, 128 layers and beyond, the increasing device complexity and high aspect ratio structures will stimulate the needs for a higher number of single wafer ALD applications . We are targeting to increase our SAM and our share of the memory market step-by-step, as customers transition to next generation devices over the next years."

-CEO Charles del Prado

ASM International NV's (ASMIY) CEO Charles del Prado on Q2 2019 Results - Earnings Call Transcript by Seeking Alpha | LINK

Investor presentation Q2 2019 | LINK

Analyts reports:

ASM International: Strong Headwinds We Didn't Hear In Conference Call
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