Earnings Release • Sep 10, 2015
Earnings Release
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Duiven, the Netherlands, September 10, 2015 - BE Semiconductor Industries N.V. (the "Company" or "Besi") (Euronext Amsterdam: BESI; OTCQX: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced that its Q3-15 revenue is expected to be below its previously reported guidance due to a weakening of industry conditions in recent weeks. Besi now expects that its Q3-15 revenue will decrease by approximately 28 - 33% (€ 70.0 - € 75.0 million range) vs. the € 104.3 million reported in Q2-15. Previously, Besi guided for a revenue decrease of approximately 15 - 20% (€ 83.2 - € 88.4 million range) vs. Q2-15.
Richard Blickman, Besi's Chief Executive Officer, commented: "In recent weeks, we have experienced a reduction in mainstream orders vs. expectations as well as push-outs of orders into the next two quarters previously scheduled for delivery in Q3-15 consistent with broad based weakness in the semiconductor assembly equipment market. The current downturn reflects excess semiconductor inventory and production capacity primarily related to reduced demand for retail oriented consumer applications such as smart phones, tablets and PCs.
Given the downward shift in industry conditions, Besi has initiated actions to align its cost structure with current revenue trends. Fixed and temporary headcount will be reduced by approximately 10% by year end 2015. Additional operating expense initiatives are also underway to reduce quarterly break even revenue levels further. We anticipate annualized cost savings of approximately € 12-14 million from such actions, of which € 6.5 million relates to the previously announced transfer of certain software engineering, logistics and related administrative functions and personnel from our Swiss die attach operations to our Singapore die attach applications engineering facility. Incremental restructuring charges related to the overhead re-alignment are anticipated to be less than € 1 million and are expected to be recorded in Q3-15 and Q4-15."
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, computer, 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) and OTCQX International (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.
Richard W. Blickman, President & CEO Citigate First Financial Cor te Hennepe, SVP Finance Uneke Dekkers/Frank Jansen Tel. (31) 26 319 4500 Tel. (31) 20 575 4021/24 [email protected] [email protected]
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, backlog, 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" constitutes 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 the discovery of weaknesses in our internal controls and procedures; our inability to maintain continued demand for our products; the impact on our business of potential disruptions to European economies from euro zone sovereign credit issues; 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; failure to adequately decrease costs and expenses as revenues decline, loss of significant customers, lengthening of the sales cycle, incurring additional restructuring charges in the future, acts of terrorism and violence; 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, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2014 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 are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
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