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BE Semiconductor Industries N.V.

Earnings Release Feb 24, 2011

3819_iss_2011-02-24_f3b16afa-8b11-4af4-a782-6f39d440c013.pdf

Earnings Release

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PRESS RELEASE

Besi Reports Record 2010 Results. Fourth Quarter 2010 Exceeds Expectations

Duiven, the Netherlands, February 24, 2011 - BE Semiconductor Industries N.V. ("the Company" or "Besi") (NYSE Euronext: BESI; OTCQX: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the fourth quarter and year ended December 31, 2010.

Key Highlights FY 2010

  • Record 2010 revenue of € 351.1 million more than double € 147.9 million revenue in 2009
  • Record net income of € 47.3 million in 2010 vs. € 5.4 million in 2009
  • Besi business and financial transformation continues
  • Dividend proposal of € 0.20 per share, payable either in cash or in shares

Key Highlights Q4 2010

  • Q4-10 revenue € 104.4 million up 3.8% vs. Q3-10 and above prior guidance
  • Net income of € 19.4 million in Q4-10 vs. € 15.0 million in Q3-10
  • Cash increased by € 14.3 million vs. Q3-10. Net cash improved to € 22.9 million vs. € 5.1 million
  • Improved order intake to date in Q1-11 after slowdown in H2-10
Q4- Q3- Q4-
(€ millions) 2010 2010 Δ 2009 Δ 2010 2009 Δ
Revenue 104.4 100.6 3.8% 53.2 96.2% 351.1 147.9 137.4%
Operating income (loss) 17.4 19.5 -10.8% (13.0) NM 49.9 8.3 501.2%
EBITDA 20.9 22.2 -5.9% (10.6) NM 60.5 17.9 238.0%
Net income (loss) 19.4 15.0 29.3% (13.5) NM 47.3 5.4 775.9%
EPS (diluted) 0.50 0.39 28.2% (0.40) NM 1.25 0.16 618.3%
Orders 57.4 88.1 -34.8% 59.2 -3.0% 376.5 162.5 131.7%
Backlog 76.4 123.6 -38.2% 51.0 49.8% 76.4 51.0 49.8%
Cash flow (deficit) from ops. 19.0 10.5 81.0% 7.4 156.8% 12.2 (3.9) NM
Cash 69.3 55.0 26.1% 73.1 5.2% 69.3 73.1 -5.2%
Total Debt 46.4 49.9 -7.0% 53.5 13.3% 46.4 53.5 -13.3%

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "2010 marked the most successful year in our history as a public company. Our ability to scale our business with an expanded portfolio of advanced packaging systems in the most recent industry upturn combined with our ongoing cost reduction efforts resulted in record revenue and net income of € 351.1 million and € 47.3 million, respectively.

Our growth in 2010 represents the most visible evidence of the strategic progress we've made in transforming Besi into a broad based assembly equipment supplier efficiently serving both mainstream and niche assembly markets. Our focus on developing a leading edge portfolio for use in array connect and wafer level packaging applications has positioned us to capitalize on opportunities resulting from increased demand currently for smart phones, tablets, personal productivity devices and automotive electronics. In addition, our restructuring efforts and ongoing transfer of production from Europe to Asia has significantly reduced our manufacturing costs and improved margins.

In Q4-10, revenue and operating profit exceeded guidance due to higher than anticipated die attach shipments as certain customers deployed capacity earlier than anticipated. The industry outlook for 2011 is increasingly more optimistic based on higher incoming order trends to date in Q1-11. Our customers are now seeking capacity for advanced packaging applications after a temporary slowdown in the second half of 2010. Given Besi's earnings and cash flow generation in 2010, the Board of Management has recommended the payment of a dividend to shareholders equal to € 0.20 per share for approval at our AGM on April 28, 2011."

Quarterly Financial Performance

The quarterly sequential financial performance reflects our earnings turnaround since 2009. Set forth below is a summary of Besi's quarterly combined revenue, net income (loss) and adjusted net income (loss) for 2009 and 2010 as if the Esec acquisition (April 1, 2009) had occurred on January 1, 2009.

(€ millions) 2009 2010
Proforma*
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Revenue 21.1 30.5 48.7 53.2 56.6 89.5 100.6 104.4
Net income (loss) (21.3) 31.5 (3.2) (13.5) (2.6) 15.4 15.0 19.4
Adjusted net income (loss) (19.2) (10.9) (6.0) (3.8) 1.2 11.0 15.0 14.4

* Assumes Esec acquisition as of January 1, 2009. Adjusted net income excludes restructuring and other non recurring or special charges. See accompanying tables.

Fourth Quarter Results of Operations

Besi's fourth quarter 2010 sequential revenue increase of € 3.8 million (3.8%) was broad based across its assembly equipment product portfolio. The increase was above prior guidance (decrease of 5%-10%) due to higher than anticipated die attach shipments. Revenue in the fourth quarter of 2010 nearly doubled as compared to the € 53.2 million reported in the fourth quarter of 2009 due to improved industry conditions and significantly higher die attach system shipments.

Orders for the fourth quarter of 2010 were € 57.4 million, a decrease of € 30.7 million, or 34.8%, as compared to the third quarter of 2010. However, orders were only slightly lower than the € 59.2 million received in the fourth quarter of 2009. The quarterly sequential order decline was across the product portfolio, but primarily focused on die attach systems. Orders declined sequentially in the second half of 2010 as customers deployed substantial incremental capacity purchased in the first half of 2010 and paused in placing new orders until better visibility appeared as to the pace of global growth. On a customer basis, the sequential order decrease in the fourth quarter of 2010 reflected a € 13.6 million (37.8%) decrease by subcontractors and a € 17.2 million (33.0%) decrease by IDMs. Backlog at December 31, 2010, was € 76.4 million, an increase of € 25.4 million, or 49.8% as compared to the year earlier period but a decrease of € 47.2 million, or 38.2%, as compared to September 30, 2010.

Besi's gross margin for the fourth quarter of 2010 was 40.2% as compared to 40.1% in the third quarter of 2010 and 20.1% (30.3% as adjusted) in the fourth quarter of 2009 and was at the high end of prior guidance (38.5%-40.5%). The gross margin increase as compared to the fourth quarter of 2009 was due primarily to higher sales volume, an increased proportion of higher margin die attach systems in the Company's product mix and increased manufacturing efficiencies as a result of Besi's product line restructuring and Asian manufacturing efforts.

Besi's operating expenses were € 24.6 million in the fourth quarter of 2010 as compared to € 20.9 million in the third quarter of 2010 and slightly above the € 23.8 million in the fourth quarter of 2009. The sequential operating expense increase was slightly above guidance and was primarily due to higher selling expenses as a result of increased bonus commissions associated with record revenue levels. To a lesser extent, sequential operating expenses increased due to higher development expenses related to the die bonding common platform development and higher warranty expenses. In the fourth quarter of 2010, Besi capitalized € 1.6 million of development expenses as compared to € 1.3 million in the third quarter of 2010. As a % of revenue, total operating expenses were 23.5% in the fourth quarter of 2010 as compared to 20.8% in the third quarter of 2010 and 45.0% in the fourth quarter of 2009.

Besi recorded a tax benefit of € 2.0 million in the fourth quarter of 2010 as compared to a provision of € 3.4 million in the third quarter of 2010 due to a re-assessment of the recoverability of net operating losses at its Esec subsidiary.

Full Year Results 2010

For the full year 2010, Besi's revenue increased to € 351.1 million as compared to € 147.9 million in 2009. Increased revenue growth was due to: (i) an industry recovery which commenced in the second quarter of 2009 and expanded in 2010, (ii) increased revenue contributed by its full line of die attach systems and, to a lesser extent, packaging systems, and (iii) Besi's ability to align its production capacity sufficiently to meet elevated industry demand. Similarly, orders in 2010 were € 376.5 million, up 231.5% as compared to € 162.6 million recorded in 2009. Customer orders in 2010 were divided equally between IDMs and subcontractors.

In 2010, Besi recorded net income of € 47.3 million (€ 1.25 per share diluted) as compared to € 5.4 million (€ 0.16 per share diluted) in 2009. On an adjusted basis, net income was € 41.6 million (€ 1.11 per share diluted) in 2010 as compared to an adjusted net loss of € 28.0 million, or (€ 0.85) per share diluted, in 2009. The year over year net income improvement was due primarily to (i) significantly higher revenue, (ii) significantly improved gross margins as a result of an increased % of higher margin die attach systems in its product mix, increased production and supply chain efficiencies and benefits from its product line restructuring and (iii) substantially reduced operating expense as % of revenue as Besi was able to ramp revenue with only a limited increase in overhead levels due to its restructuring and Esec integration efforts. Set forth below is a reconciliation of Besi's reported and adjusted net income (loss) for each of the respective annual periods.

(euro in millions) 2010 2009
Net income (loss) as reported 47.3 5.4
Restructuring charges 4.8 6.9
Intangible asset impairment charge - 0.2
NOL revaluation (10.2) -
Gain on extinguishment of debt, net (0.8) -
Acquisition gain/other - (41.5)
Purchase obligations - (5.1)
Esec integration charges - 1.1
Inventory write-down (product portfolio) - 5.4
Taxes/other 0.5 (0.4)
Adjusted net income (loss) 41.6 (28.0)

Financial Condition

Cash and cash equivalents increased by € 14.3 million to € 69.3 million at December 31, 2010 as compared to € 55.0 million at September 30, 2010 while total debt and capital leases declined sequentially by € 3.5 million to € 46.4 million at December 31, 2010. The € 17.9 million sequential increase in Besi's net cash position at December 31, 2010 was primarily due to cash flow generated from operations of € 23 million and a favourable exchange rate benefit of € 2.1 million partially offset by an investment in working capital of € 3.9 million, net capital expenditures of € 1.8 million and € 1.6 million of capitalized development costs.

At year end 2010, Besi's net cash position increased to € 22.9 million from € 19.7 million at December 31, 2009. The increase was due primarily to € 60.5 million of cash flow from operations generated during the period plus a positive exchange rate benefit of € 4.3 million partially offset by (i) an investment in working capital of € 48.3 million necessary to support its 138% year over year revenue growth, (ii) € 6.0 million of capitalized development costs, and (iii) net capital expenditures of € 6.6 million.

Dividend

In view of Besi's positive earnings, Besi intends to distribute 14.4% of its net income as a dividend. The choice of dividend form (either in cash or in shares) takes into account Besi's desired balance sheet structure and the interests of its shareholders. In light of this, Besi will propose to the Annual General Meeting of Shareholders intended to be held on April 28, 2011, that a dividend of € 0.20 per share be distributed in the form of ordinary shares, unless the shareholder opts for a distribution in cash. The dividend will be payable as from May 31, 2011.

Outlook

Based on our December 31, 2010 backlog and feedback from customers, we forecast for Q1-11 that:

  • Revenue will decrease by approximately 20% as compared to the € 104.4 million reported in Q4-10.
  • Gross margins will range between 38.5-40.5% as compared to the 40.2% realized in Q4-10.
  • Operating expenses will decrease by approximately 10% as compared to the € 24.6 million reported in Q4-10.
  • Capital expenditures will be approximately € 2 million as compared to € 1.8 million in Q4-10.

According to VLSI Research, a leading independent research analyst for the semiconductor equipment industry, the semiconductor assembly equipment industry reached \$ 4.5 billion in 2010, representing growth of 129% in 2010 versus 2009. VLSI and Gartner Group (another leading independent research analyst) now expect growth of 3% and 7%, respectively, in 2011, based on more optimistic capital spending forecasts by the leading semiconductor producers in Q1-11. Besi has experienced a broad based order increase in Q1-11 as customers seek to add capacity for smart phones, tablets, personal productivity devices and automotive electronics after a temporary slowdown in the second half of 2010.

Investor and media conference call

A conference call and webcast for investors and media will be held today at 4 p.m. CET (10:00 a.m. New York time). The dial-in for the conference call is (31) 10 29 44 228. To access the audio webcast, please visit www.besi.com.

Important Investor Relations Dates 2011

  • Annual General Meeting of Shareholders April 28, 2011
  • Publication Q1 results April 28, 2011
  • Publication Q2 / semi-annual results July 28, 2011
  • Publication Q3 / nine month results October 27, 2011
  • Publication Q4 / full year results February 2012

About Besi

Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries. The Company develops leading edge assembly processes and equipment for leadframe, array connect and wafer level packaging applications in a wide range of end-user markets including electronics, computer, automotive, industrial, RFID, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi's ordinary shares are listed on NYSE 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.

Contacts:

Richard W. Blickman Cor te Hennepe Tel. (31) 26 319 4500 Tel. (31) 26 319 4500

Citigate First Financial Uneke Dekkers/Frank Jansen Tel. (31) 20 575 4021 / 24 [email protected] [email protected]

President & CEO Senior Vice President Finance [email protected] [email protected]

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, 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" constitute 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 our inability to maintain continued demand for our products, the impact of the worldwide economic downturn on our business, 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; 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, 2009 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.

(euro in thousands, except share and per share data)

Year Ended
December 31,
(unaudited)
2010 2010 2009
147,891
62,448 42,459 212,659 107,111
42,003 10,709 138,490 40,780
- 175 - 41,532
17,487 18,592 64,429 54,074
19,766
185
24,563 23,927 88,634 74,025
17,440 (13,043) 49,856 8,287
(56) (358) (2,460) (3,350)
17,384 (13,401) 47,396 4,937
(2,034) 76 143 (461)
5,398
0.57
0.50
(0.40)
(0.40)
1.39
1.25
0.16
0.16
33,936,075
39,370,221a
33,631,311
33,631,311b
33,894,418
39,328,565a
32,930,523
33,286,878 b
104,451
7,076
-
19,418
Three Months Ended
December 31,
(unaudited)
2009
53,168
5,150
185
(13,477)
351,149
24,205
-
47,253

a The calculation of the diluted income (loss) per share assumes conversion of the Company's 5.5% convertible notes due 2012 as such conversion would have a dilutive effect (5,434,146 ordinary shares). b

The calculation of the diluted income (loss) per share does not assume conversion of the Company's 5.5% convertible notes due 2012 as such conversion would have an anti-dilutive effect (7,082,927 ordinary shares).

For the Three Months Ended December 31, 2010 Excluding Acquisition, Restructuring and Other Adjustments

(For Analysis Purposes Only)

(euro in thousands, except share and per share data)

Three Months Ended December 31, 2010
As reported Adjustments As Adjusted
Revenue 104,451 -
-
104,451
62,448
Cost of sales 62,448
Gross profit 42,003 - 42,003
Selling, general and administrative
expenses
Research and development expenses
17,487
7,076
(366)a
-
17,121
7,076
Total operating expenses 24,563 (366) 24,197
Operating income (loss) 17,440 (366) 17,806
Financial expenses, net (56) - (56)
Income (loss) before taxes
Income tax expense (benefit)
17,384
(2,034)
(366)
5,400b
17,750
3,366
Net income (loss) before minority interest 19,418 (5,034) 14,384
Net income (loss) per share – basic
Net income (loss) per share – diluted
0.57
0.50
(0.15)
(0.13)
0.42
0.37
Number of shares used in computing per
share amounts:
- basic
- dilutedc
33,936,075
39,370,221
33,936,075
39,370,221
33,936,075
39,370,221

a Primarily relates to the impairment of land at Besi's Dutch facilities.

b Net tax benefit of € 5.4 million primarily related to a re-assessment of the recoverability of net operating losses at Esec subsidiary due to its improved profitability and prospects. c

The calculation of the diluted income (loss) per share assumes conversion of the Company's 5.5% convertible notes due 2012 as such conversion would have a dilutive effect (5,434,146 ordinary shares).

For the Year Ended December 31, 2010 Excluding Restructuring and Other Adjustments (For Analysis Purposes Only)

(euro in thousands, except share and per share data)

Year Ended December 31, 2010
As Reported Adjustments As Adjusted
Revenue 351,149 351,149
Cost of sales 212,659 (2,388)a 210,271
Gross profit 138,490 2,388 140,878
Selling, general and administrative
expenses 64,429 (2,120)b
(779)a
62,309
Research and development expenses 24,205 23,426
Total operating expenses 88,634 (2,899) 85,735
Operating income (loss) 49,856 5,287 55,143
Financial expenses, net (2,460) (759)c (3,219)
Income (loss) before taxes 47,396 4,528 51,924
Income tax expense (benefit) 143 10,200d 10,343
Net income (loss) before minority interest 47,253 (5,672) 41,581
Net income (loss) per share – basic
Net income (loss) per share – dilutedb
1.39
1.25
(0.17)
(0.14)
1.22
1.11
Number of shares used in computing per
share amounts:
- basic
33,894,418 33,894,418 33,894,418
- dilutede 39,328,565 39,328,565 39,328,565

a Restructuring charges related to December 2009 headcount reduction plan

b Includes (i) restructuring charges related to December 2009 headcount reduction plan, (ii) severance and facility charges related to the restructuring of Besi's wire bonding operations and (iii) the impairment of land at Besi's Dutch facilities. c

Gain related to the repurchase of € 8.5 million of 5.5% Convertible Notes due January 2012 at a discount.

d Net tax benefit of € 10.2 million primarily related to a re-assessment of the recoverability of net operating losses at Esec subsidiary due to its improved profitability and prospects. e

The calculation of the diluted income (loss) per share assumes conversion of the Company's 5.5% convertible notes due 2012 as such conversion would have a dilutive effect (5,434,146 ordinary shares).

For the Year Ended December 31, 2009 Excluding Acquisition, Restructuring and Other Adjustments (For Analysis Purposes Only)

(euro in thousands, except share and per share data)

Year Ended December 31, 2009
As Reported Adjustments As Adjusted
Revenue 147,891 - 147,891
Cost of sales 107,111 (997) a 106,114
Gross profit 40,780 997 41,777
Acquisition gain 41,532 (41,532) b -
Selling, general and administrative
expenses 54,074 (7,185) c 46,889
Research and development expenses 19,766 (212) 19,554
Impairment charges 185 (185)d -
Total operating expenses 74,025 (7,582) 66,443
Operating income (loss) 8,287 (32,953) (24,666)
Financial expenses, net (3,350) - (3,350)
Income (loss) before taxes 4,937 (32,953) (28,016)
Income tax expense (benefit) (461) 450 (11)
Net income (loss) before minority interest 5,398 (33,403) (28,005)
Net income (loss) per share – basic 0.16 (1.01) (0.85)
Net income (loss) per share – dilutedd 0.16 (1.01) (0.85)
Number of shares used in computing per
share amounts:
- basic 32,930,523
33,286,878
32,930,523
32,930,523
32,930,523
32,930,523
- dilutede

a Includes € 5.2 million gain on settlement of certain Esec purchase obligations, € 5.4 million non-cash inventory write-downs, € 0.7 million Dragon related restructuring charges and Esec purchase accounting adjustment (€ 0.1 million).

b Gain from badwill related to Esec acquisition and other income related to sale of Hungarian die bonding operations.

c Includes restructuring charges of € 7.2 million, net, related to (i) the value of remaining lease obligations for excess production capacity at

Besi's Dutch facilities, (ii) the sale of its Hungarian operations, (iii) Dragon II charges and (iv) other severance charges. d Write-off of capitalized research & development costs e The calculation of the diluted income (loss) per share does not assume conversion of the Company's 5.5% outstanding convertible notes due 2012 as such conversion would have an anti-dilutive effect (7,082,927 ordinary shares).

Consolidated Balance Sheets

(euro in thousands) December 31, September 30, June 30, March 31, December 31,
2010 2010 2010 2010 2009
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
ASSETS
Cash and cash equivalents 69,305 54,965 48,092 47,714 73,125
Accounts receivable 86,889 77,870 75,423 52,391 36,341
Inventories 79,269 80,069 72,860 65,158 55,133
Income tax receivable 205 698 698 515 487
Other current assets 8,620 12,418 9,384 9,296 7,714
Total current assets 244,288 226,020 206,457 175,074 172,800
Property, plant and equipment 26,032 26,064 26,316 24,863 24,312
Goodwill 43,823 43,596 44,435 43,686 43,162
Other intangible assets 22,919 22,129 22,114 21,244 19,696
Deferred tax assets 12,131 8,074 10,646 8,717 8,429
Other non-current assets 1,291 1,224 1,239 1,215 1,141
Total non-current assets 106,196 101,087 104,750 99,725 96,740
Total assets 350,484 327,107 311,207 274,799 269,540
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks 16,038 19,305 17,962 15,526 13,908
Current portion of long-term debt
and financial leases 2,186 2,621 2,376 1,962 1,911
Accounts payable 42,626 40,883 39,171 31,334 27,290
Accrued liabilities 37,892 38,966 37,371 35,844 30,247
Total current liabilities 98,742 101,775 96,880 84,666 73,356
Convertible notes 27,386 27,271 27,155 27,021 35,068
Other long-term debt and
financial leases 766 752 1,879 2,258 2,570
Deferred tax liabilities 656 620 656 518 530
Other non-current liabilities 3,922 1,949 1,471 1,322 1,740
Total non-current liabilities 32,730 30,592 31,161 31,119 39,908
Total equity 219,012 194,740 183,166 159,014 156,276
Total liabilities and equity 350,484 327,107 311,207 274,799 269,540
(euro in thousands) Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(unaudited)
2010 2009 2010 2009
Cash flows from operating activities:
Operating income (loss) 17,440 (13,043) 49,856 8,287
Depreciation and amortization
Other non-cash items
Badwill arising from acquisition
Changes in working capital
3,502
2,003
-
(3,891)
2,817
(1,597)
-
19,194
10,614
41
-
(48,283)
9,637
(3,257)
(41,207)
22,592
Net cash provided by (used in) operating
activities
19,054 7,371 12,228 (3,948)
Cash flows from investing activities:
Capital expenditures
Capitalized development expenses
Cash inflow on acquisition
Proceeds from sale of equipment
(1,930)
(1,599)
-
153
(905)
(2,094)
(5)
235
(7,013)
(5,987)
-
387
(2,354)
(6,958)
19,462
279
Net cash used in investing activities (3,376) (2,769) (12,613) 10,429
Cash flows from financing activities:
(Payments of) proceeds from bank lines of credit
Capital tax on capital received
Repurchase of convertible notes
Payments of debt and financial leases
Other financing activities
(4,030)
-
-
642
(36)
792
(1,174)
-
-
130
1,696
(434)
(7,352)
(1,570)
(81)
(2,717)
(5,404)
-
-
130
Net cash provided by (used in) financing activities (3,424) (252) (7,741) (7,991)
Net increase/(decrease) in cash and cash
equivalents
Effect of changes in exchange rates on cash and
12,254 4,350 (8,126) (1,510)
cash equivalents
Cash and cash equivalents at beginning of the
period
2,086
54,965
780
67,995
4,306
73,125
627
74,008
Cash and cash equivalents at end of the period 69,305 73,125 69,305 73,125

Consolidated Cash Flow Statements

Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010
Per geography:
Asia Pacific 8.3 53% 24.0 79% 36.7 76% 40.0 75% 44.6 79% 73.1 82% 81.0 81% 78.2 75%
Europe and ROW 5.1 33% 4.2 14% 8.2 17% 7.1 13% 8.2 14% 9.7 11% 12 12% 17.1 16%
USA 2.2 14% 2.3 8% 3.8 8% 6.1 11% 3.8 7% 6.7 7% 7.6 8% 9.1 9%
Total 15.6 100% 30.5 100% 48.7 100% 53.2 100% 56.6 100% 89.5 100% 100.6 100% 104.4 100%
ORDERS Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010
Per geography:
Asia Pacific 6.8 53% 28.6 76% 42.1 80% 47.9 81% 80.6 83% 108.3 81% 68.7 78% 36.8 64%
Europe and ROW 4.0 31% 5.0 13% 7.7 15% 7.2 12% 9.8 10% 16.8 13% 12.9 15% 10.9 19%
USA 2.0 16% 3.9 10% 3.1 6% 4.1 7% 6.9 7% 8.6 6% 6.5 7% 9.7 17%
Total 12.8 100% 37.5 100% 52.9 100% 59.2 100% 97.3 100% 133.7 100% 88.1 100% 57.4 100%
Per customer type:
IDM 5.9 46% 16 43% 18.4 35% 27.7 47% 39.8 41% 61.5 46% 52.1 59% 35.0 61%
Subcontractors 6.9 54% 21.5 57% 34.5 65% 31.5 53% 57.5 59% 72.2 54% 36.0 41% 22.4 39%
Total 12.8 100% 37.5 100% 52.9 100% 59.2 100% 97.3 100% 133.7 100% 88.1 100% 57.4 100%
BACKLOG Mar 31, 2009 Jun 30, 2009 1) Sep 30, 2009 1) Dec 31, 2009 1) Mar 31, 2010 June 30, 2010 Sep 30, 2010 Dec 31, 2010
Backlog 22.6 40.6 44.8 51.0 91.7 136 123.5 76.4
1) Including opening backlog Esec
HEADCOUNT 2) Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 June 30, 2010 Sep 30, 2010 Dec 31, 2010
Europe 583 54% 766 54% 750 54% 728 53% 684 49% 683 47% 695 46% 694 46%
Asia Pacific 463 43% 613 43% 601 43% 614 44% 665 48% 724 50% 760 51% 772 51%
USA 42 4% 41 3% 42 3% 42 3% 43 3% 44 3% 46 3% 44 3%
Total 1,088 100% 1,420 100% 1,393 100% 1,384 100% 1,392 100% 1,451 100% 1,501 100% 1,510 100%
2) Excluding temporary staff
OTHER FINANCIAL DATA Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010
Gross profit: 3.5 22.4% 9.6 31.5% 13.5 27.7% 16.3 30.6% 21.7 38.3% 34.8 38.9% 40.5 40.3% 42.1 40.3%
Amortization of intangibles (0.3) -1.4% (0.3) -0.8% (0.3) -0.6% (0.2) -0.3% (0.2) -0.3% (0.1) -0.2% (0.1) -0.2% (0.1) -0.1%
Restructuring charges (0.7) -4.5% - - (5.4) -10.2% (2.6) -4.6% 0.0 0.0 -
Release purchase oblig/fair value adj. Esec - 1.6 5.2% 3.4 7.0% - - - - -
Total 2.6 16.5% 10.9 35.9% 16.6 34.1% 10.7 20.1% 18.9 33.4% 34.7 38.7% 40.4 40.1% 42.0 40.2%
Selling, general and admin expenses:
SG&A expenses 7.2 46.2% 12.7 41.6% 12.4 25.5% 14.1 26.5% 12.9 22.8% 14.1 15.8% 14.6 14.5% 17.0 16.3%
Amortization of intangibles 0.1 0.6% 0.1 0.3% 0.1 0.2% 0.1 0.2% 0.1 0.2% 0.1 0.1% 0.1 0.1% 0.1 0.1%
Restructuring charges 1.4 9.0% 0.6 2.0% 0.9 1.8% 4.4 8.3% 1.2 2.1% 0.4 0.4% 0.0 - 0.4 0.4%
Acquisition gain - (41.2) -135.1% - - - - -
55.8% -91.1% 27.5% 35.0% 25.1% 16.3% 14.6% 16.8%
Total 8.7 (27.8) 13.4 18.6 14.2 14.6 14.7 17.5
Research and development expenses:
R&D expenses 4.0 25.6% 8.1 26.6% 6.3 12.9% 6.7 12.6% 6.6 11.7% 6.5 7.3% 6.4 6.4% 7.5 7.2%
Capitalization of R&D charges (1.3) -8.3% (1.8) -5.9% (1.7) -3.5% (2.1) -3.9% (1.9) -3.4% (1.2) -1.3% (1.3) -1.3% (1.6) -1.5%
Amortization of intangibles 0.3 1.9% 0.3 1.0% 0.3 0.6% 0.5 0.9% 0.2 0.4% 0.8 0.9% 1.1 1.1% 1.2 1.1%
Restructuring charges 0.2 1.3% - - - 0.7 1.2% - - -
Total 3.2 20.5% 6.6 21.6% 4.9 10.1% 5.1 9.6% 5.6 9.9% 6.1 6.8% 6.2 6.2% 7.1 6.8%
Financial expense (income), net:
Interest expense (income), net
Foreign exchange (gains) \ losses
0.6
0.1
0.5
0.7
0.7
0.4
0.5
(0.1)
0.6
0.7
0.6
0.3
0.6
0.5
0.7
(0.6)
Gain on debt retirement - - - - (0.8) - - -
Total 0.7 1.2 1.1 0.4 0.5 0.9 1.1 0.1
Operating income (loss)
as % of net sales (9.3) -59.6% 32.2 105.6% (1.6) -3.3% (13.0) -24.4% (1.0) -1.8% 13.9 15.5% 19.5 19.4% 17.4 16.7%
EBITDA
as % of net sales (7.3) -47.0% 34.4 112.8% 1.1 2.3% (10.1) -19.0% 1.0 1.8% 16.2 18.1% 22.2 22.1% 20.9 20.0%
Net income (loss)
as % of net sales (9.4) -60.3% 31.5 103.3% (3.2) -6.6% (13.5) -25.4% (2.6) -4.6% 15.4 17.2% 15.0 14.9% 19.4 18.6%
Income per share
Basic (0.30) 0.94 (0.11) (0.40) (0.08) 0.45 0.44 0.57
Diluted (0.30) 0.78 (0.11) (0.40) (0.08) 0.40 0.39 0.50

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