Regulatory Filings • Dec 9, 2009
Regulatory Filings
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FOR: BE SEMICONDUCTOR INDUSTRIES N.V. Ratio 6 6921 RW Duiven The Netherlands
Duiven, the Netherlands, December 8, 2009 - BE Semiconductor Industries N.V. ("the Company" or "Besi") (Euronext: BESI), a leading manufacturer of assembly equipment for the semiconductor industry, today announced:
Such actions are consistent with Besi's strategy to reduce structural costs, expand production and operations in Asia and to focus its product portfolio on the most attractive segments of the global assembly equipment market.
After a review of its packaging product portfolio, the Company decided to focus its efforts on products/applications with greater revenue and profit potential and, therefore, to discontinue the production of certain less profitable, older generation singulation, molding and trim and form systems in its Fico packaging equipment business. Such products represented approximately 2% of Besi's revenue for the nine months ended September 30, 2009.
Besi also adopted a headcount reduction plan focused on the reduction over the next twelve months of approximately 10% of its worldwide fixed and temporary headcount of 1,473 at September 30, 2009. Personnel reductions primarily involve Besi's European operations due to the Company's ongoing transfer of system production, tooling and operations to Asia, and the realignment of its packaging systems portfolio. Approximately half of the cost savings related to the plan are anticipated to be realized in 2010 and the full benefit is anticipated to be realized in 2011.
At present, Besi anticipates that it will incur charges not exceeding approximately € 16 million in connection with the proposed actions of which approximately € 9 million is anticipated to be recorded in the fourth quarter of 2009 and the remainder of which is expected to be incurred during 2010. Of the total anticipated charges, the Company estimates that approximately (i) € 7 million relates to severance and social charges involved in the proposed workforce reduction, (ii) € 5.5 million relates to non-cash inventory write-downs associated with the product line realignment and (iii) € 3.5 million is related to the value of remaining lease obligations for excess production capacity at its European facilities as a result of the proposed headcount reduction plan.
In commenting on the announcement, President and Chief Executive Officer Richard W. Blickman noted: "Our announcement today is consistent with our ongoing strategy to improve profitability at Besi and position the Company for growth in the most attractive segments of the assembly equipment market. We remain committed to reduce the structural costs in our business, accelerate the transfer of production and operations to Asia and increase the returns from our product portfolio in order to increase profitability and enhance shareholder value."
BE Semiconductor Industries N.V. designs, develops, manufactures, markets and services die sorting, flip chip and multi-chip die bonding, wire bonding, packaging and plating equipment for the semiconductor industry's assembly operations. Its customers consist primarily of leading U.S., European and Asian semiconductor manufacturers, assembly subcontractors and industrial companies which utilize its products for both array connect and conventional leadframe manufacturing processes. For more information about Besi, please visit our website at www.besi.com.
Richard W. Blickman Jan Willem Ruinemans President & CEO Chief Financial Officer Tel. (31) 26 319 4500 Tel. (31) 26 319 4500 [email protected] [email protected]
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