BE Semiconductor Industries N.V.

Earnings Release • Apr 24, 2013

PRESS RELEASE

Besi Q1-13 Revenue and Profit Exceed Expectations. Q2-13 Results Expected to Increase vs. Q1-13

Duiven, the Netherlands, April 24, 2013 - 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 first quarter ended March 31, 2013.

Key Highlights

• Revenue of € 64.0 million up 13.7% vs. Q4-12 and 14.8% vs. Q1-12. Above guidance due primarily to strength in epoxy and flip chip die attach systems for smart phone and tablet applications
• Orders increased to € 63.9 million (+22.8% vs. Q4-12) due primarily to increased demand for epoxy, flip chip and multi module die attach systems for smart phone and tablet applications. Down 24.2% vs. Q1-12
• Gross margins rose to 39.6% from 36.4% in Q4-12 (37.7% ex restructuring) due to higher volume, favorable customer and product mix and lower European production overhead. Above guidance. Up vs. 39.4% in Q1-12
• Pre-tax income increased to € 4.9 million in Q1-13. Up € 7.5 million vs. Q4-12 and € 3.4 million vs. Q1-12
• Net income grew to € 3.8 million in Q1-13 vs. € 1.2 million in Q4-12 and € 0.2 million in Q1-12

Outlook

Approximately 10% sequential revenue growth and increased operating profit forecast for Q2-13

(€ millions, except EPS)	Q1-2013	Q4-2012	Δ	Q1-2012	Δ
Revenue	64.0	56.3	13.7%	55.8	14.8%
Operating income	4.3	(2.1)	N/A	2.4	79.9%
EBITDA	7.0	0.8	773.1%	5.2	34.3%
Net income	3.8	1.2	213.6%	0.2	1,781.5%
EPS (diluted)	0.10	0.03	233.3%	0.01	900.0%
Orders	63.9	52.0	22.8%	84.2	-24.2%
Backlog	52.8	53.0	-0.4%	79.1	-33.2%
Cash flow from operations	(11.3)	25.5	N/A	12.0	N/A
Cash	91.9	106.4	-13.6%	93.5	-1.7%
Total Debt	27.7	26.9	2.8%	23.1	19.7%

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "Besi's Q1-13 results improved significantly vs. Q4-12 due to a pick-up in demand for our advanced packaging equipment combined with the benefits of structural cost reduction efforts. Revenue, gross margin and profit levels all exceeded expectations. Sequential quarterly revenue and orders grew by 13.7% and 22.8%, respectively, as we saw increased interest by Asian IDMs and subcontractors primarily for epoxy and flip chip die attach equipment to increase smart phone and tablet production capacity. Gross and operating margins improved due to higher revenue, a favorable customer and product mix and lower production overhead and operating costs from Besi's October 2012 headcount reduction plan. In particular, fixed European headcount reduced by 6% sequentially in Q1-13 and 11% year over year due to our Asian production transfer and die attach integration efforts. Consequently, Q1-13 pre-tax income increased by € 7.5 million and € 3.4 million, respectively, as compared to Q4-12 and Q1-12. Similarly, net income increased by € 2.6 million and € 3.6 million, respectively, as compared to such periods.

We forecast increased revenue and operating profit in Q2-13 despite a mixed picture for the semiconductor equipment industry. Revenue is estimated to increase by approximately 10% sequentially due to strength in advanced packaging equipment sales for smart phone and tablet applications and, to a lesser extent, renewed growth in automotive applications. Such positive influences are partially offset currently by continued weakness in PC end user applications which has restrained growth in some of our more traditional leadframe oriented assembly products. From an operational perspective, our focus is on the final transfer of all system production to Asia, an expansion of our Asian supply chain network and the full realization of the benefits from the October 2012 headcount reduction, all of which should help drive profitability in 2013."

First Quarter Results of Operations

Besi's € 7.7 million (13.7%) sequential revenue increase in Q1-13 reflected higher shipments of epoxy and flip chip die bonding systems for smart phone and tablet applications. The increase was above prior guidance (+5.0%). Similarly, revenue increased by € 8.2 million (14.8%) vs. Q1-12.

Orders for Q1-13 were € 63.9 million, an increase of € 11.9 million (22.8%), as compared to Q4-12 and a decrease of € 20.3 million (24.2%) as compared to Q1-12. The quarterly sequential order increase was primarily focused on increased demand for epoxy, flip chip and multi module die attach systems supporting smart phone and tablet supply chains. The decrease versus Q1-12 was due primarily to the 52.5% order ramp as a result of a surge in demand for smart phone and tablet production capacity in the prior year earlier period. On a customer basis, the sequential order increase in Q1-13 reflected a € 5.1 million (16.6%) increase by subcontractors and a € 6.8 million (31.9%) increase by IDMs. Backlog at March 31, 2013, was € 52.8 million, approximately equal to December 31, 2012 (€ 53.0 million) and down € 26.3 million, or 33.2%, as compared to Q1-12.

Besi's gross margin was 39.6% in Q1-13 vs.36.4% in Q4-12 (37.7% ex restructuring) and 39.4% in Q1-12 and exceeded guidance (37%-39%). As compared to Q4-12, the increase was primarily due to (i) higher revenue levels, (ii) higher packaging, plating and wire bonding gross margins due to a favorable customer and product mix and (iii) lower European production overhead. As compared to Q1-12, gross margins increased primarily due to higher plating gross margins as a result of its business unit rationalization in Q4-12.

Besi's operating expenses were € 21.1 million in Q1-13 as compared to € 22.6 million in Q4-12 and € 19.6 million in Q1-12. Excluding restructuring charges of € 0.2 million and € 1.4 million in each of Q1-13 and Q4-12, respectively, operating expenses declined by € 0.3 million in Q1-13 to € 20.9 million vs. € 21.2 million in Q4-12 and were slightly higher than prior guidance of € 20.5 million. As compared to Q4-12, the decline was primarily due to (i) € 1.1 million of lower sales and marketing expenses primarily as result of the October 2012 headcount reduction plan partially offset by (ii) € 0.4 million of increased general and administrative expenses principally higher advisory costs and (iii) € 0.3 million of higher warranty costs. Excluding restructuring charges, operating expenses increased by € 1.3 million in Q1-13 vs. Q1-12 primarily as a result of (i) the absence of a € 1.0 million rental benefit provision in the prior year earlier period, (ii) € 0.5 million of higher warranty costs and (iii) € 0.4 million of higher development expenses due to lower R&D capitalization partially offset by a € 0.9 million reduction in selling and marketing expenses associated with Besi's headcount reduction efforts. As a percentage of revenue, total operating expenses were 32.9% in Q1-13 as compared to 40.2% in Q4-12 and 35.2% in Q1-12. Total fixed and temporary headcount of 1,524 at March 31, 2013 declined by 1.0% vs. Q4-12 and 5.8% vs. Q1-12.

Financial income, net increased from an expense of € 0.5 million in Q4-12 and € 0.9 million in Q1-12 to income of € 0.6 million in Q1-13 due primarily to gains on foreign currency hedging transactions as a result of the appreciation of the US dollar vs. the euro and Swiss franc.

Besi recorded income tax expense of € 1.2 million in Q1-13 as compared to a tax benefit of € 3.8 million in Q4-12 resulting primarily from an upward revaluation of tax loss carry forwards at Besi's Swiss operations. The effective tax rate was 23.6% in Q1-13 as compared to 86.2% in Q1-12. The prior year period was negatively influenced by a change in the profit mix of Besi's European subsidiaries.

Besi's net income in Q1-13 was € 3.8 million as compared to € 1.2 million in Q4-12 and € 0.2 million in Q1-12. The profit increase vs. Q4-12 was due primarily to (i) a 13.7% revenue increase, (ii) increased gross margins, (iii) a € 1.9 million reduction in restructuring charges, (iv) € 0.3 million of lower operating expenses (ex restructuring charges) and (v) a € 1.1 million increase in financial income, net partially offset by increased income tax expense of € 5.0 million primarily due to the absence of a € 3.0 million tax benefit recognized in Q4-12. As compared to Q1-12, the profit increase was primarily due to (i) a 14.8% revenue increase, (ii) increased gross margins, (iii) € 1.5 million of higher financial income, net and (iv) a lower effective tax rate partially offset by € 1.4 million of higher operating expenses.

Financial Condition

At the end of Q1-13, Besi's cash and cash equivalents decreased by € 14.5 million to € 91.9 million as compared to Q4-12 while total debt and capital leases increased by € 0.8 million to € 27.7 million. As a result, net cash decreased by € 15.3 million sequentially to € 64.2 million. Besi had a cash flow deficit from operations of € 11.3 million in Q1-13 primarily due to an € 18.6 million working capital increase to finance higher receivables and inventory related principally to increased quarterly sequential bookings which were partially offset by operating and other related cash flow of € 7.3 million. Cash on hand in Q1-13 was further decreased by (i) € 2.1 million of capitalized development spending, (ii) € 1.1 million of share repurchases and (iii) € 0.4 million of capital expenditures.

Share Repurchase Program

In October 2012, Besi announced a share repurchase program under which it may buy back up to approximately 1.5 million ordinary shares (4% of its shares outstanding at September 30, 2012) through October 2013. As of March 31, 2013, Besi had purchased 0.5 million shares at a weighted average price of € 5.93 per share for an aggregate of € 2.7 million. During Q1-13, Besi purchased 305,451 shares at a weighted average price of € 6.29 for an aggregate of € 1.9 million.

Outlook

Based on its March 31, 2013 backlog and feedback from customers, Besi forecasts for Q2-13 that:

• Revenue will increase by approximately 10% as compared to the € 64.0 million reported in Q1-13.
• Gross margins will range between 39%- 41% as compared to the 39.6% realized in Q1-13.
• Operating expenses will be approximately equal to the € 20.9 million (ex restructuring) reported in Q1-13.
• Capital expenditures will be approximately € 1.0 million as compared to € 0.4 million in Q1-13.

Investor and media conference call

A conference call and webcast for investors and media will be held today at 11:30 a.m. CET (5:30 a.m. New York time). The dial-in for the conference call is (31) 20 531 5869. To access the audio webcast, please visit www.besi.com.

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, substrate 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 Uneke.Dekkers@citigateff.nl Frank.Jansen@citigateff.nl

President & CEO Senior Vice President Finance investor.relations@besi.com investor.relations@besi.com

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" 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 to protect 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, 2012 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.

Consolidated Statements of Operations

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

	Three Months Ended March 31, (unaudited)
	2013	2012
Revenue Cost of sales	64,035 38,666	55,797 33,803
Gross profit	25,369	21,994
Selling, general and administrative expenses Research and development expenses	14,216 6,835	13,236 6,375
Total operating expenses	21,051	19,611
Operating income	4,318	2,383
Financial income (expense), net	604	(871)
Income before taxes	4,922	1,512
Income tax expense (benefit)	1,159	1,304
Net income	3,763	208
Net income per share – basic Net income per share – diluted	0.10 0.10	0.01 0.01
Number of shares used in computing per share amounts: - basic - diluted	37,541,293 37,732,626a	36,687,068 37,369,568a

a The calculation of the diluted income per share assumes the exercise of the equity settled share based payments.

(euro in thousands)	March 31,	December 31,
	2013	2012
	(unaudited)	(unaudited)
ASSETS
Cash and cash equivalents	91,886	106,358
Accounts receivable	81,274	58,552
Inventories	74,379	69,403
Income tax receivable	1,134	897
Other current assets	7,448	7,598
Total current assets	256,121	242,808
Property, plant and equipment	25,576	26,061
Goodwill	44,094	43,854
Other intangible assets	33,236	32,858
Deferred tax assets	16,503	16,345
Other non-current assets	1,553	1,476
Total non-current assets	120,962	120,594
Total assets	377,083	363,402

Consolidated Balance Sheets

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks	24,621	24,513
Current portion of long-term debt and financial leases	413	415
Accounts payable	31,535	24,010
Accrued liabilities	36,869	34,056
Total current liabilities	93,438	82,994
Other long-term debt and
financial leases	2,622	1,926
Deferred tax liabilities	4,454	4,481
Other non-current liabilities	9,101	9,050
Total non-current liabilities	16,177	15,457
Total equity	267,468	264,951
Total liabilities and equity	377,083	363,402

(euro in thousands)	Three Months Ended March 31,
	2013	(unaudited) 2012
Cash flows from operating activities:
Operating income	4,318	2,383
Depreciation and amortization Share-based compensation expense Loss (gain) on disposal of assets Other non-cash items	2,667 501 (2) (35)	2,814 (309) 1 -
Changes in working capital Income taxes paid Interest received (paid)	(18,581) (388) 232	7,227 (172) 12
Net cash (used in) provided by operating activities	(11,288)	11,956
Cash flows from investing activities:
Capital expenditures Capitalized development expenses Proceeds from sale of equipment	(369) (2,077) 2	(606) (3,263) -
Net cash used in investing activities	(2,444)	(3,869)
Cash flows from financing activities:
Proceeds (payments) on bank lines of credit	180	(1,868)
Proceeds (payments) on debt and financial leases Purchase of treasury shares Other financing activities	696 (1,120) (437)	113 (109) -
Net cash used in financing activities	(681)	(1,864)
Net increase/(decrease) in cash and cash equivalents Effect of changes in exchange rates on cash and	(14,413)	6,223
cash equivalents	(59)	(168)
Cash and cash equivalents at beginning of the period	106,358	87,484
Cash and cash equivalents at end of the period	91,886	93,539

Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE		Q1-2012 Q2-2012		Q3-2012		Q4-2012		Q1-2013
Per geography:
Asia Pacific	41,3	74%	65,2	75%	56,7	76%	38,6	69%	49,9	78%
Europe and ROW	8,4	15%	10,4	12%	12,7	17%	12,4	22%	9,6	15%
USA	6,1	11%	11,3	13%	5,2	7%	5,3	9%	4,5	7%
Total	55,8	100%	87,0	100%	74,6	100%	56,3	100%	64,0	100%
ORDERS	Q1-2012		Q2-2012		Q3-2012		Q4-2012		Q1-2013
Per geography: Asia Pacific	66,4	79%	67,4	74%	37,2	76%	36,9	71%	49,8	78%
Europe and ROW	11,2	13%	15,5	17%	7,1	15%	10,3	20%	6,4	10%
USA	6,6	8%	8,2	9%	4,4	9%	4,8	9%	7,7	12%
Total	84,2	100%	91,1	100%	48,7	100%	52,0	100%	63,9	100%
Per customer type:
IDM	33,1	39%	36,3	40%	28,5	59%	21,3	41%	28,1	44%
Subcontractors	51,1	61%	54,8	60%	20,2	41%	30,7	59%	35,8	56%
Total	84,2	100%	91,1	100%	48,7	100%	52,0	100%	63,9	100%
BACKLOG	Mar 31, 2012		Jun 30, 2012		Sep 30, 2012		Dec 31, 2012		March 31, 2013
Backlog	79,1		83,2			57,3			52,8
							53,0
HEADCOUNT	Mar 31, 2012		Jun 30, 2012		Sep 30, 2012		Dec 31, 2012		March 31, 2013
Fixed staff (FTE)
Europe	670	44%	671	44%	666	44%	637	43%	598	41%
Asia Pacific	799	53%	817	53%	812	53%	799	54%	820	56%
USA	4 6	3%	4 7	3%	4 7	3%	4 3	3%	4 6	3%
Total	1.515	100%	1.535	100%	1.525	100%	1.479	100%	1.464	100%
Temporary staff (FTE) Europe	4 4	42%	5 4	39%	4 4	49%	2 1	35%	3 1	52%
Asia Pacific	5 6	55%	7 9	57%	4 2	47%	3 7	61%	2 9	48%
USA	3	3%	6	4%	4	4%	2	3%	0	0%
Total	103	100%	139	100%	9 0	100%	6 0	100%	6 0	100%
Total fixed and temporary staff (FTE)	1.618		1.674		1.615		1.539		1.524
OTHER FINANCIAL DATA	Q1-2012		Q2-2012		Q3-2012		Q4-2012		Q1-2013
Gross profit:	22,0	39,4%	36,1	41,5%	30,1	40,3%	21,2	37,7%	25,4	39,6%
Amortization of intangibles	-		-		-		-		-
Restructuring charges	-		-		-		0,7	1,3%	-
Total	22,0	39,4%	36,1	41,5%	30,1	40,3%	20,5	36,4%	25,4	39,6%
Selling, general and admin expenses:
SG&A expenses	12,6	22,6%	15,5	17,8%	14,9	20,0%	13,9	24,7%	13,6	21,2%
Amortization of intangibles	0,6	1,0%	0,6	0,6%	0,6	0,8%	0,6	1,1%	0,5	0,8%
Restructuring charges	-	-	-	-	0,3	0,4%	0,9	1,6%	0,1	0,2%
Total	13,2	23,6%	16,1	18,5%	15,8	21,2%	15,4	27,4%	14,2	22,2%
Research and development expenses:
R&D expenses	8,5	15,2%	8,9	10,2%	8,2	11,0%	8,0	14,2%	7,8	12,2%
Capitalization of R&D charges	(3,3)	-5,8%	(3,2)	-3,7%	(2,6)	-3,5%	(2,4)	-4,3%	(2,1)	-3,2%
Amortization of intangibles	1,2	2,1%	1,2	1,4%	1,2	1,6%	1,1	2,0%	1,0	1,6%
Restructuring charges	-		-		-		0,5	0,9%	0,1	0,2%
Total	6,4	11,4%	6,9	7,9%	6,8	9,1%	7,2	12,8%	6,8	10,7%
Financial expense (income), net:
Interest expense (income), net	0,0		0,1		(0,2)		0,0		(0,2)
Foreign exchange (gains) \ losses	0,9		(0,7)		0,7		0,5		(0,4)
Total	0,9		(0,6)		0,5		0,5		(0,6)
Operating income (loss)
as % of net sales	2,4	4,3%	13,1	15,1%	7,4	9,9%	(2,1)	-3,7%	4,3	6,7%
EBITDA
as % of net sales	5,2	9,3%	16,1	18,5%	10,3	13,9%	0,8	1,4%	7,0	10,9%
Net income (loss)
as % of net sales	0,2	0,4%	10,0	11,5%	4,3	5,8%	1,2	2,2%	3,8	5,9%
Income per share
Basic	0,01		0,27		0,12		0,03		0,10
Diluted	0,01		0,27		0,12		0,03		0,10