BE Semiconductor Industries N.V.

Earnings Release • Oct 31, 2013

PRESS RELEASE

Strong Profit Performance in Q3-13 despite Assembly Equipment Downturn due to Improved Operating Efficiency. Q4-13 Order Outlook Improving

Duiven, the Netherlands, October 31, 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 third quarter ended September 30, 2013.

Key Highlights Q3-13

• Revenue of € 65.4 million down 9.7% vs. € 72.4 million in Q2-13 primarily due to lower demand by Asian subcontractors for high end smart phone and tablet applications, and, to a lesser extent, customer push outs. Within guidance. Down 12.3% vs. Q3-12
• Orders flat vs. Q3-12 but down 41.7% vs. Q2-13 due to seasonal decrease after H1-13 smart phone and tablet capacity build and general assembly equipment market weakness
• Net income of € 4.4 million vs. € 6.5 million in Q2-13 due to lower revenue levels. Profit increase vs. Q3-12, € 4.3 million, due to overhead cost reduction and improved tax efficiency

Key Highlights Nine Months-2013

• Revenue of € 201.9 million, down 7.1% vs. nine months 2012 due primarily to lower sales of die attach systems for high end smart phones partially offset by increased sales for low/mid-range applications
• Net income of € 14.7 million vs. € 14.6 million in nine months 2012. Net margins improved from 6.7% to 7.3%

Outlook

Q4-13 revenue down approximately 20% vs. Q3-13 reflecting H2-13 seasonal decline and market weakness. Anticipate Q4-13 sequential quarterly order increase leading to optimism about 2014 industry prospects

	Q3-	Q2-		Q3-		YTD	YTD
(€ millions, except EPS)	2013	2013	Δ	2012	Δ	2013	2012	Δ
Revenue	65.4	72.4	-9.7%	74.6	-12.3%	201.9	217.4	-7.1%
Operating income	5.5	8.3	-34.1%	7.4	-26.0%	18.1	22.9	-20.9%
EBITDA	7.5	10.5	-28.6%	10.3	-27.2%	25.0	31.6	-21.0%
Net income	4.4	6.5	-32.3%	4.3	2.3%	14.7	14.6	0.9%
EPS (diluted)	0.12	0.17	-29.4%	0.12	0.0%	0.39	0.39	0.0%
Orders	48.2	82.7	-41.7%	48.7	-1.1%	194.7	224.1	-13.1%
Backlog	45.8	63.1	-27.4%	57.3	-20.1%	45.8	57.3	-20.1%
Cash flow (deficit) from ops.	3.2	7.9	-60.0%	14.2	-77.8%	-0.3	13.7	-101.8%
Net Cash	56.0	56.2	-0.4%	59.2	-5.4%	56.0	59.2	-5.4%

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "Our third quarter results reflect continued progress in increasing our operating efficiency and profit potential in a volatile assembly equipment environment. Revenue was at the low end of expectations as industry conditions deteriorated more rapidly than we had anticipated. Underscoring the change in industry conditions, the three month SEMI assembly equipment book to bill ratio declined from 1.26x at June 30, 2013 to 0.68x at quarter end. Similarly, Besi's orders declined by 41.7% sequentially reflecting renewed caution by Asian subcontractors in adding capacity after a significant expansion in H1-13 combined with seasonal influences. The volatile quarterly purchasing patterns experienced over the past three years have continued in 2013 wherein customers build capacity in the first half of the fiscal year and then are hesitant to add incremental capacity in the second half in the absence of clear direction of the global economy. This seasonality has also been magnified by retail purchasing patterns for smart phone and tablet applications whose sales are greatest in the latter half of the year.

In response to a volatile industry environment, we continue to enhance our product mix of advanced packaging systems and optimize our cost structure and scalability in order to further reduce break even cost levels in downturns and maximize revenue generation and profits in ensuing upturns. In the comparable nine months ended September 30, 2013, although revenue declined by 7.1%, net income increased due to a 4.8% reduction in operating expenses and a significantly lower effective tax rate resulting from a 2012 operational reorganization. The 2013 revenue decrease primarily reflected a reduction in sales of die attach systems for high end smart phone

applications which could not be fully offset by increased sales to Asian subcontractors of die attach and molding equipment for low to mid-range smart phone and tablet applications.

Given our current backlog, we anticipate that Besi's revenue will be down by approximately 20% in Q4-13 vs. Q3- 13 but that it will still be profitable at such levels given ongoing cost reduction efforts. However, recent customer feedback indicates that orders will increase sequentially in Q4-13. In addition, we are optimistic as to the industry's direction in 2014 as industry analysts and customers anticipate increased spending next year from the shrinking of next generation device geometries and power consumption requirements and increased chip density and functionality."

Third Quarter Results of Operations

Besi's € 7.0 million (9.7%) sequential revenue decrease in Q3-13 was primarily due to lower demand for die attach equipment for high end smart phone and tablet applications, and to a lesser extent, customer push-outs of shipments due to general weakness in demand for assembly equipment. Similarly, revenue in Q3-13 decreased by € 9.2 million (12.3%) vs. Q3-12.

Orders for Q3-13 were € 48.2 million, a decrease of € 34.5 million (41.7%), as compared to Q2-13 and flat as compared to Q3-12. The sequential quarterly decrease primarily reflected significantly lower orders from Asian subcontractors for assembly equipment capacity, was across all product lines and was slightly better than the Q3/Q2-12 sequential trend (46.5% decline). On a customer basis, the sequential order decrease reflected a € 35.5 million (67.1%) decrease by subcontractors partially offset by a € 1.0 million (3.4%) increase by IDMs. Backlog at September 30, 2013, was € 45.8 million, down € 17.3 million, or 27.4%, as compared to June 30, 2013 and down € 11.5 million, or 20.1% as compared to Q3-12. Besi's book to bill ratio was 0.74x in Q3-13 vs. 1.14x in Q2-13 and 0.65x in Q3-12.

Besi's gross margin for Q3-13 was 39.2% as compared to 40.4% in Q2-13 and 40.3% in Q3-12 and within prior guidance (39%-41%). As compared to Q2-13, the gross margin decrease vs. each prior period was primarily due to lower revenue and, to a lesser extent, higher inventory provisions partially offset by lower freight and European personnel costs and foreign exchange benefits from an increase in the value of the euro and US dollar vs. the Malaysian ringgit.

Besi's operating expenses were € 20.1 million in Q3-13 as compared to € 21.0 million in Q2-13 and € 22.6 million in Q3-12 and were better than prior guidance (€ 20.3 million). As compared to Q2-13, the operating expense decrease was primarily due to reduced restructuring, warranty and personnel costs. As compared to Q3-12, the decrease primarily resulted from lower personnel, travel and restructuring costs. Highlighting Besi's ongoing cost reduction efforts, total fixed and temporary headcount declined by 7.6% from 1,615 people at September 30, 2012 to 1,493 people at September 30, 2013.

Financial income (expense), net reflected an expense of € 0.2 million in Q3-13 vs. nil in Q2-13 and an expense of € 0.5 million in Q3-12. The change in financial income (expense) in the comparative periods was due to results of foreign currency hedging transactions.

Besi's net income in Q3-13 was € 4.4 million as compared to € 6.5 million in Q2-13 and € 4.3 million in Q3-12. The € 2.1 million profit decrease vs. Q2-13 was due primarily to lower revenue and gross margins partially offset by (i) lower warranty and overhead levels and (ii) a reduction in the effective tax rate from 21.6% to 15.5% as a result of Besi's operational reorganization in 2012. As compared to Q3-12, the € 0.1 million profit increase was primarily due to a € 2.2 million reduction in operating expenses and a reduction in the effective tax rate from 36.7% which offset the 12.3% year over year revenue decrease and lower gross margins.

Nine Months Results of Operations

For the first nine months of 2013, Besi's revenue decreased by € 15.5 million or 7.1% to € 201.9 million as compared to the first nine months of 2012 due primarily to lower sales of multi module die attach systems for high end smart phones which could not be compensated for by increased die attach and packaging equipment sales for low to mid-range smart phone and tablet applications. Orders for the first nine months of 2013 were € 194.7 million, down by € 29.4 million, or 13.1%, as compared to the first nine months of 2012.

For the 2013 nine-month period, Besi's net income increased by € 0.1 million to € 14.7 million (€ 0.39 per share) vs. the comparable period of the prior year (€ 14.6 million or € 0.39 per share). The 7.1% revenue reduction and lower gross margins in the 2013 period were offset by (i) € 3.7 million of lower operating expenses (ex restructuring charges) due to ongoing overhead reduction efforts, (ii) a significantly lower effective tax rate (20.4% vs. 34.2%) due to Besi's operational reorganization and (iii) an increase of financial income, net of € 1.1 million.

Financial Condition

At the end of Q3-13, Besi's cash and cash equivalents were € 78.5 million, a decrease of € 2.6 million vs. Q2-13 while total debt and capital leases decreased sequentially by € 2.4 million to € 22.5 million. As a result, net cash decreased by € 0.2 million to € 56.0 million. Besi generated cash flow from operations of € 3.2 million in Q3-13 which along with cash on hand were utilized to fund (i) € 2.1 million of debt reduction, net, (ii) € 2.0 million of capitalized development spending and (iii) € 0.8 million of capital expenditures.

Outlook

Based on its September 30, 2013 backlog and feedback from customers, Besi forecasts for Q4-13 that:

• Revenue will be down approximately 20% as compared to the € 65.4 million reported in Q3-13.
• Gross margins will range between 38-40% as compared to the 39.2% realized in Q3-13.
• Operating expenses will be flat to down approximately 5% from the € 20.1 million reported in Q3-13.
• Capital expenditures will be approximately € 2 million in Q4-13, up from € 0.8 million in Q3-13.

Investor and media conference call

A conference call and webcast for investors and media will be held today at 4:00 pm CET (11:00 am EST). 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 September 30, (unaudited)	Nine Months Ended September 30, (unaudited)
	2013	2012	2013	2012
Revenue	65,417	74,604	201,873	217,396
Cost of sales	39,805	44,553	121,617	129,211
Gross profit	25,612	30,051	80,256	88,185
Selling, general and administrative expenses	14,232	15,802	42,618	45,107
Research and development expenses	5,895	6,838	19,515	20,157
Total operating expenses	20,127	22,640	62,133	65,264
Operating income (loss)	5,485	7,411	18,123	22,921
Financial expense (income), net	228	543	(334)	796
Income (loss) before taxes	5,257	6,868	18,457	22,125
Income tax expense (benefit)	816	2,519	3,761	7,559
Net income (loss)	4,441	4,349	14,696	14,566
Net income (loss) per share – basic Net income (loss) per share – diluted	0.12 a 0.12	0.12 0.12a	0.39 0.39a	0.39 0.39a
Number of shares used in computing per share amounts: - basic - diluted	37,169,608 37,357,825a	37,780,778 37,828,488a	37,300,118 37,506,505a	37,281,194 37,535,196a

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

Consolidated Balance Sheets

(euro in thousands)	September 30,	June 30,	March 31,	December 31,
	2013	2013	2013	2012
	(unaudited)	(unaudited)	(unaudited)	(audited)
ASSETS
Cash and cash equivalents	78,494	81,140	91,886	106,358
Accounts receivable	69,566	79,313	81,274	58,552
Inventories	71,745	76,626	74,379	69,403
Income tax receivable	950	727	1,134	897
Other current assets	8,002	8,187	7,448	7,598
Total current assets	228,757	245,993	256,121	242,808
Property, plant and equipment	24,339	25,212	25,576	26,061
Goodwill	43,663	43,973	44,094	43,854
Other intangible assets	35,194	34,072	33,236	32,858
Deferred tax assets	15,321	15,879	16,503	16,345
Other non-current assets	1,289	1,518	1,553	1,476
Total non-current assets	119,806	120,654	120,962	120,594
Total assets	348,563	366,647	377,083	363,402
	LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks Current portion of long-term debt and	19,566	21,862	24,621	24,513
financial leases	-	413	413	415
Accounts payable	23,488	33,655	31,535	24,010
Accrued liabilities	26,706	34,286	36,869	34,056
Total current liabilities	69,760	90,216	93,438	82,994
Other long-term debt and financial
leases	2,934	2,622	2,622	1,926
Deferred tax liabilities	4,359	4,410	4,454	4,481
Other non-current liabilities	8,987	9,115	9,101	9,050
Total non-current liabilities	16,280	16,147	16,177	15,457
Total equity	262,523	260,284	267,468	264,951
Total liabilities and equity	348,563	366,647	377,083	363,402

(euro in thousands)		Three Months Ended September 30, (unaudited)	Nine Months Ended September 30, (unaudited)
	2013	2012	2013	2012
Cash flows from operating activities:
Operating income	5,485	7,411	18,123	22,921
Depreciation and amortization Share based compensation expense Other non-cash items	2,029 181 (11)	2,937 270 180	6,844 863 (67)	8,694 29 181
Changes in working capital Income tax received (paid) Interest received (paid)	2,515 (7,126) 78	3,915 (542) 18	(18,630) (7,838) 453	(17,063) (1,044) 10
Net cash provided by (used in) operating activities	3,151	14,189	(252)	13,728
Cash flows from investing activities: Capital expenditures Capitalized development expenses Proceeds from sale of equipment	(786) (2,016) 1	(1,486) (2,641) -	(2,262) (6,255) 121	(3,155) (9,082) -
Net cash used in investing activities	(2,801)	(4,127)	(8,396)	(12,237)
Cash flows from financing activities: Proceeds from (payments of) bank lines of credit	(2,422)	2,276	(4,860)	4,543
Proceeds from (payments of) debt and financial leases Dividend paid to shareholders Purchase Treasury Shares Other financing activities	312 - - -	468 - - -	1,008 (11,168) (2,737) -	1,176 (5,093) (109) -
Net cash provided by (used in) financing activities	(2,110)	2,744	(17,756)	517
Net increase/(decrease) in cash and cash equivalents Effect of changes in exchange rates on cash and cash equivalents	(1,760) (886)	12,806 (295)	(26,404) (1,460)	2,008 291
Cash and cash equivalents at beginning of the period	81,140	77,272	106,358	87,484
Cash and cash equivalents at end of the period	78,494	89,783	78,494	89,783

Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE	Q1-2012		Q2-2012		Q3-2012		Q4-2012		Q1-2013		Q2-2013		Q3-2013
Per geography:
Asia Pacific	41.3	74%	65.2	75%	56.7	76%	38.6	69%	49.9	78%	60.1	83%	48.4	74%
EU / USA	14.5	26%	21.7	25%	17.9	24%	17.7	31%	14.1	22%	12.3	17%	17.0	26%
Total	55.8	100%	87.0	100%	74.6	100%	56.3	100%	64.0	100%	72.4	100%	65.4	100%
ORDERS	Q1-2012		Q2-2012		Q3-2012			Q4-2012		Q1-2013		Q2-2013	Q3-2013
Per geography: Asia Pacific	66.4	79%	67.4	74%	37.2	76%	36.9	71%	49.8	78%	64.5	78%	33.3	69%
EU / USA	17.9	21%	23.7	26%	11.5	24%	15.1	29%	14.0	22%	18.2	22%	14.9	31%
Total	84.2	100%	91.1	100%	48.7	100%	52.0	100%	63.9	100%	82.7	100%	48.2	100%
Per customer type:
IDM	33.1	39%	36.3	40%	28.5	59%	21.3	41%	28.1	44%	29.8	36%	30.8	64%
Subcontractors	51.1	61%	54.8	60%	20.2	41%	30.7	59%	35.8	56%	52.9	64%	17.4	36%
Total	84.2	100%	91.1	100%	48.7	100%	52.0	100%	63.9	100%	82.7	100%	48.2	100%
BACKLOG	Mar 31, 2012		Jun 30, 2012		Sep 30, 2012		Dec 31, 2012		March 31, 2013		June 30, 2013		Sep 30, 2013
Backlog	79.1		83.2 57.3		53.0		52.8		63.1		45.8
HEADCOUNT	Mar 31, 2012		Jun 30, 2012		Sep 30, 2012		Dec 31, 2012		March 31, 2013		June 30, 2013		Sep 30, 2013
Fixed staff (FTE) Asia Pacific	799	53%	817	53%	812	53%	799	54%	820	56%	825	57%	820	57%
EU / USA	716	47%	718	47%	713	47%	680	46%	644	44%	634	43%	630	43%
Total	1,515	100%	1,535	100%	1,525	100%	1,479	100%	1,464	100%	1,458	100%	1,449	100%
Temporary staff (FTE)
Asia Pacific	5 6	55%	7 9	57%	4 2	47%	3 7	61%	2 9	48%	2 7	44%	1 6	37%
EU / USA	4 7	45%	6 0	43%	4 8	53%	2 3	39%	3 1	52%	3 4	56%	2 8	63%
Total	103	100%	139	100%	9 0	100%	6 0	100%	6 0	100%	6 1	100%	4 4	100%
Total fixed and temporary staff (FTE)	1,618		1,674		1,615		1,539		1,524		1,520		1,493
OTHER FINANCIAL DATA	Q1-2012		Q2-2012 Q3-2012			Q4-2012		Q1-2013		Q2-2013		Q3-2013
Gross profit:	22.0	39.4%	36.1	41.5%	30.1	40.3%	21.2	37.7%	25.4	39.6%	29.2	40.3%	25.6	39.1%
Amortization of intangibles	-		-		-		-		-		-		-
Restructuring charges	-		-		-		0.7	1.3%	-		(0.1)	0.1%	(0.0)	0.1%
Total	22.0	39.4%	36.1	41.5%	30.1	40.3%	20.5	36.4%	25.4	39.6%	29.3	40.4%	25.6	39.2%
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%	13.2	18.2%	13.7	20.9%
Amortization of intangibles	0.6	1.0%	0.6	0.6%	0.6	0.8%	0.6	1.1%	0.5	0.8%	0.5	0.7%	0.5	0.8%
Restructuring charges	-		- -	-	0.3	0.4%	0.9	1.6%	0.1	0.2%	0.5	0.7%	0.0	0.1%
Total	13.2	23.6%	16.1	18.5%	15.8	21.2%	15.4	27.4%	14.2	22.2%	14.2	19.6%	14.2	21.8%
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%	8.3	11.4%	7.4	11.3%
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%	(2.2)	-3.0%	(2.0)	-3.1%
Amortization of intangibles Restructuring charges	1.2 -	2.1%	1.2 -	1.4%	1.2 -	1.6%	1.1 0.5	2.0% 0.9%	1.0 0.1	1.6% 0.2%	0.6 0.1	0.8% 0.2%	0.5 0.0	0.8% -
Total	6.4	11.4%	6.9	7.9%	6.8	9.1%	7.2	12.8%	6.8	10.7%	6.8	9.4%	5.9	9.0%
Financial expense (income), net:
Interest expense (income), net	0.0		0.1		(0.2)		0.0		(0.2)		(0.0)		(0.1)
Foreign exchange (gains) \ losses	0.9		(0.7)		0.7		0.5		(0.4)		(0.0)		0.3
Total	0.9		(0.6)		0.5		0.5		(0.6)		(0.0)		0.2
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%	8.3	11.5%	5.5	8.4%
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%	10.5	14.4%	7.5	11.5%
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%	6.5	9.0%	4.4	6.8%
Income per share
Basic	0.01		0.27		0.12		0.03		0.10		0.17		0.12
Diluted	0.01		0.27		0.12		0.03		0.10		0.17		0.12