BE Semiconductor Industries N.V.

Earnings Release • Jul 31, 2013

PRESS RELEASE

Besi Reports 72.5% Net Income and 29.5% Order Increase in Q2-13 vs. Q1-13. Results Exceed Expectations

Duiven, the Netherlands, July 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 second quarter ended June 30, 2013.

Key Highlights Q2-13

• Revenue of € 72.4 million up 13.1% vs. Q1-13 primarily due to higher purchases by Asian subcontractors for smart phone and tablet applications. Down 16.8% vs. Q2-12 due to lower demand for high end smart phones
• Orders up 29.5% vs. Q1-13 to € 82.7 million due primarily to increased demand for die attach and molding systems for smart phone and tablet applications. Down 9.3% vs. Q2-12
• Gross margins rose to 40.4% from 39.6% in Q2-13 due to higher volume combined with stable production overhead. Down vs. 41.5% in Q2-12
• Net income rose to € 6.5 million in Q2-13 vs. € 3.8 million in Q1-13. Down € 3.5 million vs. Q2-12

Key Highlights H1-13

• Revenue of € 136.5 million, down 4.4% vs. H1-12
• Net income of € 10.3 million, up slightly vs. € 10.2 million in H1-12

Outlook

Sound financial performance anticipated in Q3-13. Revenue flat to down 10% vs. Q2-13 reflecting mixed near term industry picture. Cautiously optimistic about industry prospects for 2014

	Q2-	Q1-		Q2-
(€ millions, except EPS)	2013	2013	Δ	2012	Δ
Revenue	72.4	64.0	13.1%	87.0	-16.8%
Operating income	8.3	4.3	92.7%	13.1	-36.6%
EBITDA	10.5	7.0	49.7%	16.1	-35.0%
Net income	6.5	3.8	72.5%	10.0	-35.1%
EPS (diluted)	0.17	0.10	73.4%	0.27	-35.8%
Orders	82.7	63.9	29.5%	91.1	-9.3%
Backlog	63.1	52.8	19.4%	83.2	-24.2%
Cash flow (deficit) from ops.	7.9	(11.3)	NM	(12.4)	NM
Cash	81.1	91.9	-11.7%	77.3	5.0%
Total Debt	24.9	27.7	-10.0%	27.9	-10.8%

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "Besi's Q2-13 results improved significantly vs. Q1-13 due to increased demand for our advanced packaging equipment combined with the benefits of structural cost reduction. Revenue and profit levels exceeded expectations. Quarterly revenue and orders grew by 13.1% and 29.5%, respectively, vs. Q1-13 as we saw increased interest by Asian subcontractors for die attach and molding systems serving smart phone, tablet and mainstream electronics applications. Q2-13 operating income and net income increased by € 4.0 million and € 2.7 million, respectively, vs. Q1-13 illustrating the operating leverage in our business model and the benefits of our October 2012 restructuring plan. For H1-13, revenue declined by 4.4% vs. H1-12 while net income was slightly higher as reduced personnel expenses and a lower effective tax rate offset a decline in die attach shipments for high end smart phones. Lower revenue was partially offset by increased sales to Asian subcontractors for low to mid end smart phone applications. Underscoring Besi's cost reduction efforts, total headcount decreased by 9.2% between June 30, 2012 and June 30, 2013.

We anticipate a sound financial performance in Q3-13 after recording strong sequential quarterly growth in the first half year. We forecast that revenue will be flat to down 10% in Q3-13 vs. Q2-13 reflecting a mixed picture for the assembly equipment industry currently. In the near term, potential growth in Besi's advanced packaging sales for low to mid range smart phones and tablets and automotive applications is tempered by weakness in high end smart phones and PC related markets and the influence of lower seasonal smart phone and tablet sales. However, many

industry analysts and customers anticipate significantly increased spending in 2014 from the shrinking of next generation device geometries and power consumption requirements and increased chip density and functionality. We are cautiously optimistic as to the industry's direction in 2014 as customers are generally more positive this year than prior years as to the development of the global economy. However, macro economic uncertainty persists and visibility remains limited. Operationally, we continue to execute our strategy to drive down break even revenue levels to address increased industry cyclicality and increase our profit potential. Besi's focus is on the further integration of its die attach operations, the completion of its Asian production transfer and the expansion of its Asian supply chain network."

Second Quarter Results of Operations

Besi's € 8.4 million (13.1%) sequential revenue increase in Q2-13 reflected sales strength in die attach and molding systems for smart phone, tablet and mainstream electronics applications. The increase was better than prior guidance (increase of 10.0%). Revenue in Q2-13 decreased by € 14.6 million (16.8%) vs. Q2-12 due primarily to lower sales of multi module die attach systems for high end smart phones.

Orders for Q2-13 were € 82.7 million, an increase of € 18.8 million (29.5%), as compared to Q1-13 and a decrease of € 8.5 million (9.3%) as compared to Q2-12. The sequential order increase was primarily due to higher bookings by Asian subcontractors for multi module and flip chip die attach systems and molding systems serving advanced packaging applications. On a customer basis, the sequential order increase in Q2-13 reflected a € 17.1 million (47.8%) increase by subcontractors and a € 1.7 million (6.0%) increase by IDMs. Backlog at June 30, 2013, was € 63.1 million, up € 10.3 million, or 19.4%, as compared to March 31, 2013 and down € 20.1 million, or 24.2% as compared to Q2-12. Besi's book to bill ratio was 1.14x in Q2-13 vs. 1.0x in Q1-13 and 1.05x in Q2-12.

Besi's gross margin for Q2-13 was 40.4% as compared to 39.6% in Q1-13 and 41.5% in Q2-12 and within prior guidance (39%-41%). As compared to Q1-13, the gross margin increase was primarily due to higher die attach and packaging gross margins as a result of increased revenue combined with stable production overhead levels partially offset by higher freight and Asian production transfer costs. As compared to Q2-12, the gross margin decrease was due primarily to the 16.8% year over year revenue decrease partially offset by lower European production overhead.

Besi's operating expenses were € 21.0 million in Q2-13 as compared to € 21.1 million in Q1-13 and € 23.0 million in Q2-12. Excluding restructuring charges of € 0.6 million and € 0.2 million in each of Q2-13 and Q1-13, respectively, operating expenses declined by € 0.6 million to € 20.3 million in Q2-13 and were better than guidance (€ 20.9 million). As compared to Q1-13, the decrease was primarily due to reduced personnel costs partially offset by higher warranty costs. As compared to Q2-12, operating expenses (ex restructuring charges) declined by € 2.6 million primarily due to lower European personnel expenses. As a percentage of revenue, total operating expenses were 28.9% in Q2-13 as compared to 32.9% in Q1-13 and 26.5% in Q2-12. Total fixed and temporary headcount declined by 9.2% from 1,674 people at June 30, 2012 to 1,520 people at June 30, 2013.

Financial income (expense), net was negligible in Q2-13 as compared to income of € 0.6 million in both Q1-13 and Q2-12. The decrease was due primarily to the absence of gains on foreign currency hedging transactions in the prior comparable periods.

Besi's net income in Q2-13 was € 6.5 million as compared to € 3.8 million in Q1-13 and € 10.0 million in Q2-12. The € 2.7 million profit increase vs. Q1-13 was due primarily to (i) higher revenue and gross margins and (ii) lower operating expenses primarily related to reduced personnel costs. As compared to Q2-12, the € 3.5 million profit decrease was primarily due to lower revenue and gross margins partially offset by lower operating expenses and a lower effective tax rate (21.6% vs. 27.2%) due to the change in profit mix of Besi's European subsidiaries.

Half Year Results of Operations 2013/2012

For H1-13, Besi's revenue decreased by € 6.3 million or 4.4% to € 136.5 million as compared to H1-12 due to lower sales of multi module die attach systems for high end smart phones. The revenue decrease was partially offset by higher shipments of epoxy die bonding systems for mainstream electronics applications and increased packaging system sales principally for smart phone and tablet applications. Orders for H1-13 were € 146.5 million, down by € 28.9 million, or 16.5%, as compared to H1-12. However, H1-13 revenue and orders were up 4.2% and 45.5%, respectively, vs. H2-12 reflecting an industry rebound experienced since Q4-12.

For H1-13, Besi's net income increased by € 0.1 million to € 10.3 million (€ 0.27 per share) vs. H1-12 (€ 10.2 million or € 0.28 per share). Lower revenue and gross margins in the H1-13 period were offset by (i) € 0.8 million of increased financial income, net due primarily to foreign exchange gains on hedging activities, (ii) € 0.6 million of lower operating expenses and (iii) a lower effective tax rate (22.3% vs. 33.0%) due to the change in profit mix of its European subsidiaries. H1-13 net income increased by € 4.7 million vs. H2-12.

Financial Condition

At the end of Q2-13, Besi's cash and cash equivalents declined to € 81.1 million, a decrease of € 10.7 million vs. Q1-13 while total debt and capital leases decreased sequentially by € 2.8 million to € 24.9 million. As a result, net cash decreased by € 8.0 million to € 56.2 million. Besi generated cash flow from operations of € 7.9 million in Q2- 13 and along with cash on hand were utilized to fund (i) € 11.2 million of cash dividends, (ii) € 2.6 million of debt reduction, (iii) € 2.2 million of capitalized development spending, (iv) € 1.6 million of share repurchases (including € 0.8 million related to Q1-13) and (v) € 1.1 million of capital expenditures. As compared to Q2-12, Besi's cash and net cash increased by € 3.9 million and € 6.9 million, respectively.

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 through October 2013. As of June 30, 2013, Besi had purchased a total of 0.6 million shares at a weighted average price of € 6.07 per share for an aggregate of € 3.5 million. During Q2-13, Besi purchased 124,089 shares at a weighted average price of € 6.57 for an aggregate of € 0.8 million.

Outlook

Based on its June 30, 2013 backlog and feedback from customers, Besi forecasts for Q3-13 that:

• Revenue will be approximately flat to down 10% as compared to the € 72.4 million reported in Q2-13.
• Gross margins will range between 39%-41% as compared to the 40.4% realized in Q2-13.
• Operating expenses will be approximately equal to the € 20.3 million (ex restructuring) reported in Q2-13.
• Capital expenditures will be approximately € 1.4 million as compared to € 1.1 million in Q2-13.

Investor and media conference call

A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 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 investor.relations@besi.com investor.relations@besi.com

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

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 June 30,	Six Months Ended June 30,
		(unaudited)		(unaudited)
Revenue	2013 72,421	2012 86,995	2013 136,456	2012 142,792
Cost of sales	43,146	50,855	81,811	84,658
Gross profit	29,275	36,140	54,645	58,134
Selling, general and administrative expenses	14,170	16,069	28,386	29,305
Research and development expenses	6,785	6,944	13,620	13,319
Total operating expenses	20,955	23,013	42,006	42,624
Operating income (loss)	8,320	13,127	12,639	15,510
Financial expense (income), net	43	(618)	(561)	253
Income (loss) before taxes	8,277	13,745	13,200	15,257
Income tax expense (benefit)	1,785	3,736	2,945	5,040
Net income (loss)	6,492	10,009	10,255	10,217
Net income (loss) per share – basic Net income (loss) per share – diluted	0.17 0.17	0.27 0.27a	0.27 0.27	0.28 0.28a
Number of shares used in computing per share amounts:
- basic	37,193,537	37,370,247	37,366,454	37,028,658
- diluted	37,433,148	37,400,765a	37,581,927	37,385,166a

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

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

Consolidated Balance Sheets

(euro in thousands)		Three Months Ended June 30,	Six Months Ended June 30,
		(unaudited)		(unaudited)
	2013	2012	2013	2012
Cash flows from operating activities:
Operating income	8,320	13,127	12,639	15,510
Depreciation and amortization Share based compensation expense Other non-cash items	2,148 180 (18)	2,943 68 -	4,815 681 (56)	5,757 (241) 1
Changes in working capital Income tax received (paid) Interest received (paid)	(2,564) (324) 143	(28,205) (330) (20)	(21,144) (713) 375	(20,978) (502) (8)
Net cash provided by (used in) operating activities	7,885	(12,417)	(3,403)	(461)
Cash flows from investing activities: Capital expenditures Capitalized development expenses Proceeds from sale of equipment	(1,106) (2,163) 118	(1,063) (3,178) -	(1,476) (4,240) 120	(1,669) (6,441) -
Net cash used in investing activities	(3,151)	(4,241)	(5,596)	(8,110)
Cash flows from financing activities: Proceeds from (payments of) bank lines of credit Proceeds from (payments of) debt and financial	(2,617)	4,135	(2,438)	2,267
leases Dividend paid to shareholders Purchase Treasury Shares Other financing activities	- (11,168) (1,617) 437	595 (5,093) - -	696 (11,168) (2,737)	708 (5,093) (109) -
Net cash provided by (used in) financing activities	(14,965)	(363)	(15,647)	(2,227)
Net increase/(decrease) in cash and cash equivalents Effect of changes in exchange rates on cash and	(10,231)	(17,021)	(24,646)	(10,798)
cash equivalents Cash and cash equivalents at beginning of the	(515)	754	(572)	586
period	91,886	93,539	106,358	87,484

Cash and cash equivalents at end of the period 81,140 77,272 81,140 77,272

Consolidated Cash Flow Statements

Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE	Q1-2012		Q2-2012		Q3-2012		Q4-2012		Q1-2013		Q2-2013
Per geography:
Asia Pacific	41.3	74%	65.2	75%	56.7	76%	38.6	69%	49.9	78%	60.1	83%
Europe and ROW	8.4	15%	10.4	12%	12.7	17%	12.4	22%	9.6	15%	10.1	14%
USA	6.1	11%	11.3	13%	5.2	7%	5.3	9%	4.5	7%	2.2	3%
Total	55.8	100%	87.0	100%	74.6	100%	56.3	100%	64.0	100%	72.4	100%
ORDERS	Q1-2012		Q2-2012		Q3-2012		Q4-2012		Q1-2013		Q2-2013
Per geography:
Asia Pacific	66.4	79%	67.4	74%	37.2	76%	36.9	71%	49.8	78%	64.5	78%
Europe and ROW USA	11.2 6.6	13%	15.5 8.2	17%	7.1 4.4	15%	10.3 4.8	20%	6.4 7.7	10%	12.4 5.8	15%
		8%		9%		9%		9%		12%		7%
Total	84.2	100%	91.1	100%	48.7	100%	52.0	100%	63.9	100%	82.7	100%
Per customer type:
IDM	33.1	39%	36.3	40%	28.5	59%	21.3	41%	28.1	44%	29.8	36%
Subcontractors	51.1	61%	54.8	60%	20.2	41%	30.7	59%	35.8	56%	52.9	64%
Total	84.2	100%	91.1	100%	48.7	100%	52.0	100%	63.9	100%	82.7	100%
BACKLOG	Mar 31, 2012								March 31, 2013
				Jun 30, 2012		Sep 30, 2012		Dec 31, 2012			June 30, 2013
Backlog	79.1			83.2		57.3		53.0		52.8		63.1
HEADCOUNT	Mar 31, 2012		Jun 30, 2012		Sep 30, 2012		Dec 31, 2012		March 31, 2013		June 30, 2013
Fixed staff (FTE)
Europe	670	44%	671	44%	666	44%	637	43%	598	41%	586	40%
Asia Pacific	799	53%	817	53%	812	53%	799	54%	820	56%	825	57%
USA	4 6	3%	4 7	3%	4 7	3%	4 3	3%	4 6	3%	4 8	3%
Total	1,515	100%	1,535	100%	1,525	100%	1,479	100%	1,464	100%	1,458	100%
Temporary staff (FTE)
Europe Asia Pacific	4 4 5 6	42% 55%	5 4 7 9	39% 57%	4 4 4 2	49% 47%	2 1 3 7	35% 61%	3 1 2 9	52% 48%	3 4 2 7	56% 44%
USA	3	3%	6	4%	4	4%	2	3%	0	0%	0	0%
Total	103	100%	139	100%	9 0	100%	6 0	100%	6 0	100%	6 1	100%
Total fixed and temporary staff (FTE)	1,618		1,674		1,615		1,539		1,524		1,520
OTHER FINANCIAL DATA	Q1-2012		Q2-2012		Q3-2012		Q4-2012		Q1-2013		Q2-2013
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%
Amortization of intangibles	-		-		-		-		-		-
Restructuring charges	-		-		-		0.7	1.3%	-		(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	40.3%
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%
Amortization of intangibles Restructuring charges	0.6 -	1.0% -	0.6 -	0.6% -	0.6 0.3	0.8% 0.4%	0.6 0.9	1.1% 1.6%	0.5 0.1	0.8% 0.2%	0.5 0.5	0.7% 0.7%
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%
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%
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%
Amortization of intangibles	1.2	2.1%	1.2	1.4%	1.2	1.6%	1.1	2.0%	1.0	1.6%	0.6	0.8%
Restructuring charges	-		-		-		0.5	0.9%	0.1	0.2%	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%	6.8	9.4%
Financial expense (income), net:
Interest expense (income), net	0.0		0.1		(0.2)		0.0		(0.2)		(0.0)
Foreign exchange (gains) \ losses	0.9		(0.7)		0.7		0.5		(0.4)		(0.0)
Total	0.9		(0.6)		0.5		0.5		(0.6)		(0.0)
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%
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%
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%
Income per share
Basic	0.01		0.27		0.12		0.03		0.10		0.17
Diluted	0.01		0.27		0.12		0.03		0.10		0.17