ASM reports first quarter 2024
Almere, The Netherlands
April 23, 2024, 6 p.m. CET
Solid start of the year, Q1 orders supported by GAA and HBM
ASM International N.V. (Euronext Amsterdam: ASM) today reports its Q1 2024 results (unaudited).
Financial highlights
| € million | Q1 2023 | Q4 2023 | Q1 2024 |
| New orders | 647.4 | 677.5 | 697.9 |
| yoy change % at constant currencies | (6%) | (14%) | 10% |
| Revenue | 710.0 | 632.9 | 639.0 |
| yoy change % at constant currencies | 40% | (7%) | (8%) |
| Gross profit margin % | 49.4 % | 47.2 % | 52.9 % |
| Adjusted gross profit margin 1 | 51.1 % | 47.9 % | 52.9 % |
| Operating result | 204.2 | 131.5 | 187.1 |
| Operating result margin % | 28.8 % | 20.8 % | 29.3 % |
| Adjusted operating result 1 | 221.2 | 141.0 | 191.8 |
| Adjusted operating result margin 1 | 31.2 % | 22.3 % | 30.0 % |
| Net earnings | 380.4 | 90.9 | 173.1 |
| Adjusted net earnings 1 | 183.0 | 100.3 | 178.9 |
1 Adjusted figures are non-IFRS performance measures (previously referred to as "normalized"). Refer to Annex 3 for a reconciliation of non-IFRS performance measures.
- New orders of €698 million in Q1 2024 increased by 10% at constant currencies (increased by 8% as reported), supported by healthy GAA 2nm orders, and a strong increase in memory orders, mainly for HBM-related DRAM applications.
- Revenue of €639 million decreased by 8% at constant currencies (decreased by 10% as reported) from Q1 of last year but came in at the high end of guidance (€600-640 million).
- Adjusted gross profit margin increased to 52.9%, up from 51.1% in Q1 of last year, on the back of a generally positive mix, and in particular a continued strong contribution from China sales, which increased to a quarterly record.
- Adjusted operating result margin decreased to 30.0%, compared to 31.2% in Q1 last year. This was mainly explained by the decrease in revenue and partly offset by the increase in gross profit margin, while the increase in operating expenses was relatively moderate in Q1.
- Revenue for Q2 2024 is projected to increase to €660-700 million. Revenue in H2 is expected to increase by 10% or more compared to H1 2024. Full year 2024 is expected to be another year of growth for ASM.
Comment
“ASM started the year on a solid footing”, said Benjamin Loh, CEO of ASM. “Revenue in the first quarter came in at €639 million, which was a decrease of 8% compared to the same quarter of last year. Revenue was at the top end of our guidance of €600-640 million.
Bookings increased to €698 million, up 10% at constant currencies from the first quarter 2023. Bookings again included a healthy level of tool orders related to the gate-all-around (GAA) 2nm technology node. Current traction confirms our expectation that the GAA migration is going to be a strong driver for ASM. Memory bookings showed a solid increase compared to a lower level of last year, for the larger part driven by HBM-related demand for high-performance DRAM applications. In addition, bookings from the Chinese market remained at a strong level in the first quarter. Order intake in power/analog/wafer (excluding silicon carbide Epi) continued to be relatively low, reflecting the soft conditions in this market segment.
Gross margin increased to 52.9% compared to 51.1% in the first quarter of last year, on the back of a generally positive mix, and in particular continued strong sales from China with above-average profitability. The operating profit margin decreased slightly from 31.2% to 30.0%. Operating expenses increased by a moderate 3% compared to the first quarter of last year.”
Outlook
While market conditions are still mixed in the first part of the year, we expect the recovery in wafer fab equipment (WFE) spending to gradually pick up speed in the remainder of the year. We expect revenue in the second quarter of 2024, at constant currencies, to increase to a range of €660-700 million, which is higher than we indicated with our Q4 report.
We now project ASM’s revenue in the second half to increase 10% or more compared to the first half, at constant currencies. With that, we expect 2024 to be another growth year for ASM. We still expect sales from the Chinese market in the second half to be lower, but the decrease will be more moderate than we previously anticipated. Sales in advanced logic/foundry, mainly for GAA, and in the memory segment are expected to be higher in the second half.
In part supported by previously announced new customer wins we still expect our silicon carbide (SiC) Epi sales to increase by a meaningful double-digit percentage in 2024. However, this growth will be somewhat slower than we expected at the start of the year, as some SiC customers have recently been pushing out new investments.
We reiterate our revenue target for 2025 (range of €3.0-3.6 billion), driven by an expected rebound in the WFE market, including the move of GAA 2nm technology into high-volume manufacturing in 2025, and a further recovery in the memory markets.
Annual General Meeting
On March 26, 2024, ASM published the agenda, convocation, and other materials for the 2024 Annual General Meeting (AGM), to be held on May 13, 2024, in Almere, which as also earlier announced, includes, amongst other things, approvals of:
- the annual accounts of 2023;
- the proposal to declare a regular dividend of €2.75 per common share;
- the reappointment of Mr. Lamouche and the appointment of Ms. Micki and Mr. Van den Brink as members of the Supervisory Board;
- the appointment of Ernst & Young Accountants LLP as auditor for the financial year 2025;
- a change of the remuneration policy for, and remuneration of, the Supervisory Board;
- a proposal to withdraw common shares; and,
- an amendment to ASM’s articles of association.
Please refer to the AGM documents available on our website for more detailed information.
About ASM
ASM International N.V., headquartered in Almere, the Netherlands, and its subsidiaries design and manufacture equipment and process solutions to produce semiconductor devices for wafer processing, and have facilities in the United States, Europe, and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol: ASM). For more information, visit ASM's website at www.asm.com.
Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, changes in import/export regulations, pandemics, epidemics and other risks indicated in the company's reports and financial statements. The company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Quarterly earnings conference call details
ASM will host the quarterly earnings conference call and webcast on Wednesday, April 24, 2024, at 3:00 p.m. CET.
Conference-call participants should pre-register using this link to receive the dial-in numbers, passcode and a personal PIN, which are required to access the conference call.
A simultaneous audio webcast and replay will be accessible at this link.
| Contacts | |
| Investor and media relations | Investor relations |
| Victor Bareño | Valentina Fantigrossi |
| T: +31 88 100 8500 | T: +31 88 100 8502 |
| E: investor.relations@asm.com | E: investor.relations@asm.com |
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