BILTHOVEN, The Netherlands, Feb. 18, 2003 (PRIMEZONE) -- ASM International N.V. (Nasdaq:ASMI) (Euronext Amsterdam:ASM):
- 2002 Net Loss was euro 29.9 million or euro 0.61 per share; Fourth quarter Net Loss amounted to euro 6.7 million or euro 0.14 per share
- 2002 Net Sales euro 518.8 million, down 8 % compared to 2001; Fourth quarter 2002 Net Sales euro 137.3 million, up 30% compared to fourth quarter 2001 and 2% down from previous quarter
- Wafer Processing Equipment 2002 Net Sales down 21%, Assembly/Packaging 2002 Net Sales up 12%
- 2002 New Orders at euro 529.1 million, up 52% from euro 348.0 million in 2001; Fourth quarter bookings at euro 99.6 million, 35% below the third quarter; Year-end Backlog of euro 142.9 million, down 21% from previous quarter
ASM International N.V. reported today its final 2002 fourth quarter and full year results.
The net loss for the fourth quarter of 2002 amounted to euro 6.7 million or euro 0.14 diluted net loss per share, compared to a net loss of euro 9.0 million or euro 0.18 diluted net loss per share for the same period in 2001. Net losses for the year 2002 were euro 29.9 million or euro 0.61 diluted net loss per share, compared to net earnings of euro 6.1 million or euro 0.12 diluted net earnings per share for the year 2001.
Net sales
Net sales for the fourth quarter of 2002 amounted to euro 137.3 million, an increase of 30.4% compared to net sales for the same period last year of euro 105.3 million and 1.9 % below the sales level of the third quarter of 2002.
Net sales for the year 2002, totaled euro 518.8 million, 7.5% lower than the net sales of euro 561.1 million for the year 2001. Net sales of wafer processing equipment (Front-end segment) amounted to euro 266.9 million, a decrease of 20.7% compared to 2001 and represented 51.4% of total net sales. Net sales of assembly and packaging equipment and materials (Back-end segment) amounted to euro 251.9 million, an increase of 12.2% compared to 2001 (or 18.3% growth when calculated in HK$, the reporting currency of our Back-end operations). Back-end represents 48.6% of consolidated ASMI net sales.
The market for semiconductor equipment is still impacted by the severe downturn in the industry, which started late 2000. This has resulted in low capital spending by semiconductor manufacturers, in particular for capacity-driven purchases. Despite this decline in capacity-driven demand, ASMI has seen a continued interest and orders for new technology and 300mm systems in 2002, in particular for Front-end operations, which benefited from design-in wins at top-tier customers. Sales in Back-end grew primarily due to customer interest in ASMI's new generation wire bonders and other equipment resulting in market share gains. Overall, the increased order activity and customer demand has resulted in a growth of sales levels in the second half of 2002 as compared to the first half of 2002 and the second half of 2001, while sales levels in the first half of 2001 were still benefiting from the relative high backlog at the end of 2000.
Operations
The consolidated gross profit margin for the year 2002 amounted to 36.8% of net sales, 3.0 percentage points below the gross profit margin of 39.8% of net sales for the year 2001. The gross profit margin for the fourth quarter of 2002 was 37.1% of net sales, 1.0 percentage point below the 38.1% gross profit margin realized in the third quarter of 2002. The gross profit margin for Front-end decreased 6.9 percentage points from 39.1% of net sales in 2001 to 32.2% of net sales in 2002, and the Back-end gross profit margin increased 0.8 percentage points from 40.8% of net sales in 2001 to 41.6% of net sales in 2002. The decrease in gross margin for Front-end is the result of lower sales volumes, low margins on new technology shipments for 300mm systems, which were approximately 52% of our 2002 net sales, and the impact of a lower exchange rate of the US dollar in 2002 as compared to 2001. The increase in gross profit margin for Back-end is the result of the higher sales volume in 2002 compared to 2001.
Selling, general and administrative expenses decreased 3.1% from euro 111.9 million in 2001 to euro 108.4 million in 2002. As a percentage of net sales, selling, general and administrative expenses increased to 20.9% for 2002 from 19.9% for the year 2001. In the fourth quarter of 2002 selling, general and administrative expenses were euro 28.8 million, slightly above the euro 28.6 million in expenses for the third quarter of 2002. Included in the fourth quarter 2002 were expenses amounting to euro 2.5 million related to relocation of Back-end production facilities from Hong Kong to the mainland of China.
Research and development expenses increased from euro 79.7 million or 14.2% of net sales in 2001 to euro 88.3 million or 17.0% of net sales in 2002. In the fourth quarter of 2002 research and development expenses were euro 24.5 million, compared to euro 21.0 million in the fourth quarter of 2001, due to expenses related to the development of the Company's Rapid Thermal Processing and 300mm vertical furnace programs in its Front-end operations and bonus programs in its Back-end operations. The Company continued to keep the research and development expenses at a high level despite the market circumstances and concentrated its investments in research and development on equipment and product solutions for the next generations of semiconductor devices. Amortization of goodwill.
As of January 1, 2002 ASMI adopted SFAS 142 "Goodwill and Other Intangible Assets." This new accounting standard requires that goodwill not be amortized, but rather tested at least annually for impairment. Consequently, ASMI stopped amortizing goodwill as of January 1, 2002. No impairment loss was recorded upon adoption of SFAS 142. The Company also tested goodwill for impairment at December 31, 2002, and concluded that goodwill was not impaired. Amortization of goodwill for the full year 2001 amounted to euro 7.6 million and for the fourth quarter of 2001 euro 1.9 million. Earnings (loss) from operations amounted to a loss of euro 6.0 million in 2002 compared to earnings of euro 24.3 million in 2001. In the fourth quarter of 2002, the Company realized a net loss from operations of euro 2.4 million compared to a net loss from operations of euro 10.0 million in the fourth quarter of 2001.
Net interest and other financial income (expenses) increased to a net expense of euro 10.4 million in 2002 compared to a net expense of euro 1.0 million in 2001. For the fourth quarter of 2002 the net expense was euro 3.6 million compared to a net expense of euro 0.7 million in the fourth quarter of 2001. The increase in net expense in 2002 was the result of increased borrowings and the full impact of the Company's US$ 115.0 million 5% convertible notes, issued in November 2001, amortization of debt issuance costs related to these convertible notes, and a foreign exchange loss as a result of the changes in foreign exchanges rates between the Euro, the US dollar, the Hong Kong dollar and the Japanese yen in 2002, compared to a small foreign exchange gain in 2001.
Bookings and backlog
New orders received in the fourth quarter of 2002 amounted to euro 99.6 million, 34.6% lower than the euro 152.2 million level of new orders received in the third quarter of 2002. The backlog at the end of December 2002 amounted to euro 142.9 million, a decrease of 20.9% compared to backlog of euro 180.6 million at the end of September 2002. For the full year of 2002, new orders received were euro 529.1 million and the book-to-bill ratio was 1.02. Of the backlog at December 31, 2002, euro 109.9 million pertains to Front-end operations and euro 33.0 million pertains to Back-end operations.
Banking facilities
In December 2002, ASMI renewed a multicurrency revolving credit facility with a consortium of banks in the amount of euro 70.0 million, consisting of two facilities of euro 35.0 million with terms of 12 and 18 months, respectively. At December 31, 2002 ASMI had drawn euro 10.0 million under this facility, which is available to support the Front End operations of our Group. At year-end ASMI had a total of euro 94.5 million in undrawn bank facilities available for use in its Front-end operations and euro 48.7 for use in the Back-end operations
Outlook
Uncertain market and economic conditions and the lack of visibility in the semiconductor industry make projections for 2003 difficult, if not impossible. In the short term the Company intends to focus on strict cost control and reducing headcount where feasible in its Front-end operations while maintaining a leading position in both its Front-end and Back-end operations.
The Company believes that the increased order activity and design-in wins at top-tier customers for new technology equipment it experienced during 2002 is the result of its strong commitment to research and development in leading edge technology. ASMI believes that it is increasingly well positioned to substantially benefit from the next industry recovery in both the Front-end segment and the Back-end segment of the semiconductor equipment market.
ASM INTERNATIONAL CONFERENCE CALL ASM International will host an investor conference call and web cast on WEDNESDAY, FEBRUARY 19, 2002 at 9:00 a.m. US Eastern time 15:00 Continental European time. The teleconference dial-in numbers are as follows: United States: 800.450.0788 International: +1 612.332.0820 The teleconference will be available for digitized replay from 2:15 p.m. (U.S. Eastern time) on Wednesday, February 19th until Friday, February 21st at 11:59 p.m. (U.S. Eastern time). The replay numbers are: United States: 800.475.6701 International +1 320.365.3844 In both cases, the following access code is required: 670426.
A simultaneous audio web cast will be accessible at www.asm.com and www.companyboardroom.com.
About ASM
ASM International N.V., based in Bilthoven, the Netherlands, is a global company servicing one of the most important and demanding industries in the world. The Company possesses a strong technology base, state-of-the-art manufacturing facilities, a competent and qualified workforce and a highly trained, strategically distributed support network. ASM International and its subsidiaries design and manufacture equipment and materials used to produce semiconductor devices. ASM International and its subsidiaries provide production solutions for wafer processing (Front-end segment) as well as assembly and packaging (Back-end segment) through facilities in the United States, Europe, Japan and Asia. ASM International's common stock trades on Nasdaq (symbol ASMI) and the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASMI's website at http://www.asm.com.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: All matters discussed in this statement, 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 duration of the current industry downturn specifically, currency fluctuations, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholder and other issues, commercial and economic disruption due to terrorist activity, armed conflict or political instability and other risks indicated in the company's filings from time to time with the U.S. Securities and Exchange Commission, including, but not limited to, the company's report on Form 20-F and Form 6-K as filed.
Please use the following link to view the press release including financial results: http://reports.huginonline.com/892298/113676.pdf