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BE Semiconductor Industries N.V. Announces Q4-20 and Full Year 2020 Results

BE Semiconductor Industries N.V.
·31-min read

Q4-20 Revenue and Net Income up 18.7% and 32.3% vs. Q4-19
Results Exceeds Expectations. Orders up 65.8% vs. Q3-20

FY-20 Revenue and Net Income up 21.7% and 62.7% vs. FY-19
Proposed Dividend of € 1.70 per Share, up 68.3%

DUIVEN, The Netherlands, Feb. 19, 2021 (GLOBE NEWSWIRE) -- BE Semiconductor Industries N.V. (the “Company" or "Besi") (Euronext Amsterdam: BESI; OTC markets: BESIY, Nasdaq International Designation), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the fourth quarter and year ended December 31, 2020.

Key Highlights Q4-20

  • Revenue of € 109.7 million, up 1.3% versus Q3-20 and above guidance. Up 18.7% versus Q4-19 primarily due to higher shipments for mobile applications to Asian subcontractors

  • Orders up 65.8% versus Q3-20 and 56.5% versus Q4-19 due to broad based demand increase across Besi’s end-user markets, particularly mobile and automotive applications

  • Gross margin of 58.3% declined 2.5 points versus Q3-20 due primarily to adverse forex influences. Up 2.0 points versus Q4-19 primarily due to a more favorable product mix and increased labor efficiencies

  • Net income grew to € 44.6 million, an increase of € 10.6 million versus Q3-20 and € 10.9 million versus Q4-19. Similarly, Besi’s net margin rose to 40.7% versus 31.3% in Q3-20 and 36.5% in Q4-19

  • Excluding tax benefits recognized in each of Q4-20 and Q4-19, net income declined by € 0.6 million, or 1.8%, versus Q3-20 but increased by € 11.3 million, or 51.1%, versus Q4-19. Net margin decreased slightly to 30.4% in Q4-20 versus 31.3% in Q3-20 but increased by 6.5 points versus Q4-19

  • Net cash increased to € 198.7 million, up € 40.0 million (+25.2%) versus September 30, 2020

Key Highlights FY 2020

  • Revenue of € 433.6 million increased by € 77.4 million, or 21.7%, primarily as a result of improved industry conditions, higher shipments for mobile applications due to new 5G product cycle and increased investment by Chinese customers

  • Orders of € 472.1 million grew € 123.4 million (+35.4%)

  • Gross margin reached 59.6%, up 3.8 points versus 2019 primarily due to Besi’s strong advanced packaging market position, a more favorable product mix and increased labor efficiencies

  • Net income of € 132.3 million grew € 51.0 million (+62.7%). Net margin rose to 30.5% versus 22.8% in 2019. Net margin ex tax benefits rose to 27.9% versus 19.6% in 2019

  • Proposed 2020 dividend of € 1.70 per share. Represents pay-out ratio of 94%

Outlook

  • Q1-21 revenue estimated to increase 30%-40% versus Q4-20. Strong demand continues with current Q1-21 orders exceeding total for Q4-20. Gross margin anticipated to range between 58% and 60%

(€ millions, except EPS)

Q4-
2020

Q3-
2020

Δ

Q4-
2019

Δ

FY
2020

FY
2019


Δ

Revenue

109.7

108.3

+1.3

%

92.4

+18.7

%

433.6

356.2

+21.7

%

Orders

157.3

94.9

+65.8

%

100.5

+56.5

%

472.1

348.7

+35.4

%

Operating Income

40.7

42.0

-3.1

%

26.8

+51.9

%

149.9

91.9

+63.1

%

EBITDA

45.5

46.5

-2.2

%

31.9

+42.6

%

169.0

111.7

+51.3

%

Net Income

44.6*

34.0

+31.2

%

33.7*

+32.3

%

132.3

81.3

+62.7

%

EPS (basic)

0.62

0.47

+31.9

%

0.47

+31.9

%

1.82

1.12

+62.5

%

EPS (diluted)

0.55

0.43

+27.9

%

0.43

+27.9

%

1.67

1.06

+57.5

%

Net Cash & Deposits

198.7

158.7

+25.2

%

130.3

+52.5

%

198.7

130.3

+52.5

%

* Includes tax benefits of € 11.2 million and € 11.6 million in Q4-20 and Q4-19, respectively. Excluding such benefits, net income was € 33.4 million and € 22.1 million in Q4-20 and Q4-19, respectively.

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“In 2020, Besi’s results rebounded strongly with revenue increasing by 21.7% to reach € 433.6 million and net income rising by 62.7% to reach € 132.3 million. In addition, orders of € 472.1 million increased by 35.4% versus last year as an industry recovery took hold in the fourth quarter of 2019 and accelerated in the second half of 2020. Besi’s results were even more impressive considering the multiple headwinds faced and organizational challenges posed by the global COVID-19 pandemic, increased trade tensions between the US and China, decreased shipments to automotive end-user markets and an approximate 8% decrease in the value of the US dollar versus the euro in the second half of the year.

Besi’s revenue and order growth this year benefited from improved industry conditions, increased shipments for mobile applications due to a new 5G smart phone product cycle and increased investment by Chinese customers. Profit growth was aided by higher revenue levels and a gross margin expansion of 3.8 points associated with Besi’s strong advanced packaging market position and more favorable product mix. It was also aided by relatively stable fixed production headcount levels which helped drive labor efficiencies. Year over year operating expenses grew by only 1.7% versus 2019 despite strong top line growth due to continued structural cost reduction initiatives and reduced corporate travel and overhead associated with the pandemic and the shift to the work at home economy. As a result, net margins rose from 22.8% in 2019 to 30.5% in 2020.

Q4-20 results exceeded expectations with revenue and net income reaching € 109.7 million and € 44.6 million, respectively, increases of 18.7% and 32.3% versus Q4-19. Revenue exceeded guidance as the industry upturn gained momentum and demand growth broadened across Besi’s end-user markets. Of note, Q4-20 orders grew by 65.8% sequentially to reach € 157.3 million, a record level for a quarter which is typically our weakest of the year. Bookings growth was fueled primarily by strong demand for high-end and mid-range smart phones by Asian subcontractors, a resurgence of demand from European automotive IDMs and incremental capacity purchases for cloud infrastructure applications. Net income growth of € 10.9 million versus Q4-19 primarily reflected higher gross margins as a result of increased labor efficiencies as well as a 7.5% reduction in operating expenses, both of which more than offset unfavorable headwinds from a weaker dollar versus the euro. As a result, net margins grew to 30.4% versus 23.9% in Q4-19 excluding favorable deferred tax benefits recognized in each respective period.

We ended the year with a solid liquidity base consisting of cash, cash equivalents and deposits aggregating € 598.7 million, or € 8.22 per basic share. Further, Besi’s net cash of € 198.7 million increased by € 68.4 million, or 52.5%, versus year end 2019. Given profits earned in 2020, continued strong cash flow generation and our solid financial position, we propose to pay a cash dividend of € 1.70 per share for approval at Besi’s 2021 AGM. The proposed distribution is the eleventh consecutive annual dividend paid and reflects a pay-out ratio relative to net income of 94%.

Looking ahead, we estimate that Q1-21 revenue will increase by 30-40% versus Q4-20 with gross margin ranging between 58% and 60%. Baseline operating expenses are anticipated to increase by 15-20% versus the € 23.3 million realized in Q4-20 primarily due to higher variable sales-related expenses and product development activity. Total operating expenses are expected to increase by approximately 50-55% versus Q4-20 primarily due to approximately € 10 million of non-cash, share based compensation expense.

We maintain a favorable outlook as we enter 2021. Our positive stance is reinforced by our Q4-20 results and by the expanded capex budgets of our principal customers. In addition, orders received to date in Q1-21 exceed total bookings for all of Q4-20. This represents another sign of the current strength in customer demand. The principal question is the slope of the industry trajectory this year given the spread of new COVID-19 variants and the emergence of component shortages and transportation constraints within global supply chains.

Longer term, we are optimistic about Besi’s prospects given our strong performance during the last industry downturn and the current pandemic and favorable secular growth drivers. Anticipated growth will be driven primarily by 5G network expansion and feature/functionality upgrades, continued investment in cloud computing infrastructure and artificial intelligence applications, advances in electric vehicle production and autonomous driving and significant investment by the Chinese government to build out its semiconductor production capacity. In addition, we see IDMs more actively engaged in the deployment of next generation processes than the last investment cycle. In this regard, we have seen increased focus by memory manufacturers on high-speed, high-accuracy flip chip production versus traditional wire bonding solutions and more engagement on the topic of hybrid bonding for the development of next generation applications. Our hybrid bonding joint development agreement with Applied Materials holds significant promise to expand our addressable market and increase our share of wallet at Besi’s leading IDM customers.”

Fourth Quarter Results of Operations

€ millions

Q4-2020

Q3-2020

Δ

Q4-2019

Δ

Revenue

109.7

108.3

+1.3%

92.4

+18.7%

Orders

157.3

94.9

+65.8%

100.5

+56.5%

Book to Bill Ratio

1.4

0.9

+0.5

1.1

+0.3

Besi’s Q4-20 revenue increased by 1.3% versus Q3-20 and was higher than prior guidance (flat to down 15%) as the industry upturn accelerated during the quarter with particular growth in customer demand for mobile and cloud infrastructure applications. Versus Q4-19, revenue increased by 18.7% primarily due to higher shipments for mobile applications to Asian subcontractors.

Orders of € 157.3 million rose 65.8% versus Q3-20 and 56.5% versus Q4-19 due to broad based bookings increase across Besi’s primary end-user markets, particularly mobile and automotive applications. Per customer type, IDM orders increased € 33.9 million, or 77.6%, versus Q3-20 and represented 49% of total orders. Subcontractor orders increased by € 28.5 million, or 55.7%, versus Q3-20 and represented 51% of total orders.

€ millions

Q4-2020

Q3-2020

Δ

Q4-2019

Δ

Gross Margin

58.3%

60.8%

-2.5

56.3%

+2.0

Operating Expenses

23.3

23.9

-2.5%

25.2

-7.5%

Financial Expense, net

3.8

3.2

+18.8%

3.3

+15.2%

EBITDA

45.5

46.5

-2.2%

31.9

+42.6%

Besi’s gross margin of 58.3% in Q4-20 decreased by 2.5 points versus Q3-20 primarily due to adverse forex influences resulting from a sharp decline of the USD versus EUR and, to a lesser extent, to a less favorable product mix. Versus Q4-19, gross margin increased by 2.0 points primarily due to Besi’s strong advanced packaging position, more favorable product mix and increased labor efficiencies associated with lower fixed Asian production headcount.

Q4-20 operating expenses declined by € 0.6 million (-2.5%) versus Q3-20 and € 1.9 million (-7.5%) versus Q4-19. The year over year decrease was primarily due to a (i) € 1.7 million reduction of travel and overhead costs related to the COVID-19 pandemic and (ii) € 1.1 million decrease in R&D expenses, primarily related to increased R&D capitalization associated with new product development activity.

Financial expense, net, increased by € 0.6 million (+18.8%) versus Q3-20 primarily due to Besi’s issuance in August of € 150 million of 0.75% Convertible Notes due 2027.

€ millions

Q4-2020*

Q3-2020

Δ

Q4-2019*

Δ

Net Income

44.6

34.0

+31.2%

33.7

+32.3%

Net Margin

40.7%

31.3%

+9.4

36.5%

+4.2

Tax Rate

-21.2%

12.4%

-33.6

-43.9%

+22.7

* Includes deferred tax benefits of € 11.2 million and € 11.6 million in Q4-20 and Q4-19, respectively. Excluding such benefits, Besi’s effective tax rate would have been 9.2% and 5.5%, respectively, and its net income and net margin would have been € 33.4 million and 30.4% in Q4-20 and € 22.1 million and 23.9% in Q4-19.

Net income of € 44.6 million in Q4-20 increased by € 10.6 million (+31.2%) versus Q3-20 as a result of an € 11.2 million upward revaluation of deferred tax assets associated with Besi’s improved financial performance and outlook. Excluding deferred tax benefits in Q4-20 and Q4-19, net income declined by € 0.6 million, or 1.8%, versus Q3-20 but increased by € 11.3 million, or 51.1%, versus Q4-19. Versus Q4-19, the increase was primarily due to significantly higher revenue and gross margin levels realized and lower operating expenses principally as a result of strategic cost control initiatives.

Full Year Results of Operations

€ millions

FY 2020

FY 2019

Δ

Revenue

433.6

356.2

+21.7%

Orders

472.1

348.7

+35.4%

Gross Margin

59.6%

55.8%

+3.8

Operating Income

149.9

91.9

+63.1%

Net Income

132.3

81.3

+62.7%

Net Margin

30.5%

22.8%

+7.7

Tax Rate *

3.8%

-4.1%

+7.9

* Effective tax rates in 2020 and 2019 were 12.0% and 10.8%, respectively, excluding € 11.2 million and € 11.6 million of deferred tax benefits in each of Q4-20 and Q4-19. Excluding such benefits, Besi’s net income and net margin would have been € 121.1 million and 27.9% in 2020 and € 69.7 million and 19.6% in 2019.

Besi’s revenue increased by € 77.4 million, or 21.7%, in 2020 versus 2019. The increase reflects improved industry conditions post the pandemic outbreak, increased shipments for mobile applications due to a new 5G smart phone product cycle and increased investment by Chinese customers. Similarly, orders increased by 35.4% versus 2019. In 2020, bookings by IDMs and subcontractors represented approximately 45% and 55%, respectively, of Besi’s total orders versus 61% and 39%, respectively, in 2019.

Besi’s operating income of € 149.9 million grew by 63.1% year over year primarily due to (i) significant revenue growth and (ii) a gross margin expansion of 3.8 points associated with Besi’s strong advanced packaging market position, more favorable product mix and increased productivity as lower Asian fixed headcount levels helped drive labor efficiencies. In addition, operating expenses increased by only 1.7% versus 2019 due to ongoing cost reduction efforts and lower travel and overhead expenses as a result of the pandemic. As a consequence, Besi’s net income of € 132.3 million increased € 51.0 million, or 62.7% while net margins grew by 7.7 points to reach 30.5%.

Financial Condition

€ millions

Q4
2020

Q3
2020

Δ

Q4
2019

Δ

FY 2020

FY
2019


Δ

Total Cash and Deposits

598.7

564.5

+6.1

%

408.4

+46.6

%

598.7

408.4

+46.6

%

Net Cash and Deposits

198.7

158.7

+25.2

%

130.3

+52.5

%

198.7

130.3

+52.5

%

Cash flow from Ops.

51.7

60.9

-15.1

%

36.3

+42.4

%

162.0

120.1

+34.9

%

At the end of Q4-20, cash and deposits aggregated € 598.7 million, an increase of 46.6% versus year end 2019 primarily as a result of the issuance of € 150 million of Convertible Notes due 2027 and significantly increased profitability versus 2019. Net cash and deposits grew to € 198.7 million, an increase of € 40.0 million (+25.2%) compared to Q3-20 and € 68.4 million (+52.5%) versus year end 2019. During the quarter, Besi generated cash flow from operations of € 51.7 million which was used to fund (i) € 8.3 million of share repurchases, (ii) € 5.4 million of capitalized development spending and (iii) € 1.6 million of capital expenditures.

During Q4-20, € 8.0 million principal amount of the 2016 Convertible Notes were converted into 401,354 ordinary shares. As a result, the principal amount outstanding of the 2016 Convertible Notes decreased to € 110.0 million.

Share Repurchase Activity
During the quarter, Besi repurchased 197,923 of its ordinary shares at an average price of € 41.98 per share for a total of € 8.3 million. In 2020, a total of 0.5 million shares were purchased at an average price of € 38.05 per share for a total of € 17.8 million. Cumulatively, as of December 31, 2020, 3.5 million shares have been purchased under the current € 125 million share repurchase program at an average price of € 24.05 per share for a total of € 84.8 million. At year end 2020, Besi held approximately 5.7 million shares in treasury at an average cost of € 16.43, equal to 7.3% of its shares outstanding.

Dividend for 2020
Given its earnings, cash flow generation and prospects, Besi’s Board of Management has proposed a cash dividend of € 1.70 per share for the 2020 year for approval at its AGM on April 30, 2021. The proposed dividend reflects a pay-out ratio of 94%, will be payable from May 7, 2021 and represents an increase of 68.3% versus 2019.

Outlook

Based on its December 31, 2020 backlog and feedback from customers, Besi forecasts for Q1-21 that:

  • Revenue will increase by 30-40% versus the € 109.7 million reported in Q4-20.

  • Gross margin will range between 58-60% versus the 58.3% realized in Q4-20.

  • Baseline operating expenses are expected to increase by 15-20% from € 23.3 million in Q4-20 primarily due to higher variable sales-related expenses and product development activity.

  • Total operating expenses are expected to increase by approximately 50-55% versus Q4-20 primarily due to approximately € 10 million of non-cash, share based compensation expense.

Composition Supervisory Board
Besi proposes two changes to the composition of its Supervisory Board at its upcoming Annual General Meeting of Shareholders to be held on April 30, 2021 (“2021 AGM”) due to the retirement of two of its current members.

The Supervisory Board proposes to nominate Dr Laura Oliphant to be appointed as a Supervisory Board member for a four-year term at the 2021 AGM. Ms Oliphant has served in an advisory capacity to Besi’s Supervisory Board since August 2020. In addition, the Supervisory Board proposes to nominate Ms Elke Eckstein to be appointed as a Supervisory Board member for a four-year term with effect as of September 1, 2021. Ms Eckstein (56) currently serves as CEO and President of ENICS Group Electronics, an electronic manufacturing services company based in Zürich, Switzerland, a position she has held since 2019. Prior thereto, she served in senior management positions at a variety of global semiconductor, photonics and electronics firms in Germany, USA, France and Taiwan, including Weidmüller Group, Osram AG, Global Foundries, AMD, Altis Semiconductor, Infineon AG and Siemens AG. Ms Eckstein is considered independent for the purposes of the Dutch Corporate Governance Code.

Ms Mona ElNaggar intends to resign her position as a member of the Supervisory Board prior to the end of her current term to pursue other interests after 9 years of service. Her resignation will become effective at such time that Ms Eckstein’s appointment as a Supervisory Board member becomes effective. In addition, Mr Douglas Dunn, Vice Chairman of the Supervisory Board, will not seek re-appointment for another term upon the expiration of his current two-year term after twelve years of service.

If the proposed appointments are approved at the 2021 AGM, the diversity of the Supervisory Board will increase, with female representation increasing from 20% to 40%.

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 5851. To access the audio webcast and webinar slides, please visit www.besi.com.

Important Dates 2020

• Publication Annual Report 2020

March 19, 2021

• Publication Q1 results

April 30, 2021

• Annual General Meeting of Shareholders

April 30, 2021, (10:00 am CET)

• Publication Q2/Semi-annual results

July 27, 2021

• Publication Q3/Nine-month results

October 26, 2021

• Publication Q4/Full year results

February 2022

Dividend Information*

• Proposed ex-dividend date

May 4, 2021

• Proposed record date

May 5, 2021

• Proposed payment of 2020 dividend

Starting May 7, 2021

*Subject to approval at Besi’s AGM on April 30, 2021

About Besi
Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. 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, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY Nasdaq International Designation) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

Contacts:

Richard W. Blickman, President & CEO

CFF Communications

Hetwig van Kerkhof, SVP Finance

Frank Jansen

Tel. (31) 26 319 4500

Tel. (31) 20 575 4024

investor.relations@besi.com

besi@cffcommunications.nl

Statement of Compliance
The accounting policies applied in the condensed consolidated financial statements included in this press release are the same as those applied in the Annual Report 2020 which will be published on March 19, 2021 and were authorized for issuance by the Board of Management and Supervisory Board on February 18, 2021. In accordance with Article 393, Title 9, Book 2 of the Netherlands Civil Code, Ernst & Young Accountants LLP has issued an unqualified auditor’s opinion on the Annual Report 2020. The Annual Report 2020 will be published on March 19, 2021 and still has to be adopted by the Annual General Meeting on April 30, 2021.

The condensed financial statements included in this press release have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union but do not include all of the information required for a complete set of IFRS financial statements.

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, 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” contains such 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 any inability to maintain continued demand for our products; 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; the extent and duration of the COVID-19 pandemic and measures taken to contain the outbreak, and the associated adverse impacts on the global economy, financial markets, and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of 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, particularly to the extent occurring in the Asia Pacific region; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers as a result of the COVID-19 pandemic; those additional risk factors set forth in Besi's annual report for the year ended December 31, 2019 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 expressly disclaim any 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
December 31,
(unaudited)

Year Ended
December 31,
(audited)

2020

2019

2020

2019

Revenue

109,674

92,394

433,623

356,195

Cost of sales

45,717

40,407

175,056

157,389

Gross profit

63,957

51,987

258,567

198,806

Selling, general and administrative expenses

15,832

16,718

75,802

71,519

Research and development expenses

7,448

8,494

32,905

35,366

Total operating expenses

23,280

25,212

108,707

106,885

Operating income

40,677

26,775

149,860

91,921

Financial expense, net

3,843

3,333

12,343

13,784

Income before taxes

36,834

23,442

137,517

78,137

Income tax expense (benefit)

(7,812

)

(10,302

)

5,242

(3,183

)

Net income

44,646

33,744

132,275

81,320

Net income per share – basic

0.62

0.47

1.82

1.12

Net income per share – diluted

0.55

0.43

1.67

1.06

Number of shares used in computing per share amounts:

- basic

72,591,533

72,269,497

72,501,386

72,796,679

- diluted 1

85,440,188

82,621,349

83,773,385

83,149,840


Consolidated Balance Sheets

(euro in thousands)

December
31, 2020
(audited)

September
30, 2020

(unaudited)

June 30,
2020
(unaudited)

March 31,
2020

(unaudited)

December 31,
2019

(audited)

ASSETS

Cash and cash equivalents

375,406

339,459

251,621

347,639

278,398

Deposits

223,299

225,071

115,000

80,000

130,000

Trade receivables

93,218

95,925

117,158

91,797

81,420

Inventories

51,645

52,051

52,122

46,872

46,578

Other current assets

11,964

11,029

12,768

14,598

13,854

Total current assets

755,532

723,535

548,669

580,906

550,250

Property, plant and equipment

27,840

26,675

27,142

29,067

30,383

Right of use assets

9,873

8,769

9,678

10,264

11,132

Goodwill

44,484

44,880

45,262

45,423

45,289

Other intangible assets

50,660

47,802

46,101

44,380

42,593

Deferred tax assets

21,924

12,117

13,225

14,607

14,978

Other non-current assets

1,043

1,058

1,094

1,097

2,255

Total non-current assets

155,824

141,301

142,502

144,838

146,630

Total assets

911,356

864,836

691,171

725,744

696,880

Notes payable to banks

-

-

-

487

476

Current portion of long-term debt

-

91

91

513

515

Accounts payable

44,017

38,715

45,939

34,310

30,278

Accrued liabilities

57,469

55,225

51,382

61,769

55,359

Total current liabilities

101,486

94,031

97,412

97,079

86,628

Long-term debt

399,956

405,736

272,932

278,299

277,067

Lease liabilities

6,952

5,831

6,438

7,104

7,859

Deferred tax liabilities

12,840

12,437

8,480

8,376

8,858

Other non-current liabilities

18,895

18,122

18,228

18,197

17,960

Total non-current liabilities

438,643

442,126

306,078

311,976

311,744

Total equity

371,227

328,679

287,681

316,689

298,508

Total liabilities and equity

911,356

864,836

691,171

725,744

696,880


Consolidated Cash Flow Statements

(euro in thousands)

Three Months Ended
December 31,

(unaudited)

Year Ended
December 31,
(audited)

2020

2019

2020

2019

Cash flows from operating activities:

Income before income tax

36,834

23,442

137,517

78,137

Depreciation and amortization

4,833

5,143

19,176

19,825

Share based payment expense

1,456

1,083

10,470

7,289

Financial expense, net

3,843

3,333

12,343

13,784

Changes in working capital

8,856

6,232

(1,341

)

22,194

Income tax paid

(2,106

)

(936

)

(11,080

)

(16,359

)

Interest paid

(2,019

)

(2,033

)

(5,064

)

(4,762

)

Net cash provided by operating activities

51,697

36,264

162,021

120,108

Cash flows from investing activities:

Capital expenditures

(1,642

)

(692

)

(4,242

)

(2,511

)

Proceeds from sale of property

345

159

345

159

Capitalized development expenses

(5,353

)

(4,144

)

(17,621

)

(13,226

)

Repayments of (investments in) deposits

1,207

-

(93,920

)

50,000

Net cash provided by (used in) investing activities

(5,443

)

(4,677

)

(115,438

)

34,422

Cash flows from financing activities:

Proceeds from (payments of) bank lines of credit

-

476

(434

)

(2,336

)

Proceeds from (payments of) debt

(92

)

(385

)

(507

)

(419

)

Proceeds from convertible notes

-

-

147,756

-

Payments of lease liabilities

(1,078

)

(884

)

(3,700

)

(3,525

)

Dividends paid to shareholders

-

-

(73,486

)

(122,419

)

Purchase of treasury shares

(8,324

)

(5,825

)

(17,781

)

(44,678

)

Net cash provided by (used in) financing activities

(9,494

)

(6,618

)

51,848

(173,377

)

Net increase (decrease) in cash and cash
equivalents

36,760

24,969

98,431

(18,847

)

Effect of changes in exchange rates on cash and
cash equivalents

(813

)

(298

)

(1,423

)

1,706

Cash and cash equivalents at beginning of the
period

339,459

253,727

278,398

295,539

Cash and cash equivalents at end of the period

375,406

278,398

375,406

278,398


Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

REVENUE

Q1-2019

Q2-2019

Q3-2019

Q4-2019

Q1-2020

Q2-2020

Q3-2020

Q4-2020

Per geography:

Asia Pacific

58.6

72

%

68.6

74

%

67.3

75

%

63.8

69

%

77.6

85

%

105.7

85

%

86.6

80

%

91.1

83

%

EU / USA

22.8

28

%

24.1

26

%

22.4

25

%

28.6

31

%

13.7

15

%

18.6

15

%

21.7

20

%

18.6

17

%

Total

81.4

100

%

92.7

100

%

89.7

100

%

92.4

100

%

91.3

100

%

124.3

100

%

108.3

100

%

109.7

100

%

ORDERS

Q1-2019

Q2-2019

Q3-2019

Q4-2019

Q1-2020

Q2-2020

Q3-2020

Q4-2020

Per geography:

Asia Pacific

55.9

67

%

61.2

74

%

59.2

72

%

80.4

80

%

102.0

86

%

88.1

87

%

75.9

80

%

122.7

78

%

EU / USA

27.5

33

%

21.5

26

%

23.0

28

%

20.1

20

%

16.6

14

%

13.2

13

%

19.0

20

%

34.6

22

%

Total

83.4

100

%

82.7

100

%

82.2

100

%

100.5

100

%

118.6

100

%

101.3

100

%

94.9

100

%

157.3

100

%

Per customer type:

IDM

57.5

69

%

55.4

67

%

43.6

53

%

58.3

58

%

47.4

40

%

44.6

44

%

43.7

46

%

77.6

49

%

Subcontractors

25.9

31

%

27.3

33

%

38.6

47

%

42.2

42

%

71.2

60

%

56.7

56

%

51.2

54

%

79.7

51

%

Total

83.4

100

%

82.7

100

%

82.2

100

%

100.5

100

%

118.6

100

%

101.3

100

%

94.9

100

%

157.3

100

%

HEADCOUNT

Mar 31, 2019

Jun 30, 2019

Sep 30, 2019

Dec 31, 2019

Mar 31, 2020

Jun 30, 2020

Sep 30, 2020

Dec 31, 2020

Fixed staff (FTE)

Asia Pacific

1,174

72

%

1,155

72

%

1,093

71

%

1,081

70

%

1,071

70

%

1,067

70

%

1,054

70

%

1,060

70

%

EU / USA

452

28

%

450

28

%

453

29

%

453

30

%

458

30

%

455

30

%

459

30

%

463

30

%

Total

1,626

100

%

1,605

100

%

1,546

100

%

1,534

100

%

1,529

100

%

1,522

100

%

1,513

100

%

1,523

100

%

Temporary staff (FTE)

Asia Pacific

11

16

%

54

49

%

34

39

%

8

13

%

42

46

%

121

72

%

95

63

%

35

37

%

EU / USA

58

84

%

57

51

%

54

61

%

54

87

%

50

54

%

48

28

%

57

37

%

60

63

%

Total

69

100

%

111

100

%

88

100

%

62

100

%

92

100

%

169

100

%

152

100

%

95

100

%

Total fixed and temporary staff (FTE)

1,695

1,716

1,634

1,596

1,621

1,691

1,665

1,618

OTHER FINANCIAL DATA

Q1-2019

Q2-2019

Q3-2019

Q4-2019

Q1-2020

Q2-2020

Q3-2020

Q4-2020

Gross profit

45.5

55.9

%

51.9

56.0

%

49.4

55.1

%

52.0

56.3

%

51.7

56.7

%

77.0

62.0

%

65.9

60.8

%

64.0

58.3

%

Selling, general and admin expenses

21.7

26.7

%

17.5

18.9

%

15.6

17.4

%

16.7

18.1

%

23.5

25.7

%

20.1

16.2

%

16.3

15.1

%

15.8

14.4

%

Research and development expenses:

As reported

9.0

11.1

%

9.3

10.0

%

8.6

9.6

%

8.5

9.2

%

9.4

10.3

%

8.4

6.8

%

7.6

7.0

%

7.4

6.8

%

Capitalization of R&D charges

2.9

3.6

%

3.0

3.2

%

3.2

3.6

%

4.1

4.4

%

3.7

4.1

%

4.3

3.5

%

4.3

4.0

%

5.4

4.9

%

Amortization of intangibles

(2.5

)

-3.1

%

(2.5

)

-2.7

%

(2.6

)

-2.9

%

(2.6

)

-2.8

%

(2.6

)

-2.8

%

(2.1

)

-1.7

%

(2.1

)

-2.0

%

(2.2

)

-2.0

%

R&D expenses as adjusted

9.4

11.5

%

9.8

10.6

%

9.2

10.3

%

10.0

10.8

%

10.5

11.5

%

10.6

8.5

%

9.8

9.0

%

10.6

9.7

%

Financial expense (income), net:

Interest expense (income), net

2.4

2.4

2.7

2.5

2.6

2.5

3.1

3.6

Hedging results

1.3

0.7

0.8

0.7

0.7

0.5

0.3

0.3

Foreign exchange effects, net

0.2

0.1

(0.2

)

0.1

(0.7

)

(0.3

)

(0.2

)

(0.1

)

Total

3.9

3.2

3.3

3.3

2.6

2.7

3.2

3.8

Operating income (loss)

as % of net sales

14.7

18.1

%

25.1

27.1

%

25.3

28.2

%

26.8

29.0

%

18.8

20.6

%

48.4

39.0

%

42.0

38.8

%

40.7

37.1

%

EBITDA

as % of net sales

19.7

24.2

%

30.0

32.4

%

30.2

33.7

%

31.9

34.5

%

24.0

26.3

%

53.1

42.7

%

46.5

42.9

%

45.5

41.5

%

Net income (loss)

as % of net sales

9.5

11.6

%

18.9

20.4

%

19.2

21.4

%

33.7

36.5

%

13.9

15.2

%

39.8

32.0

%

34.0

31.3

%

44.6

40.7

%

Income per share

Basic

0.13

0.26

0.26

0.47

0.19

0.55

0.47

0.62

Diluted

0.13

0.25

0.25

0.43

0.19

0.50

0.43

0.55

_________________________

1) The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding