BE Semiconductor Industries N.V. Announces Q1-20 Results

Revenue of € 91.3 Million and Net Income of € 13.9 Million Up 12.2% and 46.3%, Respectively, vs. Q1-19
Q1-20 Orders Up 18.0% vs. Q4-19 and 42.2% vs. Q1-19

DUIVEN, The Netherlands, April 30, 2020 (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 first quarter ended March 31, 2020.

Key Highlights

  • Revenue of € 91.3 million, at midpoint of guidance and down 1.2% vs. Q4-19. Up 12.2% vs. Q1-19 due to higher shipments for mobile and logic applications
  • Orders of € 118.6 million, up 18.0% and 42.2% vs. Q4-19 and Q1-19, respectively, due primarily to higher bookings for mobile applications
  • Gross margin of 56.7% increased by 0.4 points vs. Q4-19 and 0.8 points vs. Q1-19 due to more favorable product mix. Exceeded guidance
  • Net income of € 13.9 million, down € 19.8 million vs. Q4-19 due to absence of € 11.6 million tax benefit recorded in Q4-19 and higher share-based compensation (as anticipated). Up € 4.4 million (+46.3%) vs Q1-19
  • Net margin decreased to 15.2% vs. 36.5% in Q4-19 (23.9% ex tax benefit) and increased vs. Q1-19 (11.6%)
  • Cash and deposits increased to € 427.6 million at end of Q1-20, reflecting Besi’s strong liquidity position. Net cash increased by € 18.0 million vs. Q4-19 to reach € 148.3 million


  • Q2-20 revenue expected to increase by approximately 5-25% vs. Q1-20 based on feedback from customers and suppliers and current COVID-19 regulations governing each of Besi’s facilities. Gross margin range of 56-58% forecast
(€ millions, except EPS)Q1-2020Q4-2019Δ Q1-2019Δ 
Orders 118.6100.5+18.0%83.4+42.2%
Operating Income18.826.8-29.9%14.7+27.9%
Net Income13.933.7*-58.8%9.5+46.3%
EPS (basic)0.190.47-59.6%0.13+46.2%
EPS (diluted)0.190.43-55.8%0.13+46.2%
Net Cash & Deposits148.3130.3+13.8%229.7-35.4%

* Includes € 11.6 million deferred tax benefit recognized in Q4-19.

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:

“Besi performed well in Q1-20 in an environment which began with a promising industry recovery and ended with great social and economic uncertainty associated with the COVID-19 pandemic. Since its outbreak, we have taken precautionary measures to protect the safety and health of our employees, customers and suppliers which is of the utmost concern. I also want to thank everyone involved for their great efforts to maintain business continuity under such difficult working conditions.

For the quarter, Besi reported revenue of € 91.3 million which was at the midpoint of guidance and roughly flat with Q4-19 despite the many production challenges presented by the pandemic as it spread globally. Revenue was up 12.2% vs. the corresponding period of last year primarily due to increased demand for mobile applications. In addition, revenue growth also reflected increased spending on logic applications for cloud infrastructure and artificial intelligence end markets, continuing a trend from 2019. Spending by Chinese customers remained healthy representing approximately 39% of Q1-20 revenue and 32% of Q1-20 orders despite the Wuhan outbreak as Besi’s Leshan operations and most Chinese customers were outside of the primary quarantine zone. Of note, sequential orders grew by 18.0% versus Q4-19 and 42.2% versus Q1-19 reflecting renewed investment by high-end handset manufacturers and their respective supply chains to add capacity in anticipation of product introductions in 2020 and 2021. Automotive end market demand suffered due to stay in place, travel and other social restrictions.

Besi maintained attractive levels of profitability amidst unprecedented global economic conditions. Due to our flexible Asian supply chain, labor force and assembly capacity, we were able to shift production and final assembly sufficiently between our Malaysian, Chinese and Singapore facilities to satisfy customer demand. Besi’s gross margin of 56.7% increased versus Q4-19 due to a more favorable product mix. Combined with lower than anticipated operating expense growth, net income reached € 13.9 million, an increase of 46.3% versus Q1-19. Similarly, our net margin grew to 15.2% versus 11.6% in Q1-19.

At present, Besi is operating with varying restrictions on its production capacity and supply chain activities depending on location. At the end of Q1-20, nearly 70% of Besi’s employees and virtually all production was based in Asia. Besi’s Malaysian operations have been deemed an essential industry and were recently permitted to resume full operation. Our Leshan, China facility has been fully functional since early March. Besi Singapore has also been classified a key economic sector and permitted to remain open, with certain restrictions, under regulations implemented on April 7, 2020 and scheduled to end on June 1, 2020.  In Europe and North America, virtually all Besi personnel are working remotely with careful adherence to local regulations. Our supply chain network is based primarily in Asia and has functioned reasonably well considering the circumstances. So far, we have benefited from our dual source supplier strategy and advance purchases of components deemed critical to Besi’s operations. Issues to date have related primarily to non-critical items.

We have a strong balance sheet to weather the current crisis. Besi ended the quarter with € 427.6 million in cash and deposits along with an unused line of credit aggregating € 80 million expandable to € 136 million at our option. Further, cash flow generation remains at healthy levels with net cash increasing by € 18.0 million, or 13.8%, in Q1-20 vs. Q4-19 as we carefully manage working capital and costs.

Based on feedback from customers and suppliers, we forecast that Q2-20 revenue will increase by approximately 5-25%. In addition, gross margin is expected to range between 56-58% as per the current product mix. Operating expenses are expected to decline by 10-15% vs. Q1-20 primarily due to lower share-based compensation expense. As a result, we expect Besi’s H1-20 financial performance to be higher than H1-19. However, it is difficult to look beyond the first half year given the current unpredictable course, recurrence and severity of this virus in leading developed economies and its implications for semiconductor demand.

Despite near term uncertainty, we are optimistic about Besi’s prospects in the next investment cycle as the world accelerates its move to the digital society. Our longer-term optimism is supported by our strong performance in the current adverse environment and by advanced packaging growth drivers including 5G network adoption, artificial intelligence and the continued build out of cloud computing infrastructure to name just a few. We have a leading position in advanced packaging which is an important enabler of the digital society and the new applications to be generated along with it. In combination with new strategic initiatives, a highly scalable and flexible production model and ample liquidity, we are well positioned to take advantage of industry opportunities no matter which way the market moves in the quarters to come.”

First Quarter Results of Operations

 Q1-2020Q4-2019Δ Q1-2019Δ 
Book to Bill Ratio1.31.1+0.2 1.0+0.3 

Q1-20 revenue of € 91.3 million decreased by 1.2% vs. Q4-19 and was at the mid-point of prior guidance. Revenue increased by 12.2% vs. Q1-19 primarily due to increased shipments for mobile and high-end logic applications.

Orders of € 118.6 million increased by 18.0% vs. Q4-19 and 42.2% vs. Q1-19 due to higher bookings for mobile applications. By customer type, subcontractor orders increased sequentially by € 29.0 million, or 68.7%, vs. Q4-19 and represented approximately 60% of total orders during the quarter. In contrast, IDM orders decreased by € 10.9 million, or 18.7%, and represented approximately 40% of total orders.

 Q1-2020Q4-2019Δ Q1-2019Δ 
Gross Margin56.7%56.3%+0.4 55.9%+0.8 
Operating Expenses33.0 25.2 +31.0%30.7 +7.5%
Financial Expense/(Income), net2.6 3.3 -21.2%3.9 -33.3%
EBITDA24.0 31.9 -24.8%19.7 +21.8%

Besi’s gross margin reached 56.7% in Q1-20, an increase of 0.4 points vs. Q4-19 and 0.8 points vs. Q1-19 due primarily to a more favorable die bonding product mix. Year over year comparisons also benefited, to a lesser extent, from favorable forex influences from an increase in the USD vs. the euro.

Q1-20 operating expenses increased by € 7.8 million (+31.0%) vs. Q4-19 due primarily to (i) € 4.9 million of higher share-based compensation expense and (ii) increased development activity. Expense growth was below prior guidance (+35-+40%). As compared to Q1-19, operating expenses increased by € 2.3 million, or 7.5%, due to higher share-based compensation expense related to an increase in Besi’s share price during 2019.

Financial expense, net, decreased by € 0.7 million vs. Q4-19 and by € 1.3 million vs. Q1-19 due to lower hedging costs.

Q1-2020Q4-2019Δ Q1-2019Δ 
Net Income13.9 33.7*-58.8%9.5 +46.3%
Net Margin15.2%36.5%*-21.3 11.6%+3.6 
Tax Rate14.4%-43.9%*+58.3 12.5%+1.9 

*Excluding a € 11.6 million deferred tax benefit, Besi’s Q4-19 net income, net margin and effective tax rate would have been € 22.1 million, 23.9% and 5.5%, respectively.

Besi’s Q1-20 net income declined by € 19.8 million vs. Q4-19 due primarily to (i) the absence of € 11.6 million of deferred tax assets recognized in Q4-19 and (ii) € 4.9 million of higher share-based compensation expense. As compared to Q1-19, net income increased by € 4.4 million (+46.3%) due primarily to a 12.2% year over year revenue increase, increased gross margins and lower financial expense, net, partly offset by € 2.1 million higher share based compensation expense and a higher effective tax rate.

Financial Condition

Q1-2020Q4-2019Δ Q1-2019Δ 
Total Cash and Deposits427.6408.4+4.7%507.5-15.7%
Net Cash and Deposits148.3130.3+13.8%229.7-35.4%
Cash flow from Operations26.636.3-26.7%47.8-44.4%

Total cash and deposits increased to € 427.6 million in Q1-20. Besi’s net cash also increased to € 148.3 million at the end of Q1-20, an increase of € 18.0 million, or 13.8%, vs. year end. During the quarter, Besi generated cash flow from operations of € 26.6 million which was used to fund (i) € 3.7 million of capitalized development spending, (ii) € 3.1 million of share repurchases and (iii) € 0.9 million of capital expenditures.

Share Repurchase Activity
Besi repurchased 93,380 of its ordinary shares during Q1-20 at an average price of € 33.61 per share for a total of € 3.1 million. Cumulatively, as of March 31, 2020, a total of 3.2 million shares have been purchased under the current € 75 million share repurchase plan at an average price of € 22.26 per share for a total of € 70.2 million. As of March 31, 2020, Besi held approximately 7.9 million shares in treasury at an average cost of € 15.27, equal to 9.9% of its shares outstanding.

Based on its current outlook and feedback from customers and suppliers, Besi estimates for Q2-20 that:

  • Revenue will increase by approximately 5-25% vs. € 91.3 million reported in Q1-20
  • Gross margin will range between 56-58% vs. 56.7% realized in Q1-20
  • Operating expenses will decrease by approximately 10-15% vs. € 33.0 million reported in Q1-20

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

Important Dates 2020 
•  Besi AGM*April 30, 2020
• Publication Q2/semi-annual resultsJuly 28, 2020
• Publication Q3/nine-month resultsOctober 22, 2020
• Publication Q4/full year resultsFebruary 2021

Dividend Information** 
• Proposed ex-dividend dateMay 5, 2020
• Proposed record dateMay 6, 2020
• Proposed payment of 2019 dividendStarting May 8, 2020

*Virtual AGM meeting commencing at 10:30 am CET
**Subject to approval at Besi’s AGM

Basis of presentation

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. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2019 Annual Report which is available on

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

Richard W. Blickman, President & CEOCFF Communications
Cor te Hennepe, SVP Finance 
Hetwig van Kerkhof, SVP FinanceFrank Jansen
Tel. (31) 26 319 4500Tel. (31) 20 575 4024

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; 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; 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
March 31,
Cost of sales39,59135,928
Gross profit51,74845,471
Selling, general and administrative expenses23,52221,685
Research and development expenses9,4319,044
Total operating expenses32,95330,729
Operating income18,79514,742
Financial expense, net2,6123,917
Income before taxes16,18310,825
Income tax expense2,3311,358
Net income13,8529,467
Net income per share – basic0.190.13
Net income per share – diluted0.190.13
Number of shares used in computing per share amounts:
- basic
- diluted 1

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

Consolidated Balance Sheets

(euro in thousands)March 31,
December 31,
Cash and cash equivalents347,639278,398
Trade receivables91,79781,420
Other current assets14,59813,854
Total current assets580,906550,250
Property, plant and equipment29,06730,383
Right of use assets10,26411,132
Other intangible assets44,38042,593
Deferred tax assets14,60714,978
Other non-current assets1,0972,255
Total non-current assets144,838146,630
Total assets725,744696,880
Notes payable to banks487476
Current portion of long-term debt513515
Accounts payable34,31030,278
Accrued liabilities61,76955,359
Total current liabilities97,07986,628
Long-term debt278,299277,067
Lease liabilities7,1047,859
Deferred tax liabilities8,3768,858
Other non-current liabilities18,19717,960
Total non-current liabilities311,976311,744
Total equity316,689298,508
Total liabilities and equity725,744696,880


Consolidated Cash Flow Statements

(euro in thousands)

Three Months Ended
March 31
 2020 2019 
Cash flows from operating activities:  
Income before income tax16,183 10,825 
Depreciation and amortization5,175 4,922 
Share based payment expense5,844 3,711 
Financial expense, net2,612 3,917 
Changes in working capital(2,875)25,373 
Income tax paid(106)(928)
Interest paid(274)(49)
Net cash provided by operating activities26,559 47,771 
Cash flows from investing activities:  
Capital expenditures(872)(628)
Capitalized development expenses(3,697)(2,927)
Repayments of deposits50,000 - 
Net cash provided by (used in) investing activities45,431 (3,555)
Cash flows from financing activities:  
Proceeds from (payments of) bank lines of credit32 363 
Proceeds from (payments of) debt(11)(11)
Payments of lease liabilities(873)(890)
Purchase of treasury shares(3,145)(12,838)
Net cash used in financing activities(3,997)(13,376)
Net increase (decrease) in cash and cash equivalents67,993 30,840 
Effect of changes in exchange rates on cash and
  cash equivalents


Cash and cash equivalents at beginning of the


Cash and cash equivalents at end of the period347,639 327,503 

Supplemental Information (unaudited)
(euro in millions, unless stated otherwise)

Per geography:          
Asia Pacific58.6 72%68.6 74%67.3 75%63.8 69%77.6 85%
EU / USA22.8 28%24.1 26%22.4 25%28.6 31%13.7 15%
Total81.4 100%92.7 100%89.7 100%92.4 100%91.3 100%
ORDERS Q1-2019Q2-2019Q3-2019Q4-2019Q1-2020
Per geography:          
Asia Pacific55.9 67%61.2 74%59.2 72%80.4 80%102.0 86%
EU / USA27.5 33%21.5 26%23.0 28%20.1 20%16.6 14%
Total83.4 100%82.7 100%82.2 100%100.5 100%118.6 100%
Per customer type:          
IDM57.5 69%55.4 67%43.6 53%58.3 58%47.4 40%
Subcontractors25.9 31%27.3 33%38.6 47%42.2 42%71.2 60%
Total83.4 100%82.7 100%82.2 100%100.5 100%118.6 100%
HEADCOUNTMar 31, 2019Jun 30, 2019Sep 30, 2019Dec 31, 2019Mar 31, 2020
Fixed staff (FTE)          
Asia Pacific1,174 72%1,155 72%1,093 71%1,081 70%1,071 70%
EU / USA452 28%450 28%453 29%453 30%458 30%
Total1,626 100%1,605 100%1,546 100%1,534 100%1,529 100%
Temporary staff (FTE)          
Asia Pacific11 16%54 49%34 39%8 13%42 46%
EU / USA58 84%57 51%54 61%54 87%50 54%
Total69 100%111 100%88 100%62 100%92 100%
Total fixed and temporary staff (FTE)1,695  1,716  1,634  1,596  1,621  
OTHER FINANCIAL DATAQ1-2019Q2-2019Q3-2019Q4-2019Q1-2020
Gross profit          
As reported45.5 55.9%51.9 56.0%49.4 55.1%52.0 56.3%51.7 56.7%
Selling, general and admin expenses:          
As reported21.7 26.7%17.5 18.9%15.6 17.4%16.7 18.1%23.5 25.7%
Research and development expenses:          
As reported9.0 11.1%9.3 10.0%8.6 9.6%8.5 9.2%9.4 10.3%
Capitalization of R&D charges2.9 3.6%3.0 3.2%3.2 3.6%4.1 4.4%3.7 4.1%
Amortization of intangibles(2.5)-3.1%(2.5)-2.7%(2.6)-2.9%(2.6)-2.8%(2.6)-2.8%
R&D expenses as adjusted9.4 11.5%9.8 10.6%9.2 10.3%10.0 10.8%10.5 11.5%
Financial expense (income), net:          
Interest expense (income), net2.4  2.4  2.7  2.5  2.5  
Hedging results1.3  0.7  0.8  0.7  0.0  
Foreign exchange effects, net0.2  0.1  (0.2) 0.1  0.1  
Total3.9  3.2  3.3  3.3  2.6  
Operating income (loss)          
  as % of net sales14.7 18.1%25.1 27.1%25.3 28.2%26.8 29.0%18.8 20.6%
  as % of net sales19.7 24.2%30.0 32.4%30.2 33.7%31.9 34.5%24.0 26.3%
Net income (loss)          
  as % of net sales9.5 11.6%18.9 20.4%19.2 21.4%33.7 36.5%13.9 15.2%
Income per share          
Basic0.13  0.26  0.26  0.47  0.19  
Diluted0.13  0.25  0.25  0.43  0.19