BILTHOVEN, The Netherlands, Feb. 11, 2002 (PRIMEZONE) -- ASM International N.V. (Nasdaq:ASMI) and (Euronext Amsterdam:ASM) reported today its final 2001 fourth quarter and full year results.
-- 2001 Net Profit was Euro 6.1 million or Euro 0.12 per share;
Fourth Quarter Net Loss amounted to Euro 9.0 million or Euro
(0.18) per share
-- 2001 Net Sales Euro 561.1 million, Fourth Quarter 2001 Net Sales
Euro 105.3 million
-- Wafer Processing Equipment 2001 Net Sales down 11%,
Assembly/Packaging Net Sales down 60%
-- Fourth Quarter orders booked up 22% from the Third Quarter
-- Year-end Backlog down 8% from the Third Quarter
The net loss for the fourth quarter of 2001 amounted to Euro 9.0 million or Euro 0.18 diluted net loss per share, compared to net earnings of Euro 31.6 or Euro 0.64 diluted net earnings per share for the same period in 2000. Net earnings for the year 2001 were Euro 6.1 million or Euro 0.12 diluted net earnings per share, compared to Euro 94.3 million or Euro 1.94 diluted net earnings per share for the year 2000.
Net sales
Net sales for the fourth quarter of 2001 amounted to Euro 105.3 million, a decline of 60.5% compared to net sales for the same period of last year of Euro 266.9 million and 3.2% above the sales level of the third quarter of 2001.
Net sales for the year 2001, totaled Euro 561.1 million, 40.0% lower than the net sales of Euro 935.2 million for the year 2000. Net sales of wafer processing equipment (front-end segment) amounted to Euro 336.6 million, a decrease of 11.2% compared to 2000 and representing 60.0% of total net sales. Net sales of assembly and packaging equipment and materials (back-end segment) amounted to Euro 224.5 million, a decrease of 59.6% compared to 2000 and representing 40.0% of net sales.
The market for semiconductor equipment weakened substantially in 2001. The decrease in net sales reflects the impact of the extraordinarily severe downturn in the semiconductor industry, as semiconductor manufacturers delayed purchases and cut capital spending, thus reducing the demand for semiconductor equipment during the year 2001.
Operations
The consolidated Gross profit margin for the year 2001 decreased to 39.8% of net sales, 4.8 percentage points below the gross profit margin of 44.6% of net sales for the year 2000. The gross profit margin for the fourth quarter of 2001 was 37.0%, slightly above the 35.9% gross profit margin realized in the third quarter of 2001.
The decrease in the gross margin for the year 2001, as compared to the gross margin for 2000, is the result of the significantly lower sales volumes, which resulted in underutilization of ASMI's manufacturing capacity. The Company has implemented expense reduction programs in response to the lower sales volumes to reduce fixed costs. The Company believes that these programs will not interfere with its ability to react quickly to any market upturn.
Selling, general and administrative expenses decreased 24.1% from Euro 147.3 million in 2000 to Euro 111.9 million in 2001. As a percentage of net sales, selling, general and administrative expenses increased to 19.9% for 2001 from 15.8% for the year 2000. In the fourth quarter of 2001 selling, general and administrative expenses were Euro 26.0 million, 3.0% below Euro 26.8 million in expenses for the third quarter of 2001.
Research and development expenses increased from Euro 73.8 million or 7.9% of net sales in 2000 to Euro 79.7 million or 14.2% of net sales in 2001. In the fourth quarter of 2001 research and development expenses were Euro 21.0 million, an increase of 5.4% as compared to Euro 19.9 million in the third quarter of 2001. Despite the lower sales level the Company continued its research and development expenditures at a high level.
Amortization of goodwill. The amortization of goodwill increased to Euro 7.6 million for the year 2001 from Euro 4.3 million in 2000. This increase relates to the amortization of goodwill resulting from the acquisition of an additional 4.7% interest in ASM Pacific Technology in July 2000.
Earnings from operations, after amortization of goodwill, amounted to Euro 24.3 million or 4.3% of net sales in 2001 compared to Euro 191.8 million or 20.5% of net sales in 2000. In the fourth quarter of 2001 the Company realized a net loss from operations of Euro 10.0 million, a small improvement compared to a net loss from operations of Euro 12.1 million in the third quarter of 2001. Before amortization of goodwill, earnings from operations were Euro 31.8 million for the year 2001 and a net loss from operations of Euro 8.1 million for the fourth quarter of 2001.
Bookings and backlog
New orders received in the fourth quarter of 2001 amounted to Euro 93.4 million, 22% higher than the Euro 76.7 million level of new orders received in the third quarter of 2001, and as such the highest level of any quarter during 2001. The backlog at the end of December 2001 amounted to Euro 132.6 million, a decrease of 8.2% compared to our backlog of Euro 144.5 at the end of September 2001. The book-to-bill ratio for the fourth quarter was 0.89 compared to 0.75 in the third quarter of 2001.
Of the backlog at December 31, 2001, Euro 107.2 million pertains to front-end operations and Euro 25.4 million pertains to back-end operations. The largest part of the backlog in front-end relates to 300mm equipment for first tier customers with delivery scheduled for the first half of 2002.
Financial position
In November and December 2001, the Company completed an offering of US$115 million of 5% convertible subordinated notes due on November 15, 2005. The notes are convertible into common shares at US$18.85 per share, subject to technical adjustments in certain circumstances.
The proceeds of the offering were used to fund our strategic investment in NuTool, Inc., to repay outstanding balances under our multicurrency revolving credit facility and for general corporate purposes, including working capital and capital expenditures.
The offering has further strengthened ASMI's financial position to a level which enables the Company to continue its high level of research and development expenses during this industry downturn, while also maintaining the operational flexibility to react quickly to a market upturn.
Outlook
The current observations in the industry are that the overall market for semiconductors does show a few small signs of recovery as a result of increase in sales of integrated circuits, higher prices and lower inventory levels. However, the continuing uncertainty in the economy and the absence of a strong driver in the end market for integrated circuits makes the outlook unclear for sustained industry growth, and subsequent increased demand for capital equipment.
ASMI has taken some aggressive steps to reduce operating expense, including a 15% reduction in total staffing during 2001. The Company is prepared to take additional selective actions during 2002 to reduce operating expense if sales expectations would dictate that, while protecting the Company's strategically important technology programs and ability to respond to a market upturn.
The Company believes that, when the industry recovers, it will be well positioned in the front-end due to its strategies in 300 mm, low-k, high-k, SiGe and copper, and in the back-end due to its established position as a leading supplier of a full spectrum of innovative products.
For the long-term, ASMI strongly believes that its firm commitments in research and development, its readiness in new technologies, design-in wins at top tier customers and recent strategic partnerships provide the Company with a broad basis for long-term market share gains.
Based on the above, the Company anticipates sales and net earnings (loss) for the first quarter of 2002 to be at similar levels as in the fourth quarter of 2001.
ASM INTERNATIONAL CONFERENCE CALL ASM International will host an investor conference call and Web cast on: TUESDAY, FEBRUARY 12, 2002 at 9:00 a.m. U.S. Eastern time 15:00 Continental European time. The teleconference dial-in numbers are as follows: United States: 888.273.9885 International: +1 612.332.0523
The teleconference will be available for digitized replay from 2:30 p.m. (U.S. Eastern time) on Tuesday, February 12 through Thursday, February 14 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: 625401
A simultaneous audio Web cast will be accessible at www.asm.com and www.companyboardroom.com.
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 as well as assembly and packaging through their facilities in the United States, Europe, Japan and Asia. ASM International's common stock trades on Nasdaq (symbol ASMI) and the Euronext Stock Exchange in Amsterdam (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, currency fluctuations, the timing of significant orders, market acceptance of new products, competitive factors, risk factors related to litigation, commercial and economic disruption due to terrorist activity, armed conflict or political instability and other risks indicated in filings from time to time with the U.S. Securities and Exchange Commission, including the Company's Forms 20-F and Form 6-K as filed.
The full report, with all financial tables, is available at the following URLs: http://www.primezone.com/agencynr/hugin/asm_4_2001total.pdf http://www.primezone.com/agencynr/hugin/earnings.doc