En uit de side note:
Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“Besi’s first half 2018 results showed continued year over year improvement in revenue and net income of 12.8% and 9.9%, respectively. The solid results reflected the extension of favorable industry trends from 2017, additions to advanced packaging capacity by customers and Besi’s ongoing execution of
strategic initiatives. Revenue growth in H1-18 was broad based with contributions from each of our principal end user markets. First half net income of € 84.3 million combined with peer leading gross and net margins of 56.5% and 26.7% highlight the success of Besi’s products in the market place and the efficiency of our business model. Q2-18 financial metrics were also favorable with sequential revenue up 4.0% vs. Q1-18, gross margin at the high end of guidance, net income growing sequentially by 27.2% and a net margin of 29.3%.
During Q2-18, we experienced a sharp decline in orders for high end smart phone applications including a € 28 million order cancellation at quarter end from a single customer via its Asian subcontractors. This decline reflected both a digestion by customers of the substantial capacity added last year and in Q1-18 as well as a delay in the roll out of certain high end mobile features. Customer order patterns for assembly equipment can adjust quickly depending on economic conditions, capacity utilization rates and the timing and success of new product introductions, particularly for mobile applications.
Fluctuations in high-end smart phone orders overshadowed positive trends in H1-18 in some of Besi’s other end user applications such as automotive, computing and spares/service. They also overshadowed notable orders from Chinese subcontractors for mainstream electronics applications during Q2-18. Further, they obscured the significant opportunities ahead to leverage Besi’s technology
for the demands of the new digital society such as AI, 5G connectivity, expanded data, computing and memory needs, block chain software deployment, increased automotive electronic content and the Internet of Things. As these needs are realized, the assembly equipment market will become an ever more critical step in the semiconductor value chain for which we believe Besi has the premier advanced packaging portfolio and market position.
Looking to Q3-18, we estimate that revenue will decline by 25-30% sequentially due to unfavorable conditions in the high end mobile market, typical second half seasonal patterns and weakness in the high performance computing area from Chinese and Taiwanese subcontractors. As a result, we started adjusting temporary production levels in Q2-18. In parallel, strategic plan execution continues apace to further reduce European personnel and other structural costs and enhance future profitability.
We are initiating a new € 75 million share repurchase program through October 26, 2019. The new program will replace our current 2.0 million share program, under which approximately 1.5 million shares have been repurchased to date. It is intended for capital reduction purposes and to help offset dilution related to our Convertible Notes and share issuance under employee stock plans.”