DRUNEN, Netherlands, July 20 /PRNewswire-FirstCall/ -- BE
Semiconductor Industries N.V. ("the Company" or "Besi") (Nasdaq:
BESI; Euronext: BESI), a leading manufacturer of assembly equipment
for the semiconductor industry, today announced its financial
results for the second quarter ended June 30, 2006. Net sales for
the second quarter of 2006 were euro 49.8 million, representing an
increase of 34.6% as compared to net sales of euro 37.0 million in
the second quarter of 2005 and an increase of 11.9% as compared to
net sales of euro 44.5 million in the first quarter of 2006. The
year-over- year sales increase was principally due to increased
shipments of Besi's assembly equipment for both leadframe and array
connect applications. The increase in net sales in the second
quarter of 2006 as compared to the first quarter of 2006 was
slightly below prior guidance due to delays in two customer
shipments which are anticipated to be delivered in the third
quarter of 2006. Besi's net income for the second quarter of 2006
was euro 4.9 million or euro 0.15 and euro 0.13 per basic and
diluted share, respectively, compared to a net loss of euro 4.5
million, or euro 0.14 per basic and diluted share for the same
period last year. Net income for the first quarter of 2006 was euro
1.0 million or euro 0.03 per basic and diluted share. The
year-over-year improvement in net income reflects improved industry
conditions as well as cost and manufacturing efficiencies realized
from Besi's operational restructuring in 2005. Net income for the
second quarter of 2006 includes a euro 1.2 million gain on the sale
of certain non-core activities (euro 0.04 per basic share and euro
0.03 per diluted share) and a net tax benefit of euro 1.4 million
relating to such transaction, partially offset by a reversal of
certain tax assets (euro 0.04 per basic share and euro 0.03 per
diluted share). Net bookings for the second quarter of 2006 were
euro 46.5 million, an increase of 22.0% as compared to net bookings
for the second quarter of 2005 of euro 38.1 million primarily as a
result of increased orders for array connect applications,
particularly die bonding and packaging equipment. Consistent with
prior guidance, bookings declined by 22.1% in the second quarter of
2006 as compared to net bookings of euro 59.7 million in the first
quarter of 2006 due primarily to a decline in orders for leadframe
applications from the first quarter. On a customer basis, orders in
the second quarter of 2006 as compared to the first quarter of 2006
reflected a 33% decrease by subcontractors and a 14% decrease by
independent device manufacturers ("IDMs"). Backlog at June 30, 2006
was euro 68.7 million as compared to euro 72.0 million at March 31,
2006, representing a decrease of 4.6%. Approximately 74% and 26%,
respectively, of backlog at June 30, 2006 was for array connect and
leadframe assembly applications as compared to 70% and 30%,
respectively, of backlog at March 31, 2006. The book-to-bill ratio
was 0.93 in the second quarter of 2006 as compared to 1.03 in the
second quarter of 2005 and 1.34 in the first quarter of 2006.
Besi's gross margin for the second quarter of 2006 was 42.2% as
compared to 33.6% for the second quarter of 2005 and 38.3% for the
first quarter of 2006. Gross margin for the second quarter exceeded
guidance primarily due to better than anticipated efficiencies
realized in the sale of die bonding and packaging equipment. Besi's
operating expenses decreased to euro 16.6 million, or 33.4% of net
sales, in the second quarter of 2006, as compared to euro 17.7
million, or 48.0% of net sales in the second quarter of 2005 due
primarily to the benefits of restructuring efforts that occurred
during 2005. Operating expenses during the quarter ended June 30,
2006 increased by euro 1.7 million from euro 14.9 million in the
first quarter of 2006. At June 30, 2006, cash and cash equivalents
declined to euro 70.5 million as compared to euro 74.5 million at
March 31, 2006 principally as a result of increased working capital
requirements related to higher sales and a net reduction in
indebtedness of euro 2.1 million. Total debt and capital leases at
June 30, 2006 was euro 84.1 million. Comments Richard W. Blickman,
President and Chief Executive Officer of the Company, commented:
"This was another successful quarter for the Company. We achieved
further improvement in profitability as a result of our 2005
operating restructuring and our focus on the higher margin, more
advanced process applications of the assembly equipment market. As
a consequence, our operating margin has improved from -15% in the
first quarter of 2005 to approximately 9% in the second quarter of
2006." Outlook Based on current backlog and customer shipment
schedules, Besi expects that net sales and order levels in the
third quarter of 2006 will be in the range of a decrease of 5% to
an increase of 5% as compared to the second quarter of 2006. The
Company believes that sales and order trends currently reflect a
cautious attitude toward new equipment purchases on the part of
customers, particularly subcontractors, reflecting their careful
monitoring of inventory and capacity levels. Besi anticipates that
quarterly sales and order levels could continue to fluctuate this
year based on customer capital spending trends. Besi expects that
its gross margins will range between 39-41% in the third quarter of
2006 based on a lower forecasted proportion of array connect
products in its overall sales as compared to the second quarter of
2006. In addition, operating expenses for the third quarter of 2006
are expected to decline by 0-5% as compared to the second quarter
of 2006. Capital expenditures are forecast to be approximately euro
1.0 million in the third quarter of 2006 as compared to euro 0.8
million in the second quarter of 2006. Investor Conference Call /
Webcast Details Besi will host a conference call to discuss the
results for the second quarter of 2006 on Thursday, July 20, 2006
at 4:00 p.m. Continental European Time (3:00 p.m. London Time,
10:00 a.m. New York Time). Interested participants may call (31) 20
531 5856 for the teleconference. A live webcast of the conference
call will be available at Besi's website (http://www.besi.com/). A
replay of the call will be available approximately one hour after
the end of the call through Thursday July 27, 2006. To access the
replay, please dial (31) 70 315 4300 and use the pass code 124
507#. About BE Semiconductor Industries N.V. BE Semiconductor
Industries N.V. designs, develops, manufactures, markets and
services die sorting, flip chip and multi-chip die bonding,
packaging and plating equipment for the semiconductor industry's
assembly operations. Its customers consist primarily of leading
U.S., European, Asian, Korean and Japanese semiconductor
manufacturers and subcontractors which utilize its products for
both array connect and conventional leadframe manufacturing
processes. Besi reports its financial statements in accordance with
United States generally accepted accounting principles, or US GAAP,
in accordance with applicable United States regulations. However,
European Union regulations require Besi to also report its
financial statements in accordance with international financial
reporting standards, or IFRS, as adopted and endorsed by the EU.
The Company's IFRS Consolidated Balance Sheets, Consolidated
Statements of Operations, Consolidated Cash Flow Statements and
some additional information regarding the differences between IFRS
and US GAAP (including a reconciliation of net income and equity
from US GAAP to IFRS) are made available on the Company's website
at http://www.besi.com/. Caution Concerning Forward Looking
Statements This press release contains forward-looking statements,
which are found in various places throughout the press release,
including statements relating to expectations of orders, net sales,
product shipments, backlog, expenses, gross margins, operating
results and capital expenditures. The words "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. While these forward looking statements represent
our judgments and future 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 our expectations. These factors include, but are
not limited to, those listed or discussed in Besi's Annual Report
on Form 20-F for the year ended December 31, 2005, as well as the
risk that anticipated orders may not materialize or that orders
received may be postponed or canceled, generally without charges;
the volatility in the demand for semiconductors and our products
and services; acts of terrorism and violence; overall global
economic conditions; risks, such as changes in trade regulations,
currency fluctuations, political instability and war, associated
with substantial foreign customers, suppliers and foreign
manufacturing operations; potential instability in foreign capital
markets; the risk of failure to successfully manage our expanding
and more diverse operations; and other key factors that could
adversely affect our businesses and financial performance contained
in our filings and reports, including those with the United States
Securities and Exchange Commission. We are under no obligation to
(and expressly disclaim any such obligation to) update or alter our
forward-looking statements whether as a result of new information,
future events or otherwise. Contacts: Richard W. Blickman Cor te
Hennepe President & CEO Director of Finance Tel. (31) 416
384345 Tel. (31) 416 384345 David Pasquale The Ruth Group Tel. (1)
646 536-7006 Consolidated Statements of Operations (Euro in
thousands, except share and per share data) Three Months Ended Six
Months Ended June 30, June 30, (unaudited) (unaudited) 2005 2006
2005 2006 Net sales 36,960 49,794 73,597 94,322 Cost of sales
24,537 28,791 50,908 56,266 Gross profit 12,423 21,003 22,689
38,056 Selling, general and administrative expenses 10,223 11,354
19,446 21,326 Research and development expenses 4,867 4,519 10,166
8,883 Restructuring charges 1,718 (15) 1,718 (255) Amortization of
intangible assets 931 752 2,154 1,507 Total operating expenses
17,739 16,610 33,484 31,461 Operating income (loss) (5,316) 4,393
(10,795) 6,595 Other income - 1,216 - 1,216 Interest expense, net
(708) (772) (1,280) (1,518) Income (loss) before taxes and minority
interest (6,024) 4,837 (12,075) 6,293 Income tax expense (benefit)
(1,506) (101) (3,019) 297 Income (loss) before minority interest
(4,518) 4,938 (9,056) 5,996 Minority interest (15) (59) (9) (80)
Net income (loss) (4,533) 4,879 (9,065) 5,916 Net income (loss) per
share - basic (0.14) 0.15 (0.28) 0.18 Net income (loss) per share -
diluted (0.14) 0.13 (0.28) 0.17 Number of shares of shares used in
computing per share amounts: - basic 32,728,502 32,762,932
32,685,765 32,750,638 - diluted 32,728,502 41,883,956(1) 32,685,765
41,838,703(1) (1) The calculation of the diluted income per share
assumes conversion of the Company's 5.5% outstanding convertible
notes due 2012 into 8,975,610 ordinary shares, which would have a
dilutive effect. The financial information has been prepared in
accordance with US GAAP. Consolidated Balance Sheets (Euro in
thousands) December 31, 2005 June 30, 2006 (unaudited) ASSETS Cash
and cash equivalents 72,950 70,523 Accounts receivable 31,456
39,662 Inventories 53,779 59,562 Other current assets 12,737 15,077
Total current assets 170,922 184,824 Property, plant and equipment
40,398 38,201 Goodwill 68,864 66,356 Other intangible assets 14,619
12,945 Other non-current assets 6,233 9,584 Total assets 301,036
311,910 LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable to banks
5,693 2,964 Current portion of long-term debt and capital leases
15,457 17,364 Accounts payable 14,916 17,891 Accrued liabilities
17,663 19,786 Total current liabilities 53,729 58,005 Convertible
notes 46,000 46,000 Other long-term debt and capital leases 15,636
17,790 Deferred tax liabilities 821 715 Other non-current
liabilities 3,261 3,330 Total non-current liabilities 65,718 67,835
Minority interest 178 245 Total shareholders' equity 181,411
185,825 Total liabilities and shareholders' equity 301,036 311,910
The financial information has been prepared in accordance with US
GAAP. Consolidated Cash Flow Statements (Euro in thousands) Three
Months Ended Six Months Ended June 30, June 30, (unaudited)
(unaudited) 2005 2006 2005 2006 Cash flows from operating
activities: Net income (loss) (4,533) 4,879 (9,065) 5,916
Depreciation and amortization 2,343 2,053 4,995 4,137 Other
non-cash items (2,226) (2,685) (2,219) (2,498) Changes in working
capital (245) (6,327) (6,325) (11,166) Net cash used in operating
activities (4,661) (2,080) (12,614) (3,611) Cash flows from
investing activities: Capital expenditures (859) (756) (4,490)
(1,286) Acquisition of subsidiaries, net of cash acquired (62) -
(61,862) - Proceeds from sale of assets and liabilities - 1,000 -
1,000 Proceeds from sale of equipment 503 101 640 340 Net cash
provided by (used in) investing activities (418) 345 (65,712) 54
Cash flows from financing activities: Payment of bank lines of
credit (8,675) (886) (12,585) (2,617) Proceeds from (payments of)
debt and capital leases 6,669 (1,015) 6,210 4,201 Net proceeds from
issuance of convertible notes 9 - 43,726 - Net cash provided by
(used in) financing activities (1,997) (1,901) 37,351 1,584 Net
increase (decrease) in cash and cash equivalents (7,076) (3,636)
(40,975) (1,973) Effect of changes in exchange rates on cash and
cash equivalents 330 (334) 646 (454) Cash and cash equivalents at
beginning of the period 72,990 74,493 106,573 72,950 Cash and cash
equivalents at end of the period 66,244 70,523 66,244 70,523 The
financial information has been prepared in accordance with US GAAP.
Supplemental Information (unaudited) (Euro in million, unless
stated otherwise) FINANCIAL Q1-2005 Q2-2005 Q3-2005 Q4-2005 Net
sales per productline: Array connect 22.1 60% 26.2 71% 30.9 72%
32.2 68% Leadframe 14.5 40% 10.8 29% 12.2 28% 15.4 32% Total 36.6
100% 37.0 100% 43.1 100% 47.6 100% Net sales per geographical area:
Asia Pacific 19.9 55% 19.7 53% 26.5 62% 24.5 51% Europe and ROW
12.9 35% 11.3 31% 12.2 28% 15.7 33% USA 3.8 10% 6.0 16% 4.4 10% 7.4
16% Total 36.6 100% 37.0 100% 43.1 100% 47.6 100% Gross margin (1):
Array connect 35.4% 38.4% 39.3% 41.9% Leadframe 31.7% 30.2% 34.5%
33.2% Total 33.9% 36.1% 37.9% 39.1% Operating income / as % of net
sales (5.5) -15.0% (5.3) -14.3% 2.5 5.8% 3.1 6.5% EBITDA / as % of
net sales (2.8) -7.7% (3.0) -8.1% 4.7 10.9% 5.3 11.1% ORDERS
Q1-2005 Q2-2005 Q3-2005 Q4-2005 Per productline: Array connect 27.7
69% 26.7 70% 30.8 72% 37.9 77% Leadframe 12.6 31% 11.4 30% 11.9 28%
11.1 23% Total 40.3 100% 38.1 100% 42.7 100% 49.0 100% Per
geographical region: Asia Pacific 22.8 57% 24.5 64% 26.7 63% 28.7
59% Europe and ROW 14.7 36% 9.0 24% 10.0 23% 14.2 29% USA 2.8 7%
4.6 12% 6.0 14% 6.1 12% Total 40.3 100% 38.1 100% 42.7 100% 49.0
100% Per customer type: IDM 24.2 60% 19.7 52% 27.5 64% 22.7 46%
Subcontractors 16.1 40% 18.4 48% 15.2 36% 26.3 54% Total 40.3 100%
38.1 100% 42.7 100% 49.0 100% Mar 31, 2005 June 30, 2005 Sept 30,
2005 Dec 31, 2005 Backlog: Array connect 37.1 68% 37.7 68% 37.7 68%
43.3 76% Leadframe 17.4 32% 18.0 32% 17.7 32% 13.5 24% Total 54.5
100% 55.7 100% 55.4 100% 56.8 100% HEADCOUNT (2) Mar 31, 2005 June
30, 2005 Sept 30, 2005 Dec 31, 2005 Europe 850 69% 820 67% 754 65%
723 64% Asia Pacific 291 24% 320 26% 329 28% 331 29% USA 88 7% 90
7% 83 7% 82 7% Total 1,229 100% 1,230 100% 1,166 100% 1,136 100%
Financial Q1-2006 Q2-2006 Net sales per productline: Array connect
29.1 65% 32.1 64% Leadframe 15.4 35% 17.7 36% Total 44.5 100% 49.8
100% Net sales per geographical area: Asia Pacific 28.5 64% 32.0
64% Europe and ROW 11.4 26% 12.8 26% USA 4.6 10% 5.0 10% Total 44.5
100% 49.8 100% Gross margin (1): Array connect 39.8% 42.9%
Leadframe 35.5% 40.5% Total 38.3% 42.2% Operating income / as % of
net sales 2.2 4.9% 4.4 8.8% EBITDA / as % of net sales 4.3 9.7% 6.4
12.9% ORDERS Q1-2006 Q2-2006 Per productline: Array connect 36.0
60% 33.0 71% Leadframe 23.7 40% 13.5 29% Total 59.7 100% 46.5 100%
Per geographical region: Asia Pacific 38.7 65% 26.0 56% Europe and
ROW 13.6 23% 13.4 29% USA 7.4 12% 7.1 15% Total 59.7 100% 46.5 100%
Per customer type: IDM 33.9 57% 29.3 63% Subcontractors 25.8 43%
17.2 37% Total 59.7 100% 46.5 100% Mar 31, 2006 June 30, 2006
Backlog: Array connect 50.2 70% 50.8 74% Leadframe 21.8 30% 17.9
26% Total 72.0 100% 68.7 100% HEADCOUNT (2) Mar 31, 2006 June 30,
2006 Europe 744 63% 736 61% Asia Pacific 348 30% 394 32% USA 81 7%
81 7% Total 1,173 100% 1,211 100% (1) Excludes the cost of sales
adjustment related to the Datacon acquisition in all 2005 quarters.
(2) Includes temporary personnel. DATASOURCE: BE Semiconductor
Industries N.V. CONTACT: Richard W. Blickman, President & CEO,
+31-416 384345, , or Cor te Hennepe, Director of Finance, +31-416
384345, , both of BE Semiconductor Industries N.V.; or David
Pasquale of The Ruth Group, +1-646 536-7006, Web site:
http://www.besi.nl/
Copyright