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Besi: Q2-2010 Report

27 Jul 2010

Quarterly Orders, Backlog, Revenue and Profitability Exceed Expectations

Duiven, the Netherlands, July 27, 2010 - BE Semiconductor Industries N.V. ("the Company" or "Besi") (NYSE Euronext: BESI), a leading manufacturer of assembly equipment for the semiconductor industry, announces its results for the second quarter ended June 30, 2010.

Key Highlights
  • Q2-10 orders up 37.4% vs. Q1-10 as industry recovery continues. Order growth primarily related to increased demand for die attach systems by Asian assembly subcontractors
  • Q2-10 revenue growth of 58.1% and gross margins of 38.7% exceed prior guidance
  • Backlog of € 136.0 million up 48.3% vs. Q1-10
  • Net income of € 15.4 million in Q2-10 vs. € 2.6 million net loss in Q1-10
  • Adjusted net income of € 11.0 million vs. € 1.2 million in Q1-10 excluding tax and restructuring items
  • Q3-10 outlook: Sequential quarterly profit improvement continues on 10-15% forecast revenue growth

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: "We are pleased to report that Besi returned to profitability in the second quarter of 2010. Shipment and order levels increased significantly due to the continued expansion of industry demand for memory, personal computing and smart phone devices and our ability to ramp production at our global facilities more rapidly than anticipated. Record backlog of € 136.0 million resulted primarily from a substantial increase in orders for our die attach equipment by Asian subcontractors and IDMs as they continue to build assembly capacity in response to elevated demand for semiconductor devices. Our priority continues to be the expansion of our production capacity and supply chain to meet accelerated market demand and elevated backlog levels.

Second quarter revenue and net income levels represent the most visible evidence of the progress we have made in transforming Besi via our "One-Besi" organizational restructuring and acquisitions into a broad based equipment supplier efficiently serving both mainstream and niche assembly markets. Second quarter revenue and gross margins exceeded prior guidance and adjusted net margins reached 12.3%. Profitability in the second quarter of 2010 was favorably influenced by sequential revenue growth of 58%, improved gross margins and operating leverage as we were able to ramp revenue with only a limited increase in our overhead levels. We expect positive sequential profit trends to continue into the third quarter of 2010 based on forecasted revenue growth of 10-15%."

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Contact
Communications
Frida Hirt
T: +41 41 749 5847
F: +41 41 749 5177
frida.hirt@besi.com
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