DUIVEN, Netherlands , Feb. 6 /PRNewswire-FirstCall/ -- BE Semiconductor Industries N.V. ('the Company' or 'Besi') (Euronext: BESI), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its financial results for the fourth quarter and year ended December 31, 2006 .
NASDAQ Delisting/SEC Deregistration
Effective January 2007 , Besi voluntarily delisted its Ordinary Shares (the 'Shares') from the NASDAQ National Market and suspended its registration of the Shares with the U.S. Securities and Exchange Commission ('SEC'). Our Euronext Amsterdam listing remains unchanged. As such, Besi will no longer be required to present its consolidated financial statements according to US GAAP. For the year ended December 31, 2006 , Besi has provided its financial results in both US GAAP and IFRS as endorsed by the EU ('IFRS') for the convenience of readers. Our financial discussion and analysis in this press release will utilize results according to US GAAP for purposes of consistency with prior 2006 quarterly disclosure.
Our statutory consolidated statements in IFRS differ in certain significant respects from our presentation of our consolidated financial statements in US GAAP. For this reason, attached to this press release we have provided a reconciliation of our net income (loss) and total equity for the years ended as of December 31, 2005 and 2006 between IFRS and US GAAP. Commencing with the first quarter of 2007, Besi will present its consolidated financial statements and quarterly guidance related thereto only according to IFRS accounting standards.
Results of Operations 2006/2005
Net sales for the year ended December 31, 2006 amounted to euro 191.2 million, an increase of 16.4% as compared to net sales of euro 164.3 million in 2005. Besi's net income in 2006 was euro 10.0 million, or euro 0.31 and euro 0.29 per basic and diluted share, respectively, as compared to a net loss of euro 5.2 million or euro 0.16 per basic and diluted share in 2005.
Besi's increase in net sales in 2006 as compared to 2005 was principally due to improved industry conditions as customers added assembly production capabilities in light of increased industry demand for wireless applications and personal computing devices and higher capacity utilization rates at customer production facilities. Specifically, the year over year increase was due to a 15.3% increase in equipment sales for array connect applications, principally die bonding and singulation equipment as well as an 18.6% increase in shipments of assembly equipment for leadframe applications, primarily trim and form equipment.
Orders in 2006 amounted to euro 188.4 million, an increase of euro 18.5 million, or 10.9%, as compared to 2005. Order growth in 2006 resulted primarily from increased demand for packaging and plating equipment by IDMs for leadframe applications. Orders for more advanced array connect applications were up only slightly versus 2005 as customers remained cautious in placing orders for new assembly process technologies. On a customer basis, orders by IDMs and subcontractors increased by 17.9% and 2.2%, respectively.
Backlog at December 31, 2006 was euro 54.0 million as compared to euro 56.8 million at December 31, 2005 and euro 65.9 million at September 30, 2006 . Approximately 72% and 28% of backlog at December 31, 2006 was represented by array connect and leadframe assembly applications, respectively. The book-to- bill ratio was 0.98 for 2006 as compared to 1.04 for 2005.
Besi's gross margin for 2006 was 40.5% as compared to 34.9% in 2005. The gross margin improvement was due primarily to (i) the benefits of increased sales volume, (ii) a significant increase in both leadframe and array connect gross margins due to the benefits of our 2005 restructuring and ongoing cost reduction efforts and (iii) the absence of charges in the 2006 period related to the Datacon acquisition.
For the full year 2006, Besi's total operating expenses increased by euro 0.6 million, or 1.0% as compared to 2005 due to ongoing cost reduction efforts which limited expense growth in spite of higher sales and the absence of restructuring charges amounting to euro 2.2 million in 2005. During the year, total headcount, including temporary personnel, increased by 110 people, or 9.5%, primarily in Asian locations with significantly lower costs per employee.
Results of Operations Fourth Quarter 2006
Net sales for the fourth quarter of 2006 were euro 49.5 million, representing an increase of 4.0% as compared to net sales of euro 47.6 million in the fourth quarter of 2005 and an increase of 4.7% as compared to net sales of euro 47.3 million in the third quarter of 2006.
Besi's net income for the fourth quarter of 2006 was euro 1.8 million or euro 0.05 per basic and diluted share, compared to net income of euro 2.6 million, or euro 0.08 per basic and euro 0.07 per diluted share in the comparable 2005 period. In the fourth quarter of 2005, Besi recorded a tax benefit of euro 0.2 million or euro 0.01 per basic and diluted share versus income tax expense of euro 0.8 million in the fourth quarter of 2006, or euro 0.02 per basic and diluted share. Net income for the third quarter of 2006 was euro 2.3 million or euro 0.07 per basic and diluted share.
The net sales increase in the fourth quarter of 2006 as compared to the fourth quarter of 2005 was due to an increase in equipment sales for array connect applications, principally packaging systems. Compared to the third quarter of 2006, Besi's net sales in the fourth quarter of 2006 were at the high end of guidance due primarily to higher than anticipated shipments of die bonding and packaging equipment.
Orders for the fourth quarter of 2006 were euro 37.7 million, a decrease of 23.1% as compared to the fourth quarter of 2005 primarily due to a decrease in die bonding equipment orders from an unusually high level in the fourth quarter of 2005. Bookings decreased by euro 6.8 million, or 15.3%, in the fourth quarter of 2006 as compared to the third quarter of 2006 due primarily to the delay in receipt of a euro 4 million packaging equipment order that was received in the first quarter of 2007. On a customer basis, bookings in the fourth quarter of 2006 as compared to the third quarter of 2006 reflected a 18.4% decrease in orders by subcontractors and a 12.9% decrease in orders by IDMs. The Company's book-to-bill ratio was 0.76 in the fourth quarter of 2006 as compared to 1.03 in the fourth quarter of 2005 and 0.94 in the third quarter of 2006.
Besi's gross margin for the fourth quarter of 2006 was 40.5% as compared to 39.1% in the fourth quarter of 2005 due primarily to higher gross margins realized for plating equipment in leadframe applications and for molding equipment in array connect applications. While this represents a slight decline in comparison to the 40.8% gross margin achieved in the third quarter of 2006, gross margin was at the high end of guidance for the fourth quarter of 2006.
Besi's operating expenses were euro 16.7 million, or 33.7% of net sales, in the fourth quarter of 2006, as compared to euro 15.5 million, or 32.6% of net sales in the fourth quarter of 2005 primarily due to higher development, warranty and SEC regulatory reporting costs. Operating expenses increased by euro 1.7 million, or 11.3%, in the fourth quarter of 2006 as compared to the third quarter of 2006 primarily due to higher sales commissions, development spending and SEC regulatory reporting costs.
Financial Condition
At December 31, 2006 , cash and cash equivalents increased to euro 81.1 million as compared to euro 74.4 million at September 30, 2006 . Total debt and capital leases declined from euro 85.7 million at September 30, 2006 to euro 66.8 million at December 31, 2006 as a result of cash flow generated from operations as well as the derecognition of a capital lease on one of our Dutch facilities.
Comments
Richard W. Blickman, President and Chief Executive Officer of the Company, commented: 'We are pleased to report that Besi made major progress in realizing many of the financial and business goals that we set at the beginning of this year. Our results underscored efforts to increase shareholder value through product diversification, continued organizational improvements and cost reduction efforts. From a revenue perspective, our growth this year was broad based. In particular, we experienced strong growth of our packaging equipment systems and die bonding equipment as a result of new product introductions like the AMS-W and the APM-Evo. We also generated euro 6 million in orders this year for die bonding and plating equipment for RFID applications, an area in which we see great promise.
The pattern of our quarterly orders in 2006 fluctuated as is characteristic of our cyclical industry. This year orders peaked in the spring due to an extremely large build-up of leadframe capacity by customers in the first quarter. Orders gradually declined in the second half of the year as customers began to absorb additional production capacity and became more cautious in managing inventory levels and capital budgets in the face of an uncertain 2007 semiconductor environment.
From a profitability perspective, our significant improvement this year was the direct result of restructuring efforts during the past three years and the successful integration of, and positive contribution by, our Datacon acquisition. More specifically, profitability in 2006 was aided by the further consolidation of our European packaging equipment and die bonding operations, implementation of our production strategy for the manufacturing of certain legacy and new assembly equipment at our Asian locations and our focus on reducing subsidiary overhead.'
Outlook
Based on our current backlog and feedback from customers, we expect that net sales in the first quarter of 2007 will decrease approximately 8-12% from the euro 49.5 million achieved in the fourth quarter of 2006. Orders for the first quarter of 2007 are expected to increase by 10-15% in comparison to the euro 37.7 million reached in the fourth quarter of 2006. On an IFRS basis, Besi expects that its gross margins will range between 36-38% in the first quarter of 2007 as compared to 39.0% in the fourth quarter of 2006. In addition, operating expenses for the first quarter of 2007 are expected to decline by 8-12% from the euro 16.9 million reported according to IFRS in the fourth quarter of 2006. Capital expenditures are forecast to be approximately euro 0.5 million in the first quarter of 2007.
At present, analyst forecasts for 2007 suggest that the semiconductor assembly equipment market will decline by approximately 5-7% as compared to 2006. It is difficult for us to assess these forecasts beyond the duration of our backlog which typically extends no more than 3-6 months. In general, our semiconductor customers remain cautious in approaching their 2007 capital equipment requirements due to current capacity utilization rates and forecasts for muted growth in consumer, business and industrial electronics applications.
All things being considered, we expect net sales for 2007 to be roughly comparable to levels achieved in 2006.
Investor Conference Call / Webcast Details
Besi will host a conference call to discuss operating results for the fourth quarter and year ended December 31, 2006 on Tuesday, February 6, 2007 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 (www.besi.com). A replay of the call will be available approximately one hour after the end of the call through Tuesday February 13, 2007 . To access the replay, please dial (31) 70 315 4300 and use the pass code 138 527#.
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. For more information about Besi, please visit our website at www.besi.com.
Auditor's Involvement in the Financial Statements of BE Semiconductor Industries N.V.
The condensed consolidated statements of operations for the year ended December 31, 2006 , condensed consolidated balance sheets as at December 31, 2006 and condensed consolidated cash flow statements for the year ended December 31, 2006 as prepared in accordance with IFRS, as endorsed by the EU, have been derived from the statutory consolidated financial statements of Besi and prepared in accordance with IFRS as endorsed by the EU for the year ended December 31, 2006 , on which Ernst & Young issued an unqualified auditor's opinion. The consolidated financial statements of the company as at December 31, 2006 are presented to the General Meeting of Shareholders for their adoption on March 22, 2007 .
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, timing of purchases of assembly equipment by customers, 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. The financial guidance set forth under the heading 'Outlook' constitutes forward looking statements. 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 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 our statutory consolidated statements. 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) 26 319 4500 Tel. (31) 26 319 4500
investor.relations@besi.nl investor.relations@besi.nl
Condensed Consolidated Statements of Operations - US GAAP
(euro in thousands, except share and per share data)
December 31,
2005 2006
Net sales 164,262 191,191
Cost of sales 106,897 113,807
Gross profit 57,365 77,384
Selling, general and administrative expenses 38,697 43,233
Research and development expenses 17,918 17,222
Restructuring charges 2,231 (255)
Amortization of intangible assets 3,728 3,008
Total operating expenses 62,574 63,208
Operating income (loss) (5,209) 14,176
Other income - 1,216
Interest expense, net (2,711) (3,071)
Income (loss) before taxes and minority interest (7,920) 12,321
Income tax expense (benefit) (2,779) 2,179
Income (loss) before minority interest (5,141) 10,142
Minority interest (40) (132)
Net income (loss) (5,181) 10,010
Net income (loss) per share - basic (0.16) 0.31
Net income (loss) per share - diluted 1) 2) (0.16) 0.29(2)
Number of shares of shares used in
computing per share amounts:
- basic 32,710,934 32,760,572
- diluted 32,710,934 41,825,503
1) The calculation of the diluted income (loss) per share for 2005 does
not assume conversion of the Company's convertible notes due 2012, as
such conversion would have an anti-dilutive effect.
2) The calculation of the diluted income per share for 2006 assumes
conversion of the Company's 5.5% convertible notes due 2012 as such
conversion would have a dilutive effect (8,975,610 weighted average
equivalent number of ordinary shares).
The financial information has been prepared in accordance with US GAAP.
Condensed Consolidated Balance Sheets - US GAAP
(euro in thousands)
December 31,
2005 2006
ASSETS
Cash and cash equivalents 72,950 81,103
Accounts receivable 31,456 36,530
Inventories 53,779 58,156
Other current assets 12,737 12,389
Total current assets 170,922 188,178
Assets held for sale - 1,449
Property, plant and equipment 40,398 22,777
Goodwill 68,864 65,544
Other intangible assets 14,619 11,371
Other non-current assets 6,233 7,474
Total assets 301,036 296,793
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks 5,693 1,699
Current portion of long-term debt
and capital leases 15,457 6,682
Accounts payable 14,916 15,463
Accrued liabilities 17,663 20,822
Total current liabilities 53,729 44,666
Convertible notes 46,000 46,000
Other long-term debt and capital leases 15,636 12,454
Deferred tax liabilities 821 331
Other non-current liabilities 3,261 3,449
Total non-current liabilities 65,718 62,234
Minority interest 178 293
Total shareholders' equity 181,411 189,600
Total liabilities and shareholders' equity 301,036 296,793
The financial information has been prepared in accordance with US GAAP.
Condensed Consolidated Cash Flow Statements - US GAAP
(euro in thousands)
December 31,
2005 2006
Cash flows from operating activities:
Net income (loss) (5,181) 10,010
Depreciation and amortization 9,460 8,434
Other non-cash items (2,705) (403)
Changes in working capital (2,136) (5,631)
Net cash provided by (used in) operating activities (562) 12,410
Cash flows from investing activities:
Capital expenditures (6,418) (2,695)
Acquisition of subsidiaries,
net of cash acquired (62,002) -
Proceeds from sale of equipment 730 1,878
Proceeds from sale of assets and liabilities - 2,000
Net cash provided by (used in)
investing activities (67,690) 1,183
Cash flows from financing activities:
Payment of bank lines of credit (13,722) (4,017)
Proceeds from (payments of)
debt and capital leases 3,967 (800)
Net proceeds from issuance of convertible notes 43,624 -
Proceeds from exercised stock options 27 26
Net cash provided by (used in)
financing activities 33,896 (4,791)
Net increase (decrease) in cash
and cash equivalents (34,356) 8,802
Effect of changes in exchange rates on cash
and cash equivalents 733 (649)
Cash and cash equivalents at beginning
of the period 106,573 72,950
Cash and cash equivalents at end of the period 72,950 81,103
The financial information has been prepared in accordance with US GAAP.
Condensed Consolidated Statements of Operations - IFRS
(euro in thousands, except share and per share data)
December 31,
2005 2006
Revenue 164,262 191,191
Cost of sales 111,757 116,437
Gross profit 52,505 74,754
Selling, general and administrative expenses 41,059 43,439
Research and development expenses 12,421 18,217
Total operating expenses 53,480 61,656
Operating income (loss) (975) 13,098
Other income - 1,216
Financial expense, net (3,174) (3,094)
Income (loss) before taxes (4,149) 11,220
Goodwill adjustment related to deferred tax asset - 2,300
Income tax expense (benefit) (1,798) (1,879)
Net income (loss) (2,351) 10,799
Attributable to:
Equity holders of the parent (2,392) 10,667
Minority interest 41 132
Net income (loss) (2,351) 10,799
Net income (loss) per share - basic (0.07) 0.33
Net income (loss) per share - diluted 1) 2) (0.07)(1) 0.31(2)
Number of shares of shares used in
computing per share amounts:
- basic 32,710,934 32,760,572
- diluted 32,710,934 41,840,875
1) The calculation of the diluted income (loss) per share for 2005 does
not assume conversion of the Company's convertible notes due 2012, as
such conversion would have an anti-dilutive effect.
2) The calculation of the diluted income per share for 2006 assumes
conversion of the Company's 5.5% convertible notes due 2012 as such
conversion would have a dilutive effect (8,975,610 weighted average
equivalent number of ordinary shares).
The financial information has been prepared in accordance with IFRS, as endorsed by the EU.
Condensed Consolidated Balance Sheets - IFRS
(euro in thousands)
December 31,
2005 2006
ASSETS
Cash and cash equivalents 81,765 98,012
Accounts receivable 31,456 36,530
Inventories 53,779 58,156
Income tax receivable 7,641 6,379
Other current assets 5,556 4,833
Total current assets 180,197 203,910
Assets held for sale - 1,449
Property, plant and equipment 27,153 22,777
Goodwill 67,342 64,111
Other intangible assets 19,076 15,063
Deferred tax assets 1,938 4,331
Other non-current assets 2,812 2,367
Total assets 298,518 314,008
LIABILITIES AND EQUITY
Notes payable to banks 14,508 18,608
Current portion of long-term debt
and financial leases 3,712 6,682
Accounts payable 14,916 15,463
Accrued liabilities 17,756 20,881
Total current liabilities 50,892 61,634
Convertible notes 41,629 42,284
Other long-term debt and financial leases 15,636 12,454
Deferred tax liabilities 2,348 331
Other non-current liabilities 2,503 2,774
Total non-current liabilities 62,116 57,843
Total equity 185,510 194,531
Total liabilities and equity 298,518 314,008
The financial information has been prepared in accordance with IFRS, as endorsed by the EU.
Condensed Consolidated Cash Flow Statements - IFRS
(euro in thousands)
December 31,
2005 2006
Cash flows from operating activities:
Operating income (loss) (975) 13,098
Depreciation and amortization 8,816 8,885
Impairment 993 328
Deferred income taxes (benefits) - (2,300)
Other non-cash items (88) 502
Changes in working capital (597) (5,367)
Interest received (paid) (944) (1,619)
Income taxes paid (2,490) (1,028)
Net cash provided by operating activities 4,715 12,499
Cash flows from investing activities:
Capital expenditures (6,418) (2,695)
Capitalized development expenses (5,989) (802)
Acquisition of subsidiaries,
net of cash acquired (62,002) -
Proceeds from sale of equipment 730 377
Proceeds from sale of assets and liabilities - 2,000
Net cash used in investing activities (73,679) (1,120)
Cash flows from financing activities:
Payment of bank lines of credit (14,685) 4,077
Proceeds from (payments of)
debt and financial leases 4,679 (88)
Net proceeds from issuance of convertible notes 43,624 -
Proceeds from exercised stock options 27 26
Other financing activities - 1,500
Net cash provided by financing activities 33,645 5,515
Net increase (decrease) in cash
and cash equivalents (35,319) 16,894
Effect of changes in exchange rates on cash
and cash equivalents 733 (647)
Cash and cash equivalents
at beginning of the period 116,351 81,765
Cash and cash equivalents at end of the period 81,765 98,012
The financial information has been prepared in accordance with IFRS, as endorsed by the EU.
Reconciliation of Net Income (Loss) and Shareholders' Equity from IFRS,
as Endorsed by the EU, to US GAAP
(euro in thousands)
December 31,
2005 2006
Net income (loss) in accordance with IFRS,
as endorsed by the EU (2,351) 10,799
Adjustments from IFRS, as endorsed by the EU,
to US GAAP
Capitalization of development expenses (5,989) (802)
Amortization of capitalized development expenses 346 1,798
Amortization of intangible assets (59) (305)
Impairment on intangible assets 774 -
Employee share-based payments 802 10
Accredited interest convertible notes 271 316
Deferred income tax effects 982 (1,758)
Minority interest (41) (132)
Other differences in income (loss) 84 84
Net income (loss) in accordance with US GAAP (5,181) 10,010
Reconciliation of Equity from IFRS, as Endorsed by the EU, to US GAAP
(euro in thousands)
December 31,
2005 2006
Equity in accordance with IFRS,
as endorsed by the EU 185,510 194,531
Adjustments from IFRS, as endorsed
by the EU, to US GAAP
Capitalization of development expenses (5,706) (4,563)
Valuation of goodwill 1,522 1,433
Valuation of other intangible assets 1,250 871
Employee share-based payments 88 52
Equity component convertible notes (2,580) (2,580)
Accredited interest convertible notes 271 591
Recognized gain on sale and lease back transaction (758) (673)
Deferred income tax effects 1,992 231
Minority interest (178) (293)
Shareholders' equity in accordance with US GAAP 181,411 189,600
Supplemental Information (unaudited)
(euro in millions, unless stated otherwise)
NET SALES Q1-2005 Q2-2005 Q3-2005 Q4-2005
Per product:
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%
Per geography:
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%
ORDERS Q1-2005 Q2-2005 Q3-2005 Q4-2005
Per product:
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 geography:
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%
BACKLOG Mar 31, 2005 June 30, 2005 Sept 30, 2005 Dec 31, 2005
Per product:
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%
NET SALES Q1-2006 Q2-2006 Q3-2006 Q4-2006
Per product:
Array connect 29.1 65% 32.1 64% 32.1 68% 35.2 71%
Leadframe 15.4 35% 17.7 36% 15.2 32% 14.3 29%
Total 44.5 100% 49.8 100% 47.3 100% 49.5 100%
Per geography:
Asia Pacific 28.5 64% 32.0 64% 26.6 56% 30.5 61%
Europe and ROW 11.4 26% 12.8 26% 14.9 32% 15.7 32%
USA 4.6 10% 5.0 10% 5.8 12% 3.3 7%
Total 44.5 100% 49.8 100% 47.3 100% 49.5 100%
ORDERS Q1-2006 Q2-2006 Q3-2006 Q4-2006
Per product:
Array connect 36.0 60% 33.0 71% 29.2 66% 26.3 70%
Leadframe 23.7 40% 13.5 29% 15.3 34% 11.4 30%
Total 59.7 100% 46.5 100% 44.5 100% 37.7 100%
Per geography:
Asia Pacific 38.7 65% 26.0 56% 25.6 58% 22.4 60%
Europe and ROW 13.6 23% 13.4 29% 16.6 37% 10.3 27%
USA 7.4 12% 7.1 15% 2.3 5% 5.0 13%
Total 59.7 100% 46.5 100% 44.5 100% 37.7 100%
Per customer type:
IDM 33.9 57% 29.3 63% 25.5 57% 22.2 59%
Subcontractors 25.8 43% 17.2 37% 19.0 43% 15.5 41%
Total 59.7 100% 46.5 100% 44.5 100% 37.7 100%
BACKLOG Mar 31, 2006 June 30, 2006 Sept 30, 2006 Dec 31, 2006
Per product:
Array connect 50.2 70% 50.8 74% 47.9 73% 38.9 72%
Leadframe 21.8 30% 17.9 26% 18.0 27% 15.1 28%
Total 72.0 100% 68.7 100% 65.9 100% 54.0 100%
Supplemental Information (unaudited)
(euro in millions, unless stated otherwise)
FINANCIAL US GAAP Q1-2005 Q2-2005 Q3-2005 Q4-2005
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 (loss)/
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%
Net income (loss)/
as % of net sales (4.5) -12.4% (4.5) -12.3% 1.3 2.9% 2.6 5.5%
Income (loss) per share
Basic (0.14) (0.14) 0.04 0.08
Diluted (0.14) (0.14) 0.04 0.07
FINANCIAL IFRS Q1-2005 Q2-2005 Q3-2005 Q4-2005
Gross margin 1):
Array connect 35.1% 38.2% 39.1% 41.8%
Leadframe 30.9% 29.2% 33.6% 32.5%
Subtotal 33.5% 35.6% 37.5% 38.8%
Amortization -1.7% -1.7% -1.4% -1.4%
Impairments - - - -1.6%
Restructuring - -2.2% - -0.3%
Total 31.8% 31.7% 36.1% 35.5%
Operating income (loss)/
as % of net sales (4.5) -12.3% (3.1) -8.5% 4.0 9.2% 2.7 5.6%
EBITDA/
as % of net sales (2.0) -5.5% (1.0) -2.6% 6.1 14.1% 5.7 12.0%
Net income (loss)/
as % of net sales (3.7) -10.1% (3.3) -8.9% 2.4 5.7% 2.2 4.7%
Income (loss) per share
Basic (0.11) (0.10) 0.07 0.07
Diluted (0.11) (0.10) 0.07 0.07
HEADCOUNT 2) Mar 31, June 30, Sept 30, Dec 31,
2005 2005 2005 2005
Europe 869 70% 844 67% 772 65% 743 64%
Asia Pacific 291 23% 320 26% 329 28% 331 29%
USA 88 7% 90 7% 83 7% 82 7%
Total 1,248 100% 1,254 100% 1,184 100% 1,156 100%
FINANCIAL US GAAP Q1-2006 Q2-2006 Q3-2006 Q4-2006
Gross margin 1):
Array connect 39.8% 43.1% 41.9% 41.8%
Leadframe 35.5% 40.5% 38.4% 37.1%
Total 38.3% 42.2% 40.8% 40.5%
Operating income (loss)/
as % of net sales 2.2 4.9% 4.4 8.8% 4.2 9.0% 3.3 6.7%
EBITDA /
as % of net sales 4.3 9.7% 6.4 12.9% 6.2 13.1% 5.6 11.4%
Net income (loss) /
as % of net sales 1.3 2.9% 4.8 9.6% 2.1 4.4% 2.6 5.4%
Income (loss) per share
Basic 0.03 0.15 0.07 0.05
Diluted 0.03 0.13 0.07 0.05
FINANCIAL IFRS Q1-2006 Q2-2006 Q3-2006 Q4-2006
Gross margin 1):
Array connect 39.5% 42.9% 41.8% 41.7%
Leadframe 34.9% 39.9% 37.5% 36.2%
Subtotal 37.9% 41.8% 40.4% 40.1%
Amortization -1.2% -1.0% -1.1% -1.1%
Impairments - - - -
Restructuring 0.4% - - -
Total 37.1% 40.8% 39.3% 39.0%
Operating income (loss)/
as % of net sales 2.5 5.7% 4.6 9.2% 3.5 7.5% 2.5 4.9%
EBITDA/
as % of net sales 4.7 10.5% 6.8 13.6% 5.8 12.3% 5.0 10.2%
Net income (loss)/
as % of net sales 1.3 2.9% 4.8 9.6% 2.1 4.4% 2.6 5.4%
Income (loss) per share
Basic 0.04 0.14 0.06 0.08
Diluted 0.04 0.13 0.06 0.08
HEADCOUNT 2) Mar 31, June 30, Sept 30, Dec 31,
2006 2006 2006 2006
Europe 776 64% 775 62% 773 61% 748 59%
Asia Pacific 349 29% 388 31% 414 33% 433 34%
USA 81 7% 81 7% 82 6% 85 7%
Total 1,206 100% 1,244 100% 1,269 100% 1,266 100%
1) Excludes the cost of sales adjustment related to the Datacon
acquisition in all 2005 quarters.
2) Includes temporary personnel
SOURCE BE Semiconductor Industries
