Key Highlights Q3-19

• Revenue of € 89.7 million is down 3.2% vs. Q2-19 but above guidance (-10%) due to higher than anticipated shipments to Chinese subcontractors for mainstream electronics applications. Down 23.1% vs. Q3-18 due to weak industry conditions and customer caution in light of global trade tensions
• Orders of € 82.2 million, approximately flat vs. Q2-19 as market stabilization continues. Down 23.8% vs. Q3-18 primarily as a result of lower bookings for smart phone applications
• Gross margin of 55.1% is down 0.9 points vs. Q2-19 due primarily to less favorable product and customer mix. Within prior guidance. Down 2.9 points vs. Q3-18 due primarily to lower revenue for high end smart phone applications
• Net income increased by € 0.3 million (+1.6%) vs. Q2-19 to reach € 19.2 million due primarily to lower than anticipated operating expenses and a lower effective tax rate. Down € 10.1 million (-34.5%) vs. Q3-18
• Net margin of 21.4% is up 1.0 point vs. Q2-19 (20.4%) as market position and strategic execution help sustain attractive margins in current downturn

Key Highlights YTD-19/YTD-18

• Revenue of € 263.8 million, down 39.0% consistent with ongoing weakness in assembly equipment market. Decrease broad based across Besi's product portfolio and end markets
• Gross margin reached 55.7% vs. 56.9% in YTD-18. Attractive margin maintained despite significantly lower revenue due to flexible production model and overhead reduction efforts
• Net income of € 47.6 million decreased by € 65.9 million vs. YTD-18 (-58.1%). Net margin of 18.0% reached as business realigned in face of market downturn
• Strong cash flow from operations of € 83.8 million, representing 31.8% of revenue vs. 29.5% in YTD-18

Outlook

• Q4-19 revenue estimated to be equal to Q3-19 plus or minus 5% in traditionally weaker quarter than Q3. Gross margin range of 54-56% forecast based on anticipated product mix

 

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