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ASM INTERNATIONAL ANNOUNCES OPERATING IMPROVEMENT FOR 1991; OUTLOOK FOR 1992

 ASM INTERNATIONAL ANNOUNCES OPERATING IMPROVEMENT FOR 1991;
 OUTLOOK FOR 1992
 BILTHOVEN, The Netherlands, June 1 /PRNewswire/ -- ASM International N.V. (NASDAQ-NMS: ASMIF) today announced audited operating results for 1991 and the outlook for 1992.
 1991 Operating Results
 Net sales for this Netherlands-headquartered manufacturer of semiconductor equipment advanced 28 percent to 506.9 million Dutch guilders (Dfls) from Dfls 395.8 million in 1990. The 1991 figure includes a contribution of Dfls 74 million, versus Dfls 11 million in the previous year, from a technology contract with the former U.S.S.R.
 The company reported net income of Dfls 8.1 million, equal to Dfls 1.09 per share, compared to a loss of Dfls 29.1 million, or Dfls 3.94 per share in the prior year. The 1991 net figure includes non-operating income of Dfls 10.2 million from the sales of 10 percent of the common stock of ASM Pacific Technology Ltd.
 The company's president and chief executive officer, Arthur H. del Prado, attributed the increase in sales, during a relatively flat period for the worldwide semiconductor equipment industry, to gains in market shares and increased contributions from new products and systems. Del Prado indicated that "growth was broad-based with higher sales achieved in all four company geographic operating areas: Japan, the United States, Europe and Asia. Additionally, sales increases were evidenced in both front and back-end equipment areas."
 For 1991, front-end equipment accounted for 42 percent of total revenues, and back-end equipment including the U.S.S.R. contract, 48 percent. Leadframe materials made up the remaining 10 percent. Net sales of the company's wafer processing equipment increased 7 percent reflecting significantly increased sales of epitaxial reactors. Balanced growth in assembly and encapsulation equipment accounted for the 17 percent advance in back-end equipment sales.
 "Front-end operations showed mixed operating results. Combined United States operations were profitable, led by the success of our epitaxial products which have made ASM today the world's leading supplier of epitaxial reactors. Our Japanese operations were slightly profitable but growth was hampered by weak industry conditions in that country during the past fiscal year, and our European front-end business continued to be hurt by costs associated with the realignment of operations to reflect current and anticipated industry levels for that market," del Prado commented.
 "As in previous years," he continued, "back-end operations in Europe and Asia reported strong results. The Hong Kong-headquartered assembly operations maintained profit margins despite heavy expenses related to investment in a state-of-the-art manufacturing facility in Singapore. European-based ASM Fico benefited from its No. 1 position, outside Japan, as a supplier of packaging equipment, as well as profited from its technology contract with the former U.S.S.R."
 Reflecting continued softness in many sectors of the semiconductor equipment industry, ASM's 1991 fourth quarter sales slid 11 percent to Dfls 116.6 million from Dfls 131.7 million for the last quarter of 1990. However, the company reported consolidated net income for the quarter of Dfls 506,000, compared to a loss of Dfls 15.2 million for the 1990 fourth quarter. On a per share basis, the company had net income of Dfls 0.07, versus a per share loss of Dfls 2.05 for the corresponding period a year earlier.
 1992 Outlook
 Year-end backlog, down 13 percent from the third quarter, stood at Dfls 178 million compared to Dfls 264 million at the end of 1990 which included the U.S.S.R. technology contract. Del Prado added that "the company experienced further softness in order rates in the first quarter of 1992, resulting in lower overall backlogs." Revenue from the U.S.S.R. technology contract will not have a material effect on 1992 operating results.
 As a consequence of continuing poor worldwide market conditions particularly for front-end equipment, the company expects to report a loss for the first quarter of 1992. "The loss is primarily due to extremely slack market demand facing Japanese and European front-end operations."
 Semiconductor industry projections call for continued flatness or a decline in capital spending through 1992. "ASM will feel the impact of this negative environment. However, based on our well-positioned and diversified product line plus continued emphasis on tight internal controls, we expect to realize some improvement as the year unfolds. Despite this, we do not anticipate that 1992 will be a strong year for the company. Based on current projections for an industry recovery beginning early next year, 1993 should be a very positive year for the company. ASM is well-positioned with new and existing product lines to participate in the capital spending for equipment to process devices ranging from 4 to 16 to 256 megabits."
 ASM Financial Position
 Speaking for the management and supervisory board, del Prado stated, "ASM is a leader in, and at the cutting edge of, advanced reactor technologies in major growth areas of chemical vapor deposition including low-pressure and plasma CVD, diffusion and oxidation, and epitaxy. Research and development expenditures for a broad line of products and systems to address successive generations of semiconductor equipment have strained the company's capital base. The exceptionally long duration of the current semiconductor and semiconductor equipment industry recession has compounded the pressure on our financial resources."
 It was stated that the management and supervisory board of ASM are giving top priority to strengthening the financial position and to improving the liquidity of the company. "A number of funding strategies for the parent and its subsidiaries are being reviewed and specific short and long-range plans are being formulated. While it is too early to comment further, we intend to keep investors apprised of our progress," concluded del Prado.
 Advanced Semiconductor Materials International N.V. (ASM International), headquartered in Bilthoven, the Netherlands, designs, manufactures and markets equipment and materials used to produce semiconductor devices. The company provides production solutions for the wafer processing, assembly and encapsulation areas through its facilities in Japan, the United States, Europe and Asia. U.S. operations are headquartered in Phoenix, Ariz.
 At Dec. 31, 1991, 1.712 Dutch guilders equaled one U.S. dollar.
 ASM INTERNATIONAL N.V.
 Consolidated Statements of Earnings
 (I ?thousands of Netherlands guilders, except per share figures)
 Year ended Dec. 31: 1991 1990
 Revenues:
 Net sales 506,862 395,756
 Sale of research & development technology -- --
 Total 506,862 395,756
 Cost and expenses:
 Cost of sales 315,855 247,930
 SG&A 122,002 115,294
 Research and development 44,568 37,825
 Interest, net 19,189 15,253
 Foreign currency transaction (gains) losses 1,286 419
 Total 502,900 416,721
 Earnings (loss) before income taxes,
 non-operating income and minority
 interest in net earnings of subsidiary 3,962 (20,965)
 Income taxes 756 3,953
 Earnings (loss) before non-operating income
 and minority interest in net earnings of
 subsidiary 3,206 (24,918)
 Non operating income:
 Gain on sale of common stock of subsidiary 10,155 --
 Earnings (loss) before minority interest in
 net earnings of subsidiary 13,361 (24,918)
 Minority interest in net earnings
 of subsidiary 5,257 4,218
 Net earnings (loss) 8,104 (29,136)
 Earnings (loss) per share:
 Primary:
 Before minority interest 1.80 (3.37)
 Net earnings (loss) 1.09 (3.94)
 Fully diluted:
 Before minority interest 1.69 (A)
 Net earnings (loss) (A) (A)
 Weighted average number of common and
 common equivalent shares outstanding:
 Primary 7,404 7,404
 Fully diluted 8,852 (A)
 At Dec. 31, 1991, 1.712 Dutch guilders equaled one U.S. dollar.
 (A) -- 1991 and 1990 are not presented because it would be anti-dilutive.
 -0- 6/1/92
 /CONTACT: Hans-Peter Hukshorn of ASM International, in Bilthoven: 011-31-30-28-18-36, or Mary Jo Dieckhaus of Dieckhaus, Dunlap & Watski, 212-686-8144, for ASM International/
 (ASMIF) CO: ASM International N.V. ST: IN: SU: ERN


TQ-TS -- NY010 -- 5553 06/01/92 09:41 EDT
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