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 BILTHOVEN, The Netherlands, Nov. 23 /PRNewswire/ -- ASM International N.V. (NASDAQ: ASMIF) today announced operating performance for the nine months ended Sept. 30, 1993. The Company also reported 1993 quarterly results to date. First and second quarter operating results had been delayed pending completion of certain financial transactions affecting the Company.
 Nine Months Operating Results
 Nine months sales advanced 30 percent to Dfls 395.5 million compared to Dfls 304 million in 1992 with sales improving steadily through sequential quarters. The Company recorded a loss for the nine months of Dfls 9 million, compared to a loss of Dfls 46.4 million for the similar period in 1992. On a quarterly basis, ASMI reported losses in the first and third quarters and a profit in the second quarter. Nine months results include an extraordinary credit of Dfls 6.1 million relating to the sale of 5 percent of the stock of ASM Pacific Technology Ltd.
 Commenting on the results, Arthur H. del Prado, president and chief executive officer, said, "Although it is not fully apparent in our statements, ASM has made significant progress this year improving its financial position, restructuring its front-end equipment business units, and capturing markets for its newest wafer processing equipment products."
 The Company reported its back-end equipment operations, represented by ASM Pacific Technology Ltd., headquartered in Hong Kong, exhibited strong revenue and earnings increases for the 1993 nine month period. According to Mr. del Prado, this growth reflects benefits from the new Singapore manufacturing facility and expanded capacity in Shenzhen, China, as well as increased assembly and encapsulation equipment market share. "Our market for back-end semiconductor equipment continues to look strong for 1994. Our broad product line, a large and diverse customer base, and a low cost manufacturing capability place ASM in a very competitive position in this favorable market environment."
 Results of front-end operations were mixed. Overall U.S. operations were profitable, led by the continued strong growth of ASM Epitaxy. European operations, though not profitable, improved greatly from the prior year.
 This was attributed to a combination of cost-cutting measures and higher sales despite poor economic conditions in the European Community. "Although improvement is clearly evident in our front-end business as a result of the restructuring begun a year ago, we must continue overhead reduction at our Japanese facilities to bring those operations more closely in line with current business conditions," Mr. del Prado commented.
 At Sept. 30, 1993, backlog stood at Dfls 117 million, compared with reported backlog of Dfls 115 million at year end 1992. Backlog figures exclude orders related to the former Fico tooling operation.
 Operating Outlook
 "Benefitting, in part, from the streamlining of our front-end equipment operations, the future for our thin-film deposition products is now, more than ever, trending upward. With the restructuring, we are better positioned to capitalize on the technological advantages of our products. The Epsilon One family of single wafer epitaxial reactors remains the worldwide market leader. At the same time," he added, "the Eagle-10, a single wafer chemical vapor deposition system originally introduced in Japan, is gaining momentum in the marketplace, and the Paragon, a single wafer CVD system, holds equal promise in the field of polysilicon growth.
 "Although there is still work ahead of us, ASM has already made considerable strides in turning around front-end operations and improving its financial position. Although our fourth quarter results will be impacted by some overall restructuring charges of about Dfls 5 million, we believe it is reasonable to expect that progress in ASM's performance will continue in 1994. We expect continuing strong demand for our back-end equipment and gradual improvement in our front-end equipment sectors as the new year unfolds," Mr. del Prado concluded.
 Financial Restructuring
 The effect of the sale of 100 percent of the stock of ASM's Fico Tooling operation to Berliner Electro Holdings A.G. for Dfls 60 million in October 1993 is not reflected in ASM's nine months statement. The disposition resulted in an elimination of Dfls 74.4 million of liabilities from parent company obligations and in a book profit of Dfls 32.2 million. A large portion of the transaction proceeds was used to repay debt. As a result of certain actions including the Fico sale and debt repayment, a portion of ASM's short term debt has been reclassified as long term debt.
 In November 1993, the Company sold 9 percent of the issued share capital of ASM Pacific Technology Ltd., listed on the Hong Kong Stock Exchange.
 This transaction, generating approximately Dfls 31 million and a book profit of Dfls 20.7 million, represented 33.5 million shares sold at the prevailing market price of HK$ 3.775 per share. As previously reported, ASM International sold 5 percent of ASMPT shares in March 1993. The most recent transaction reduced ASM International's holdings in ASMPT to 51.0 percent.
 ASM International's delayed annual report for 1992 was distributed in early November. A general meeting of shareholders is scheduled for Dec. 14, 1993, in the Netherlands.
 ASM International N.V., 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.
 Consolidated Statement of Earnings
 (unaudited, In Netherlands guilders, thousands except per share)
 Three months ended March 31, June 30,
 1993 1992 1993 1992
 Net sales Dfls 105,068 84,771 143,913 112,728
 Cost and expenses:
 Cost of sales 71,368 52,825 85,059 67,675
 S,G&A 31,489 29,363 32,600 30,849
 Research & Development 10,426 9,213 11,949 12,393
 Interest, net 6,567 4,698 6,514 5,125
 Foreign currency
 transaction (gains)losses 110 (1,931) (339) 1,558
 Total 119,960 94,168 135,783 117,600
 Earnings (loss) before inc.
 taxes, non-operating inc.
 and minority interest in net
 earnings of subsidiary (14,892) (9,397) 8,130 (4,872)
 Income taxes (credit) 57 148 1,833 1,219
 Earnings (loss) before non-
 operating inc. and minority
 interest in net earns of
 subsidiary (14,949) (9,545) 6,297 (6,091)
 Non-operating income:
 Gain on sale of common
 stock of subsid. 6,052 -- -- --
 Earns. bef. minority interest
 in net earnings of sudsid. (8,897) (9,545) 6,297 (6,091)
 Minority int. in net earns.
 of subsid. 181 735 4,315 2,820
 Net earns. (loss) Dfls (9,078) (10,280) 1,982 (8,911)
 Earnings (loss) per share:
 Bef. non-operating inc.
 and minority interest Dfls (1.39) (1.29) 0.59 (0.82)
 Bef. minority interest (0.83) (1.29) 0.59 (0.82)
 Net earnings (loss) (0.85) (1.39) 0.18 (1.20)
 Weighted average number
 of common and common
 equivalent shares
 outstanding 10,742 7,404 10,742 7,404
 Consolidated Statements of Earnings
 (Unaudited, In Netherlands guilders, thousands except per share)
 Three months ended Nine months ended
 Sept. 30 Sept. 30
 1993 1992 1993 1992
 Net sales Dfls 146,481 106,457 395,462 303,956
 Cost and expenses:
 Cost of sales 87,030 69,106 243,457 189,606
 Selling, general and
 administrative 37,687 39,360 101,776 99,572
 Research and development 12,064 13,220 34,439 34,826
 Interest, net 6,437 7,478 19,518 17,301
 Foreign currency
 transaction (gains)
 losses (774) 1,107 (1,003) 734
 Total 142,444 130,271 398,187 342,039
 Earnings (loss) before
 income taxes,
 non-operating income
 and minority interest
 in net earnings of
 subsidiary 4,037 (23,814) (2,725) (3,8083)
 Income taxes (credit) 2,504 1,090 4,394 2,457
 Earnings (loss) before
 non-operating income
 and minority interest
 in net earnings of
 subsidiary 1,533 (24,904) (7,119) (40,540)
 non-operating income:
 gain on sale on common
 stock of subsidiary -- -- 6,052 --
 Earnings before minority
 interest in net earnings
 of subsidiary
 Minority interest in net
 earnings of subsidiary 3,430 2,334 7,926 5,889
 Net earnings (loss) Dfls (1,897) (27,238) (8,993) (46,429)
 Earnings (loss) per share:
 Before non-operating income
 and minority interest Dfls 0.14 (3.36) (0.66) (5.48)
 Before minority interest 0.14 (3.36) (0.10) (5.48)
 Net earnings (loss) (0.18) (3.68) (0.84) (6.27)
 Weighted average number
 of common and common
 equivalent shares
 outstanding 10,742 7,404 10,742 7,404
 -0- 11/23/93
 /NOTE TO EDITORS: At Sept. 30, 1993, 1.82 Netherlands guilders equaled one U.S. dollar./
 /CONTACT: Hans-Peter Hukshorn, 011-31-30-298-411, or Mary Jo Dieckhaus, 212-686-8144, both for ASM International N.V./

CO: ASM International N.V. ST: IN: SU: ERN

WB-MP -- NY050 -- 7335 11/23/93 14:35 EST
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Publication:PR Newswire
Date:Nov 23, 1993

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