BE Semiconductor Industries N.V.

Q1-25 Revenue of € 144.1 Million and Net Income of € 31.5 Million Orders of € 131.9 Million Up 8.2% vs. Q4-24

DUIVEN, The Netherlands, April 23, 2025 (GLOBE NEWSWIRE) -- BE Semiconductor Industries N.V. (the "Company" or "Besi") (Euronext Amsterdam: BESI; OTC markets: BESIY), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the first quarter ended March 31, 2025.

Key Highlights

Revenue of € 144.1 million, down 6.1% vs. Q4-24 due primarily to lower shipments for high-end mobile applications. Vs. Q1-24, down 1.5% due to lower shipments for mobile and automotive applications partially offset by strong growth in hybrid bonding and other AI related computing applications Orders of € 131.9 million up 8.2% vs. Q4-24 primarily due to increased bookings by Asian subcontractors for AI related data center applications. Up 3.3% vs. Q1-24 due to higher bookings for hybrid bonding and other advanced computing applications Gross margin of 63.6% decreased by 0.4 points vs. Q4-24 and 3.6 points vs. Q1-24 due primarily to a less favorable product mix and, to a lesser extent, adverse net forex influences Net income of € 31.5 million decreased 46.9% vs. Q4-24 primarily due to the absence of an € 18.2 million net tax benefit recognized in Q4-24, lower revenue and higher consulting costs. Down 7.4% vs. Q1-24 primarily due to lower revenue and gross margins partially offset by an 8.9% decrease in operating expenses. Similarly, Besi’s net margin declined to 21.9% vs. 38.6% in Q4-24 and 23.2% in Q1-24 Ex share-based incentive compensation and tax benefits, Besi’s adjusted net income (net margin) was € 35.9 million (24.9%) in Q1-25 vs. € 43.2 million (28.2%) in Q4-24 and € 49.5 million (33.8%) in Q1-24 Net cash of € 159.4 million increased € 15.6 million, or 10.8%, vs. Q4-24

Outlook

Revenue expected to be flat (plus or minus 10%) vs. € 144.1 million reported in Q1-25 Gross margin expected to range between 62-64% vs. 63.6% realized in Q1-25 Operating expenses expected to decrease 0-10% vs. € 52.5 million in Q1-25

(€ millions, except EPS) Q1-2025 Q4-2024 Δ Q1-2024 Δ Revenue 144.1 153.4 -6.1% 146.3 -1.5% Orders  131.9 121.9 +8.2% 127.7 +3.3% Gross Margin 63.6% 64.0% -0.4 67.2% -3.6 Operating Income 39.3 50.6 -22.3% 40.7 -3.4% EBITDA 46.6 58.0 -19.7% 47.5 -1.9% Net Income* 31.5 59.3 -46.9% 34.0 -7.4% Net Margin* 21.9 38.6% -16.7 23.2% -1.3 EPS (basic) 0.40 0.75 -46.7% 0.44 -9.1% EPS (diluted) 0.40 0.74 -45.9% 0.44 -9.1% Net Cash and Deposits 159.4 143.8 +10.8% 180.9 -11.9%

* Excluding share-based compensation expense and an € 18.2 million net tax benefit recognized in Q4-24, Besi’s adjusted net income (net margin) would have been € 35.9 million (24.9%), € 43.2 million (28.2%) and € 49.5 million (33.8%) in Q1-25, Q4-24 and Q1-24, respectively.

Story Continues

Richard W. Blickman, President and Chief Executive Officer of Besi, commented: “Besi reported solid first quarter results and important new advanced packaging orders in a challenging market environment. Revenue of € 144.1 million was down 1.5% versus Q1-24 due to ongoing weakness in mobile and automotive end user markets partially offset by strong revenue growth from hybrid bonding and other AI related computing applications. In contrast, orders increased 3.3% versus Q1-24 and 8.2% versus Q4-24 due primarily to increased bookings by Asian subcontractors for AI related data center applications which more than offset weakness in mobile, automotive and Chinese end user markets.

Of note, significant progress was made on Besi’s wafer level assembly agenda this quarter as we received hybrid bonding orders from two leading memory producers for HBM 4 applications as well as follow-on orders from a leading Asian foundry for logic applications. Further, important announcements were made by two leading semiconductor producers with respect to future hybrid bonding applications such as ASICs and co packaged optics. In addition, a leading US logic manufacturer successfully began production of AI related logic devices utilizing Besi’s hybrid bonders in integrated production lines.

Besi’s profitability in Q1-25 remained at attractive levels despite ongoing weakness in mainstream assembly markets and expanded R&D investment in next generation assembly solutions for AI applications. Net income of € 31.5 million decreased 7.4% vs. Q1-24 primarily due to lower revenue and gross margins realized partially offset by an 8.9% decrease in operating expenses. Our gross margin has trended toward the lower end of our target range over the past three quarters due primarily to a less favorable product mix, particularly with respect to high-end smartphones, and net forex headwinds beginning in the second half of 2024 from adverse movements in some of our principal transaction currencies versus the euro. In addition, cash flow generation remains very positive with net cash at quarter end increasing 10.8% vs. Q4-24 to reach € 159.4 million.

On April 14, Applied Materials announced a 9% ownership position in Besi. Besi and Applied Materials have been successfully collaborating since 2020 to co-develop the industry’s first fully integrated equipment solution for die-based hybrid bonding. The collaboration brings together Applied’s expertise in front-end wafer and chip processing with Besi’s leadership position in bonding accuracy and speed. We view their shareholding as a strategic, long-term investment and a further validation of our wafer level assembly technology and strategy.

Our business development this year reflects the contrasting growth trends seen in the assembly equipment market between AI and mainstream applications. The timing and trajectory of a mainstream assembly upturn is more difficult to predict now given new tariff uncertainties. However, demand for advanced packaging for AI applications remains strong given upcoming new device introductions and use cases planned in the 2026-2028 time period. We continue to assess the potential impact of tariffs on Besi’s customers, supply chain and end user markets. For Q2-25, we forecast that revenue will be flat plus or minus 10% versus Q1-25 with gross margins in a range of 62%-64%. In addition, aggregate operating expenses are forecast to decrease 0-10% versus Q1-25 primarily due to a reduction in strategic consulting costs.”

Share Repurchase Activity During the quarter, Besi repurchased approximately 187,000 of its ordinary shares at an average price of € 117.95 per share for a total of € 22.1 million. Cumulatively, as of March 31, 2025, a total of € 51.4 million has been purchased under the current € 100 million share repurchase plan at an average price of € 114.64 per share. As of March 31, 2025, Besi held approximately 2.0 million shares in treasury equal to 2.5% of its shares outstanding.

Investor and media conference call
A conference call and webcast for investors and media will be held today at 4:00 pm CET (10:00 am EDT). To register for the conference call and/or to access the audio webcast and webinar slides, please visit www.besi.com.

Important Dates  •  Annual General Meeting of Shareholders April 23, 2025 •  Investor Day/Amsterdam June 12, 2025 •  Publication Q2/semi-annual results July 24, 2025 •  Publication Q3/nine-month results October 23, 2025 •  Publication Q4/full year results February 2026  Dividend Information*  •  Proposed ex-dividend date April 25, 2025 •  Proposed record date April 28, 2025 •  Proposed payment of 2024 dividend Starting May 2, 2025

* Subject to approval at Besi’s AGM on April 23, 2025

Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union. Reference is made to the Summary of Significant Accounting Policies to the Notes to the Consolidated Financial Statements as included in our 2024 Annual Report, which is available on www.besi.com.

Contacts:
Richard W. Blickman, President & CEO
Andrea Kopp-Battaglia, Senior Vice President Finance 
Claudia Vissers, Executive Secretary/IR coordinator
Edmond Franco, VP Corporate Development/US IR coordinator
Michael Sullivan, Investor Relations
Tel. (31) 26 319 4500
[email protected]

About Besi Besi is a leading manufacturer of assembly equipment supplying a broad portfolio of advanced packaging solutions to the semiconductor and electronics industries. We offer customers high levels of accuracy, reliability and throughput at a lower cost of ownership with a principal focus on wafer level and substrate assembly solutions. Customers are primarily leading semiconductor manufacturers, foundries, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

Caution Concerning Forward Looking Statements This press release contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as “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” contains such forward-looking statements. While these forward-looking statements represent our judgments and 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 those contained in forward-looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; the extent and duration of the COVID-19 and other global pandemics and the associated adverse impacts on the global economy, financial markets, global supply chains and our operations as well as those of our customers and suppliers; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately decrease costs and expenses as revenues decline; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; consolidation activity and industry alliances in the semiconductor industry that may result in further increased customer concentration, inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, conflict minerals regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region where we have a substantial portion of our production facilities; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers.

In addition, the United States and other countries have recently levied tariffs and taxes on certain goods and could significantly increase or impose new tariffs on a broad array of goods. They have imposed, and may continue to impose, new trade restrictions and export regulations. Increased or new tariffs and additional taxes, including any retaliatory measures, trade restrictions and export regulations, could negatively impact end-user demand and customer investment in semiconductor equipment, increase Besi’s supply chain complexity and manufacturing costs, decrease margins, reduce the competitiveness of our products or restrict our ability to sell products, provide services or purchase necessary equipment and supplies. Any or all of the foregoing factor could have a material and adverse effect on our business, results of operations or financial condition. In addition, investors should consider those additional risk factors set forth in Besi's annual report for the year ended December 31, 2024 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 expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

Consolidated Statements of Operations  (€ thousands, except share and per share data)  Three Months Ended
March 31,
(unaudited) 2025  2024  Revenue 144,145 146,314 Cost of sales 52,423 48,043  Gross profit 91,722 98,271  Selling, general and administrative expenses 32,958 39,641 Research and development expenses 19,502 17,919  Total operating expenses 52,460 57,560  Operating income 39,262 40,711  Financial expense, net 2,959 589  Income before taxes 36,303 40,122  Income tax expense 4,797 6,143  Net income 31,506 33,979  Net income per share – basic 0.40 0.44 Net income per share – diluted 0.40 0.44  Number of shares used in computing per share amounts:  - basic 79,228,071 77,181,326 - diluted 1 81,522,177 82,106,146

_____________________________
1) The calculation of diluted income per share assumes the exercise of equity settled share based payments and the conversion of all Convertible Notes outstanding

Consolidated Balance Sheets  (€ thousands) March
31, 2025
(unaudited) December 
31, 2024
(audited) ASSETS   Cash and cash equivalents 405,736 342,319 Deposits 280,000 330,000 Trade receivables 170,440 181,862 Inventories 103,836 103,285 Other current assets 46,099 40,927  Total current assets 1,006,111 998,393  Property, plant and equipment 42,868 44,773 Right of use assets 15,161 15,726 Goodwill 45,610 46,010 Other intangible assets 98,622 96,677 Deferred tax assets 29,240 31,567 Other non-current assets 1,347 1,330  Total non-current assets 232,848 236,083  Total assets 1,238,959 1,234,476    Bank overdraft 840 776 Current portion of long-term debt - 2,042 Trade payables 46,598 52,630 Other current liabilities 111,170 111,531  Total current liabilities 158,608 166,979  Long-term debt 525,493 525,653 Lease liabilities 11,770 12,350 Deferred tax liabilities 10,416 10,320 Other non-current liabilities 19,328 17,910  Total non-current liabilities 567,007 566,233  Total equity 513,344 501,264  Total liabilities and equity 1,238,959 1,234,476

Consolidated Cash Flow Statements  (€ thousands)  Three Months Ended March 31,
(unaudited)  2025  2024   Cash flows from operating activities:   Income before income tax 36,303  40,122   Depreciation and amortization 7,307  6,813  Share based payment expense 4,441  16,900  Financial expense, net 2,959  589   Changes in working capital (2,113 ) (3,251 ) Interest (paid) received (2,887 ) 1,169  Income tax (paid) received (1,575 ) (2,089 )  Net cash provided by operating activities 44,435  60,253   Cash flows from investing activities:  Capital expenditures (1,733 ) (5,650 ) Capitalized development expenses (6,737 ) (4,663 ) Repayments of (investments in) deposits 50,000  10,000   Net cash provided by (used in) investing activities 41,530  (313 )  Cash flows from financing activities:  Proceeds from bank lines of credit 64  -  Payments of lease liabilities (1,114 ) (1,043 ) Purchase of treasury shares (22,064 ) (14,779 )  Net cash provided by (used in) financing activities (23,114 ) (15,822 )  Net increase (decrease) in cash and cash equivalents 62,851  44,118  Effect of changes in exchange rates on cash and cash equivalents 566  (542 ) Cash and cash equivalents at beginning of the period 342,319  188,477   Cash and cash equivalents at end of the period 405,736  232,053

Supplemental Information (unaudited) (€ millions, unless stated otherwise)  REVENUE Q1-2025 Q4-2024 Q3-2024 Q2-2024 Q1-2024  Per geography:  China 40.5  28 % 42.8  28 % 45.5  29 % 57.5  38 % 58.5  40 % Asia Pacific (excl. China) 56.3  39 % 53.5  35 % 51.6  33 % 54.1  36 % 43.6  30 % EU / USA / Other 47.3  33 % 57.1  37 % 59.5  38 % 39.6  26 % 44.2  30 %  Total 144.1  100 % 153.4  100 % 156.6  100 % 151.2  100 % 146.3  100 %  ORDERS  Q1-2025 Q4-2024 Q3-2024 Q2-2024 Q1-2024  Per geography:  China 39.7  30 % 40.4  33 % 45.4  30 % 43.3  23 % 51.1  40 % Asia Pacific (excl. China) 51.7  39 % 38.8  32 % 69.3  46 % 72.0  39 % 45.0  35 % EU / USA / Other 40.5  31 % 42.7  35 % 37.1  24 % 69.9  38 % 31.6  25 %  Total 131.9  100 % 121.9  100 % 151.8  100 % 185.2  100 % 127.7  100 %  Per customer type:  IDM 48.1  36 % 61.2  50 % 84.5  56 % 122.4  66 % 53.5  42 % Foundries/Subcontractors 83.8  64 % 60.7  50 % 67.3  44 % 62.8  34 % 74.2  58 %  Total 131.9  100 % 121.9  100 % 151.8  100 % 185.2  100 % 127.7  100 %  HEADCOUNT Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024  Fixed staff (FTE) 1,820  88 % 1,812  93 % 1,807  87 % 1,783  86 % 1,760  88 % Temporary staff (FTE) 251  12 % 134  7 % 271  13 % 279  14 % 236  12 %  Total 2,071  100 % 1,946  100 % 2,078  100 % 2,062  100 % 1,996  100 %  OTHER FINANCIAL DATA Q1-2025 Q4-2024 Q3-2024 Q2-2024 Q1-2024  Gross profit 91.7  63.6 % 98.2  64.0 % 101.2  64.7 % 98.3  65.0 % 98.3  67.2 %   Selling, general and admin expenses:  As reported 33.0  22.9 % 28.6  18.6 % 27.3  17.4 % 30.5  20.2 % 39.6  27.1 % Share-based compensation expense (4.4 ) -3.1 % (2.9 ) -1.8 % (3.4 ) -2.1 % (6.9 ) -4.6 % (16.9 ) -11.6 %  SG&A expenses as adjusted 28.6  19.8 % 25.7  16.8 % 23.9  15.3 % 23.6  15.6 % 22.7  15.5 %   Research and development expenses:  As reported 19.5  13.5 % 19.0  12.4 % 18.9  12.1 % 18.5  12.2 % 17.9  12.2 % Capitalization of R&D charges 6.7  4.6 % 5.4  3.5 % 4.4  2.8 % 4.9  3.2 % 4.7  3.2 % Amortization of intangibles (3.7 ) -2.5 % (3.9 ) -2.5 % (3.9 ) -2.5 % (3.6 ) -2.3 % (3.6 ) -2.4 %  R&D expenses as adjusted 22.5  15.6 % 20.5  13.4 % 19.4  12.4 % 19.8  13.1 % 19.0  13.0 %   Financial expense (income), net:  Interest income (5.0 )  (5.1 )  (5.2 )  (3.0 )  (4.0 )  Interest expense 6.3   6.1   5.7   2.1   2.8  Net cost of hedging 1.8   2.0   1.9   1.4   1.6  Foreign exchange effects, net (0.1 )  0.9   (0.8 )  0.5   0.2   Total 3.0   3.9   1.6   1.0   0.6    Operating income (as % of net sales) 39.3  27.2 % 50.6  33.0 % 55.1  35.2 % 49.3  32.6 % 40.7  27.8 %  EBITDA (as % of net sales) 46.6  32.3 % 58.0  37.8 % 62.4  39.8 % 56.2  37.2 % 47.5  32.5 %  Net income (as % of net sales) 31.5  21.9 % 59.3  38.6 % 46.8  29.9 % 41.9  27.7 % 34.0  23.2 %  Effective tax rate 13.2 %  -27.0 %  12.6 %  13.0 %  15.3 %    Income per share  Basic 0.40   0.75   0.59   0.53   0.44  Diluted 0.40   0.74   0.59   0.53   0.44   Average shares outstanding (basic) 79,228,071  79,402,192  79,630,787  79,281,533  77,181,326   Shares repurchased  Amount 22.1   22.4   27.8   14.8   14.8  Number of shares 186,869  198,450  230,807  105,042  101,049    Gross cash 685.7   672.3   637.4   257.2   447.1   Net cash 159.4   143.8   110.7   74.4   180.9

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