Home Artificial Intelligence BE Semiconductor Industries N.V. Announces Q4-20 and Full Year 2020 Results

BE Semiconductor Industries N.V. Announces Q4-20 and Full Year 2020 Results

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Q4-20 Revenue and Net Income up 18.7% and 32.3% vs. Q4-19
Results Exceeds Expectations. Orders up 65.8% vs. Q3-20

FY-20 Revenue and Net Income up 21.7% and 62.7% vs. FY-19
Proposed Dividend of € 1.70 per Share, up 68.3%

DUIVEN, The Netherlands, Feb. 19, 2021 (GLOBE NEWSWIRE) — BE Semiconductor Industries N.V. (the “Company” or “Besi”) (Euronext Amsterdam: BESI; OTC markets: BESIY, Nasdaq International Designation), a leading manufacturer of assembly equipment for the semiconductor industry, today announced its results for the fourth quarter and year ended December 31, 2020.

Key Highlights Q4-20

  • Revenue of € 109.7 million, up 1.3% versus Q3-20 and above guidance. Up 18.7% versus Q4-19 primarily due to higher shipments for mobile applications to Asian subcontractors
  • Orders up 65.8% versus Q3-20 and 56.5% versus Q4-19 due to broad based demand increase across Besi’s end-user markets, particularly mobile and automotive applications
  • Gross margin of 58.3% declined 2.5 points versus Q3-20 due primarily to adverse forex influences. Up 2.0 points versus Q4-19 primarily due to a more favorable product mix and increased labor efficiencies
  • Net income grew to € 44.6 million, an increase of € 10.6 million versus Q3-20 and € 10.9 million versus Q4-19. Similarly, Besi’s net margin rose to 40.7% versus 31.3% in Q3-20 and 36.5% in Q4-19
  • Excluding tax benefits recognized in each of Q4-20 and Q4-19, net income declined by € 0.6 million, or 1.8%, versus Q3-20 but increased by € 11.3 million, or 51.1%, versus Q4-19. Net margin decreased slightly to 30.4% in Q4-20 versus 31.3% in Q3-20 but increased by 6.5 points versus Q4-19
  • Net cash increased to € 198.7 million, up € 40.0 million (+25.2%) versus September 30, 2020

Key Highlights FY 2020

  • Revenue of € 433.6 million increased by € 77.4 million, or 21.7%, primarily as a result of improved industry conditions, higher shipments for mobile applications due to new 5G product cycle and increased investment by Chinese customers
  • Orders of € 472.1 million grew € 123.4 million (+35.4%)
  • Gross margin reached 59.6%, up 3.8 points versus 2019 primarily due to Besi’s strong advanced packaging market position, a more favorable product mix and increased labor efficiencies
  • Net income of € 132.3 million grew € 51.0 million (+62.7%). Net margin rose to 30.5% versus 22.8% in 2019. Net margin ex tax benefits rose to 27.9% versus 19.6% in 2019
  • Proposed 2020 dividend of € 1.70 per share. Represents pay-out ratio of 94%

Outlook

  • Q1-21 revenue estimated to increase 30%-40% versus Q4-20. Strong demand continues with current Q1-21 orders exceeding total for Q4-20. Gross margin anticipated to range between 58% and 60%
(€ millions, except EPS) Q4-
2020
Q3-
2020
Δ   Q4-
2019
Δ   FY
2020
FY
2019
Δ  
Revenue 109.7 108.3 +1.3 % 92.4 +18.7 % 433.6 356.2 +21.7 %
Orders 157.3 94.9 +65.8 % 100.5 +56.5 % 472.1 348.7 +35.4 %
Operating Income 40.7 42.0 -3.1 % 26.8 +51.9 % 149.9 91.9 +63.1 %
EBITDA 45.5 46.5 -2.2 % 31.9 +42.6 % 169.0 111.7 +51.3 %
Net Income 44.6* 34.0 +31.2 % 33.7* +32.3 % 132.3 81.3 +62.7 %
EPS (basic) 0.62 0.47 +31.9 % 0.47 +31.9 % 1.82 1.12 +62.5 %
EPS (diluted) 0.55 0.43 +27.9 % 0.43 +27.9 % 1.67 1.06 +57.5 %
Net Cash & Deposits 198.7 158.7 +25.2 % 130.3 +52.5 % 198.7 130.3 +52.5 %

* Includes tax benefits of € 11.2 million and € 11.6 million in Q4-20 and Q4-19, respectively. Excluding such benefits, net income was € 33.4 million and € 22.1 million in Q4-20 and Q4-19, respectively.

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“In 2020, Besi’s results rebounded strongly with revenue increasing by 21.7% to reach € 433.6 million and net income rising by 62.7% to reach € 132.3 million. In addition, orders of € 472.1 million increased by 35.4% versus last year as an industry recovery took hold in the fourth quarter of 2019 and accelerated in the second half of 2020. Besi’s results were even more impressive considering the multiple headwinds faced and organizational challenges posed by the global COVID-19 pandemic, increased trade tensions between the US and China, decreased shipments to automotive end-user markets and an approximate 8% decrease in the value of the US dollar versus the euro in the second half of the year.

Besi’s revenue and order growth this year benefited from improved industry conditions, increased shipments for mobile applications due to a new 5G smart phone product cycle and increased investment by Chinese customers. Profit growth was aided by higher revenue levels and a gross margin expansion of 3.8 points associated with Besi’s strong advanced packaging market position and more favorable product mix. It was also aided by relatively stable fixed production headcount levels which helped drive labor efficiencies. Year over year operating expenses grew by only 1.7% versus 2019 despite strong top line growth due to continued structural cost reduction initiatives and reduced corporate travel and overhead associated with the pandemic and the shift to the work at home economy. As a result, net margins rose from 22.8% in 2019 to 30.5% in 2020.

Q4-20 results exceeded expectations with revenue and net income reaching € 109.7 million and € 44.6 million, respectively, increases of 18.7% and 32.3% versus Q4-19. Revenue exceeded guidance as the industry upturn gained momentum and demand growth broadened across Besi’s end-user markets. Of note, Q4-20 orders grew by 65.8% sequentially to reach € 157.3 million, a record level for a quarter which is typically our weakest of the year. Bookings growth was fueled primarily by strong demand for high-end and mid-range smart phones by Asian subcontractors, a resurgence of demand from European automotive IDMs and incremental capacity purchases for cloud infrastructure applications. Net income growth of € 10.9 million versus Q4-19 primarily reflected higher gross margins as a result of increased labor efficiencies as well as a 7.5% reduction in operating expenses, both of which more than offset unfavorable headwinds from a weaker dollar versus the euro. As a result, net margins grew to 30.4% versus 23.9% in Q4-19 excluding favorable deferred tax benefits recognized in each respective period.

We ended the year with a solid liquidity base consisting of cash, cash equivalents and deposits aggregating € 598.7 million, or € 8.22 per basic share. Further, Besi’s net cash of € 198.7 million increased by € 68.4 million, or 52.5%, versus year end 2019. Given profits earned in 2020, continued strong cash flow generation and our solid financial position, we propose to pay a cash dividend of € 1.70 per share for approval at Besi’s 2021 AGM. The proposed distribution is the eleventh consecutive annual dividend paid and reflects a pay-out ratio relative to net income of 94%.

Looking ahead, we estimate that Q1-21 revenue will increase by 30-40% versus Q4-20 with gross margin ranging between 58% and 60%. Baseline operating expenses are anticipated to increase by 15-20% versus the € 23.3 million realized in Q4-20 primarily due to higher variable sales-related expenses and product development activity. Total operating expenses are expected to increase by approximately 50-55% versus Q4-20 primarily due to approximately € 10 million of non-cash, share based compensation expense.

We maintain a favorable outlook as we enter 2021. Our positive stance is reinforced by our Q4-20 results and by the expanded capex budgets of our principal customers. In addition, orders received to date in Q1-21 exceed total bookings for all of Q4-20. This represents another sign of the current strength in customer demand. The principal question is the slope of the industry trajectory this year given the spread of new COVID-19 variants and the emergence of component shortages and transportation constraints within global supply chains.

Longer term, we are optimistic about Besi’s prospects given our strong performance during the last industry downturn and the current pandemic and favorable secular growth drivers. Anticipated growth will be driven primarily by 5G network expansion and feature/functionality upgrades, continued investment in cloud computing infrastructure and artificial intelligence applications, advances in electric vehicle production and autonomous driving and significant investment by the Chinese government to build out its semiconductor production capacity. In addition, we see IDMs more actively engaged in the deployment of next generation processes than the last investment cycle. In this regard, we have seen increased focus by memory manufacturers on high-speed, high-accuracy flip chip production versus traditional wire bonding solutions and more engagement on the topic of hybrid bonding for the development of next generation applications. Our hybrid bonding joint development agreement with Applied Materials holds significant promise to expand our addressable market and increase our share of wallet at Besi’s leading IDM customers.”

Fourth Quarter Results of Operations

€ millions Q4-2020 Q3-2020 Δ Q4-2019 Δ
Revenue 109.7 108.3 +1.3% 92.4 +18.7%
Orders 157.3 94.9 +65.8% 100.5 +56.5%
Book to Bill Ratio 1.4 0.9 +0.5 1.1 +0.3

Besi’s Q4-20 revenue increased by 1.3% versus Q3-20 and was higher than prior guidance (flat to down 15%) as the industry upturn accelerated during the quarter with particular growth in customer demand for mobile and cloud infrastructure applications. Versus Q4-19, revenue increased by 18.7% primarily due to higher shipments for mobile applications to Asian subcontractors.

Orders of € 157.3 million rose 65.8% versus Q3-20 and 56.5% versus Q4-19 due to broad based bookings increase across Besi’s primary end-user markets, particularly mobile and automotive applications. Per customer type, IDM orders increased € 33.9 million, or 77.6%, versus Q3-20 and represented 49% of total orders. Subcontractor orders increased by € 28.5 million, or 55.7%, versus Q3-20 and represented 51% of total orders.

€ millions Q4-2020 Q3-2020 Δ Q4-2019 Δ
Gross Margin 58.3% 60.8% -2.5 56.3% +2.0
Operating Expenses 23.3 23.9 -2.5% 25.2 -7.5%
Financial Expense, net 3.8 3.2 +18.8% 3.3 +15.2%
EBITDA 45.5 46.5 -2.2% 31.9 +42.6%

Besi’s gross margin of 58.3% in Q4-20 decreased by 2.5 points versus Q3-20 primarily due to adverse forex influences resulting from a sharp decline of the USD versus EUR and, to a lesser extent, to a less favorable product mix. Versus Q4-19, gross margin increased by 2.0 points primarily due to Besi’s strong advanced packaging position, more favorable product mix and increased labor efficiencies associated with lower fixed Asian production headcount.

Q4-20 operating expenses declined by € 0.6 million (-2.5%) versus Q3-20 and € 1.9 million (-7.5%) versus Q4-19. The year over year decrease was primarily due to a (i) € 1.7 million reduction of travel and overhead costs related to the COVID-19 pandemic and (ii) € 1.1 million decrease in R&D expenses, primarily related to increased R&D capitalization associated with new product development activity.

Financial expense, net, increased by € 0.6 million (+18.8%) versus Q3-20 primarily due to Besi’s issuance in August of € 150 million of 0.75% Convertible Notes due 2027.

€ millions Q4-2020* Q3-2020 Δ Q4-2019* Δ
Net Income 44.6 34.0 +31.2% 33.7 +32.3%
Net Margin 40.7% 31.3% +9.4 36.5% +4.2
Tax Rate -21.2% 12.4% -33.6 -43.9% +22.7

* Includes deferred tax benefits of € 11.2 million and € 11.6 million in Q4-20 and Q4-19, respectively. Excluding such benefits, Besi’s effective tax rate would have been 9.2% and 5.5%, respectively, and its net income and net margin would have been € 33.4 million and 30.4% in Q4-20 and € 22.1 million and 23.9% in Q4-19.

Net income of € 44.6 million in Q4-20 increased by € 10.6 million (+31.2%) versus Q3-20 as a result of an € 11.2 million upward revaluation of deferred tax assets associated with Besi’s improved financial performance and outlook. Excluding deferred tax benefits in Q4-20 and Q4-19, net income declined by € 0.6 million, or 1.8%, versus Q3-20 but increased by € 11.3 million, or 51.1%, versus Q4-19. Versus Q4-19, the increase was primarily due to significantly higher revenue and gross margin levels realized and lower operating expenses principally as a result of strategic cost control initiatives.

Full Year Results of Operations

€ millions FY 2020 FY 2019 Δ
Revenue 433.6 356.2 +21.7%
Orders 472.1 348.7 +35.4%
Gross Margin 59.6% 55.8% +3.8
Operating Income 149.9 91.9 +63.1%
Net Income 132.3 81.3 +62.7%
Net Margin 30.5% 22.8% +7.7
Tax Rate * 3.8% -4.1% +7.9

* Effective tax rates in 2020 and 2019 were 12.0% and 10.8%, respectively, excluding € 11.2 million and € 11.6 million of deferred tax benefits in each of Q4-20 and Q4-19. Excluding such benefits, Besi’s net income and net margin would have been € 121.1 million and 27.9% in 2020 and € 69.7 million and 19.6% in 2019.

Besi’s revenue increased by € 77.4 million, or 21.7%, in 2020 versus 2019. The increase reflects improved industry conditions post the pandemic outbreak, increased shipments for mobile applications due to a new 5G smart phone product cycle and increased investment by Chinese customers. Similarly, orders increased by 35.4% versus 2019. In 2020, bookings by IDMs and subcontractors represented approximately 45% and 55%, respectively, of Besi’s total orders versus 61% and 39%, respectively, in 2019.

Besi’s operating income of € 149.9 million grew by 63.1% year over year primarily due to (i) significant revenue growth and (ii) a gross margin expansion of 3.8 points associated with Besi’s strong advanced packaging market position, more favorable product mix and increased productivity as lower Asian fixed headcount levels helped drive labor efficiencies. In addition, operating expenses increased by only 1.7% versus 2019 due to ongoing cost reduction efforts and lower travel and overhead expenses as a result of the pandemic. As a consequence, Besi’s net income of € 132.3 million increased € 51.0 million, or 62.7% while net margins grew by 7.7 points to reach 30.5%.

Financial Condition

€ millions Q4
2020
Q3
2020
Δ   Q4
2019
Δ   FY 2020 FY
2019
Δ  
Total Cash and Deposits 598.7 564.5 +6.1 % 408.4 +46.6 % 598.7 408.4 +46.6 %
Net Cash and Deposits 198.7 158.7 +25.2 % 130.3 +52.5 % 198.7 130.3 +52.5 %
Cash flow from Ops. 51.7 60.9 -15.1 % 36.3 +42.4 % 162.0 120.1 +34.9 %

At the end of Q4-20, cash and deposits aggregated € 598.7 million, an increase of 46.6% versus year end 2019 primarily as a result of the issuance of € 150 million of Convertible Notes due 2027 and significantly increased profitability versus 2019. Net cash and deposits grew to € 198.7 million, an increase of € 40.0 million (+25.2%) compared to Q3-20 and € 68.4 million (+52.5%) versus year end 2019. During the quarter, Besi generated cash flow from operations of € 51.7 million which was used to fund (i) € 8.3 million of share repurchases, (ii) € 5.4 million of capitalized development spending and (iii) € 1.6 million of capital expenditures.

During Q4-20, € 8.0 million principal amount of the 2016 Convertible Notes were converted into 401,354 ordinary shares. As a result, the principal amount outstanding of the 2016 Convertible Notes decreased to € 110.0 million.

Share Repurchase Activity
During the quarter, Besi repurchased 197,923 of its ordinary shares at an average price of € 41.98 per share for a total of € 8.3 million. In 2020, a total of 0.5 million shares were purchased at an average price of € 38.05 per share for a total of € 17.8 million. Cumulatively, as of December 31, 2020, 3.5 million shares have been purchased under the current € 125 million share repurchase program at an average price of € 24.05 per share for a total of € 84.8 million. At year end 2020, Besi held approximately 5.7 million shares in treasury at an average cost of € 16.43, equal to 7.3% of its shares outstanding.

Dividend for 2020
Given its earnings, cash flow generation and prospects, Besi’s Board of Management has proposed a cash dividend of € 1.70 per share for the 2020 year for approval at its AGM on April 30, 2021. The proposed dividend reflects a pay-out ratio of 94%, will be payable from May 7, 2021 and represents an increase of 68.3% versus 2019.

Outlook

Based on its December 31, 2020 backlog and feedback from customers, Besi forecasts for Q1-21 that:

  • Revenue will increase by 30-40% versus the € 109.7 million reported in Q4-20.
  • Gross margin will range between 58-60% versus the 58.3% realized in Q4-20.
  • Baseline operating expenses are expected to increase by 15-20% from € 23.3 million in Q4-20 primarily due to higher variable sales-related expenses and product development activity.
  • Total operating expenses are expected to increase by approximately 50-55% versus Q4-20 primarily due to approximately € 10 million of non-cash, share based compensation expense.

Composition Supervisory Board
Besi proposes two changes to the composition of its Supervisory Board at its upcoming Annual General Meeting of Shareholders to be held on April 30, 2021 (“2021 AGM”) due to the retirement of two of its current members.

The Supervisory Board proposes to nominate Dr Laura Oliphant to be appointed as a Supervisory Board member for a four-year term at the 2021 AGM. Ms Oliphant has served in an advisory capacity to Besi’s Supervisory Board since August 2020. In addition, the Supervisory Board proposes to nominate Ms Elke Eckstein to be appointed as a Supervisory Board member for a four-year term with effect as of September 1, 2021. Ms Eckstein (56) currently serves as CEO and President of ENICS Group Electronics, an electronic manufacturing services company based in Zürich, Switzerland, a position she has held since 2019. Prior thereto, she served in senior management positions at a variety of global semiconductor, photonics and electronics firms in Germany, USA, France and Taiwan, including Weidmüller Group, Osram AG, Global Foundries, AMD, Altis Semiconductor, Infineon AG and Siemens AG. Ms Eckstein is considered independent for the purposes of the Dutch Corporate Governance Code.

Ms Mona ElNaggar intends to resign her position as a member of the Supervisory Board prior to the end of her current term to pursue other interests after 9 years of service. Her resignation will become effective at such time that Ms Eckstein’s appointment as a Supervisory Board member becomes effective. In addition, Mr Douglas Dunn, Vice Chairman of the Supervisory Board, will not seek re-appointment for another term upon the expiration of his current two-year term after twelve years of service.

If the proposed appointments are approved at the 2021 AGM, the diversity of the Supervisory Board will increase, with female representation increasing from 20% to 40%.

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 EST). The dial-in for the conference call is (31) 20 531 5851. To access the audio webcast and webinar slides, please visit www.besi.com.

Important Dates 2020

• Publication Annual Report 2020 March 19, 2021
• Publication Q1 results April 30, 2021
• Annual General Meeting of Shareholders April 30, 2021, (10:00 am CET)
• Publication Q2/Semi-annual results July 27, 2021
• Publication Q3/Nine-month results October 26, 2021
• Publication Q4/Full year results February 2022

Dividend Information*

• Proposed ex-dividend date May 4, 2021
• Proposed record date  May 5, 2021
• Proposed payment of 2020 dividend Starting May 7, 2021
  *Subject to approval at Besi’s AGM on April 30, 2021  

About Besi
Besi is a leading supplier of semiconductor assembly equipment for the global semiconductor and electronics industries offering high levels of accuracy, productivity and reliability at a low cost of ownership. The Company develops leading edge assembly processes and equipment for leadframe, substrate and wafer level packaging applications in a wide range of end-user markets including electronics, mobile internet, cloud server, computing, automotive, industrial, LED and solar energy. Customers are primarily leading semiconductor manufacturers, 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 Nasdaq International Designation) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at www.besi.com.

Statement of Compliance
The accounting policies applied in the condensed consolidated financial statements included in this press release are the same as those applied in the Annual Report 2020 which will be published on March 19, 2021 and were authorized for issuance by the Board of Management and Supervisory Board on February 18, 2021. In accordance with Article 393, Title 9, Book 2 of the Netherlands Civil Code, Ernst & Young Accountants LLP has issued an unqualified auditor’s opinion on the Annual Report 2020. The Annual Report 2020 will be published on March 19, 2021 and still has to be adopted by the Annual General Meeting on April 30, 2021.

The condensed financial statements included in this press release have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union but do not include all of the information required for a complete set of IFRS financial statements.

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 pandemic and measures taken to contain the outbreak, and the associated adverse impacts on the global economy, financial markets, 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; 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, 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; 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 as a result of the COVID-19 pandemic; those additional risk factors set forth in Besi’s annual report for the year ended December 31, 2019 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

(euro in thousands, except share and per share data) Three Months Ended
December 31,
(unaudited)
Year Ended
December 31,
(audited)
  2020   2019   2020 2019  
         
Revenue 109,674   92,394   433,623 356,195  
Cost of sales 45,717   40,407   175,056 157,389  
         
Gross profit 63,957   51,987   258,567 198,806  
         
Selling, general and administrative expenses 15,832   16,718   75,802 71,519  
Research and development expenses 7,448   8,494   32,905 35,366  
         
Total operating expenses 23,280   25,212   108,707 106,885  
         
Operating income 40,677   26,775   149,860 91,921  
         
Financial expense, net 3,843   3,333   12,343 13,784  
         
Income before taxes 36,834   23,442   137,517 78,137  
         
Income tax expense (benefit) (7,812 ) (10,302 ) 5,242 (3,183 )
         
Net income 44,646   33,744   132,275 81,320  
         
Net income per share – basic 0.62   0.47   1.82 1.12  
Net income per share – diluted 0.55   0.43   1.67 1.06  
               
Number of shares used in computing per share amounts:              
– basic 72,591,533   72,269,497   72,501,386 72,796,679  
– diluted 1 85,440,188   82,621,349   83,773,385 83,149,840  

Consolidated Balance Sheets

(euro in thousands) December
31, 2020
(audited)
September
30, 2020

(unaudited)
June 30,
2020
(unaudited)
March 31,
2020

(unaudited)
December 31,
2019

(audited)
ASSETS          
           
Cash and cash equivalents 375,406 339,459 251,621 347,639 278,398
Deposits 223,299 225,071 115,000 80,000 130,000
Trade receivables 93,218 95,925 117,158 91,797 81,420
Inventories 51,645 52,051 52,122 46,872 46,578
Other current assets 11,964 11,029 12,768 14,598 13,854
           
Total current assets 755,532 723,535 548,669 580,906 550,250
           
           
Property, plant and equipment 27,840 26,675 27,142 29,067 30,383
Right of use assets 9,873 8,769 9,678 10,264 11,132
Goodwill 44,484 44,880 45,262 45,423 45,289
Other intangible assets 50,660 47,802 46,101 44,380 42,593
Deferred tax assets 21,924 12,117 13,225 14,607 14,978
Other non-current assets 1,043 1,058 1,094 1,097 2,255
           
Total non-current assets 155,824 141,301 142,502 144,838 146,630
           
Total assets 911,356 864,836 691,171 725,744 696,880
           
     
           
Notes payable to banks 487 476
Current portion of long-term debt 91 91 513 515
Accounts payable 44,017 38,715 45,939 34,310 30,278
Accrued liabilities 57,469 55,225 51,382 61,769 55,359
           
Total current liabilities 101,486 94,031 97,412 97,079 86,628
           
Long-term debt 399,956 405,736 272,932 278,299 277,067
Lease liabilities 6,952 5,831 6,438 7,104 7,859
Deferred tax liabilities 12,840 12,437 8,480 8,376 8,858
Other non-current liabilities 18,895 18,122 18,228 18,197 17,960
           
Total non-current liabilities 438,643 442,126 306,078 311,976 311,744
           
Total equity 371,227 328,679 287,681 316,689 298,508
           
Total liabilities and equity 911,356 864,836 691,171 725,744 696,880


Consolidated Cash Flow Statements

(euro in thousands) Three Months Ended
December 31,

(unaudited)
Year Ended
December 31,
(audited)
  2020  2019  2020  2019 
         
Cash flows from operating activities:        
Income before income tax 36,834   23,442   137,517   78,137  
         
Depreciation and amortization 4,833   5,143   19,176   19,825  
Share based payment expense 1,456   1,083   10,470   7,289  
Financial expense, net 3,843   3,333   12,343   13,784  
         
Changes in working capital 8,856   6,232   (1,341 ) 22,194  
Income tax paid (2,106 ) (936 ) (11,080 ) (16,359 )
Interest paid (2,019 ) (2,033 ) (5,064 ) (4,762 )
         
Net cash provided by operating activities 51,697   36,264   162,021   120,108  
         
Cash flows from investing activities:        
Capital expenditures (1,642 ) (692 ) (4,242 ) (2,511 )
Proceeds from sale of property 345   159   345   159  
Capitalized development expenses (5,353 ) (4,144 ) (17,621 ) (13,226 )
Repayments of (investments in) deposits 1,207     (93,920 ) 50,000  
         
Net cash provided by (used in) investing activities (5,443 ) (4,677 ) (115,438 ) 34,422  
         
Cash flows from financing activities:        
Proceeds from (payments of) bank lines of credit   476   (434 ) (2,336 )
Proceeds from (payments of) debt (92 ) (385 ) (507 ) (419 )
Proceeds from convertible notes     147,756    
Payments of lease liabilities (1,078 ) (884 ) (3,700 ) (3,525 )
Dividends paid to shareholders     (73,486 ) (122,419 )
Purchase of treasury shares (8,324 ) (5,825 ) (17,781 ) (44,678 )
         
Net cash provided by (used in) financing activities (9,494 ) (6,618 ) 51,848   (173,377 )
         
Net increase (decrease) in cash and cash
  equivalents
36,760   24,969   98,431   (18,847 )
Effect of changes in exchange rates on cash and
  cash equivalents
(813 ) (298 ) (1,423 ) 1,706  
Cash and cash equivalents at beginning of the
  period
339,459   253,727   278,398   295,539  
         
Cash and cash equivalents at end of the period 375,406   278,398   375,406   278,398  


Supplemental Information (unaudited)

(euro in millions, unless stated otherwise)

                                 
REVENUE Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020
                                 
Per geography:                                
Asia Pacific 58.6   72 % 68.6   74 % 67.3   75 % 63.8   69 % 77.6   85 % 105.7   85 % 86.6   80 % 91.1   83 %
EU / USA 22.8   28 % 24.1   26 % 22.4   25 % 28.6   31 % 13.7   15 % 18.6   15 % 21.7   20 % 18.6   17 %
                                 
Total 81.4   100 % 92.7   100 % 89.7   100 % 92.4   100 % 91.3   100 % 124.3   100 % 108.3   100 % 109.7   100 %
                                 
ORDERS Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020
                                 
Per geography:                                
Asia Pacific 55.9   67 % 61.2   74 % 59.2   72 % 80.4   80 % 102.0   86 % 88.1   87 % 75.9   80 % 122.7   78 %
EU / USA 27.5   33 % 21.5   26 % 23.0   28 % 20.1   20 % 16.6   14 % 13.2   13 % 19.0   20 % 34.6   22 %
                                 
Total 83.4   100 % 82.7   100 % 82.2   100 % 100.5   100 % 118.6   100 % 101.3   100 % 94.9   100 % 157.3   100 %
                                 
Per customer type:                                
IDM 57.5   69 % 55.4   67 % 43.6   53 % 58.3   58 % 47.4   40 % 44.6   44 % 43.7   46 % 77.6   49 %
Subcontractors 25.9   31 % 27.3   33 % 38.6   47 % 42.2   42 % 71.2   60 % 56.7   56 % 51.2   54 % 79.7   51 %
                                 
Total 83.4   100 % 82.7   100 % 82.2   100 % 100.5   100 % 118.6   100 % 101.3   100 % 94.9   100 % 157.3   100 %
                                 
HEADCOUNT Mar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020
                                 
Fixed staff (FTE)                                
Asia Pacific 1,174   72 % 1,155   72 % 1,093   71 % 1,081   70 % 1,071   70 % 1,067   70 % 1,054   70 % 1,060   70 %
EU / USA 452   28 % 450   28 % 453   29 % 453   30 % 458   30 % 455   30 % 459   30 % 463   30 %
                                 
Total 1,626   100 % 1,605   100 % 1,546   100 % 1,534   100 % 1,529   100 % 1,522   100 % 1,513   100 % 1,523   100 %
                                 
Temporary staff (FTE)                                
Asia Pacific 11   16 % 54   49 % 34   39 % 8   13 % 42   46 % 121   72 % 95   63 % 35   37 %
EU / USA 58   84 % 57   51 % 54   61 % 54   87 % 50   54 % 48   28 % 57   37 % 60   63 %
                                 
Total 69   100 % 111   100 % 88   100 % 62   100 % 92   100 % 169   100 % 152   100 % 95   100 %
                                 
Total fixed and temporary staff (FTE) 1,695     1,716     1,634     1,596     1,621     1,691     1,665     1,618    
                                 
OTHER FINANCIAL DATA Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020
                                 
Gross profit 45.5   55.9 % 51.9   56.0 % 49.4   55.1 % 52.0   56.3 % 51.7   56.7 % 77.0   62.0 % 65.9   60.8 % 64.0   58.3 %
                                 
                                 
Selling, general and admin expenses 21.7   26.7 % 17.5   18.9 % 15.6   17.4 % 16.7   18.1 % 23.5   25.7 % 20.1   16.2 % 16.3   15.1 % 15.8   14.4 %
                                 
Research and development expenses:                                
As reported 9.0   11.1 % 9.3   10.0 % 8.6   9.6 % 8.5   9.2 % 9.4   10.3 % 8.4   6.8 % 7.6   7.0 % 7.4   6.8 %
Capitalization of R&D charges 2.9   3.6 % 3.0   3.2 % 3.2   3.6 % 4.1   4.4 % 3.7   4.1 % 4.3   3.5 % 4.3   4.0 % 5.4   4.9 %
Amortization of intangibles (2.5 ) -3.1 % (2.5 ) -2.7 % (2.6 ) -2.9 % (2.6 ) -2.8 % (2.6 ) -2.8 % (2.1 ) -1.7 % (2.1 ) -2.0 % (2.2 ) -2.0 %
R&D expenses as adjusted 9.4   11.5 % 9.8   10.6 % 9.2   10.3 % 10.0   10.8 % 10.5   11.5 % 10.6   8.5 % 9.8   9.0 % 10.6   9.7 %
                                 
Financial expense (income), net:                                
Interest expense (income), net 2.4     2.4     2.7     2.5     2.6     2.5     3.1     3.6    
Hedging results 1.3     0.7     0.8     0.7     0.7     0.5     0.3     0.3    
Foreign exchange effects, net 0.2     0.1     (0.2 )   0.1     (0.7 )   (0.3 )   (0.2 )   (0.1 )  
                                 
Total 3.9     3.2     3.3     3.3     2.6     2.7     3.2     3.8    
                                 
Operating income (loss)                                
as % of net sales 14.7   18.1 % 25.1   27.1 % 25.3   28.2 % 26.8   29.0 % 18.8   20.6 % 48.4   39.0 % 42.0   38.8 % 40.7   37.1 %
                                 
EBITDA                                
as % of net sales 19.7   24.2 % 30.0   32.4 % 30.2   33.7 % 31.9   34.5 % 24.0   26.3 % 53.1   42.7 % 46.5   42.9 % 45.5   41.5 %
                                 
Net income (loss)                                
as % of net sales 9.5   11.6 % 18.9   20.4 % 19.2   21.4 % 33.7   36.5 % 13.9   15.2 % 39.8   32.0 % 34.0   31.3 % 44.6   40.7 %
                                 
Income per share                                
Basic 0.13     0.26     0.26     0.47     0.19     0.55     0.47     0.62    
Diluted 0.13     0.25     0.25     0.43     0.19     0.50     0.43     0.55    
                                 

_________________________

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

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