Q2-20 Revenue of € 124.3 Million and Net Income of € 39.8 Million Up 34.1% and 110.6%, Respectively, vs. Q2-19. Results Exceed Expectations
Share Buyback Program Extended and Increased to € 125 Million

DUIVEN, The Netherlands, July 28, 2020 (GLOBE NEWSWIRE) — BE Semiconductor Industries NV (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 second quarter and first half year ended June 30, 2020.

Key Highlights Q2-20

  • Revenue of € 124.3 million, up 36.1% vs. Q1-20 and 34.1% vs. Q2-19 primarily due to higher shipments for mobile and, to a lesser extent, high-end logic applications and increased demand from Chinese customers. Exceeded high end of guidance range
  • Orders of € 101.3 million, down 14.6% vs. Q1-20 but up 22.5% vs. Q2-19. The sequential order decrease was primarily due to lower demand for high end mobile applications generally, partially offset by increased orders from Chinese subcontractors for mobile and other electronics applications
  • Gross margin reached 62.0%, up 5.3 points vs. Q1-20 and 6.0 points vs. Q2-19 primarily due to a more favorable product mix, increased labor efficiencies and, to a lesser extent, forex benefits
  • Net income of € 39.8 million grew € 25.9 million (186.3%) vs. Q1-20 and € 20.9 million (110.6%) vs. Q2-19 primarily due to significantly higher revenue and gross margins. Net margin more than doubled to 32.0% vs. 15.2% in Q1-20 and 13.5% in Q2-19
  • Share buyback program extended until October 2021 and increased by € 50 million to € 125 million

Key Highlights H1-20

  • Revenue of € 215.6 million, up 23.8% vs. H1-19 reflecting improved market conditions and higher demand for mobile and, to a lesser extent, high end logic applications
  • Orders of € 219.9 million grew € 53.9 million (+ 32.5%) primarily due to higher demand for mobile applications
  • Gross margin reached 59.7%, up 3.8 points vs. H1-19 primarily due to Besi’s strong advanced packaging market position, more favorable product mix and increased labor efficiencies
  • Net income of € 53.7 million increased € 25.3 million (+ 89.1%) vs. H1-19. Net margin grew strongly to 24.9% vs. 16.3% in H1-19
  • Net cash of € 93.6 million rose € 7.5 million (+ 8.7%) vs. June 30, 2019

Outlook

  • Q3-20 revenue estimated to decrease by approximately 10-25% vs. Q2-20 due to typical seasonal influences, lower demand for mobile applications post H1-20 build and ongoing uncertainty as to the development of the COVID-19 pandemic. Gross margin anticipated to range between 58% -60%
(€ million, excluding EPS) Q2-
2020
Q1-
2020
Δ Q2-
2019
 

Δ

H1-
2020
H1-
2019
 

Δ

Revenue 124.3 91.3 +36.1% 92.7 +34.1% 215.6 174.1 +23.8%
Orders 101.3 118.6 -14.6% 82.7 +22.5% 219.9 166.0 +32.5%
Operating Income 48.4 18.8 +157.4% 25.1 +92.8% 67.2 39.9 +68.4%
EBITDA 53.1 24.0 +121.3% 30.0 +77.0% 77.1 49.7 +55.1%
Net Income 39.8 13.9 +186.3% 18.9 +110.6% 53.7 28.4 +89.1%
EPS (basic) 0.55 0.19 +189.5% 0.26 +111.5% 0.74 0.39 +89.7%
EPS (diluted) 0.50 0.19 +163.2% 0.25 +100.0% 0.69 0.38 +81.6%
Net Cash & Deposits 93.6 * 148.3 -36.9% 86.1 * +8.7% 93.6 86.1 + 8.7%

* Reflects cash dividend payments of € 73.5 million and € 122.4 million in Q2-20 and Q2-19, respectively

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“Besi reported strong Q2-20 and first half year results in an improving industry environment. Revenue and net income for Q2-20 were € 124.3 million and € 39.8 million, respectively, increases of 34.1% and 110.6% versus Q2-19. Besi exceeded the high end of revenue guidance as we resumed full operations globally despite the COVID-19 pandemic, achieved higher than anticipated shipments for mobile applications and benefited from increased demand by Chinese subcontractors for mobile and other electronics applications, continuing a trend starting in H2 -19.

Profitability and efficiency also increased significantly in Q2-20 and for the first half year. Gross and operating margins in Q2-20 increased to 62.0% and 39.0%, respectively, increases of 6.0 and 11.9 points, respectively, versus the comparable period of the prior year. Besi’s solid financial performance primarily reflected improved industry conditions, our strong advanced packaging market position and a favorable product mix. On the operational front, it reflected strategic execution in a difficult production environment, labor efficiencies associated with a 5.2% decrease in year over year fixed headcount levels and lower travel, service and other overhead costs associated with the shift to a work at home business environment . Similarly, H1-20 revenue of € 215.6 million and net income of € 53.7 million grew by 23.8% and 89.1%, respectively.

Orders for the first half year were € 219.9 million, an increase of 32.5% versus H1-19 as industry overcapacity lessened and mobile customers increased demand in anticipation of new handset introductions later this year with advanced features and functionality. To a lesser extent, orders also benefited from continued demand growth for high end logic applications such as cloud infrastructure, artificial intelligence and high-performance computing as we move more rapidly into the digital society. Automotive end market demand remained at depressed levels as consumers react to the economic fall-out from the pandemic. For the quarter, orders were € 101.3 million, a 22.5% increase versus Q2-19 but a decrease of 14.6% versus Q1-20 primarily as a result of reduced spending by high end mobile customers after their H1-20 capacity build. 

Besi ended the first half year with a strong balance sheet and continues to return excess capital to shareholders. At June 30, 2020, cash and deposits totaled € 366.6 million after the payment of € 76.6 million in the form of cash dividends and share repurchases. Net cash and deposits of € 93.6 million at quarter end grew by 8.7% versus the end of Q2-19. Given continued strong profitability and cash flow generation this year, Besi will extend its current share buyback program until October 30, 2021 and increase its size by € 50 million to € 125 million.

Looking ahead, we estimate that Q3-20 revenue will decrease by approximately 10-25% due to typical seasonal influences, lower demand for mobile applications post the H1-20 build and customer caution as to the development of the COVID-19 pandemic. Gross margin is estimated to range between 58-60% based on the forecasted product mix. Operating expenses are expected to decrease by 10-15% versus Q2-20 as we carefully control costs in an uncertain environment. We are cautiously optimistic about Besi’s prospects for the remainder of 2020 given our better than anticipated first half results and Q3-20 guidance. We temper this optimism, however, given the current unpredictable course, recurrence and severity of the pandemic and its implications for semiconductor demand.

Longer-term, we are encouraged about Besi’s prospects in the next investment cycle given our strong performance in a difficult environment and by strong secular growth drivers for our business. Further, we have a leading position in advanced packaging which is an important enabler of the digital society and the new applications to be generated along with it. ”

Second Quarter Results of Operations

  Q2-2020 Q1-2020 Δ Q2-2019 Δ
Revenue 124.3 91.3 + 36.1% 92.7 + 34.1%
Orders 101.3 118.6 -14.6% 82.7 + 22.5%
Book to Bill Ratio 0.8 1.3 -0.5  0.9 -0.1 

Q2-20 revenue of € 124.3 million increased by 36.1% and 34.1% versus Q1-20 and Q2-19, respectively, primarily due to higher shipments for mobile and, to a lesser extent, high-end logic and cloud infrastructure applications. In addition, shipments to Chinese customers increased relative to each respective period, continuing a favorable trend which began in H2-19. Q2-20 revenue growth exceeded the high end of guidance (+ 5% to + 25%) primarily due to higher than anticipated shipments for mobile applications as Besi and its main customers resumed full operations amidst the global pandemic.

Orders of € 101.3 million were down 14.6% versus Q1-20 primarily due to lower demand for high end mobile applications generally, partially offset by increased orders by Chinese subcontractors for mobile and other electronics applications. In contrast, orders grew by 22.5% versus Q2-19 primarily due to improved market conditions and higher bookings for mobile and computing applications. Per customer type, IDM orders decreased € 2.8 million, or 5.9%, versus Q1-20 and represented 44% of total orders for the period. Subcontractor orders decreased by € 14.5 million, or 20.4%, versus Q1-20 and represented 56% of total orders.

  Q2-2020 Q1-2020 Δ Q2-2019 Δ
Gross Margin 62.0% 56.7% +5.3 56.0% +6.0
Operating Expenses 28.6 33.0 -13.3% 26.8 + 6.7%
Financial Expense / (Income), net 2.7 2.6 + 3.8% 3.2 -15.6%
EBITDA 53.1 24.0 + 121.3% 30.0 + 77.0%

Besi’s gross margin reached 62.0% in Q2-20, an increase of 5.3 points vs Q1-20 and 6.0 points versus Q2-19 primarily due to a more favorable product mix, increased labor efficiencies from lower fixed Asian production headcount, and, to a lesser extent, forex benefits from favorable changes in the euro versus the USD, MYR and CHN currencies. The Q2-20 gross margin significantly exceeded guidance (56% -58%) due to higher than anticipated shipments for mobile applications during the period.

Q2-20 operating expenses declined by € 4.4 million (-13.3%) versus Q1-20 and was in-line with guidance. The decrease was primarily due to (i) a € 2.5 million reduction in variable compensation expense, (ii) € 1.0 million lower development expense due to higher R&D capitalization, net in the quarter and (iii) lower consulting expenses. Operating expenses increased by € 1.8 million (+ 6.7%) versus Q2-19 due to increased variable compensation expense of € 2.4 million.

  Q2-2020 Q1-2020 Δ Q2-2019 Δ
Net Income 39.8 13.9 + 186.3% 18.9 + 110.6%
Net Margin 32.0% 15.2% +16.8 20.4% +11.6
Tax Rate 12.9% 14.4% -1.5 13.5% -0.6

Net income of € 39.8 million grew by € 25.9 million (186.3%) versus Q1-20 and € 20.9 million (110.6%) versus Q2-19 primarily due to higher revenue and gross margin levels realized along with operating leverage from tight controls of fixed overhead levels relative to revenue growth. Similarly, Besi’s net margin increased to 32.0% in Q2-20, a significant increase versus the 15.2% and 20.4% realized in Q1-20 and Q2-19, respectively.

Half Year Results of Operations

  H1-2020 H1-2019 Δ
Revenue 215.6 174.1 + 23.8%
Orders 219.9 166.0 + 32.5%
Gross Margin 59.7% 55.9% +3.8
Operating Income 67.2 39.9 + 68.4%
Net Income 53.7 28.4 + 89.1%
Net Margin 24.9% 16.3% +8.6
Tax Rate 13.3% 13.2% +0.1

H1-20 revenue reached € 215.6 million, up 23.8% versus H1-19 reflecting improved industry conditions and higher demand for mobile and, to a lesser extent, high end logic and cloud infrastructure applications . Similarly, orders of € 219.9 million grew € 53.9 million (+ 32.5%) versus H1-19. Revenue and order growth were partially offset by reduced demand for automotive applications due to the adverse impact on consumer demand from the pandemic.

Besi’s gross margin rose 3.8 points versus H1-19 to reach 59.7% primarily due to its strong advanced packaging market position, more favorable product mix and increased labor efficiencies. In addition, Besi’s net income of € 53.7 million and net margin of 24.9% increased by 89.1% and 8.6 points, respectively, versus H1-19 as increased revenue and gross margin more than offset € 4.0 million of higher operating expenses, principally associated with increased share-based compensation expense.

Financial Condition

  Q2
2020
Q1
2020
Δ Q2
2019
Δ H1
2020
H1
2019
 

Δ

Total Cash and Deposits 366.6 427.6 -14.3% 361.7 + 1.4% 366.6 361.7 + 1.4%
Net Cash and Deposits 93.6 148.3 -36.9% 86.1 + 8.7% 93.6 86.1 + 8.7%
Cash flow from Ops. 22.9 26.6 -13.9% (2.7) nm 49.4 45.1 + 9.5%

At the end of Q2-20, cash and deposits aggregated € 366.6 million. As compared to Q1-20, Besi’s net cash and deposits decreased by € 54.7 million due primarily to the payment of (i) € 73.5 million in cash dividends to shareholders, (ii) € 4.3 million of capitalized development spending and (ii) € 3.1 million of share repurchases which was partially offset by cash flow from operations of € 22.9 million. Net cash of € 93.6 million at quarter end grew € 7.5 million (+ 8.7%) versus June 30, 2019. During the quarter, € 7.0 million principal amount of the 2016 Convertible Notes were converted into 351,186 ordinary shares. As a result, the principal outstanding amount of the 2016 Convertible Notes declined from € 125.0 million to € 118.0 million.

Share Repurchase Activity / Extension and Increase of Share Repurchase Program
During the quarter, Besi repurchased 90,844 of its ordinary shares at an average price of € 33.54 per share for a total of € 3.1 million. Cumulatively, as of June 30, 2020, 3.2 million shares have been purchased under the current € 75 million share repurchase program at an average price of € 22.58 per share for a total of € 73.3 million. As of such date, Besi held approximately 7.3 million shares in treasury at an average cost of € 15.48, equal to 9.1% of its outstanding shares.

Besi will extend the duration of its current share buyback program until October 30, 2021 and increase the total amount from € 75 million to € 125 million. The share repurchase program was initiated for capital reduction purposes and to help offset dilution related to Besi’s 2016 and 2017 Convertible Notes and shares issued under employee stock plans. It will be funded using Besi’s available cash resources and be effective immediately. At present, Besi has authority until October 30, 2021 to purchase up to 10% of its outstanding shares (approximately 8.0 million shares).

The share repurchase program will be executed in accordance with industry best practices and in compliance with European buyback rules and regulations and may be suspended or discontinued at any time. Besi has engaged an independent broker for the program and all purchases will be executed through Euronext Amsterdam (the “Main Exchange”) and Multilateral Trading Facilities as defined by Directive 2014/65 / EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (each being referred to as “Exchanges”) and subject to the rules of the relevant Exchange. The timing and amount of any shares repurchased under this program will be determined by the independent broker independently of, and without influence by, Besi. The maximum purchase price to be paid per share under the program will not exceed the higher of the last independent trade price of the shares and the highest current independent bid price of the shares on the venue to which the purchase was carried out. Any repurchased shares will be available in the future for use in connection with Besi’s stock plans and other general corporate purposes, including acquisitions. The information included in this press release is made public under the Market Abuse Regulation (No. 596/2014 / EU).

Prospective Member of the Supervisory Board
Effective August 1, 2020, Dr. Laura Oliphant will join Besi’s Supervisory Board as a prospective member. It is the Board’s intention to nominate her for appointment as a member of the Supervisory Board at Besi’s 2021 AGM (April 2021). Dr. Oliphant (57) has extensive experience in the semiconductor, semiconductor equipment and other technology industries as a senior manager, investor and board director. Currently, she is an independent consultant with Serendibite Partners, where she provides expertise to early stage businesses, Fortune 500 companies and venture capital firms. Previously, Dr. Oliphant served as CEO of Translarity, Inc., a venture backed, advanced probe card startup focused on RF applications. Prior thereto, she was with Intel Corporation for almost 25 years including as an Investment Director of Intel Capital and as a Supply Chain Program Manager in Intel’s supplier management organization. Dr. Oliphant currently serves on the board of directors of the following US and European corporations: Aehr Test Systems (NASDAQ: AEHR, Fremont, CA), Feasible Inc. (Emeryville, CA), Novelda AS (Oslo, Norway) and Numascale AS (Oslo, Norway). She has a PhD in Chemical Engineering from the University of California, Berkeley and is a holder of the National Association of Corporate Directors Board Leadership Fellowship. Novelda AS (Oslo, Norway) and Numascale AS (Oslo, Norway). She has a PhD in Chemical Engineering from the University of California, Berkeley and is a holder of the National Association of Corporate Directors Board Leadership Fellowship. Novelda AS (Oslo, Norway) and Numascale AS (Oslo, Norway). She has a PhD in Chemical Engineering from the University of California, Berkeley and is a holder of the National Association of Corporate Directors Board Leadership Fellowship.

Outlook

Based on its June 30, 2020 order backlog and feedback from customers, Besi forecasts for Q3-20 that:

  • Revenue will decrease by approximately 10-25% vs. € 124.3 million reported in Q2-20.
  • Gross margin will range between 58-60% vs. the 62.0% realized in Q2-20.
  • Operating expenses will decrease by 10-15% vs. the € 28.6 million reported in Q2-20.

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). 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 .

Basis of Presentation
The accompanying condensed 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 2019 Annual Report, which is available on www.besi.com

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.www.besi.com .

Contacts:  
Richard W. Blickman, President & CEO SBB Communications
Hetwig van Kerkhof, SVP Finance Frank Jansen
Tel. (31) 26 319 4500 Tel. (31) 20 575 4024
[email protected] [email protected]

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; 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. any inability to attract and retain skilled personnel; 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. any inability to attract and retain skilled personnel; 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
June 30,
(unaudited)
Six Months Ended
June 30,
(unaudited)
  2020 2019 2020 2019
         
Revenue 124,267 92,708 215,606 174,107
Cost of sales 47,282 40,805 86,873 76,733
         
Gross profit 76,985 51,903 128,733 97,374
         
Selling, general and administrative expenses 20,136 17,499 43,658 39,184
Research and development expenses 8,428 9,277 17,859 18,321
         
Total operating expenses 28,564 26,776 61,517 57,505
         
Operating income 48,421 25,127 67,216 39,869
         
Financial expense, net 2,691 3,222 5,303 7,139
         
Income before taxes 45,730 21,905 61,913 32,730
         
Income tax expense 5,909 2,961 8,240 4,319
         
Net income 39,821 18,944 53,673 28,411
         
Net income per share – basic 0.55 0.26 0.74 0.39
Net income per share – diluted 0.50 0.25 0.69 0.38
         
         
Number of shares used in computing per share amounts:        
– basic 72,536,296 73,025,754 72,352,859 73,142,645
– diluted 1 82,563,062 83,287,497 82,631,951 83,568,974


Consolidated Balance Sheets

(euro in thousands) June 30,
2020

(unaudited)
March 31,
2020

(unaudited)
December 31,
2019

(audited)
ASSETS      
       
Cash and cash equivalents 251,621 347,639 278,398
Deposits 115,000 80,000 130,000
Trade receivables 117,158 91,797 81,420
Inventories 52,122 46,872 46,578
Other current assets 12,768 14,598 13,854
       
Total current assets 548,669 580,906 550,250
       
       
Property, plant and equipment 27,142 29,067 30,383
Right of use assets 9,678 10,264 11,132
Goodwill 45,262 45,423 45,289
Other intangible assets 46,101 44,380 42,593
Deferred tax assets 13,225 14,607 14,978
Other non-current assets 1,094 1,097 2,255
       
Total non-current assets 142,502 144,838 146,630
       
Total assets 691,171 725,744 696,880
       
 
       
Notes payable to banks 487 476
Current portion of long-term debt 91 513 515
Accounts payable 45,939 34,310 30,278
Accrued liabilities 51,382 61,769 55,359
       
Total current liabilities 97,412 97,079 86,628
       
Long-term debt 272,932 278,299 277,067
Lease liabilities 6,438 7,104 7,859
Deferred tax liabilities 8,480 8,376 8,858
Other non-current liabilities 18,228 18,197 17,960
       
Total non-current liabilities 306,078 311,976 311,744
       
Total equity 287,681 316,689 298,508
       
Total liabilities and equity 691,171 725,744 696,880


Consolidated Cash Flow Statements

(euro in thousands)

 

Three Months Ended
June 30,

(unaudited)
Six Months Ended
June 30,

(unaudited)
  2020   2019   2020   2019  
         
Cash flows from operating activities:        
         
Income before income tax 45,730   21,905   61,913   32,730  
         
Depreciation and amortization 4,673   4,851   9,848   9,773  
Share based payment expense 2,189   1,630   8,033   5,341  
Financial expense, net 2,691   3,222   5,303   7,139  
         
Changes in working capital (21,868 ) (17,757 ) (24,743 ) 7,616  
Income tax paid (8,479 ) (14,179 ) (8,753 ) (15,107 )
Interest paid (2,074 ) (2,385 ) (2,180 ) (2,434 )
         
Net cash provided by (used in) operating activities 22,862   (2,713 ) 49,421   45,058  
         
Cash flows from investing activities:        
Capital expenditures (478 ) (235 ) (1,350 ) (863 )
Capitalized development expenses (4,285 ) (2,986 ) (7,982 ) (5,913 )
Repayments of (investments in) deposits (35,000 ) 50,000   15,000   50,000  
         
Net cash provided by (used in) investing activities (39,763 ) 46,779   5,668   43,224  
         
Cash flows from financing activities:        
Proceeds from (payments of) bank lines of credit (466 ) (3,175 ) (434 ) (2,812 )
Proceeds from (payments of) debt (405 ) 22   (416 ) 11  
Payments of lease liabilities (896 ) (891 ) (1,769 ) (1,781 )
Dividends paid to shareholders (73,486 ) (122,419 ) (73,486 ) (122,419 )
Purchase of treasury shares (3,053 ) (12,682 ) (6,198 ) (25,520 )
         
Net cash used in financing activities (78,306 ) (139,145 ) (82,303 ) (152,521 )
         
Net increase (decrease) in cash and cash
  equivalents
 
(95,207
)  
(95,079
)  
(27,214
)  
(64,239
)
Effect of changes in exchange rates on cash and
  cash equivalents
 
(811
)  
(695
)  
437
   
429
 
Cash and cash equivalents at beginning of the
  period
 
347,639
   
327,503
   
278,398
   
295,539
 
         
Cash and cash equivalents at end of the period 251,621   231,729   251,621   231,729  

Supplemental Information (unaudited)
(euro in millions, unless stated otherwise)

                           
REVENUE Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020  
                           
Per geography:                          
Asia Pacific 58.6   72 % 68.6   74 % 67.3   75 % 63.8   69 % 77.6   85 % 105.7   85 %  
EU / USA 22.8   28 % 24.1   26 % 22.4   25 % 28.6   31 % 13.7   15 % 18.6   15 %  
                           
Total 81.4   100 % 92.7   100 % 89.7   100 % 92.4   100 % 91.3   100 % 124.3   100 %  
                           
ORDERS Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020  
                           
Per geography:                          
Asia Pacific 55.9   67 % 61.2   74 % 59.2   72 % 80.4   80 % 102.0   86 % 88.1   87 %  
EU / USA 27.5   33 % 21.5   26 % 23.0   28 % 20.1   20 % 16.6   14 % 13.2   13 %  
                           
Total 83.4   100 % 82.7   100 % 82.2   100 % 100.5   100 % 118.6   100 % 101.3   100 %  
                           
Per customer type:                          
IDM 57.5   69 % 55.4   67 % 43.6   53 % 58.3   58 % 47.4   40 % 44.6   44 %  
Subcontractors 25.9   31 % 27.3   33 % 38.6   47 % 42.2   42 % 71.2   60 % 56.7   56 %  
                           
Total 83.4   100 % 82.7   100 % 82.2   100 % 100.5   100 % 118.6   100 % 101.3   100 %  
                           
HEADCOUNT Mar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020  
                           
Fixed staff (FTE)                          
Asia Pacific 1,174   72 % 1,155   72 % 1,093   71 % 1,081   70 % 1,071   70 % 1,067   70 %  
EU / USA 452   28 % 450   28 % 453   29 % 453   30 % 458   30 % 455   30 %  
                           
Total 1,626   100 % 1,605   100 % 1,546   100 % 1,534   100 % 1,529   100 % 1,522   100 %  
                           
Temporary staff (FTE)                          
Asia Pacific 11   16 % 54   49 % 34   39 % 8   13 % 42   46 % 121   72 %  
EU / USA 58   84 % 57   51 % 54   61 % 54   87 % 50   54 % 48   28 %  
                           
Total 69   100 % 111   100 % 88   100 % 62   100 % 92   100 % 169   100 %  
                           
Total fixed and temporary staff (FTE) 1,695     1,716     1,634     1,596     1,621     1,691      
                           
OTHER FINANCIAL DATA Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020  
                           
Gross profit                          
As reported 45.5   55.9 % 51.9   56.0 % 49.4   55.1 % 52.0   56.3 % 51.7   56.7 % 77.0   62.0 %  
                           
Selling, general and admin expenses:                          
As reported 21.7   26.7 % 17.5   18.9 % 15.6   17.4 % 16.7   18.1 % 23.5   25.7 % 20.1   16.2 %  
                           
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 %  
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 %  
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 %  
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 %  
                           
Financial expense (income), net:                          
Interest expense (income), net 2.4     2.4     2.7     2.5     2.5     2.5      
Hedging results 1.3     0.7     0.8     0.7     0.0     0.5      
Foreign exchange effects, net 0.2     0.1     (0.2 )   0.1     0.1     (0.3 )    
                           
Total 3.9     3.2     3.3     3.3     2.6     2.7      
                           
Operating income                          
  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 %  
                           
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 %  
                           
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 %  
                           
Income per share                          
Basic 0.13     0.26     0.26     0.47     0.19     0.55      
Diluted 0.13     0.25     0.25     0.43     0.19     0.50      
                           

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

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