BE Semiconductor Industries Reports Surge in AI-Related Bookings Amid Mixed Q1 2025 Results

Besi reports higher bookings as AI demand picks up in Asia

April 23 (Reuters) - BE Semiconductor Industries (Besi) (BESI.AS), opens new tab, a supplier of advanced packaging tools for chipmakers, said on Wednesday its order bookings grew in the first quarter as Asian subcontractors ordered more AI related data centre applications. Investors are banking on growing orders for Besi's hybrid bonding solutions and its first-mover advantage amid a surge in demand for AI-enabling technology. The Dutch group's bookings, an important indicator of future growth, rose 8.2% against the fourth quarter of 2024 to 131.9 million euros ($150.1 million). Revenue fell 6.1% to 144.1 million euros in the same period, weighed down by muted shipments for mobile and automotive applications. Besi said it expected the revenue to remain steady in the second quarter, with a possible deviation of 5% into either direction. The timing and trajectory of the expected demand upturn is more difficult to predict now given the uncertainties around the escalating trade war, CEO Richard Blickman said in a statement. Besi had said in February it expected mainstream assembly markets to start to recover only in the second half of the year, depending on end market trends and the course of the global trade restrictions. "However, demand for advanced packaging for AI applications remains strong given upcoming new device introductions and use cases planned in the 2026-2028 period," Blickman said. Besi produces the world's most accurate hybrid bonding tool, a critical chip technology allowing two chips to be bonded directly on top of each other. "We received hybrid bonding orders from two leading memory (chip) producers for HBM 4 applications as well as follow-on orders from a leading Asian foundry for logic applications," Blickman added. ($1 = 0.8787 euros) Reporting by Leo Marchandon and Ozan Ergenay in Gdansk, editing by Milla Nissi Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology Leo Marchandon Thomson Reuters Leo is a news reporter based in Gdansk, focusing on the media, telecoms, and technology sectors in France and the Benelux countries. Prior to this, he worked in France, covering regional and business news, including politics, policies, economy and business with strong focus on tech startups.

BESI Q1 2025 slides: Revenue dips, orders rise as AI applications drive future growth By Investing.com

BE Semiconductor Industries NV ( AMS (VIE:AMS2):AS:BESI) reported mixed first-quarter 2025 results in its April 23 investor presentation, showing declining revenue but increasing orders as the company positions itself for an anticipated market recovery in advanced packaging for AI applications. Quarterly Performance Highlights BESI reported Q1 2025 revenue of €144.1 million, representing a 1.5% year-over-year decline and a 6.1% sequential decrease from Q4 2024. Despite the revenue dip, orders increased to €131.9 million, up 3.3% year-over-year and 8.2% quarter-over-quarter, driven primarily by increased demand for AI-related datacenter applications from Asian subcontractors. As shown in the following chart of quarterly financial results: The company's gross margin stood at 63.6% in Q1 2025, down 3.6 percentage points from Q1 2024 and slightly below the 64.0% reported in Q4 2024. Net income fell to €31.5 million, down 7.4% year-over-year and 46.9% quarter-over-quarter, with the sequential decline partly attributed to a one-time tax benefit in Q4 2024. These results fell short of analyst expectations, with EPS of €0.40 missing the forecast of €0.4916 and revenue coming in below the anticipated €159.94 million. Nevertheless, BESI's stock rose 1.85% in pre-market trading following the announcement, suggesting investors focused more on the company's strategic positioning and order growth than on the quarterly miss. Financial Position and Capital Allocation BESI maintained a strong financial position with cash and deposits of €685.7 million and net cash of €159.4 million as of March 31, 2025. The net cash position increased by 10.8% from the previous quarter, primarily due to €44.4 million in cash flow from operations, partially offset by capital allocation and investments. The company's liquidity position is illustrated in the following chart: BESI has maintained a consistent capital return policy, with cumulative dividends of €1.5 billion since 2011, representing €19.96 per share. The company held approximately 2.0 million treasury shares at the end of Q1 2025, representing 2.5% of shares outstanding. Strategic Initiatives The presentation highlighted BESI's strategic focus on wafer-level assembly and advanced packaging technologies, particularly for AI applications. Key developments in Q1 2025 included: As shown in the strategic agenda highlights: A significant development was Applied Materials (NASDAQ:AMAT)' announcement of a 9% stake in BESI as a strategic investment, potentially validating the company's technology and market position in advanced packaging. Market Outlook and Guidance BESI expects the assembly equipment market to recover in 2025/2026, with growth anticipated to begin in the second half of 2025. The company forecasts the market to reach $6.6 billion in 2026, representing a 60% increase from 2023 levels. The following chart illustrates the expected market recovery trajectory: The Q2 guidance is visualized in the following slide: Investment Considerations BESI highlighted several key investment considerations in its presentation, emphasizing the growing importance of assembly in the semiconductor value chain and the long-term secular trends driving advanced packaging growth. The company's investment case centers on its disciplined strategic focus, leadership in wafer-level assembly for AI applications, and growing market presence through key IDMs, supply chains, and partners: CEO Richard Blakeman emphasized BESI's leading position in hybrid bonding technology during the earnings call, stating, "We are currently with the hundred nanometer well advanced in comparison to everyone else." He also noted Tech Insights' forecast of a 13% assembly market upturn in 2025, followed by a 26% increase in 2026. Despite the mixed quarterly results, BESI's strategic positioning in high-growth segments of the semiconductor assembly market, particularly for AI applications, appears to have resonated with investors as the company prepares for an anticipated market recovery in late 2025 and 2026. Full presentation:

Besi reports higher bookings as AI demand picks up in Asia

(Reuters) -Dutch chipmaking parts supplier BE Semiconductor Industries (Besi) said on Wednesday that its order bookings, an important indicator of future growth, rose 8.2% against last quarter as orders from Asian subcontractors for AI related data centre applications picked up. Investors are banking on growing orders for Besi's hybrid bonding solutions and its first-mover advantage amid a surge in demand for AI-enabling technology. Besi's CEO Richard Blickman said in a statement the timing and trajectory of the upturn was more difficult to predict now given the uncertainties around the escalating trade war. "However, demand for advanced packaging for AI applications remains strong given upcoming new device introductions and use cases planned in the 2026-2028 period," Blickman added. Besi said in February it expected mainstream assembly markets to start to recover only in the second half of the year, depending also on end market trends and the course of the global trade restrictions. Its revenue was 144.1 million euros ($164.1 million) in the first quarter, down 6.1% from the fourth quarter of 2024, as shipments for mobile and automotive applications remained muted. ($1 = 0.8779 euros) (Reporting by Leo Marchandon and Ozan Ergenay in Gdansk, editing by Milla Nissi)