BE Semiconductor Industries Reports Strong Q3 2024 Results Driven by AI-Related Demand

Strong Q3 2024 Performance

BE Semiconductor Industries N.V. (Besi), a leading manufacturer of assembly equipment for the semiconductor industry, has reported impressive financial results for the third quarter of 2024. The company's performance was primarily driven by increased demand for AI-related applications in computing markets 1

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Key highlights of Q3 2024 include:

• Revenue of €156.7 million, up 27.5% year-over-year
• Orders of €151.3 million, up 19.7% compared to Q3 2023
• Net income of €46.7 million, a 33.4% increase from Q3 2023
• Gross margin of 64.5%, up 0.7 points from Q3 2023

The company's President and CEO, Richard W. Blickman, attributed the growth to the strength of Besi's advanced packaging product portfolio for AI applications, despite ongoing headwinds in mainstream and Chinese assembly equipment markets 2

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AI-Driven Growth and Hybrid Bonding Adoption

Besi's success in Q3 2024 was largely due to strong growth in computing end-user markets, particularly in hybrid bonding, photonics, and other AI applications. The company reported that total revenue-producing hybrid bonding orders since 2021 have exceeded 100 systems, highlighting the importance of this technology for 3-D AI-related assembly applications 1

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The adoption of hybrid bonding technology continues to expand globally, with Besi anticipating additional orders in Q4 2024 from various customers. The company has also seen increased interest in its TCB Next system from leading logic and memory customers, positioning it favorably for growth in next-generation 2.5D and HBM applications 2

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Financial Position and Future Outlook

Besi's financial position improved in Q3 2024, with net cash increasing to €110.7 million at quarter-end, a 48.7% improvement from Q2 2024. Total cash and deposits grew to €637.7 million, bolstered by net proceeds from a Senior Note offering in July 2024 1

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Looking ahead to Q4 2024, Besi expects:

• Revenue to be flat, plus or minus 10%, compared to Q3 2024
• Gross margin to range between 63-65%
• Operating expenses to be flat to up 5% versus Q3 2024

The company anticipates continued expansion in hybrid bonding applications, although this growth may be mitigated by ongoing weakness in mainstream assembly markets 2

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Expansion Plans and R&D Investment

In preparation for future growth, Besi has taken steps to expand its advanced packaging production capacity. The company plans to approximately double the cleanroom capacity of its Malaysian production facilities in 2025. Additionally, Besi intends to increase R&D and process development for its hybrid bonding and thermo compression bonding capabilities, as well as enhance customer support at its Singapore facility 2

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Share Repurchase Activity

During Q3 2024, Besi repurchased approximately 230,000 of its ordinary shares at an average price of €120.43 per share, totaling €27.7 million. In August 2024, the company completed its prior €60 million share repurchase program and initiated a new €100 million program with an anticipated completion date of October 2025 2

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As the semiconductor industry continues to evolve, Besi's strong performance and focus on AI-related technologies position the company as a key player in the ongoing AI revolution within the semiconductor assembly equipment sector.