BE Semiconductor Industries N : BE Semiconductor Industries N.V. Announces Temporary Disruption at Shah Alam, Malaysia Production Facility. Q4-21 Order Update
12/20/2021 | 03:40am EDT
BE Semiconductor Industries N.V. Announces Temporary Disruption at Shah Alam, Malaysia
Production Facility. Q4-21 Order Update
Duiven, the Netherlands, December 20, 2021 - 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 that extended, record rainfall affecting its main production facility in Shah Alam, Malaysia caused flooding of the assembly floor for die attach systems. As a result, the final assembly of approximately 60 die attach systems with a value of approximately € 25 million was halted temporarily. All of such systems were scheduled for shipment in the fourth quarter of 2021. The rainfall stopped on Sunday, December 19 and permitted remediation work to commence immediately thereafter. All Besi APac employees are safe.
Besi believes that delays resulting from this weather event could cause its anticipated revenue for the fourth quarter of 2021 to decline by approximately 15-20% versus Q3-21 as compared to prior guidance of a decrease of 5-15%. The impact of the flooding will have minimal effect on Besi's planned ramping of hybrid bonding system production scheduled for the first half of 2022.
First estimates of one-time costs associated with materials and labor necessary to repair or reproduce any systems affected are in the range of € 4-6 million and will be taken as a charge to fourth quarter 2021 earnings. Estimated costs to repair the affected building and production related equipment are not expected to exceed € 2 million.
In addition, Besi also announced that its orders for the fourth quarter of 2021 will approximate € 180-€ 190 million versus the € 157.3 million recorded in the fourth quarter of 2020. Current order strength reflects favorable demand trends for its advanced packaging portfolio in its traditionally weakest quarter of the year.
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.
Edmond Franco, VP Corporate Development/US IR coordinator
Tel. (31) 26 319 4500
20 December 2021
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, 2020 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.
BE Semiconductor Industries NV published this content on 20 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2021 08:39:02 UTC.