Q3-20 Revenue of € 108.3 Million and Net Income of € 34.0 Million, Respectively
Nine Months 2020 Revenue and Net Income Up 22.8% and 84.0%, Respectively, vs. Prior Year

DUIVEN, The Netherlands, Oct. 22, 2020 (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 third quarter and nine months ended September 30, 2020.

Key Highlights Q3-20

  • Revenue of € 108.3 million, down 12.9% vs. Q2-20, consistent with seasonal trends. At favorable end of guidance range. Up 20.7% vs. Q3-19 primarily due to higher shipments for mobile applications to US and Asian customers
  • Orders of € 94.9 million, down 6.3% vs. Q2-20. Up 15.5% vs. Q3-19 due to increased demand for high end mobile applications related to new product introductions and 5G capabilities
  • Gross margin reached 60.8% and exceeded guidance. Down 1.2 points vs. Q2-20 but up 5.7 points vs. Q3-19 primarily due to a more favorable product mix and increased labor efficiencies
  • Net income of € 34.0 million decreased € 5.8 million (-14.6%) vs. Q2-20 due to lower revenue levels. Up strongly (+€ 14.8 million or +77.1%) vs. Q3-19 primarily due to significantly higher revenue and gross margins combined with reduced overhead levels related to cost control efforts
  • Net margin again exceeded 30%, reaching 31.3% vs. 32.0% in Q2-20. Substantial increase vs. 21.4% realized in Q3-19
  • Net cash rose strongly to € 158.7 million, up € 65.1 million (+69.6%) vs. June 30, 2020
  • Agreement signed with Applied Materials, Inc. to jointly develop industry’s first complete and proven die based hybrid bonding equipment solution for customers

Key Highlights YTD-20

  • Revenue of € 323.9 million, up 22.8 % vs. YTD-19 primarily reflecting improved market conditions and higher demand for mobile applications from US and Chinese customers
  • Similarly, orders of € 314.8 million grew € 66.6 million (+26.8%) vs. YTD-19
  • Gross margin reached 60.1%, up 4.4 points vs. YTD-19 primarily due to Besi’s strong advanced packaging market position, a more favorable product mix and increased labor efficiencies
  • Net income of € 87.6 million increased € 40.0 million (+84.0%) vs. YTD-19. Net margin rose to 27.1% vs. 18.0% in YTD-19

Outlook

  • Q4-20 revenue estimated to be flat to down 15% vs. Q3-20 primarily due to seasonal influences and concerns as to the development of the COVID-19 pandemic. Gross margin anticipated between 58%-60%

(€ millions, except EPS)Q3-
2020		Q2-
2020		ΔQ3-
2019
Δ		YTD-
2020		YTD-
2019		Δ
Revenue108.3124.3-12.9%89.7+20.7%323.9263.8+22.8%
Orders 94.9101.3-6.3%82.2+15.5%314.8248.2+26.8%
Operating Income42.048.4-13.2%25.3+66.0%109.265.1+67.7%
EBITDA46.553.1-12.4%30.2+54.0%123.579.8+54.8%
Net Income34.039.8-14.6%19.2+77.1%87.647.6+84.0%
EPS (basic)0.470.55-14.5%0.26+80.8%1.210.65+86.2%
EPS (diluted)0.430.50-14.0%0.25+72.0%1.120.63+77.8%
Net Cash & Deposits158.793.6*+69.6%106.9+48.5%158.7106.9+48.5%

*Reflects cash dividend payments of € 73.5 million in Q2-20

Richard W. Blickman, President and Chief Executive Officer of Besi, commented:
“Besi reported solid results for Q3-20 and the first nine months of the year. For the quarter, revenue and net income reached € 108.3 million and € 34.0 million, respectively, increases of 20.7% and 77.1% versus Q3-19. Q3-20 orders of € 94.9 million grew by 15.5% versus Q3-19. Besi’s operating profit of € 42.0 million was at the high end of prior guidance as we had better than anticipated shipments for mobile applications, maintained gross margins in excess of 60% and exceeded our operating expense reduction target. As a result, Besi recorded a net margin of 31.3% in Q3-20, the second consecutive quarter in which profit margins exceeded the annual level achieved during our last 2017 cyclical peak.

Results for the first nine months of 2020 were also strong, with revenue of € 323.9 million up 22.8% and net income of € 87.6 million, up 84.0% year over year. Similarly, orders of € 314.8 million grew 26.8% versus the comparative period of 2019. Besi’s business prospects have improved this year as demand for mobile applications by US and Asian customers grew significantly in light of new product introductions and expanded 5G capabilities. Growth in mobile end user markets has more than compensated for relatively stable demand for computing applications and continued weak demand experienced for automotive applications reflecting the current economic environment.

The execution of strategic initiatives has also benefited our 2020 performance. A 2.1% reduction in fixed headcount increased labor efficiencies at both the gross and operating margin levels and pro-active supply chain management has limited inventory development and improved cash flow generation. This year, we have also enhanced our CSR strategy with new short and medium-term targets and KPIs set. Long term ambitions include a 60% reduction in Besi’s Scope 1 and 2 carbon foot-print by 2030 and for renewable sources to represent 65% of our global energy needs by such date.

Besi’s liquidity position continued to expand with growth in cash and deposits reaching € 564.5 million at the end of Q3-20, an increase of 54.0% versus June 30, 2020. Increased cash levels were primarily due to Besi’s issuance of € 150 million of its 0.75% Convertible Notes in August and strong cash flow from operations of € 60.9 million generated during the quarter. Similarly, net cash and deposits grew to € 158.7 million at quarter end, an increase of 69.6% versus the end of Q2-20. Of note, we will cancel 1.5 million shares held in treasury in Q4-20 so we have sufficient room within our current authorization to increase quarterly share repurchases from approximately € 3 million to € 10 million.

Looking ahead, we estimate that Q4-20 revenue will be flat to down 15% due to typical seasonal influences, lower demand for mobile applications post the capacity build this year and concerns as to the development of the COVID-19 pandemic. Besi’s gross margin is estimated to range between 58-60% in Q4-20 based on the forecasted product mix. Operating expenses are expected to increase by 0-5% versus Q3-20.

Longer-term, we are encouraged about Besi’s prospects in the next investment cycle given our strong performance during the last industry downturn and the current pandemic and by strong secular growth drivers. As chip functionality, complexity and density increase and geometries shrink, Besi’s advanced packaging solutions are ever more important to customers.

As such, we are increasing our engagement with leading mobile, memory and logic players to expand our addressable market. In particular, we see significant market opportunities from the current 5G roll-out and initial orders from global memory producers for high volume, high accuracy flip chip systems versus traditional wire bonding solutions. In addition, Besi and Applied Materials, Inc. announced in a separate press release today an agreement to develop the industry’s first complete and proven equipment solution for die based hybrid bonding. The collaboration harnesses each firm’s respective expertise in front and back end process technology for next generation applications such as high-performance computing, AI, 5G mobile, data storage and automotive.”

Third Quarter Results of Operations

 Q3-2020Q2-2020ΔQ3-2019Δ
Revenue108.3124.3-12.9%89.7+20.7%
Orders94.9101.3-6.3%82.2+15.5%
Book to Bill Ratio0.90.8+0.1 0.9- 

Q3-20 revenue of € 108.3 million declined 12.9% versus Q2-20 and was at the favorable end of prior guidance (-10% to -25%). Versus Q3-19, revenue increased by 20.7% primarily due to higher shipments for mobile applications to US and Asian customers.

Orders of € 94.9 million declined 6.3% versus Q2-20 consistent with seasonal trends. However, compared to Q3-19, orders grew by 15.5% primarily due to improved market conditions and increased demand for high end mobile applications. Per customer type, IDM orders decreased € 0.9 million, or 2.0%, versus Q2-20 and represented 46% of total orders. Subcontractor orders decreased by € 5.5 million, or 9.7%, versus Q2-20 and represented 54% of total orders.

 Q3-2020Q2-2020ΔQ3-2019Δ
Gross Margin60.8%62.0%-1.255.1%+5.7
Operating Expenses23.928.6-16.4%24.2-1.2%
Financial Expense/(Income), net3.22.7+18.5%3.3-3.0%
EBITDA46.553.1-12.4%30.2+54.0%

Besi’s gross margin reached 60.8% in Q3-20 which exceeded guidance (58-60%) and represented a decrease of 1.2 points versus Q2-20. Versus Q3-19, gross margin increased by 5.7 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.

Q3-20 operating expenses declined by € 4.7 million (-16.4%) versus Q2-20 and were better than prior guidance (-10% to -15%). The decrease was primarily due to (i) a € 1.9 million reduction in variable compensation expense, (ii) € 1.3 million lower sales related warranty and commission expenses and (iii) favorable forex influences. Operating expenses declined € 0.3 million (-1.2%) versus Q3-19 despite Besi’s 20.7% revenue increase as a result of strategic cost control initiatives including a 2.1% fixed headcount reduction between Q3-19 and Q3-20 and lower travel expenses.

Financial expense, net, increased by € 0.5 million (+18.5%) versus Q2-20 primarily due to Besi’s issuance in August of € 150 million of 0.75% Convertible Notes due 2027.

 Q3-2020Q2-2020ΔQ3-2019Δ
Net Income34.039.8-14.6%19.2+77.1%
Net Margin31.3%32.0%-0.721.4%+9.9
Tax Rate12.4%12.9%-0.512.7%-0.3

Net income of € 34.0 million declined by € 5.8 million (-14.6%) versus Q2-20 due primarily to a 12.9% revenue decrease and lower gross margins partially offset by a € 4.7 million reduction in operating expenses. Versus Q3-19, net income increased € 14.8 million (+77.1%) primarily due to significantly higher revenue and gross margin levels realized combined with cost control efforts which limited operating expense development. Similarly, Besi’s net margin grew to 31.3% in Q3-20, a significant increase versus the 21.4% realized in Q3-19.

Nine Months Results of Operations

 YTD-2020YTD-2019Δ
Revenue323.9263.8+22.8%
Orders314.8248.2+26.8%
Gross Margin60.1%55.7%+4.4
Operating Income109.265.1+67.7%
Net Income87.647.6+84.0%
Net Margin27.1%18.0%+9.1
Tax Rate13.0%13.0%-

For the nine months ended September 30, 2020, Besi’s revenue rose to € 323.9 million, up € 60.1 million, or 22.8% versus the comparable period of the prior year. The increase reflects improved industry conditions generally and particular strength in shipments for mobile applications to both US and Chinese customers. Similarly, orders of € 314.8 million grew by € 66.6 million (+26.8%) versus the prior year earlier period.

Besi’s operating income of € 109.2 million grew by 67.7% year over year primarily due to (i) revenue growth which significantly outpaced a 4.5% increase in operating expenses and (ii) a gross margin expansion of 4.4 points associated with Besi’s strong advanced packaging market position, more favorable product mix and increased labor efficiencies. Similarly, Besi’s net income of € 87.6 million increased € 40.0 million, or 84.0% and net margins grew by 9.1 points to reach 27.1%.

Financial Condition

 Q3
2020		Q2
2020		ΔQ3
2019		ΔYTD-
2020		YTD-
2019
Δ
Total Cash and Deposits564.5366.6+54.0%383.7+47.1%564.5383.7+47.1%
Net Cash and Deposits158.793.6+69.6%106.9+48.5%158.7106.9+48.5%
Cash flow from Ops.60.922.9+165.9%38.8+57.0%110.383.8+31.6%

At the end of Q3-20, cash and deposits aggregated € 564.5 million, an increase of € 197.9 million compared to Q2-20 principally as a result of the net proceeds received from Besi’s Convertible Note offering in August 2020. In addition, net cash and deposits increased by € 65.1 million compared to Q2-20 due primarily to € 60.9 million of cash flow from operations including a € 14.5 million reduction in working capital partially offset by (i) € 4.3 million of capitalized development spending and (ii) € 3.3 million of share repurchases.

On August 5, 2020, Besi issued € 150 million principal amount of 0.75% Senior Unsecured Convertible Notes due August 2027 (the “Convertible Notes”). The Convertible Notes convert into approximately 2.9 million Besi ordinary shares at a conversion price of € 51.56 (subject to adjustment). Besi may redeem the Convertible Notes at any time from August 26, 2024 provided that the price of its ordinary shares exceeds 130% of the then effective conversion price for a specified period of time.

The Convertible Notes may be redeemed at the option of the holder (i) on August 5, 2025 at their principal amount plus accrued interest and (ii) in the event of a change of control, at the principal amount plus accrued interest. The net proceeds from the offering totaled € 147.8 million which will be used to continue the development of next generation advanced packaging technologies and to further expand Besi´s Asian manufacturing operations. In addition, the balance of the net proceeds may be used for general corporate purposes including acquisitions and share buybacks.

Share Repurchase Activity/Cancellation of shares
During the quarter, Besi repurchased 84,219 of its ordinary shares at an average price of € 38.61 per share for a total of € 3.3 million. Cumulatively, as of September 30, 2020, 3.3 million shares have been purchased under the current € 125 million share repurchase program at an average price of € 22.98 per share for a total of € 76.5 million. As of such date, Besi held approximately 7.4 million shares in treasury at an average cost of € 15.75, equal to 9.2% of its shares outstanding.

Besi will cancel 1.5 million of its 7.4 million ordinary shares held in treasury in Q4-20. Upon such cancellation, total shares outstanding, excluding treasury shares, will decline to 78.6 million and shares held in treasury will reduce to 5.9 million. As a result of the additional capacity created by the share cancellation, Besi intends to increase its share repurchases to approximately € 10 million per quarter.

Outlook
Based on its September 30, 2020 order backlog and feedback from customers, Besi forecasts for Q4-20 that:

  • Revenue will be flat to down 15% vs. the € 108.3 million reported in Q3-20.
  • Gross margin will range between 58-60% vs. the 60.8% realized in Q3-20.
  • Operating expenses will increase by 0-5% vs. the € 23.9 million reported in Q3-20.

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.

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. For more information, please visit our website at www.besi.com.

Contacts: 
Richard W. Blickman, President & CEOCFF Communications
Hetwig van Kerkhof, SVP FinanceFrank Jansen
Tel. (31) 26 319 4500Tel. (31) 20 575 4024
investor.relations@besi.combesi@cffcommunications.nl

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.

Consolidated Statements of Operations

(euro in thousands, except share and per
share data)

Three Months Ended
September 30,
(unaudited)		Nine Months Ended
September 30,
(unaudited)
 2020 201920202019
     
Revenue108,34389,694323,949263,801
Cost of sales42,46640,249129,339116,982
     
Gross profit65,87749,445194,610146,819
     
Selling, general and administrative expenses16,31215,61759,97054,801
Research and development expenses7,5988,55125,45726,872
     
Total operating expenses23,91024,16885,42781,673
     
Operating income41,96725,277109,18365,146
     
Financial expense, net3,1973,3128,50010,451
     
Income before taxes38,77021,965100,68354,695
     
Income tax expense4,8142,80013,0547,119
     
Net income33,95619,16587,62947,576
     
Net income per share – basic0.470.261.210.65
Net income per share – diluted0.430.251.120.63


Number of shares used in computing per share amounts:
- basic
- diluted 1
72,705,062
84,386,221
72,643,210
82,971,344
72,471,117
83,217,565
72,794,337
83,367,934


Consolidated Balance Sheets

(euro in thousands)September
30, 2020
(unaudited)		June 30,
2020
(unaudited)		March 31,
2020
(unaudited)		December 31,
2019
(audited)
ASSETS    
     
Cash and cash equivalents339,459 251,621347,639278,398
Deposits 225,071115,00080,000130,000
Trade receivables 95,925 117,15891,79781,420
Inventories 52,051 52,12246,87246,578
Other current assets 11,029 12,76814,59813,854
     
Total current assets723,535548,669580,906550,250
     
     
Property, plant and equipment 26,675 27,14229,06730,383
Right of use assets 8,769 9,67810,26411,132
Goodwill 44,880 45,26245,42345,289
Other intangible assets 47,802 46,10144,38042,593
Deferred tax assets 12,117 13,22514,60714,978
Other non-current assets 1,058 1,0941,0972,255
     
Total non-current assets141,301142,502144,838146,630
     
Total assets864,836691,171725,744696,880
     
  
     
Notes payable to banks--487476
Current portion of long-term debt9191513515
Accounts payable38,71545,93934,31030,278
Accrued liabilities55,22551,38261,76955,359
     
Total current liabilities94,03197,41297,07986,628
     
Long-term debt405,736272,932278,299277,067
Lease liabilities5,8316,4387,1047,859
Deferred tax liabilities12,4378,4808,3768,858
Other non-current liabilities18,12218,22818,19717,960
     
Total non-current liabilities442,126306,078311,976311,744
     
Total equity328,679287,681316,689298,508
     
Total liabilities and equity864,836691,171725,744696,880


Consolidated Cash Flow Statements

(euro in thousands)

Three Months Ended
September 30,
(unaudited)		Nine Months Ended
September 30,
(unaudited)
 2020201920202019
     
Cash flows from operating activities:    
Income before income tax38,77021,965100,68354,695
     
Depreciation and amortization4,4954,90914,34314,682
Share based payment expense9818659,0146,206
Financial expense, net3,1973,3128,50010,451
     
Changes in working capital14,5468,346(10,197)15,962
Income tax paid(221)(316)(8,974)(15,423)
Interest paid(865)(295)(3,045)(2,729)
     
Net cash provided by operating activities60,90338,786110,32483,844
     
Cash flows from investing activities:    
Capital expenditures(1,250)(956)(2,600)(1,819)
Capitalized development expenses(4,286)(3,169)(12,268)(9,082)
Repayments of (investments in) deposits(110,127)-(95,127)50,000
     
Net cash provided by (used in) investing activities(115,663)(4,125)(109,995)39,099
     
Cash flows from financing activities:    
Proceeds from (payments of) bank lines of credit--(434)(2,812)
Proceeds from (payments of) debt-(45)(416)(34)
Proceeds from convertible notes147,757-147,757-
Payments of lease liabilities(853)(860)(2,622)(2,641)
Dividends paid to shareholders--(73,486)(122,419)
Purchase of treasury shares(3,259)(13,333)(9,457)(38,853)
     
Net cash provided by (used in) financing activities143,645(14,238)61,342(166,759)
     
Net increase (decrease) in cash and cash equivalents88,88520,42361,671(43,816)
Effect of changes in exchange rates on cash and
cash equivalents
(1,047)
1,575
(610)
2,004
Cash and cash equivalents at beginning of the
period
251,621
231,729
278,398
295,539
     
Cash and cash equivalents at end of the period339,459253,727339,459253,727


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

REVENUEQ1-2019Q2-2019Q3-2019Q4-2019Q1-2020Q2-2020Q3-2020 
                
Per geography:               
Asia Pacific58.6 72%68.6 74%67.3 75%63.8 69%77.6 85%105.7 85%86.6 80% 
EU / USA22.8 28%24.1 26%22.4 25%28.6 31%13.7 15%18.6 15%21.7 20% 
                
Total81.4 100%92.7 100%89.7 100%92.4 100%91.3 100%124.3 100%108.3 100% 
                
ORDERS Q1-2019Q2-2019Q3-2019Q4-2019Q1-2020Q2-2020Q3-2020 
                
Per geography:               
Asia Pacific55.9 67%61.2 74%59.2 72%80.4 80%102.0 86%88.1 87%75.9 80% 
EU / USA27.5 33%21.5 26%23.0 28%20.1 20%16.6 14%13.2 13%19.0 20% 
                
Total83.4 100%82.7 100%82.2 100%100.5 100%118.6 100%101.3 100%94.9 100% 
                
Per customer type:               
IDM57.5 69%55.4 67%43.6 53%58.3 58%47.4 40%44.6 44%43.7 46% 
Subcontractors25.9 31%27.3 33%38.6 47%42.2 42%71.2 60%56.7 56%51.2 54% 
                
Total83.4 100%82.7 100%82.2 100%100.5 100%118.6 100%101.3 100%94.9 100% 
                
HEADCOUNTMar 31, 2019Jun 30, 2019Sep 30, 2019Dec 31, 2019Mar 31, 2020Jun 30, 2020Sep 30, 2020 
                
Fixed staff (FTE)               
Asia Pacific1,174 72%1,155 72%1,093 71%1,081 70%1,071 70%1,067 70%1,054 70% 
EU / USA452 28%450 28%453 29%453 30%458 30%455 30%459 30% 
                
Total1,626 100%1,605 100%1,546 100%1,534 100%1,529 100%1,522 100%1,513 100% 
                
Temporary staff (FTE)               
Asia Pacific11 16%54 49%34 39%8 13%42 46%121 72%95 63% 
EU / USA58 84%57 51%54 61%54 87%50 54%48 28%57 37% 
                
Total69 100%111 100%88 100%62 100%92 100%169 100%152 100% 
                
Total fixed and temporary staff (FTE)1,695  1,716  1,634  1,596  1,621  1,691  1,665   
                
                
OTHER FINANCIAL DATAQ1-2019Q2-2019Q3-2019Q4-2019Q1-2020Q2-2020Q3-2020 
                
Gross profit45.5 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% 
                
                
Selling, general and admin expenses21.7 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% 
                
Research and development expenses:               
As reported9.0 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% 
Capitalization of R&D charges2.9 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% 
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% 
                
R&D expenses as adjusted9.4 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% 
                
Financial expense (income), net:               
Interest expense (income), net2.4  2.4  2.7  2.5  2.6  2.5  3.1   
Hedging results1.3  0.7  0.8  0.7  0.7  0.5  0.3   
Foreign exchange effects, net0.2  0.1  (0.2) 0.1  (0.7) (0.3) (0.2)  
                
Total3.9  3.2  3.3  3.3  2.6  2.7  3.2   
                
Operating income (loss)               
  as % of net sales14.7 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% 
                
EBITDA                
  as % of net sales19.7 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% 
                
Net income (loss)               
  as % of net sales9.5 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% 
                
Income per share               
Basic0.13  0.26  0.26  0.47  0.19  0.55  0.47   
Diluted0.13  0.25  0.25  0.43  0.19  0.50  0.43   

__________________

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

Primary Logo