UPDATE - ASM International backlog points to recovery
Tuesday February 24, 1:15 pm ET
(Adds quote on outlook, further details, updates share price)
AMSTERDAM, Feb 24 (Reuters) - Dutch chip equipment maker ASM International NV (Amsterdam:ASMI.AS - News; NasdaqNM:ASMI - News) reported on Tuesday that its closely watched order backlog rose to its highest level in two and a half years, even as it posted another full-year loss.
ASM, which makes equipment used for processing, assembling and packaging semiconductors, also pleased investors by forecasting a net profit in the first quarter, with sales rising sequentially.
ASM shares closed down 1.2 percent at 18.86 euros in Amsterdam ahead of the results, but its Nasdaq listed shares were up 3.4 percent by 1746 GMT.
The mid-cap company did not give full-year guidance, but said the worst was behind it.
"The increased order activity as well as the signs of a general improvement in the semiconductor industry indicate that a long downturn in the semiconductor equipment industry is now behind the company as it enters into 2004," ASML said.
"Although the visibility has improved, semiconductor manufacturers remain cautious in placing new orders and require short lead times," it said in a statement.
ASM's 2003 net loss of 29.3 million euros ($37 million) was slightly smaller than a consensus analyst forecast of 31.7 million euros. Last year it had a net loss of 29.9 million euros.
In the fourth quarter the net loss was 5.5 million euros.
But the backlog, which indicates the inflow of new orders, rose to 199 million euros at the end of the year, up 70 percent in the last three months of 2003. For the full year it had a book-to-bill ratio of 1.1.
Investors were hoping the firm has hit bottom and will enjoy a gradual recovery through 2004, along with the rest of the battered industry.
The chip sector, which had suffered its worst downturn during the past two years, has been showing signs of a rebound as accelerating demand for computers, mobile phones and digital cameras prompted chip makers to start investing in new machines.
ASM's stock has given up most of the gain that followed last month's announcement that its order intake in the fourth quarter jumped 87 percent from the previous quarter to 245 million euros, its highest levels in more than three years.
ASM shares have trailed many other recovering chip equipment makers with some analysts fearing the company's return to profitability would be more difficult than for many of its sector peers, such as the Netherlands' ASML (Amsterdam:ASML.AS - News). |
