BE Semiconductor Industries (BESI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached €151.2 million, up 3.3% sequentially but down 7.0% year-over-year, with net income of €41.9 million, up 23.2% from Q1 2024, driven by strong demand in photonics, hybrid bonding, and 2.5D assembly for AI applications, offsetting weakness in smartphones and automotive.

• Bookings surged to €185.2 million in Q2 2024, up 45.0% sequentially and 64.5% year-over-year, with about 50% of orders AI-related.

• H1 2024 revenue totaled €297.5 million (+0.5% year-over-year), with net income of €75.9 million (-12.9%), reflecting higher R&D and share-based compensation.

• Net cash stood at €74.4 million after significant dividends, share repurchases, and convertible note conversions.

• Completed €350 million offering of 4.5% senior notes due 2031 to support future growth and potential acquisitions.

Financial highlights

• Q2 2024 revenue: €151.2 million (+3.3% QoQ, -7.0% YoY); net income: €41.9 million (+23.2% QoQ, -20.3% YoY).

• Q2 bookings: €185.2 million (+45.0% QoQ, +64.5% YoY); H1 bookings: €313 million (+22.9% YoY).

• Gross margin: 65.0% in Q2 2024 (at high end of guidance, -2.2pts sequentially, -0.6pts YoY); H1 2024: 66.1%.

• Net margin: 27.7% in Q2 2024; 25.5% for H1 2024.

• Net cash: €74.4 million at quarter end.

Outlook and guidance

• Q3 2024 revenue expected to be flat (±5%) vs. Q2, with gross margin between 64%-66%.

• Q3 operating expenses forecasted to decrease by 0%-5% sequentially.

• Market recovery in assembly equipment is slow, with mainstream downturn extending 8-10 quarters; strong recovery expected in 2025/2026, driven by AI, datacenter, HPC, and 5G.

• TechInsights projects 2024 assembly market growth at 9%, down from earlier estimates, but expects a peak in 2026 and above-market growth for advanced die placement.

• Management anticipates further order growth for hybrid bonding and TCB systems as AI and advanced packaging adoption expands.