GlobeNewswire Inc | Oct 22, 2020 02:48AM EDT

October 22, 2020

Q3-20 Revenue of 108.3 Million and Net Income of 34.0 Million, RespectivelyNine 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 industrys 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 Besis 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- Q2- ? Q3- YTD- YTD- ? 2020 2020 2019 ? 2020 2019Revenue 108.3 124.3 -12.9% 89.7 +20.7% 323.9 263.8 +22.8%Orders 94.9 101.3 -6.3% 82.2 +15.5% 314.8 248.2 +26.8%Operating Income 42.0 48.4 -13.2% 25.3 +66.0% 109.2 65.1 +67.7%EBITDA 46.5 53.1 -12.4% 30.2 +54.0% 123.5 79.8 +54.8%Net Income 34.0 39.8 -14.6% 19.2 +77.1% 87.6 47.6 +84.0%EPS (basic) 0.47 0.55 -14.5% 0.26 +80.8% 1.21 0.65 +86.2%EPS (diluted) 0.43 0.50 -14.0% 0.25 +72.0% 1.12 0.63 +77.8%Net Cash & Deposits 158.7 93.6* +69.6% 106.9 +48.5% 158.7 106.9 +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. Besis 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. Besis 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 Besis Scope 1 and 2 carbon foot-print by 2030 and for renewable sources to represent 65% of our global energy needs by such date.

Besis 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 Besis 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. Besis 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 Besis 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, Besis 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 industrys first complete and proven equipment solution for die based hybrid bonding. The collaboration harnesses each firms 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

Q3-2020 Q2-2020 ? Q3-2019 ?Revenue 108.3 124.3 -12.9% 89.7 +20.7%Orders 94.9 101.3 -6.3% 82.2 +15.5%Book to Bill Ratio 0.9 0.8 +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.

Q3-2020 Q2-2020 ? Q3-2019 ?Gross Margin 60.8% 62.0% -1.2 55.1% +5.7Operating Expenses 23.9 28.6 -16.4% 24.2 -1.2%Financial Expense/(Income), net 3.2 2.7 +18.5% 3.3 -3.0%EBITDA 46.5 53.1 -12.4% 30.2 +54.0%

Besis 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 Besis 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 Besis 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 Besis issuance in August of 150 million of 0.75% Convertible Notes due 2027.

Q3-2020 Q2-2020 ? Q3-2019 ?Net Income 34.0 39.8 -14.6% 19.2 +77.1%Net Margin 31.3% 32.0% -0.7 21.4% +9.9Tax Rate 12.4% 12.9% -0.5 12.7% -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, Besis 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-2020 YTD-2019 ?Revenue 323.9 263.8 +22.8%Orders 314.8 248.2 +26.8%Gross Margin 60.1% 55.7% +4.4Operating Income 109.2 65.1 +67.7%Net Income 87.6 47.6 +84.0%Net Margin 27.1% 18.0% +9.1Tax Rate 13.0% 13.0% -

For the nine months ended September 30, 2020, Besis 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.

Besis 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 Besis strong advanced packaging market position, more favorable product mix and increased labor efficiencies. Similarly, Besis 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 Q2 ? Q3 ? YTD- YTD- 2020 2020 2019 2020 2019 ?Total Cash and Deposits 564.5 366.6 +54.0% 383.7 +47.1% 564.5 383.7 +47.1%Net Cash and Deposits 158.7 93.6 +69.6% 106.9 +48.5% 158.7 106.9 +48.5%Cash flow from Ops. 60.9 22.9 +165.9% 38.8 +57.0% 110.3 83.8 +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 Besis 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 Besis 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 sharesDuring 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.

OutlookBased 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 callA 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.

AboutBesiBesi 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. Besis 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 & CEO CFF CommunicationsHetwig van Kerkhof, SVP Finance Frank JansenTel. (31) 26 319 4500 Tel. (31) 20 575 4024investor.relations@besi.com besi@cffcommunications.nl

CautionConcerningForwardLookingStatementsThis 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 todevelop 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 endedDecember 31, 2019and 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 Three Months Nine Months Endedshare data) Ended September 30, September 30, (unaudited) (unaudited) 2020 2019 2020 2019 Revenue 108,343 89,694 323,949 263,801Cost of sales 42,466 40,249 129,339 116,982 Gross profit 65,877 49,445 194,610 146,819 Selling, general and administrative 16,312 15,617 59,970 54,801expensesResearch and development expenses 7,598 8,551 25,457 26,872 Total operating expenses 23,910 24,168 85,427 81,673 Operating income 41,967 25,277 109,183 65,146 Financial expense, net 3,197 3,312 8,500 10,451 Income before taxes 38,770 21,965 100,683 54,695 Income tax expense 4,814 2,800 13,054 7,119 Net income 33,956 19,165 87,629 47,576 Net income per share ? basic 0.47 0.26 1.21 0.65Net income per share ? diluted 0.43 0.25 1.12 0.63

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

Consolidated Balance Sheets

September June 30, March 31, December(euro in thousands) 30, 2020 2020 2020 31, (unaudited) (unaudited) (unaudited) 2019 (audited)ASSETS Cash and cash equivalents 339,459 251,621 347,639 278,398Deposits 225,071 115,000 80,000 130,000Trade receivables 95,925 117,158 91,797 81,420Inventories 52,051 52,122 46,872 46,578Other current assets 11,029 12,768 14,598 13,854 Total current assets 723,535 548,669 580,906 550,250 Property, plant and equipment 26,675 27,142 29,067 30,383Right of use assets 8,769 9,678 10,264 11,132Goodwill 44,880 45,262 45,423 45,289Other intangible assets 47,802 46,101 44,380 42,593Deferred tax assets 12,117 13,225 14,607 14,978Other non-current assets 1,058 1,094 1,097 2,255 Total non-current assets 141,301 142,502 144,838 146,630 Total assets 864,836 691,171 725,744 696,880 Notes payable to banks - - 487 476Current portion of long-term 91 91 513 515debtAccounts payable 38,715 45,939 34,310 30,278Accrued liabilities 55,225 51,382 61,769 55,359 Total current liabilities 94,031 97,412 97,079 86,628 Long-term debt 405,736 272,932 278,299 277,067Lease liabilities 5,831 6,438 7,104 7,859Deferred tax liabilities 12,437 8,480 8,376 8,858Other non-current liabilities 18,122 18,228 18,197 17,960 Total non-current liabilities 442,126 306,078 311,976 311,744 Total equity 328,679 287,681 316,689 298,508 Total liabilities and equity 864,836 691,171 725,744 696,880

Consolidated Cash Flow Statements

(euro in thousands) Three Months Ended Nine Months Ended September 30, September 30, (unaudited) (unaudited) 2020 2019 2020 2019 Cash flows from operating activities: Income before income tax 38,770 21,965 100,683 54,695 Depreciation and amortization 4,495 4,909 14,343 14,682Share based payment expense 981 865 9,014 6,206Financial expense, net 3,197 3,312 8,500 10,451 Changes in working capital 14,546 8,346 (10,197) 15,962Income tax paid (221) (316) (8,974) (15,423)Interest paid (865) (295) (3,045) (2,729) Net cash provided by operating 60,903 38,786 110,324 83,844activities 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 (115,663) (4,125) (109,995) 39,099activities Cash flows from financing activities: Proceeds from (payments of) bank lines - - (434) (2,812)of creditProceeds from (payments of) debt - (45) (416) (34)Proceeds from convertible notes 147,757 - 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 143,645 (14,238) 61,342 (166,759)activities Net increase (decrease) in cash and cash 88,885 20,423 61,671 (43,816)equivalentsEffect of changes in exchange rates oncash and (1,047) 1,575 (610) 2,004cash equivalentsCash and cash equivalents at beginningof the 251,621 231,729 278,398 295,539period Cash and cash equivalents at end of the 339,459 253,727 339,459 253,727period

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

REVENUE Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Per geography: Asia Pacific 58.6 72 % 68.6 74 % 67.3 75 % 63.8 69 % 77.6 85 % 105.7 85 % 86.6 80 % EU / USA 22.8 28 % 24.1 26 % 22.4 25 % 28.6 31 % 13.7 15 % 18.6 15 % 21.7 20 % Total 81.4 100 % 92.7 100 % 89.7 100 % 92.4 100 % 91.3 100 % 124.3 100 % 108.3 100 % ORDERS Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Per geography: Asia Pacific 55.9 67 % 61.2 74 % 59.2 72 % 80.4 80 % 102.0 86 % 88.1 87 % 75.9 80 % EU / USA 27.5 33 % 21.5 26 % 23.0 28 % 20.1 20 % 16.6 14 % 13.2 13 % 19.0 20 % Total 83.4 100 % 82.7 100 % 82.2 100 % 100.5 100 % 118.6 100 % 101.3 100 % 94.9 100 % Per customer type:IDM 57.5 69 % 55.4 67 % 43.6 53 % 58.3 58 % 47.4 40 % 44.6 44 % 43.7 46 % Subcontractors 25.9 31 % 27.3 33 % 38.6 47 % 42.2 42 % 71.2 60 % 56.7 56 % 51.2 54 % Total 83.4 100 % 82.7 100 % 82.2 100 % 100.5 100 % 118.6 100 % 101.3 100 % 94.9 100 % HEADCOUNT Mar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Fixed staff (FTE)Asia Pacific 1,174 72 % 1,155 72 % 1,093 71 % 1,081 70 % 1,071 70 % 1,067 70 % 1,054 70 % EU / USA 452 28 % 450 28 % 453 29 % 453 30 % 458 30 % 455 30 % 459 30 % Total 1,626 100 % 1,605 100 % 1,546 100 % 1,534 100 % 1,529 100 % 1,522 100 % 1,513 100 % Temporary staff (FTE)Asia Pacific 11 16 % 54 49 % 34 39 % 8 13 % 42 46 % 121 72 % 95 63 % EU / USA 58 84 % 57 51 % 54 61 % 54 87 % 50 54 % 48 28 % 57 37 % Total 69 100 % 111 100 % 88 100 % 62 100 % 92 100 % 169 100 % 152 100 % Total fixedand temporary 1,695 1,716 1,634 1,596 1,621 1,691 1,665 staff (FTE) OTHER Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 FINANCIAL DATA Gross profit 45.5 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 21.7 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 % admin expenses Research anddevelopment expenses:As reported 9.0 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 2.9 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 % of R&D chargesAmortization (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 % of intangibles R&D expenses 9.4 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 % as adjusted Financialexpense (income), net:Interestexpense 2.4 2.4 2.7 2.5 2.6 2.5 3.1 (income), netHedging 1.3 0.7 0.8 0.7 0.7 0.5 0.3 resultsForeignexchange 0.2 0.1 (0.2 ) 0.1 (0.7 ) (0.3 ) (0.2 ) effects, net Total 3.9 3.2 3.3 3.3 2.6 2.7 3.2 Operating income (loss)as % of 14.7 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 % net sales EBITDA as % of 19.7 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 sales Net income (loss)as % of 9.5 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 % net sales Income per shareBasic 0.13 0.26 0.26 0.47 0.19 0.55 0.47 Diluted 0.13 0.25 0.25 0.43 0.19 0.50 0.43

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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