Dutch semiconductor equipment manufacturer Asma recently released its first quarter results, with profits exceeding expectations but sales falling short of analyst expectations.
Asma reported a sales revenue of 5.29 billion euros (approximately 5.62 billion US dollars) in the first quarter, compared to the average analyst expectation of 5.39 billion euros previously surveyed; The net profit reached 1.22 billion euros, with an expected 1.07 billion euros.
In the first quarter, Asma's sales and net profit decreased by 21.6% and 37.4% respectively compared to the same period last year. The highly anticipated net bookings of mechanical equipment in the first quarter totaled 3.6 billion euros, a year-on-year decrease of 4%, but a decrease of nearly two-thirds compared to the fourth quarter ending in December last year.
Asma CEO Peter Wennink stated in a statement that his outlook for this year's full year performance remains unchanged, and it is expected that the situation in the second half of the year will be better than in the first half, which is in line with the industry's sustained recovery from the downturn.
Wennink further pointed out that Asma regards 2024 as a transitional year and will continue to invest in production capacity and new technologies to prepare in advance for the transition of the industry cycle.
Is the semiconductor industry rebounding this year?
Asma is one of the most important semiconductor companies in the world, producing tools called extreme ultraviolet lithography machines (EUVs), which are necessary for manufacturing the world's most advanced chips.
Last year, weak demand for consumer electronics products such as smartphones and laptops led to poor performance among semiconductor manufacturers. This ultimately transmitted to Asma Company, and the demand for equipment significantly weakened.
However, various semiconductor companies, such as memory chip manufacturer Samsung, have recently stated that they have seen a rebound in demand.
Asma had previously stated that it expects net sales in 2024 to be similar to 2023, and reiterated this forecast on Wednesday, stating that performance will show strong growth in 2025.
In 2023, Asma's annual net sales amounted to 27.6 billion euros.