Semiconductor supplier ASM International said revenue increased 33 percent year on year to 610 million euros ($607.38 million) in the three months to September 30, beating its guided range of 570 million to 600 million euros.

ASM International has adjusted new orders of €676 million for the third quarter 2022 to reflect the expected negative impact of the recent US export restrictions to China. The new orders increased by 1 percent at constant currencies compared to the same period last year (8 percent as reported).

ASM International reported gross profit margin of 48.1 percent in the third quarter 2022 as against 47.2 percent in the same quarter last year.

Operating result for the third quarter 2022 improved from €117 million last year to €160 million this year driven again by strong revenue growth, which was partly offset by an increase in operating expenses, ASM International said.

Net earnings included a non-cash impairment charge of €321 million to account for the reduced market valuation of the stake in ASMPT.

Normalized net earnings for the third quarter 2022 were €175 million, up from €132 million in Q3 last year, and included a translation gain of €25 million compared to a translation gain of €13 million in Q3 2021 and a translation gain of €26 million in Q2 2022.

ASM said the new export regulations that were announced by the US government on October 7, 2022, to negatively impact its business in China. ASM’s equipment sales in China, at 16 percent of total revenue in the first nine months of 2022, are growing part of business with a strong contribution to group profitability.

“We expect the new export restrictions will affect more than 40 percent of our sales in China,” ASM International CEO Benjamin Loh said.

ASM said total bookings dropped to €676 million in Q3 compared to a record level of €943 million in Q2. Excluding the reduction of impacted orders from China, the decrease in Q3 orders against Q2 would have been much more moderate. The negative impact from new export regulations is also reflected in its guidance for Q4 sales.

During the third quarter, the semiconductor end-market further slowed down, with significant declines in the PC and smartphone segments. Combined with an expected deceleration in global economic growth WFE spending is forecasted to be down in 2023, in particular the memory segment.

AMS expects sales of €600-630 million, which includes a negative impact from the new US export regulations. The revenue guidance for Q4 also includes the revenue contribution from LPE, following the closure of the acquisition on October 3, 2022.