Chipmaking equipment supplier BE Semiconductor forecast a drop in third-quarter revenue, citing current market softness and seasonal trends.
The maker of semiconductor assembly and packaging equipment expects its revenue to decline by around 20-30 percent in the three months to September 30, from €214 million ($218.75 million) it posted for the second quarter.
“Whether current market softness is a temporary pause or more prolonged in duration is difficult to tell at present given the many conflicting economic, geopolitical and industry cross currents,” BE Semiconductor CEO Richard Blickman in a news statement.
BE Semiconductor’s orders fell 23.5 percent from a year earlier to €153.1 million in the quarter due to weak industry conditions as slower economic growth made customers more cautious.
Lower bookings by Chinese subcontractors and decreased orders for high performance computing applications, particularly contributed to this drop.
BE Semiconductor supplies to leading chipmakers like STMicroelectronics, Infineon Technologies and Amkor.
BE Semiconductor had temporarily reduced production headcount by nearly 16 percent to adapt to order trends in the latter half of the quarter.
BE Semiconductor targets third-quarter gross margin in a 60-62 percent range against 61 percent in the April-June period, which reached the top end of its previous forecast helped by favourable product mix, stronger dollar, and lower operating expenses.
Meanwhile, ASML Holding has cut 2022 outlook on increasing number of fast shipments delays due to lingering supply-chain constraints.
BE Semiconductor said revenue of €214 million rose 5.7 percent vs. Q1-22 due to increased shipments for high-end mobile applications. Revenue fell 5.4 percent vs. Q2-21 due to lower demand for high-end smartphones and from Chinese subcontractors partially offset by strength in automotive and computing applications, BE Semiconductor said.
BE Semiconductor said orders of €153.1 million fell 25.2 percent vs. Q1-22 principally as a result of lower orders for high-end mobile and high performance computing applications and by Asian subcontractors partially offset by continued strength for automotive end-user markets. Orders dropped 23.5 percent vs. Q2-21 primarily due to lower bookings by Chinese subcontractors and, to a lesser extent, decreased orders for high performance computing applications, BE Semiconductor said.
BE Semiconductor said revenue of €416.4 million rose 12.8 percent vs. H1-21 reflecting strong demand for Besi’s computing and automotive end-user markets. Growth partially offset by reduced demand for high-end smartphones as well as lower shipments for mobile handsets and mainstream electronics by Chinese subcontractors.
BE Semiconductor said orders of €357.9 million declined 32.1 percent vs. H1-21 due to less favorable market conditions, lower orders for high-end smartphones post new introductions in 2021 and decreased demand from Chinese subcontractors.