July 29, 2010 – * Q2 Net profit 47.5 million euros vs f'cast 19-21 million
* Q2 sales 302.4 million euros vs forecast 235-265 million
* Sees orders, revenue to increase in Q3
* Shares up 7 percent at 5-week highs
(Adds detail, CEO comment, shares, background)
AMSTERDAM, July 29 (Reuters) - Dutch semiconductor equipment maker ASM International easily beat even the most optimistic forecasts for its second quarter and said order and revenue growth would continue, triggering a sharp share rally.
Net profit rose to 47.5 million euros ($62 million) from 4.2 million euros in the first quarter, well above the range of 19-21 million euros in a Reuters survey.
"ASMI has reported a blow-out quarter, with results better than expected in all areas," said Victor Bareno at SNS Securities, adding that a strong turnaround in the lagging front-end business, which prepare silicon wafer for etching, confirmed his buy rating.
The midcap firm, which makes equipment used for processing, assembly and packaging of semiconductors, projected an increase in third-quarter orders and revenue.
ASMI's front-end unit, which machines that deposit thin films of materials on silicon wafers, swung to a 12.1 million euro profit, its first since 2007.
The front-end unit competes with Applied Materials Inc. and Novellus Systems Inc., which earlier this month beat market expectations, also helped by a surge in bookings and shipments. . Applied Materials will publish third quarter results on Aug. 18.
ASMI's back-end activities are grouped in Hong Kong-listed ASM Pacific Technology, in which ASMI holds a 53 percent stake.
ASMI shares were the biggest gainers in Amsterdam by 0839 GMT, up 7 percent at 18.54 euros at a 5-week high. ASM Pacific shares jumped 10.4 percent, valuing ASMI's stake in ASM Pacific at 1.46 billion euros, well above ASMI's own market capitalisation of almost 964 million euros.
The discrepancy is at the centre of an ongoing debate between the company and its shareholders. In, May shareholders agreed to postpone a debate about a potential break-up of the company until 2012.
CEO Del Prado told reporters he did not expect the debate would be on the agenda at all as he expects front-end to continue to be profitable. "We are working very hard to make sure that there will be no reason to put the issue on the agenda again," he said. ($1=.7684 Euro) (Reporting by Harro ten Wolde)
