Connect with us

Company News

BESI sees Q4 revenue drop

BE Semiconductor forecast on Thursday a fall in quarterly revenue, as the chipmaking equipment supplier warned that U.S. curbs on exports to China added more uncertainty to the industry outlook.

The Dutch firm is the latest semiconductor company to give downbeat guidance amid growing concerns about weakening consumer demand for electronic devices.

The maker of semiconductor assembly and packaging equipment said it was evaluating whether its products would be subject to the sweeping new U.S. restrictions on exporting semiconductors to China announced earlier this month.

Peer ASML said on Wednesday it expected limited impact on its business as its products and most of their parts are made in Europe. However, indirect effects could still lead to its Chinese customers cutting orders.

BESI, which supplies STMicroelectronics and Infineon Technologies, said it expected fourth-quarter revenue to drop 15% to 25% quarter-on-quarter.

The forecast came as the company reported third-quarter orders fell 18.2% to 125.3 million euros ($122.7 million) from the prior quarter, as demand for high performance computing applications and Asian subcontractors weakened.

These were also lower compared to 2021 due to broad-based market decline, particularly in computing applications, it said.

Analysts said the order drop and outlook pressured shares which fell more than 2% in early trade. They were 0.3% lower at 0745 GMT.

“The outlook for the assembly equipment market has turned more negative during the quarter as industry conditions weakened, global GDP growth rates decelerated and customer caution increased,” Chief Executive Officer Richard Blickman said in a statement.

He added for now it appears to be a traditional industry downturn marked by overcapacity and order delays.

The group reported revenue of 168.8 million euros, a 21.1% decrease from the previous quarter, at the high end of the range forecast in July. Reuters

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!