UPDATE 1-ASMI Q2 down 24 pct, sees weak Q3 front-end sales

(Adds ASMI comment, background)

AMSTERDAM, July 31 (Reuters) - Dutch semiconductor equipment maker ASM International (ASMI.AS)(ASMI.O) reported an in-line 24 percent quarter-on-quarter decline in its net profit and forecast continued weak sales in its key front-end unit.

The midcap firm, which rejected last month an offer worth up to $800 million for its main units, said second-quarter net profit fell to 9.6 million euros ($15 million) from 12.6 million in the first quarter and compared with 14.9 million a year ago.

Analysts polled by Reuters had expected on average net profit of 9 million euros.

U.S. rival Applied Materials (AMAT.O) and private equity firm Francisco Partners had sought to buy ASMI's front-end unit, which makes machines to deposit thin films of materials on silicon wafers.

The front-end unit made a loss of 5.8 million euros, higher than the average analyst forecast of a 4 million euro loss and versus a 0.2 million euro profit in the first quarter and a 5.5 million euro profit a year ago.

"In light of the ongoing softness in front-end capital spending for 2008, ASMI anticipates increased weakness in front-end revenues for the third quarter," ASMI said in a statement.

Disappointed by the front-end unit's continued underperformance, activist shareholders are seeking to oust Chief Executive Chuck del Prado, son of company founder Arthur del Prado.

The court case over a poison pill defence as well as a meeting to allow shareholders to vote on Del Prado's sacking has been pushed to October to allow ASMI to talk to potential buyers.

The group's order intake rose 3 percent from the first quarter to 193.3 million euros but orders for the front-end were down 20 percent. (Reporting by Foo Yun Chee; editing by Sue Thomas)