Dutch chipmaker ASM reports 25% rise in second-quarter revenue, to buy back shares

(Reuters) - Dutch semiconductor supplier ASM International ASMI.AS reported on Tuesday a 25% increase in second-quarter revenue, driven by its logic chips and fabrication business, and announced a 100 million euro ($111 million) share buyback plan.

Logic chips are the building blocks for electronic circuits, which are used to create digital systems such as computer processors.

ASM said quarterly revenue reached 260 million euros, excluding previously announced gains from a recent patent litigation, compared with 242 million euros in a Refinitiv analyst poll.

After a patent litigation settlement with Kokusai Electric, ASM received 115 million euros in cash, which was not included in the second-quarter revenue guidance of between 230 and 250 million euros it had published in April.

“Our cash position in the quarter increased substantially and still excludes the cash proceeds from the litigation settlement”, Chief Executive Chuck del Prado said.

Based on this, ASM will buy back up to 100 million euros of its common shares between 2019 and 2020, del Prado added.

While expectations for the memory chip market have further weakened, ASM said, the healthy demand in the logic and fabrication segments in the first half is expected to continue in the second half of 2019.

Given this view, ASM, whose order intake also came in above its own expectations thanks to the logic segment, confirmed its expectations to “meaningfully” outperform the market in 2019.

For the third quarter, ASM expects both sales and bookings of between 250 and 270 million euros on a currency comparable level, it said.

Reporting by Zuzanna Szymanska in Gdynia. Editing by Jane Merriman and Emelia Sithole-Matarise