SUSS MicroTec reported first-quarter results that mixed robust demand signals with softer top-line and profit metrics. The semiconductor equipment maker recorded revenue of €86.5 million for the quarter, which fell short of the consensus analyst expectation of €96 million and Jefferies’ forecast of €99 million.
Margins provided a brighter note. The company achieved a gross margin of 36.1%, outpacing the consensus view of 33.7% and Jefferies’ projection of 32.1%. That margin performance contrasted with a weaker operating profit line, as SUSS reported an EBIT margin of 4.3%, below the consensus estimate of 5.7% and Jefferies’ forecast of 7.1%. Earnings per share were reported at €0.13, underperforming consensus expectations of €0.22 and Jefferies’ €0.24 estimate.
Order activity was the standout. SUSS booked €149.3 million of orders in the quarter, significantly ahead of the consensus estimate of €110 million and Jefferies’ €105 million forecast. The company said this was the largest quarterly order intake in its history.
Both of SUSS MicroTec’s main operating divisions contributed to the strong bookings. Photomask Solutions registered increased order volumes coming from China, while Advanced Backend Solutions benefited from strengthened temporary bonder orders attributed to Micron (MU) and Samsung. In addition, SUSS received further UV scanner orders from TSMC (TSM).
The firm reported an order backlog of €330.1 million, representing a 15.6% decline versus the prior year period.
Looking ahead, SUSS MicroTec kept its full-year guidance intact. Management reiterated expected revenue of €425 million to €485 million, a gross profit margin range of 35% to 37%, and an EBIT margin target of 8% to 10%. The company said it expects order momentum to remain strong and is expanding production capacity to meet the influx of demand. Management also affirmed that the planned launch of at least four new solutions later this year remains on schedule.
On cost dynamics, SUSS reported only limited current impact from higher energy and freight costs. However, the company cautioned that an escalation of conflict in the Persian Gulf could alter that outlook and create different cost dynamics going forward.
What this means
- SUSS demonstrated robust demand with record quarterly orders, signaling strength in equipment demand across its product lines.
- Profitability metrics were mixed - gross margin beat expectations while EBIT margin and EPS missed, leaving a gap between revenue/earnings and underlying demand indicators.
- Management preserved full-year guidance and is increasing capacity, suggesting confidence in near-term order conversion.