(Bloomberg) -- ASM International NV projected revenue this quarter that fell far below market expectations, signaling that the Dutch chip-equipment maker is continuing to grapple with an uneven recovery in global demand for semiconductors.
First-quarter revenue is expected to total €600 million ($651 million) to €640 million, the company said in a statement on Tuesday, missing the €643 million that analysts had estimated. The Almere-based company said it expects a “similar level” for the second quarter. ASM's American depositary receipts were down as much as 4% at 12:17 p.m. New York time.
ASM, which is a major producer of the so-called atomic layer deposition equipment necessary to make the world's most advanced chips, has been struggling to navigate a choppy recovery in the broader semiconductor market that has benefited some but not all. In contrast, ASML Holding NV — the much larger Dutch company that makes the expensive machines that produce semiconductors — closed Tuesday at a record-high as it expects a rebound in demand for its products.
“Softer conditions” in the market for wafer fabrication equipment specifically weighed on ASM's earnings in the last quarter of 2023 and will continue to play out in early 2024, the company said, even while the broader semiconductor market recovers. The company said it expects second-half revenue to be higher than that in the first half, “but it is too early to provide more specific guidance for the second half or for the full year,” it said.
The disappointing outlook outshadowed an otherwise upbeat earnings report. Revenue in the fourth quarter totaled €632.9 million ($687 million), surpassing the €629 million estimate from analysts. The company cited continued strength in demand from China and said it expects its share of revenue attributable to China to continue to be “relatively high” in the first part of the year. It is “likely to normalize for the remainder” of 2024, the company said.
(Updates to lead with disappointing outlook in first paragraph and adds share move)
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