The following is a summary of the ASM International NV (ASMIY) Q1 2024 Earnings Call Transcript:
Financial Performance:
ASM reported revenue of €639 million in Q1 2024, at the high end of their guidance range.
The company's gross margin increased to 52.9%, up from 47.9% in Q4 2023.
SG&A expenses increased by 4% compared to Q1 2023 but were lower than Q4 2023 due to lower variable expenses and reduced spending.
Net R&D increased by 2% year-on-year and is expected to increase by 10% to 20% in 2024.
ASM's strong financial position is highlighted by an end of quarter cash balance of €720 million.
Free cash flow for the quarter amounted to €62 million.
Business Progress:
Record high Q1 revenues were driven by ALD and Epi with significant sales from the Chinese market, which is expected to remain strong in Q2.
ASM's capital expenditure remains between €100 million to €180 million with a significant part allotted for R&D.
The company is actively engaged with customers for developments in 3D DRAM and 4F squared DRAM.
A significant increase in ALD intensity is expected as the transition continues from 2 nanometer to 1.8 nanometer.
Anticipated orders for High Bandwidth Memory (HBM) are expected to be converted into revenue over the next few quarters.
ASM maintains its 2025 revenue target range of €3 billion to €3.6 billion, driven by the start of high volume manufacturing of gate-all-around process and expected recovery in memory.
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