FINANCIAL HIGHLIGHTS
ASMI results based on IFRS.
Quarter
EUR million
Q2 2016 Q1 2017 Q2 2017
New orders 159.1 204.2 205.9
Net sales 138.7 144.5 202.0
Gross profit margin % 43.8 % 43.5 % 43.7 %
Operating result 16.7 14.8 37.7
Result from investments (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT) 16.4 35.4 30.9
Amortization intangible assets resulting from the sale of the 12% stake of ASMPT
(6.7 ) (5.8 ) (7.3 )
Net earnings 35.6 35.9 132.1
Normalized net earnings (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT and result from sale and dilution of ASMPT stake) 42.3 41.6 55.6


· New orders at €206 million were 1% above the Q1 2017 level and 29% above last year's Q2 level.

· Net sales for the second quarter 2017 were €202 million, an increase of 40% compared to the previous quarter. Year-on-year net sales increased with 46%.

· Net earnings of €132 million in the second quarter included a result of €84 million from the 5% sale and dilution of the ASMPT stake.

· Normalized net earnings for the second quarter 2017 increased by €14 million compared to the first quarter 2017. Operating result increased to €38 million. The financing result included €11 million negative effects from currencies compared to €7 million negative effects in the first quarter. The result from investments decreased with €4 million due to the dilution of our stake in ASMPT. Moreover the ASMPT results in the first quarter included a one-off non-cash gain of €10 million related to the revaluation of the convertible bond.

COMMENT
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said: "In Q2 we realized sales of €202 million, which was slightly above our guidance and at a historical high quarterly level. The order intake for Q2, at €206 million, came in at the high end of the forecast and was also at the highest level in the company's history. Order intake in ALD was primarily strong from the 3D-NAND and Foundry segments. We also received several Intrepid Epitaxy orders in Q2."

OUTLOOK
Based on our current assessment, we continue to expect a clear year-on-year improvement in the single wafer ALD market in 2017, with demand in the Logic/Foundry segment remaining healthy and a strong increase in the 3D-NAND segment.

For Q3 we expect a sales level of €170-190 million, on a currency comparable level, while for the second half of 2017 as a whole we expect a sales level higher than in the first half of 2017. After the very strong orders in the past two quarters we expect order intake in Q3 at a still healthy level of €150-170 million, on a currency comparable level.

SHARE BUYBACK PROGRAM
On May 25, 2016, the Annual General Meeting of Shareholders authorized ASMI to acquire up to a maximum of 10% of its shares for a period of 18 months. On October 26, 2016, ASMI announced a share buyback program for the repurchase of up to €50 million of the Company's common shares within the 2016-2017 time frame. On March 2, 2017, ASMI announced that its Management Board authorized an increase in this program to €100 million. The 2016-2017 program started on December 13, 2016 and is part of ASMI's commitment to use excess cash for the benefit of its shareholders. On June 30, 2017, 77.7% of the program was completed at an average share price of €49.93.

On April 24, 2017, ASMI announced a partial sale of its ASMPT stake, whereby ASMI indicated to use the proceeds of approximately €245 million for a new share buyback program. The program will start as soon as the current program has been completed. During the Annual General Meeting of Shareholders of May 22, 2017 the Board was again authorized to acquire up to 10% of ASMI shares for a period of 18 months. During the same meeting it was approved to cancel 1.5 million treasury shares.This is expected to become effective as of July 29, 2017. In this respect it is noted that the company held 4.82 million treasury shares as per June 30, 2017, which is more than sufficient to cover the outstanding options and restricted/performance shares.