Besi’s revenue in 2022 declined by € 26.4 million, or 3.5%, versus 2021 primarily due to a variety of trends affecting its end-user markets. Significant revenue decreases were reported for smartphone and Chinese end-user markets. Such adverse headwinds were partially offset by continued strength in (i) automotive end-user markets as supply chain issues began to recede and (ii) computing applications as hybrid bonding shipments increased for commercial production in the second half of the year.
Orders of € 663.7 million declined by 29.3% in comparison to 2021 principally due to significantly decreased demand for high-end smartphone applications post new product introductions in 2021 and reduced bookings from Chinese subcontractors for mobile and computing applications linked to softening economic conditions. In both 2022 and 2021, bookings by IDMs and subcontractors represented approximately 55% and 45% of total orders. Revenue and orders in 2022 were not adversely affected by trade restrictions and regulations resulting from geo-political tensions between the US and China.
Besi maintained its financial efficiency at elevated levels this year despite the adverse impact of weakening market conditions. Our gross margin increased from 59.6% in 2021 to 61.3% and operating margins remained above 40%. Operating income of € 294.1 million declined by 7.4% versus 2021 primarily due to a 48% increase in R&D spending for next generation wafer level assembly systems.
Besi’s net income of € 240.6 million decreased by € 41.8 million, or 14.8%, versus 2021 and resulted in a net margin of 33.3%. Decreased profitability was primarily due to lower spending for smartphones and in Chinese end-user markets, increased R&D spending and the absence of € 15.0 million deferred tax benefits recognized in 2021.
Financial Condition
| € millions |
Q4
2022 | Q3
2022 | Δ | Q4
2021 | Δ | FY 2022 | FY
2021 |
Δ | |||
| Total Cash and Deposits | 671.7 | 661.8 | +1.5 | % | 672.2 | -0.1 | % | 671.7 | 672.2 | -0.1 | % |
| Net Cash and Deposits | 346.5 | 342.5 | +1.2 | % | 370.4 | -6.5 | % | 346.5 | 370.4 | -6.5 | % |
| Cash flow from Ops. | 86.6 | 112.7 | -23.2 | % | 101.8 | -14.9 | % | 271.9 | 277.9 | -2.2 | % |
At year-end 2022, Besi had a strong liquidity position with total cash and deposits aggregating € 671.7 million, or an increase of € 9.9 million (+1.5%), versus Q3-22. Growth was primarily due to € 86.6 million of cash flow from operations which was used to fund (i) € 65.0 million of share repurchases, (ii) € 5.5 million of capitalized development spending and (iii) € 2.1 million of capital expenditures. Similarly, net cash of € 346.5 million at quarter end increased by 1.2% versus Q3-22.
