Asm Intl Nv (LSE:ASMI)
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AMSTERDAM (Dow Jones)-Shares in Dutch semiconductor equipment maker ASM International NV (ASMI) surged Thursday after its third quarter results beat expectations, as rising demand in the global chip industry helped to boost sales and order intake.

ASMI also said it expects the fourth quarter to be "at least in line" with the third-quarter, but declined to give guidance beyond that period.

Chief Executive Chuck del Prado said ASMI's results are mainly improving due to the overall market upturn, echoing recent comments made by chipmakers about improving conditions in the industry. Last week, STMicroelectronics NV (STM), Europe's largest chipmaker by sales, posted forecast-beating revenue and upgraded its outlook. Earlier this month, Intel Corp. (INTC), the world's biggest semiconductor maker, also said demand was rising after a year of decline.

U.K. Bluetooth microchip maker CSR PLC (CSR.LN) Thursday underscored the upswing in the technology sector after reporting solid third-quarter sales and signing new partnership deals that sent it shares soaring over 12% in London.

At 1309 GMT, ASMI shares traded up EUR14.38, or 9.9%, at EUR14.62, outperforming a 2.8% rise in the mid-cap market. The stock has recovered over the past year from lows of just below EUR5 when the slump in demand due to the financial crisis started to hit.

ASMI reported a third-quarter net loss of EUR15.8 million, compared with a net loss of EUR55.7 million in the previous quarter and a net profit of EUR2.4 million a year earlier. The bottom line was hurt by a EUR9.2 million restructuring charge and a EUR5.9 million impairment charge on the firm's inventory.

Sales came in at EUR180.2 million, from EUR119.5 million in the second quarter of 2009 and EUR190 million a year earlier.

Three analysts polled by Dow Jones Newswires forecast a net loss of EUR30.5 million and revenue of EUR138 million.

Bookings were up 31% to EUR204.5 million compared with the second-quarter.

ASMI said that sales and bookings improved at both of its units and that it expects business levels to remain strong at its back-end division. Meanwhile, the company expects a modest improvement at its front-end division in the next quarter.

ASMI's front-end unit, which makes equipment to produce semiconductors, has been loss-making for some time and is undergoing a restructuring program. In the past years ASMI management has been under pressure from activist shareholders Fursa and Hermes to sell off this division.

ASMI's back-end unit consists of a majority stake in ASM Pacific Technologies (0522.HK), which assembles and packages the chips. The Hong-Kong based company Thursday posted a record net profit of HK$401 million, a 50.1% rise compared to a year earlier.

Company Web Site: www.asm.com

-By Maarten van Tartwijk; Dow Jones Newswires; +31 20 571 5201; maarten.vantartwijk@dowjones.com