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July 2, 2009
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S&P ratings lowered ASM International's (ASMI) long-term credit rating from BB- to B+. The rating revision hinges on the rating agency's expectation of a prolonged downturn for semiconductor equipment companies.
ASMI is an original equipment manufacturer (OEM) offering semiconductor manufacturing equipment used in the fabrication of integrated circuits (ICs). Its products are used in both the front and back-end segments of the semiconductor production process. The company was growing revenue and earnings nicely before 2008, but suffered a big setback during 2008 when its earnings declined nearly 70%. The company reported a loss in the first quarter.
Management announced its decision to divest the Levitor RTP business to its RTP management team under the banner of a newly formed company. The initial working capital of around e4 million will be provided by ASMI, and a minority share in the business will be retained.
Separately, Intel Corporation (INTC) announced that it had acquired a 4% stake in ASMI through its investment company, Intel Capital.
Read the full analyst report on "ASML"
Read the full analyst report on "INTC"
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