(Reuters) -Dutch semiconductor equipment maker ASM International raised its revenue target for 2025 on Tuesday, saying its innovation strategy and transition to new technologies would reap results.
The Amsterdam-listed company now expects revenue to reach 3 billion euros to 3.6 billion euros ($3.81 billion) in two years time, up from a previous estimate of 2.8 billion to 3.4 billion euros.
ASM International also reiterated its gross margin target at 46-50% and its operating margin target at 26-31% for 2023-2025. It set the same targets for 2026-2027, after which it said it expects an upward trend in the operating margin.
The company’s shares were 4.5% lower by 0810 GMT.
“Despite the weakening in economic conditions and softening in the semiconductor equipment market this year we believe we remain on track to deliver on our targets,” said ASM International chief executive and president Benjamin Loh.
ASM confirmed its expectations for the single-wafer atomic layer deposition (ALD) market to reach $3.1 billion to $3.7 billion in 2025 and $4.2 billion to $5.0 billion by 2027, of which it targets a market share of more than 55%.
ALD, a technique in semi-conductor manufacturing using ultra-thin layers of material, accounted for more than half of the company’s revenue from equipment sales in 2022.
Analysts say ASM’s ALD operations are a strong area for future growth.
The group also confirmed its overall sales target for the upcoming quarter at between 580 million and 620 million euros.
($1 = 0.9449 euros)
(Reporting by Victor Goury-Laffont and Pierre John Felcenloben; Editing by Christopher Cushing, Kirsten Donovan)
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