This excerpt taken from the ASMI 6-K filed Aug 26, 2005.
ASMIs primary consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP). The Annual Report for 2004, including consolidated financial statements prepared in accordance with US GAAP, was published on February 24, 2005. US GAAP will continue to be the Companys primary set of accounting principles.
ASMI is required by European Regulations to also publish consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) from 2005 onwards. ASMIs first consolidated financial statements prepared in accordance with IFRS will be included in its Dutch Statutory Annual Report for 2005, including the consolidated financial statements of 2004 for comparison purposes. These consolidated financial statements replace the consolidated financial statements ASMI prepared through 2004 in accordance with accounting principles generally accepted in the Netherlands (Dutch GAAP), included in its Dutch Statutory Annual Reports through 2004.
This presentation includes an overview of the differences between IFRS and US GAAP applicable to ASMI. The IFRS standards expected to be applicable to the Dutch Statutory Annual Report for 2005 have been applied in preparing this presentation. These standards are subject to endorsement by the EU and interpretative guidance from the International Accounting Standards Board (IASB). Accordingly, this presentation is tentative and subject to change to reflect new interpretative guidance. ASMIs final 2004 financial statements prepared in accordance with IFRS will be included in its Dutch Statutory Annual Report for 2005.
Although IFRS has an impact on the way ASMIs consolidated financial statements are presented, IFRS does not have an impact on ASMIs business, business decisions, performance or cash flows.
This excerpt taken from the ASMI 20-F filed Mar 31, 2005.
We design, manufacture and sell equipment and systems used to produce semiconductor devices, or integrated circuits. Our production equipment and systems are used by both the front-end and back-end segments of the semiconductor manufacturing industry. Front-end equipment performs various fabrication processes in which thin films, or layers, of electronically insulating or conductive material are grown or deposited onto a round slice of silicon, called a wafer. Back-end equipment separates these processed wafers into numerous individual dies, each containing the circuitry of a single semiconductor device, and assembles, packages and tests the dies in order to create semiconductor devices. We believe that, at least to date, the front-end and back-end react differently to market forces in the highly cyclical semiconductor industry and that operating in both segments may reduce the impact of business cycles on our operations.
Our front-end manufacturing facilities in the Netherlands, the United States, Japan and Singapore enable us to interact closely with customers in the worlds major semiconductor design and wafer processing markets: Europe, North America and Asia. Our products in the front-end market segment grow or deposit thin films onto wafers primarily using a process called chemical vapor deposition, or CVD. CVD deposits films on the wafers surface through chemical reactions using gases and vapors at elevated temperatures. Front-end operations accounted for 49.2% of our net sales in 2003 and 47.1% of our net sales in 2004.
Our back-end business facilities are located in Hong Kong, Singapore, the Peoples Republic of China and Malaysia, close to where most assembly and packaging operations are located. Our products in the back-end market assemble and package individual dies into finished semiconductor devices using stand alone and automated lines of equipment. We also manufacture leadframes, which are copper carriers on which dies are mounted as part of the back-end assembly process. Back-end operations accounted for 50.8% of our net sales in 2003 and 52.9% of our net sales in 2004.
Our front-end business is conducted through wholly-owned subsidiaries, the most significant of which are ASM Europe B.V. (ASM Europe), located in the Netherlands, ASM America, Inc. (ASM America),
located in the United States, and ASM Japan K.K. (ASM Japan), located in Japan. Our back-end business is conducted through our majority-owned subsidiary, ASM Pacific Technology Ltd. (ASM Pacific Technology or ASMPT), with principal operations in Hong Kong, Singapore, the Peoples Republic of China and Malaysia. As of December 31, 2004, we owned 53.84% of the outstanding equity of ASM Pacific Technology.