Orders of € 180.5 million increased by 44.1% versus Q3-22 due to increased orders for high-end smartphone applications from Asian subcontractors and new orders for hybrid bonding systems from multiple IDM customers. Versus Q4-21, orders decreased by 10.9% primarily due to lower bookings for mainstream computing and automotive applications. Per customer type, IDM orders increased € 17.5 million, or 21.7%, versus Q3-22 and represented 54% of total orders for the period. Subcontractor orders increased by € 37.7 million, or 84.5%, versus Q3-22 and represented 46% of total orders.

€ millions	Q4-2022		Q3-2022		Δ		Q4-2021	Δ
Gross Margin	62.3	%	62.3	%	-		56.7%*	+5.6
Operating Expenses	37.1		34.0		+9.1	%	30.3	+22.4	%
Financial Expense, net	3.6		5.5		-34.5	%	3.0	+20.0	%
EBITDA	54.8		77.1		-28.9	%	72.0	-23.9	%

^{* Gross margin in Q4-21 included a one-time, € 7.4 million inventory impairment charge. Ex such charges, gross margin would have been 61.0%}

Besi’s gross margin of 62.3% in Q4-22 was equal to Q3-22 and above guidance primarily due to favorable forex influences. Versus Q4-21, gross margin increased by 5.6 points primarily due to the absence of a one-time, € 7.4 million inventory impairment charge recorded in Q4-21. Excluding such charge, Besi’s gross margin rose by 1.3% versus Q4-21.

Q4-22 operating expenses increased by € 3.1 million, or 9.1%, versus Q3-22 due primarily to a € 1.0 million increase in R&D spending and higher share-based compensation expense. Versus Q4-21, operating expenses increased by € 6.8 million, or 22.4%, due primarily to € 4.6 million of higher R&D spending for next generation wafer level assembly systems as well as higher marketing and technical support costs related thereto and increased travel expenses post the pandemic. As a percentage of revenue, operating expenses increased to 26.9% in Q4-22 versus 20.2% in Q3-22.