Very strong demand for DUV
systems, EUV shipments continue to ramp in support of customer
plans
VELDHOVEN, the Netherlands, October 18, 2017
- ASML Holding N.V. (ASML) today publishes its 2017 third-quarter
results.
-
Q3 net sales of EUR 2.45 billion, gross margin
42.9 percent
-
ASML expects Q4 2017 net sales around EUR 2.1
billion and a gross margin around 44 percent
(Figures in millions of euros unless
otherwise indicated) |
Q2 2017 |
Q3 2017 |
Net sales |
2,101 |
2,447 |
...of which service and field option sales |
717 |
628 |
|
|
|
Other income (Co-Investment Program) |
24 |
24 |
|
|
|
New lithography systems sold (units) |
39 |
48 |
Used lithography systems sold (units) |
3 |
7 |
|
|
|
Net bookings |
2,375 |
2,154 |
Systems backlog |
5,351 |
5,693 |
|
|
|
Gross profit |
946 |
1,050 |
|
Gross margin (%) |
45.0 |
|
42.9 |
|
|
|
|
Net income |
466 |
557 |
EPS (basic; in euros) |
1.08 |
1.30 |
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
2,514 |
2,678 |
A complete summary of US GAAP Consolidated
Statements of Operations is published on www.asml.com
CEO Statement
"ASML today reports third-quarter net sales that exceed our
guidance, partially due to the revenue recognition of an additional
EUV system, showing strong demand across the entire product
portfolio. With our fourth-quarter guidance, we are confirming our
view that 2017 net sales will be at least 25 percent higher than
2016 net sales. Our current view is that the positive business
environment that we are seeing today will continue in 2018,
supported by our strong backlog of 5.7 billion euros, which is
driven by all product categories," ASML President and Chief
Executive Officer Peter Wennink said.
Product and Business Highlights
-
In DUV lithography, we provided the first
customer with an early-access version of the TWINSCAN NXT:2000i for
process development at the 5 nanometer node. The new hardware
includes improved alignment and level sensors, which will enable
better on-product overlay performance in matched mode with EUV. We
shipped the 100th NXT:1980 in
Q3, two years after the system was launched in Q3 2015. This ramp
equals the fastest ever of an NXT platform and underscores the
market demand for leading-edge lithography as well as our ability
to ship significant numbers to meet that demand.
-
In Holistic Lithography, we shipped the first
product that was jointly developed with the engineering team of
HMI, which ASML acquired last year. The product, ePfm5, is a
pattern fidelity metrology tool that offers our customers enhanced
capabilities for detecting patterning defects. It leverages HMI
high resolution e-beam metrology technology, state-of-the-art
computational modeling, machine learning and scanner metrology data
to create defect maps for more wafers with a significantly higher
accuracy than existing solutions. We also shipped the first HMI
eXplore 6000 EUV reticle defect inspection system to a foundry
customer. The system offers high resolution multi-column technology
that supports full reticle qualification in production.
-
In EUV lithography, we continued our shipments
of EUV systems in support of our customers' production ramps in
2018. We shipped three NXE:3400B systems in Q3, bringing the total
so far this year to six, and our backlog now includes 23 EUV
systems. We also conducted a power capability test with our EUV
pellicle, which protects the mask from particles during exposure,
and showed that the current design can withstand 250 Watts of EUV
power.
Outlook
For the fourth-quarter of 2017, ASML expects net sales around EUR
2.1 billion, a gross margin around 44 percent, R&D costs of
about EUR 315 million, other income of about EUR 24 million (which
consists of contributions from participants of the Customer
Co-Investment Program), SG&A costs of about EUR 110 million and
an effective annualized tax rate around 14 percent.
Update Share Buyback Program
As part of ASML's financial policy to return excess cash to
shareholders through dividends and regularly timed share buyback
programs, ASML in January 2016 announced its intention to purchase
up to EUR 1.5 billion of shares to be executed within the 2016-2017
time frame. ASML intends to cancel the shares upon
repurchase.
Through October 1, 2017, ASML has acquired
6.0 million shares under this program for a total consideration of
EUR 569 million.
As a result of the pause in the program from July
20, 2016 until July 19, 2017, this program will not be completed
for the full amount. The current program may be suspended, modified
or discontinued at any time. Any transactions under this program
will be published on ASML's website (www.asml.com/investors) on a
weekly basis.
Media
Relations Contacts |
Investor
Relations Contacts |
Monique
Mols, phone +31 6 5284 4418 |
Craig
DeYoung, phone +1 480 696 2762 |
Niclas
Mika, phone +31 6 201 528 63 |
Marcel
Kemp, phone +31 40 268 6494 |
Investor and Media Conference Call
A conference call for investors and media will be hosted by CEO
Peter Wennink and CFO Wolfgang Nickl at 15:00 Central European Time
/ 09:00 AM U.S. Eastern time. To register for the call and receive
dial-in information, go to www.asml.com/qresultscall.
Listen-only access is also available via www.asml.com.
About ASML
ASML is one of the world's leading manufacturers of chip-making
equipment. Our vision is to enable affordable microelectronics that
improve the quality of life. To achieve this, our mission is to
invent, develop, manufacture and service advanced technology for
high-tech lithography, metrology and software solutions for the
semiconductor industry. ASML's guiding principle is continuing
Moore's Law towards ever smaller, cheaper, more powerful and
energy-efficient semiconductors. This results in increasingly
powerful and capable electronics that enable the world to progress
within a multitude of fields, including healthcare, technology,
communications, energy, mobility, and entertainment. ASML is a
multinational company with offices in 60 cities in 16 countries,
headquartered in Veldhoven, the Netherlands. We employ more than
18,000 people on payroll and flexible contracts (expressed in full
time equivalents). ASML is traded on Euronext Amsterdam and NASDAQ
under the symbol ASML. More information about ASML, our products
and technology, and career opportunities is available on
www.asml.com.
US GAAP and IFRS Financial Reporting
ASML's primary accounting standard for quarterly earnings releases
and annual reports is US GAAP, the accounting principles generally
accepted in the United States of America. Quarterly US GAAP
consolidated statements of operations, consolidated statements of
cash flows and consolidated balance sheets, and a reconciliation of
net income from US GAAP to IFRS as adopted by the EU ('IFRS') are
available on www.asml.com.
In addition to reporting financial figures in
accordance with US GAAP, ASML also reports financial figures in
accordance with IFRS for statutory purposes. The most significant
differences between US GAAP and IFRS that affect ASML concern the
capitalization of certain product development costs and the
accounting of income taxes. ASML's quarterly IFRS consolidated
statement of profit or loss, consolidated statement of cash flows,
consolidated statement of financial position and a reconciliation
of net income from US GAAP to IFRS are available on
www.asml.com.
The consolidated balance sheets of ASML Holding
N.V. as of October 1, 2017, the related consolidated
statements of operations and consolidated statements of cash flows
for the quarter ended October 1, 2017 as presented in this
press release are unaudited.
Regulated Information
This press release contains inside information within the meaning
of Article 7(1) of the EU Market Abuse Regulation.
Forward Looking Statements
This document contains statements relating to certain projections
and business trends that are forward-looking, including statements
with respect to expected trends and outlook, systems backlog,
expected financial results and trends for the fourth quarter of
2017, including expected sales, EUV revenue, gross margin, R&D
and SG&A expenses, other income, and annualized effective tax
rate, expected financial results and trends for the full year 2017,
annual revenue opportunity for ASML and EPS potential by 2020 with
significant further growth potential into the next decade, expected
industry trends and expected trends in the business environment,
statements with respect to the intent of customers to insert EUV
into production, supply chain and service capabilities, ASML's
commitment to secure system performance, shipments and support for
volume manufacturing, including availability, productivity,
throughput and shipments, the ability to support a larger installed
base, including timing of shipments (including planned EUV
shipments in Q4 2017and in 2018 and 2019 and recognition in revenue
of such shipments), statements with respect to HMI, including
expected expansion of the integrated Holistic Lithography roadmap,
introduction of a new class of pattern fidelity control for memory
and logic production in 2018 and expected multi-e-beam innovation,
shrink being a key driver supporting innovation and providing
long-term industry growth, lithography enabling affordable shrink
and delivering value to customers, the expected continuation of
Moore's law and that EUV will continue to enable Moore's law and
drive long term value for ASML beyond the next decade, the expected
impact of the new revenue recognition standard on revenue and net
income, intention to return excess cash to shareholders, and
statements about our dividend policy and intention to repurchase
shares and statements with respect to the share repurchase plan.
You can generally identify these statements by the use of words
like "may", "will", "could", "should", "project", "believe",
"anticipate", "expect", "plan", "estimate", "forecast",
"potential", "intend", "continue", "targets", "commits to secure"
and variations of these words or comparable words. These statements
are not historical facts, but rather are based on current
expectations, estimates, assumptions and projections about the
business and our future financial results and readers should not
place undue reliance on them. Forward-looking statements do not
guarantee future performance and involve risks and uncertainties.
These risks and uncertainties include, without limitation, economic
conditions, product demand and semiconductor equipment industry
capacity, worldwide demand and manufacturing capacity utilization
for semiconductors, including the impact of general economic
conditions on consumer confidence and demand for our customers'
products, competitive products and pricing, the impact of any
manufacturing efficiencies and capacity constraints, performance of
our systems, the continuing success of technology advances and the
related pace of new product development and customer acceptance of
new products including EUV, the number and timing of EUV systems
expected to be shipped and recognized in revenue, delays in EUV
systems production and development and volume production by
customers, including meeting development requirements for volume
production, demand for EUV systems being sufficient to result in
utilization of EUV facilities in which ASML has made significant
investments, potential inability to integrate HMI's systems into
our Holistic Lithography portfolio, our ability to enforce patents
and protect intellectual property rights, intellectual property
litigation, availability of raw materials, critical manufacturing
equipment and qualified employees, trade environment, changes in
exchange rates, changes in tax rates, available cash and liquidity,
our ability to refinance our indebtedness, distributable reserves
for dividend payments and share repurchases and other risks
indicated in the risk factors included in ASML's Annual Report on
Form 20-F and other filings with the US Securities and Exchange
Commission. These forward-looking statements are made only as of
the date of this document. We do not undertake to update or revise
the forward-looking statements, whether as a result of new
information, future events or otherwise.
Link to Consolidated Financial
Statements
Link to Press Release
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ASML Holding via Globenewswire
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