ASML reports €2.4 billion net sales at 45.1% gross margin in Q1
2020
ASML reports €2.4 billion net sales at 45.1% gross
margin in Q1 2020Strong order intake and currently no
change in demandASML refrains from guidance due to increased
uncertainty in current environment
VELDHOVEN, the Netherlands, April 15, 2020 - today ASML
Holding NV (ASML) publishes its Q1 2020 results.
- Q1 net sales of €2.4 billion, net income of €0.4 billion, gross
margin of 45.1%
- Q1 net bookings of €3.1 billion
(Figures in millions of euros unless otherwise
indicated) |
Q4 2019 |
Q1 2020 |
Net sales |
4,036 |
2,441 |
...of which Installed Base Management sales 1 |
906 |
857 |
|
|
|
New lithography systems sold (units) |
67 |
49 |
Used lithography systems sold (units) |
9 |
8 |
|
|
|
Net bookings 2 |
2,402 |
3,085 |
|
|
|
Gross profit |
1,940 |
1,101 |
Gross margin (%) |
48.1 |
|
45.1 |
|
|
|
|
Net income |
1,134 |
391 |
|
EPS (basic; in euros) |
2.70 |
0.93 |
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
4,718 |
4,112 |
(1) Installed Base Management sales equals our net service and
field option sales.
(2) Our systems net bookings include all system sales orders for
which written authorizations have been accepted (for EUV excluding
the High-NA systems).
Numbers have been rounded for readers' convenience. A complete
summary of US GAAP Consolidated Statements of Operations is
published on www.asml.com
CEO statement and outlook"On March
30, ASML provided an update to the market on expected Q1 2020
results, primarily related to the COVID-19 impact. We announced in
our press release that we expected revenue in the first quarter to
be between €2.4 billion and €2.5 billion, with a gross margin
between 45% and 46%, and that impacted revenue was expected to
shift to subsequent quarters in 2020.
"Our first-quarter sales came in at €2.44 billion, which is
within the range that we announced in our update. The gross margin
came in at 45.1%, at the lower end of our updated guidance due to
delayed revenue from field upgrades. We shipped four EUV systems in
the quarter but we were only able to recognize revenue for two
systems, for reasons mentioned in our press release of March 30,
2020. Our Q1 net bookings were strong and came in at €3.1 billion,
including €1.5 billion of EUV systems (11), which shows continued
strong demand for EUV.
"The demand outlook is currently unchanged and we have not
encountered any push-outs or cancellations this year. Despite the
challenging circumstances, to date we have been able to continue
ASML’s operations. Our order intake is strong. Many of the
investments made by our customers are strategic and support their
long-term plans. However, in light of the current risks and
uncertainties related to COVID-19, we decided to refrain from
giving guidance for Q2 and for the full year 2020. There is
significant uncertainty about how the current COVID-19 crisis will
impact the global GDP development, end markets, our manufacturing
capability and supply chain.
"Our primary goal is to ensure, as best as we can, that our
colleagues and their families stay safe. Our second goal is to
ensure that we continue to serve our customers and to secure the
delivery of our product roadmap, including the continuity of our
supply. It is very encouraging to see the creativity, resilience
and dedication at ASML and the industry overall," said ASML
President and Chief Executive Officer Peter Wennink.
Final dividend proposal and share buyback program
updateASML intends to declare a total dividend for 2019 of
€2.40 per ordinary share, consisting of an interim dividend of
€1.05 per ordinary share, paid in November 2019, and a final
dividend payment of €1.35 per ordinary share, as will be
proposed to shareholders at the Annual General Meeting (AGM)
scheduled for April 22, 2020.
As part of its financial policy to return excess cash to its
shareholders through growing annualized dividends and regularly
timed share buybacks, in January 2020 ASML announced a new
three-year share buyback program, to be executed within the
2020–2022 time frame. As part of this program ASML intends to
purchase shares up to €6 billion, which includes a total of up to
0.4 million shares to cover employee share plans. ASML intends to
cancel the remainder of the shares repurchased.
On March 30, 2020 ASML announced that, due to the uncertainties
arising from COVID-19, ASML decided not to execute any share
buybacks in Q2 2020. This decision follows the pause in the
execution of the program in the first quarter of the year, after
having already performed share buybacks under this program for an
amount of approximately €507 million. The three-year share buyback
program remains in place.
Media
Relations contacts |
Investor
Relations contacts |
Monique Mols +31
6 5284 4418 |
Skip Miller +1
480 235 0934 |
Sander Hofman +31
6 2381 0214 |
Marcel Kemp +31
40 268 6494 |
Brittney Wolff
Zatezalo +1 408 483 3207 |
Peter Cheang +886
3 659 6771 |
Quarterly video interview, investor and media conference
callWith this press release, ASML has published a video
interview in which CFO Roger Dassen discusses the Q1 2020 results
and the impact of the COVID-19 outbreak on our business. This can
be viewed on www.asml.com.
A conference call for investors and media will be hosted by CEO
Peter Wennink and CFO Roger Dassen on April 15, 2020 at 15:00
Central European Time / 09:00 US Eastern Time. Details can be found
on our website.
About ASMLASML is one of the world’s leading
manufacturers of chip-making equipment. Our vision is a world in
which semiconductor technology is everywhere and helps to tackle
society’s toughest challenges. We contribute to this goal by
creating products and services that let chipmakers define the
patterns that integrated circuits are made of. We continuously
raise the capabilities of our products, enabling our customers to
increase the value and reduce the cost of chips. By helping to make
chips cheaper and more powerful, we help to make semiconductor
technology more attractive for a larger range of products and
services, which in turn enables progress in fields such as
healthcare, energy, mobility and entertainment. ASML is a
multinational company with offices in more than 60 cities in 16
countries, headquartered in Veldhoven, the Netherlands. We employ
more than 25,300 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 Financial ReportingASML'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 are available on www.asml.com.
The consolidated balance sheets of ASML Holding N.V. as of
March 29, 2020, the related consolidated statements of
operations and consolidated statements of cash flows for the
quarter and three months ended March 29, 2020 as presented in
this press release are unaudited.
Regulated informationThis press release
contains inside information within the meaning of Article 7(1) of
the EU Market Abuse Regulation.
Forward Looking StatementsThis document
contains statements that are forward-looking, including statements
with respect to expected trends, bookings, annual revenue
opportunity in 2020 and through 2025 and long term growth
opportunity, expected trends in end markets, expected technology
industry and business environment trends, including the expected
impact of the Covid-19 pandemic on ASML, expected revenue
recognition of systems in Q2/Q3, demand outlook, shrink being a key
industry driver supporting innovation and providing long-term
industry growth, the expected continuation of Moore’s law and the
expectation that EUV will enable continuation of Moore’s law and
drive long term value for ASML well into this decade, and
statements with respect to plans regarding dividends and share
buybacks, including the dividend proposal in respect of 2019, the
2020-2022 share buyback program, including the plan to not make
purchases in Q1 and the intention to continue to return excess cash
to shareholders through a combination of share buybacks and growing
annualized dividends. 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", "target", 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 our 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; the impact of general economic conditions on
consumer confidence and demand for our customers’ products;
performance of our systems, risks related to the Covid-19 virus on
the global economy and financial markets, as well as on ASML and
its customers and suppliers, the impact on ASML’s and its
customers’ and suppliers’ operations and other risks relating to
the Covid-19 virus and other factors that may impact ASML’s sales
and gross margin, including customer demand and ASML’s ability to
supply its products, the success of technology advances and the
pace of new product development and customer acceptance of and
demand for new products; the number and timing of systems ordered,
shipped and recognized in revenue, and the risk of order
cancellation or push out, production capacity for our systems
including delays in system production; our ability to enforce
patents and protect intellectual property rights and the outcome of
intellectual property disputes and litigation; availability of raw
materials, critical manufacturing equipment and qualified
employees; trade environment; changes in exchange and tax rates;
available liquidity, our ability to refinance our indebtedness,
available cash and distributable reserves for, and other factors
impacting, dividend payments and share repurchases, results of the
share repurchase programs and other risks indicated in the risk
factors included in ASML’s Annual Report on Form 20-F and other
filings with and submissions to 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 press release
- Link to consolidated financial statements
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