ASML reports €3.3 billion net sales at 48.2% gross margin in Q2
2020
ASML reports €3.3 billion net sales at 48.2% gross
margin in Q2 20202020 sales growth expectations
unchanged
VELDHOVEN, the Netherlands, July 15, 2020 - today ASML
Holding NV (ASML) has published its Q2 2020 results.
- Q2 net sales of €3.3 billion, net income of €0.8 billion, gross
margin of 48.2%
- Q2 net bookings of €1.1 billion
(Figures in millions of euros unless otherwise
indicated) |
Q1 2020 |
Q2 2020 |
Net sales |
2,441 |
3,326 |
...of which Installed Base Management sales 1 |
857 |
887 |
|
|
|
New lithography systems sold (units) |
49 |
57 |
Used lithography systems sold (units) |
8 |
4 |
|
|
|
Net bookings 2 |
3,085 |
1,101 |
|
|
|
Gross profit |
1,101 |
1,603 |
Gross margin (%) |
45.1 |
|
48.2 |
|
|
|
|
Net income |
391 |
751 |
|
EPS (basic; in euros) |
0.93 |
1.79 |
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
4,112 |
4,440 |
(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"Our second-quarter
sales came in at €3.3 billion, a strong growth of over 35% compared
to Q1. The gross margin came in at 48.2%, a significant improvement
compared to Q1, primarily due to an improvement of the EUV
installed base gross margin and the DUV mix. We shipped nine EUV
systems and were able to recognize revenue for seven systems in the
second quarter. The deferred revenue of four EUV systems that
shipped in the first half of the year will be recognized after site
acceptance, expected in the second half of the year. Our Q2 net
bookings came in at €1.1 billion, including €461 million from EUV
systems (three units).
"Thanks to the commitment and engagement of our people, we were
able to continue our business and serve our customers during the
second quarter. Our operational capabilities are largely back to
normal now, but we will remain vigilant as COVID-19 is not yet
behind us.
"We expect Q3 revenue between €3.6 billion and €3.8 billion with
a gross margin between 47% and 48%, R&D costs of around €545
million and SG&A costs of around €140 million. Estimated
annualized effective tax rate is expected to be around 14% for
2020. Our 2020 growth expectations are largely unchanged relative
to our view at the start of the year," said ASML President and
Chief Executive Officer Peter Wennink.
ASML to acquire Berliner GlasASML has agreed to
acquire all shares of Berliner Glas, a privately held manufacturer
of ceramic and optical modules, which are important to support the
future roadmap for our EUV and DUV products. The acquisition will
be completed once all the necessary regulatory approvals have been
obtained, which is expected before the end of 2020. Financial
details of the transaction will not be disclosed.
Products and business highlights
- In our DUV lithography business, we shipped the first NXT:1470
to a customer. This is the first dry NXT system, building on the
immersion platform, with improvements in matched machine overlay
(< 4.0 nm), productivity (> 300 wafers per hour) and
footprint.
- Our Applications business shipped the first-generation
multibeam inspection system ‘eScan 1000’, targeted for 5 nm nodes
and beyond. The HMI eScan 1000 demonstrated successful multibeam
operation, simultaneously scanning with nine beams. The eScan 1000
will increase throughput up to 600% compared to single e-beam
inspection tools for targeted in-line defect inspection
applications.
- In our EUV business, multiple NXE:3400C systems were upgraded
at customers with the modular vessel, within the planned install
time. We achieved a successful introduction of in-line tin refill
on those systems in support of our availability improvement
roadmap.
Dividend and share buyback program updateIn Q2,
ASML paid a final dividend of €1.35 per ordinary share, or €565
million. Together with the interim dividend paid in 2019, this
results in a total dividend for 2019 of €2.40 per ordinary
share.
As part of its financial policy to return excess cash to its
shareholders through growing annualized dividends and regularly
timed share buybacks, ASML announced a new three-year share buyback
program in January 2020, 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. To date, €507 million worth of shares
has been repurchased under the current program.
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 CEO Peter Wennink discusses the Q2 2020 results.
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 July 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 25,800 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 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 summary 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
June 28, 2020, the related consolidated statements of
operations and consolidated statements of cash flows for the
quarter and six-month period ended June 28, 2020 as presented
in this press release are unaudited.
In addition to reporting financial figures in accordance with US
GAAP, ASML also reports financial figures in accordance with
International Financial Reporting Standards as adopted by the
European Union ('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 for income taxes.
Today, July 15, 2020, ASML also published its Statutory
Interim Report for the six-month period ended June 28, 2020.
This report is in accordance with the requirements of the EU
Transparency Directive as implemented in the Netherlands, and
includes Consolidated Condensed Interim Financial Statements
prepared in accordance with IAS 34 as adopted by the European Union
'Interim Financial Reporting', an Interim Management Board Report
and a Managing Directors' Statement and is available on
www.asml.com.
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, including trends in end markets
and technology industry and business environment trends, outlook
and expected financial results for Q3 2020, including expected
revenues, gross margin and 2020 growth expectations, R&D costs,
SG&A costs and estimated annualized effective tax rate for
2020, expected revenue recognition of certain systems later in
2020, expected benefits and performance of new systems and
applications, the expectation that EUV will continue to enable
Moore's law and drive long term value for ASML, statements with
respect to plans regarding dividends, including the intention to
continue to return excess cash to shareholders through a
combination of share buybacks and growing dividends and statements
with respect to the 2020-2022 share buyback program. 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, the duration and
continued or increased severity of the COVID-19 outbreak and
measures taken to contain it and other risks related to the impact
of COVID-19 on the global economy and financial markets, as well as
on ASML and its customers and suppliers, including their
operations, and other risks relating to COVID-19 and other factors
that may impact ASML’s sales and gross margin, including customer
demand and ASML’s ability to obtain supplies for 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; import/export and national
security regulations, changes in exchange and tax rates; available
liquidity and liquidity requirements, 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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