Orders for three EUV systems show
customer base expanding to six
VELDHOVEN, the Netherlands, October 19, 2016
- ASML Holding N.V. (ASML) today publishes its 2016 third-quarter
results.
-
Q3 net sales of EUR 1.81 billion, gross margin
46.0 percent
-
ASML guides Q4 2016 net sales between EUR 1.7
and 1.8 billion and a gross margin between 47 and 48 percent
-
ASML continues to expect HMI acquisition to
close in Q4
(Figures in millions of euros unless otherwise
indicated) |
Q2 2016 |
Q3 2016 |
Net sales |
1,740 |
1,815 |
...of which service and field option sales |
486 |
577 |
|
|
|
Other income (Co-Investment Program) |
23 |
23 |
|
|
|
New systems sold (units) |
39 |
38 |
Used systems sold (units) |
7 |
2 |
Average Selling Price (ASP) of net system sales |
27.3 |
31.0 |
|
|
|
Net bookings |
1,566 |
1,415 |
Systems backlog |
3,371 |
3,462 |
|
|
|
Gross profit |
741 |
834 |
Gross margin (%) |
42.6 |
|
46.0 |
|
|
|
|
Net income |
354 |
396 |
EPS (basic; in euros) |
0.83 |
0.93 |
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
2,926 |
4,313 |
A complete summary of US GAAP Consolidated
Statements of Operations is published on www.asml.com
CEO Statement
"As anticipated, our third-quarter sales were driven by logic
customers building out the 10 nanometer node, which represented
more than 80 percent of net system sales, as well as continued
growth in net service and field option sales. We also recognized
partial revenue for one EUV system at shipment, which had not been
included in our previous guidance. This lifted third-quarter net
sales above guidance but also decreased our gross margin by 1.4
percentage points. For the remainder of the year, a mix of sales to
both logic and memory customers keeps us on track to finish
the year with record annual sales, for the third consecutive year,"
ASML President and Chief Executive Officer Peter Wennink said.
"Our EUV program continued to make progress on key
industrialization metrics and we took orders for three NXE:3400 EUV
systems in the quarter. This means that six customers are now
actively engaged in the EUV introduction in both memory and
logic."
Product and Business
Highlights
· In Deep Ultraviolet (DUV) lithography,
we have shipped a total of 38 TWINSCAN NXT:1980 systems since
introduction last year, enabling the 10 nanometer logic node ramp.
In addition to new system sales, customers also upgrade existing
systems to NXT:1980 performance. These upgrades are ramping in
volume, supporting revenue growth from our installed base. For
customers producing 3D NAND memory chips, we introduced a
large-range level sensor as an option to our line of XT "dry"
systems in the third quarter. This option improves leveling and
hence focus performance on 3D NAND high-topology layers.
· In Holistic Lithography, we concluded a
high-volume, multi-year purchase agreement with a leading chip
maker, who will use ASML's complete suite of Brion process window
enhancement products for its high-volume production applications to
achieve higher yield at the most advanced nodes. In addition, we
successfully rolled out our latest litho control software to both
memory and foundry customers in the third quarter. Most regulatory
approvals for the acquisition of Hermes Microvision Inc. (HMI) have
been received and we continue to expect it to close in the fourth
quarter.
· In Extreme Ultraviolet
(EUV) lithography, one of our customers demonstrated an average
productivity of more than 1,500 wafers per day (wpd) over three
days on a NXE:3350B. The best availability performance shown by an
EUV system was above 90 percent over four weeks on a NXE:3300B. We
shipped one NXE:3350B system in the third quarter. In Q4, we expect
to ship one system; two additional systems will be delayed into
early 2017, one due to customer fab readiness and one due to late
material delivery.
Outlook
For the fourth-quarter of 2016, ASML expects net sales between EUR
1.7 and 1.8 billion, a gross margin between 47 and 48 percent,
R&D costs of about EUR 275 million, other income of about EUR
23 million -- which consists of contributions from participants of
the Customer Co-Investment Program, SG&A costs of about EUR 100
million (which includes one-off acquisition-related costs of around
EUR 10 million) and an effective annualized tax rate of around 13
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 2, 2016, ASML has acquired 4.8
million shares under this program for a total consideration of EUR
400 million. The repurchased shares will be canceled.
The share buyback program is currently paused
while we are in the midst of the HMI acquisition process. We
continue to expect to complete the full 2016-2017 program, yet it
may be further 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.
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. We are a
multinational company with over 70 locations in 16 countries,
headquartered in Veldhoven, the Netherlands. We employ more than
15,500 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.
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 PM 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.
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 and equity 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, the accounting
of share-based payment plans 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 and equity
from US GAAP to IFRS are available on www.asml.com.
The consolidated balance sheets of ASML Holding
N.V. as of October 2, 2016, the related consolidated
statements of operations and consolidated statements of cash flows
for the quarter ended October 2, 2016 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 our outlook, including expected customer demand in
specified market segments including memory, logic and foundry,
expected trends and outlook, including expected levels of service
sales, systems backlog, expected financial results for the fourth
quarter and full year 2016, including expected sales, other income,
gross margin, R&D and SG&A expenses and effective
annualized tax rate, annual revenue opportunity for ASML and EPS
potential by end of decade, productivity of our tools and systems
performance, including EUV system performance (such as
endurance tests), expected industry trends and expected trends in
the business environment, statements with respect to the
acquisition of HMI by ASML, including the expected timing of
completion of the HMI acquisition, the expected benefits of the
acquisition of HMI by ASML, including the provision of e-beam
metrology capability and its effect on holistic lithography
solutions and pattern fidelity control, statements with respect to
EUV targets, including availability, productivity and shipments,
including the number of EUV systems expected to be shipped and
timing of shipments, and roadmaps, shrink being key driver to
industry growth, expected industry adoption of EUV and statements
with respect to the intent of customers to insert EUV into
production, the expected continuation of Moore's law and that EUV
will continue to enable Moore's law and drive long term value,
goals for holistic lithography, intention to return excess cash to
shareholders, and statements about our proposed dividend, dividend
policy and intention to repurchase shares and statements with
respect to the current 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"
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 (the principal product of our customer base),
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, our ability to enforce patents and protect
intellectual property rights, the risk of intellectual property
litigation, availability of raw materials and critical
manufacturing equipment, 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 timing of resumption of
the share repurchase plan, 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 Press Release
Link to Consolidated Financial Statements
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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