Orders for EUV lithography systems show strong
customer commitment for production insertion
VELDHOVEN, the Netherlands, January 18, 2017
- ASML Holding N.V. (ASML) today publishes its 2016 fourth-quarter
and full-year results.
-
Q4 net sales of EUR 1.91 billion, gross margin
47.2 percent, including the effects of purchase price allocation
for the HMI acquisition, which closed as planned in Q4
-
Full-year net sales EUR 6.79 billion, gross
margin 44.8 percent, net income EUR 1.47 billion
-
ASML proposes a dividend of EUR 1.20 per share,
a 14 percent increase from the previous year
-
ASML took orders for six NXE:3400 Extreme
Ultraviolet (EUV) systems in the fourth quarter, bringing the EUV
backlog to 18 systems for a value of around EUR 2 billion
-
ASML guides Q1 2017 net sales approximately EUR
1.8 billion and a gross margin around 47 percent
(Figures in millions of euros unless
otherwise indicated) |
Q3 2016 |
Q4 2016 |
FY 2015 |
FY 2016 |
Net sales |
1,815 |
1,907 |
6,287 |
6,795 |
...of which service and field option sales |
577 |
684 |
2,050 |
2,224 |
|
|
|
|
|
Other income (Co-Investment Program) |
23 |
23 |
83 |
94 |
|
|
|
|
|
New systems sold (units) |
38 |
34 |
144 |
139 |
Used systems sold (units) |
2 |
4 |
25 |
18 |
Average Selling Price (ASP) of net system sales |
31.0 |
32.2 |
25.1 |
29.1 |
|
|
|
|
|
Net bookings |
1,415 |
1,580 |
4,639 |
5,396 |
Systems backlog |
3,462 |
3,961 |
3,184 |
3,961 |
|
|
|
|
|
Gross profit |
834 |
901 |
2,896 |
3,044 |
Gross margin (%) |
46.0 |
|
47.2 |
|
46.1 |
|
44.8 |
|
|
|
|
|
|
Net income |
396 |
524 |
1,387 |
|
1,472 |
EPS (basic; in euros) |
0.93 |
1.23 |
3.22 |
3.46 |
|
|
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
4,313 |
4,057 |
3,409 |
4,057 |
A complete summary of US GAAP Consolidated
Statements of Operations is published on www.asml.com
CEO Statement
"2016 has been a remarkable year for ASML on many fronts. We
delivered record financial performance, with contributions from
each of our wide range of product offerings, notably Deep
Ultraviolet (DUV) and Holistic Lithography. It was also the year
when the industry turned the corner on the introduction of EUV. We
laid the foundation for further expansion of our pattern fidelity
strategy with the acquisition of Hermes Microvision Inc. We
strengthened our partnership with Zeiss by agreeing to acquire a
minority stake in Carl Zeiss SMT to secure the extension of EUV
beyond the next decade. All of this has further anchored our
leadership position in the semiconductor equipment market," ASML
President and Chief Executive Officer Peter Wennink said.
"Logic chip manufacturers have built up capacity
for the 10 nanometer node in 2016, and we also saw healthy demand
from memory manufacturers both for DRAM and 3D NAND production.
Together with solid growth in net service and field option sales,
this has led to record 2016 net sales of EUR 6.8 billion. These
trends are expected to continue into 2017, as evidenced by our
first-quarter guidance.
"Regarding EUV, we executed on the
customer-aligned productivity and availability targets, which gave
customers the confidence to place a significant number of orders,
leading to an EUV backlog of about EUR 2 billion. These orders show
that they are committed to take EUV into production, and we expect
that the first customers will start volume manufacturing with EUV
at the 7 nanometer logic node and the mid-10 nanometer DRAM node.
We are now moving to the next phase of EUV industrialization. We
remain committed to deliver the performance requirements for
customer volume manufacturing, while continuing to build up our
manufacturing, supply chain and service capabilities," Wennink
said.
Product and Business
Highlights
-
In DUV lithography, we shipped 15 TWINSCAN
NXT:1980 systems in the quarter, supporting the ramp of the 10
nanometer node as well as process development for the 7 nanometer
foundry node. With the introduction of the NXT:1980, we have
shortened the time to maturity, enabling a faster, more
cost-effective node ramp. More customers are now recognizing the
value of upgrading their existing NXT systems to the latest
performance, which has supported our field upgrade sales. We also
continue to support our XT and NXT systems with productivity
upgrades and as part of the transition from planar to 3D NAND, we
have supported a large additional number of system relocations,
helping customers to optimize their ramp plans.
-
In Holistic Lithography, we successfully
completed the acquisition of Hermes Microvision Inc. (HMI) and
began the integration of HMI's e-beam systems into our Holistic
Lithography portfolio.
-
In EUV lithography, we took orders for six
TWINSCAN NXE:3400 systems in the fourth quarter. Our backlog now
includes 18 EUV systems, worth almost EUR 2 billion, or about half
of the total backlog.
Outlook
For the first-quarter of 2017, ASML expects net sales at
approximately EUR 1.8 billion, a gross margin of around 47 percent,
R&D costs of about EUR 320 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 95
million and an effective annualized tax rate between 13 and 14
percent.
Dividend Proposal
ASML will submit a proposal to the 2017 Annual General Meeting of
Shareholders to declare a dividend in respect of 2016 of EUR 1.20
per ordinary share (for a total amount of approximately EUR 515
million), compared with a dividend of EUR 1.05 per ordinary share
paid in respect of 2015.
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 December 31, 2016, ASML has acquired 4.8
million shares under this program for a total consideration of EUR
400 million.
As announced on November 3, 2016, the share
buyback program is currently paused. As a result, the 2016-2017
program may not be completed for the full amount. Otherwise, the
current program will remain in place, 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. ASML is a
multinational company with offices in 60 cities in 16 countries,
headquartered in Veldhoven, the Netherlands. We employ more than
16,500 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.
Press Conference and Investor
Conference Call
CEO Peter Wennink and CFO Wolfgang Nickl will host a press
conference at 11:00 AM Central European Time, which will be webcast
live on www.asml.com.
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.
2016 Annual Reports
ASML will publish its 2016 Integrated Report, Annual Report on Form
20-F and Statutory Annual Report on February 8, 2017. The reports
will be published on our website at 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 December 31, 2016, the related consolidated
statements of operations and consolidated statements of cash flows
for the quarter ended December 31, 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 expected trends and outlook, including expected
customer insertion of EUV in volume manufacturing, including
expected volume orders, systems backlog, expected financial results
and trends for the first quarter of 2017, 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 2020, including further growth potential into
the next decade, expected industry trends and expected trends in
the business environment, statements with respect to the proposed
minority stake in Carl Zeiss SMT, including statements that such
investment will secure the extension of EUV beyond the next decade
and funding for next generation EUV technology, statements with
respect to EUV targets, manufacturing, supply chain and service
capabilities, and ASML's commitment to secure system performance,
shipments and support for volume manufacturing, including
availability, productivity, throughput and shipments, including
timing of shipments and the ability to support a larger installed
base, shrink being a key driver supporting innovation and providing
long-term industry growth, lithography enabling affordable shrink
and delivering value to customers, expected industry adoption of
EUV and statements with respect to the intent of customers to
insert EUV into production, the extension of EUV beyond the next
decade, the expected continuation of Moore's law and that EUV will
continue to enable Moore's law and drive long term value, 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 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 (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 and volume production by customers, including
meeting development requirements for volume production, 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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