Current business trends likely to
continue into 2018
VELDHOVEN, the Netherlands, July 19, 2017 -
ASML Holding N.V. (ASML) today publishes its 2017 second-quarter
results.
-
Q2 net sales of EUR 2.10 billion, gross margin
45.0 percent
-
8 additional EUV orders in Q2, underscoring that
adoption for high-volume manufacturing reached inflection
point
-
EUV backlog grows to 27 systems valued at EUR
2.8 billion
-
ASML expects Q3 2017 net sales around EUR 2.2
billion and a gross margin around 43 percent
-
ASML will resume its 2016-2017 share buyback
program
(Figures in millions of euros unless
otherwise indicated) |
Q1 2017 |
Q2 2017 |
Net sales |
1,944 |
2,101 |
...of which service and field option sales 1 |
728 |
717 |
|
|
|
Other income (Co-Investment Program) |
24 |
24 |
|
|
|
New lithography systems sold (units) |
39 |
39 |
Used lithography systems sold (units) |
5 |
3 |
|
|
|
Net bookings 2 |
1,894 |
2,375 |
Systems backlog 2 |
4,509 |
5,351 |
|
|
|
Gross profit |
925 |
946 |
Gross margin (%) |
47.6 |
|
45.0 |
|
|
|
|
Net income |
452 |
466 |
EPS (basic; in euros) |
1.05 |
1.08 |
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
3,836 |
2,514 |
1 As per January 1, 2017, ASML presents net
sales with respect to metrology and inspection systems as part of
Net system sales instead of Net service and field option
sales.
2 Our systems backlog and net bookings include all system
sales orders for which written authorizations have been accepted
(for EUV starting with the NXE:3350B). As per January 1, 2017 our
systems backlog and net bookings also include metrology and
inspection systems.
A complete summary of US GAAP Consolidated
Statements of Operations is published on www.asml.com
CEO Statement
"With these strong results in the second quarter, ASML is on track
to achieving net sales growth of about 25 percent for the full
year. This is driven by sales to memory customers, expected to grow
about 50 percent from last year especially driven by DRAM, and
sales to logic customers that are expected to grow about 15
percent. Our entire product and services portfolio is driving this
growth. Our DUV sales are expected to grow off a strong base in
2016. Our EUV backlog, which grew to 2.8 billion euros in the
second quarter, indicated that preparation for high-volume
manufacturing is well underway in both logic and DRAM. Our Holistic
Lithography sales are expected to grow about 50 percent from last
year. Installed Base Management sales, finally, are expected to
grow about 20 percent this year, driven by our performance upgrades
business. Our current view is that the positive business trends
that we are seeing in 2017 are likely to continue as we enter
2018," ASML President and Chief Executive Officer Peter Wennink
said.
Product and Business Highlights
-
In DUV lithography, we announced a new immersion
system, the TWINSCAN NXT:2000i, which includes several hardware
innovations that will enable on-product overlay of 2.5 nanometers
in mix-and-match use with EUV for the 7/5 nanometer nodes. Demand
from 3D NAND customers for KrF "dry" systems continued to be high,
with more than 20 TWINSCAN XT:860 systems in the backlog. The
increased productivity of the XT:860 platform was proven in
production with 5,300 wafers per day exposed on one system.
-
In Holistic Lithography, we began to ship the
new YieldStar 375F metrology system, which features new optics
technology that generates more accurate metrology data,
faster.
-
In EUV lithography, we have integrated an
upgraded EUV source into a TWINSCAN NXE:3400B lithography system in
our Veldhoven facility and achieved the throughput specification of
125 wafers per hour on this system. Now, with all key performance
specifications demonstrated, we focus on achieving the availability
that is required for high-volume manufacturing as well as further
improving productivity.
-
In the second quarter, ASML also completed the
acquisition of a 24.9% interest in Carl Zeiss SMT, to strengthen
the long-standing and successful partnership and to facilitate the
development of the future generation of EUV lithography
systems.
Outlook
For the third-quarter of 2017, ASML expects net sales around EUR
2.2 billion which includes approximately EUR 300 million EUV
revenue, a gross margin around 43 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 105 million and
an effective annualized tax rate around 14 percent. We expect three
NXE:3400B shipments in the third-quarter of 2017.
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.
Following the successful completion of the
acquisition of a 24.9% interest in Carl Zeiss SMT, ASML will resume
its current share buyback program. As a result of the pause in the
program from July 20, 2016 until July 19, 2017, this program will
likely 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
17,500 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.
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.
Today, July 19, 2017, ASML has also published
the Statutory Interim Report for the six-month period ended July 2,
2017. 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 'Interim Financial Reporting',
an Interim Management Board Report and a Managing Directors'
Statement and is available on www.asml.com.
The consolidated balance sheets of ASML Holding
N.V. as of July 2, 2017, the related consolidated statements
of operations and consolidated statements of cash flows for the
quarter ended July 2, 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, including expected
customer insertion of EUV in volume manufacturing, including
expected volume orders, systems backlog, expected financial results
and trends for the third quarter of 2017, including expected sales,
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, including expected revenue growth
and growth in logic and memory, trends in DUV systems revenue,
Holistic Lithography and installed base management revenues, 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,
including our expectation that the trends exhibited in the second
quarter of 2017 will continue into 2018, 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,
statements with respect to the benefits of the hardware innovations
in the new DUV lithography immersion system, EUV-high volume
manufacturing adoption inflection, 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, statements with respect to the acquisition of Carl
Zeiss SMT and its expected benefits, statements relating to the
development of a training center with Circuit Research and
Development Center Ltd., including its expected benefits, and the
Chinese IC industry, including expected new fab demand and
lithography market opportunity and expected shipments, 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 for ASML beyond the next
decade, 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, including its expected resumption. 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, 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, 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, the pace of development of the Chinese
IC industry, 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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