Continued EUV progress enables
ASML roadmap acceleration
VELDHOVEN, the Netherlands, July 18, 2018 -
ASML Holding N.V. (ASML) today publishes its 2018 second-quarter
results.
-
Q2 net sales of EUR 2.74 billion, net income EUR
584 million, gross margin 43.3 percent
-
ASML expects Q3 2018 net sales between EUR 2.7
billion and EUR 2.8 billion and a gross margin between 47 percent
and 48 percent
(Figures in millions of euros unless
otherwise indicated) |
Q1 2018 |
Q2 2018 |
Net sales |
2,285 |
2,740 |
...of which Installed Base Management sales 1 |
617 |
654 |
|
|
|
New lithography systems sold (units) |
48 |
50 |
Used lithography systems sold (units) |
1 |
8 |
|
|
|
Net bookings 2
|
2,442 |
1,952 |
|
|
|
Gross profit |
1,113 |
1,187 |
Gross margin (%) |
48.7 |
|
43.3 |
|
|
|
|
Net income |
540 |
584 |
EPS (basic; in euros) |
1.26 |
1.37 |
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
3,194 |
2,980 |
(1) Installed Base Management sales equals our net
service and field option sales.
(2) Net bookings do not include High-NA EUV
orders
A complete summary of US GAAP Consolidated
Statements of Operations is published on www.asml.com
CEO Statement
"Our second quarter sales were above expectations including higher
than forecasted EUV sales. Gross margin was slightly above our
guidance, reflecting the strength of our DUV and Applications
business and progress in EUV profitability.
In Q2 we shipped four EUV systems, one more than
we forecasted, as Logic customers prepare for the ramp of next node
devices starting later this year. We recognized revenue for seven
EUV systems. We are on track to supply 20 EUV systems this year.
Focused execution is enabling an acceleration of the availability
and productivity roadmap. This will provide an even stronger
foundation for our EUV business and will support a 2019 shipment
plan of at least 30 systems.
Our DUV business is driven by a memory market that
continues to require a significant number of lithography systems at
least throughout this year and into 2019.
After an excellent first half of 2018, we expect
the second half to be stronger, with improved profitability and
continued growth from Q3 to Q4," said ASML President and Chief
Executive Officer Peter Wennink.
Q2 Product Highlights
-
In our EUV program we have demonstrated
four-week availability of well above 85% on a number of new
NXE:3400B systems. We are executing several programs to improve
consistent availability to over 90% in 2019 with further
improvements planned in the years beyond.
-
In our DUV lithography business, we started
shipment of 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 and 5 nanometer Logic
nodes.
Outlook
For the third-quarter of 2018, ASML expects net sales between EUR
2.7 billion and EUR 2.8 billion, a gross margin between 47 percent
and 48 percent. R&D costs of about EUR 395 million, SG&A
costs of about EUR 120 million. Our target effective annualized tax
rate is around 14 percent.
Update Share Buyback Program
As part of ASML's financial policy to return excess cash to
shareholders through dividends and regularly timed share buybacks,
in January 2018 ASML announced its intention to purchase up to EUR
2.5 billion of shares to be executed within the 2018-2019 time
frame. ASML intends to cancel these shares after repurchase, with
the exception of up to 2.4 million shares which will be used to
cover employee share plans.
Through July 1, 2018, ASML has acquired 2.6
million shares under this program for a total consideration of EUR
439 million.
The current program may be suspended, modified or
discontinued at any time. All transactions under this program are
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 |
Skip
Miller, phone +1 480 235 0934 |
Lucas van
Grinsven, phone +31 6 1019 9532 |
Marcel
Kemp, phone +31 40 268 6494 |
Niclas
Mika, phone +1 858 385 6623 |
Craig
DeYoung, phone +852 2295 1168 |
Investor and Media Conference Call
A conference call for investors and media will be hosted by CEO
Peter Wennink and CFO Roger Dassen 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 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 60 cities in 16 countries,
headquartered in Veldhoven, the Netherlands. We employ more than
21,000 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 18, 2018, ASML has also published
the Statutory Interim Report for the six-month period ended
July 1, 2018. 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 1, 2018, the related consolidated statements
of operations and consolidated statements of cash flows for the
quarter and six months ended July 1, 2018 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,
business trends and other matters that are forward-looking,
including statements with respect to expected trends and outlook,
bookings, expected financial results and trends, including expected
sales, EUV revenue, gross margin, R&D and SG&A expenses,
and target annualized effective tax rate for the third quarter of
2018, and expected financial results and trends for the rest of
2018, including expected capital expenditures for 2018 and the
expected financing of such expenditures, the expectation for the
second half of 2018 to be stronger, with improved profitability and
continued growth in sales from the third to the fourth quarter of
2018, expected revenue growth and growth in logic and memory,
trends in DUV systems revenue and Holistic Lithography and
installed based 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 trends exhibited in 2017 will continue into 2018,
statements with respect to the commitment of customers to insert
EUV into volume manufacturing, statements with respect to roadmap
acceleration as a result of continued EUV progress, including the
accelerated introduction of higher productivity systems in 2019
(including configurations of more than 155 and 170 wafers per hour)
and the expected benefits, ASML's commitment to volume
manufacturing and secure system performance, shipments, and support
for volume manufacturing, including availability, productivity,
throughput, shipments and the ability to support a growing
installed base, including timing of shipments (including expected
EUV shipments in 2018 and planned EUV shipments in 2019), expected
volume ramp in the second half of 2018 in support of high customer
demand, statements with respect to the benefits of the new DUV
system shipment, expected demand for DUV system by memory
customers, the continued integration efforts with respect to ASML's
acquired companies and expected benefits, including fast beam
metrology that enables the reduction of cycle time and improvement
of accuracy, the benefits of HMI's e-beam metrology capabilities,
including the introduction of a new class of pattern fidelity
control, and the acquisition of Carl Zeiss SMT and its expected
benefits, shrink being a key driver supporting innovation and
providing long-term industry growth, lithography enabling
affordable shrink and delivering value to customers, 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 through
stable or growing dividends and regularly timed share buybacks in
line with our policy, statements with respect to the share
repurchase plan for 2018-2019, including the intention to use
certain shares to cover employee share plans and cancel the rest of
the shares upon repurchase, and statements with respect to the
expected impact of accounting standards. 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, 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 shipped and
recognized in revenue, timing of EUV orders and the risk of order
cancellation or push out, EUV production capacity, 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 successfully integrate acquired
businesses to create value for our customers, our ability to
enforce patents and protect intellectual property rights, the
outcome of intellectual property litigation, availability of raw
materials, critical manufacturing equipment and qualified
employees, 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, results 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 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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