ASML updates the market on expected Q1 2020 results, primarily related to COVID-19 impact
March 30 2020 - 2:00AM
ASML updates the market on expected Q1 2020 results,
primarily related to COVID-19 impact Impacted revenue will
shift to subsequent quarters in 2020
VELDHOVEN, the Netherlands, March 30, 2020 - today ASML Holding
NV (ASML) provides an update on the expected Q1 results, primarily
related to the impact of the coronavirus (COVID-19).
ASML President and CEO Peter Wennink: “Until now the COVID-19
outbreak has had limited impact on ASML’s manufacturing capability.
Also, from a customer point of view, we have not seen a reduction
in the demand for our systems this year. However, three COVID-19
related effects have impacted our Q1 financial results. First, we
have experienced some delays in DUV shipments to Wuhan, China as
well as to other customers due to shipment and travel restrictions
regarding COVID-19. Second, we have experienced some issues in our
supply chain, which for now have been solved. Combined with longer
than initially planned cycle times for the first NXE:3400C models
in final configuration, this has resulted in some delays in
shipment. Third, due to concerns around the continued ability to
ship systems in the current circumstances, some customers have
asked us to expedite the delivery of EUV systems by shipping the
systems before the normal Factory Acceptance Tests (FAT). The
implication of this is a delay in our revenue recognition as final
acceptance will now take place after successful installation at the
customer site. We currently expect revenue in the first quarter to
be between €2.4 billion and €2.5 billion, with a gross margin
between 45% and 46%. We expect the revenue that we were not able to
recognize for Q1 as a result of the issues listed above, to shift
to Q2 and Q3 of this year.
“Despite the challenging circumstances, we have been able to
continue ASML’s operations although we, like many of our peers and
customers, are dependent on future developments with respect to
measures taken to control the COVID-19 outbreak around the world.
Due to the uncertainties regarding COVID-19, ASML has decided not
to execute any share buybacks in Q2 2020. This decision follows the
pause in the execution of the program in the first quarter, after
having already performed share buybacks under the new program for
an amount of approximately €507 million.
“The current coronavirus pandemic affects us all. Our primary
goal is to ensure, as best as we can, that our employees and their
families stay safe, whether they’re on ASML premises or at our
customers, suppliers or partners. Our second goal is to ensure the
continuity of our business and our customers’, suppliers’ and
partners’ businesses, so that we can all continue to serve our end
markets. We will continue to monitor the situation closely and we
will provide more information in our Q1 2020 earnings report on
April 15, 2020.”
Media Relations
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Relations contacts |
Monique Mols +31
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Skip Miller +1
480 235 0934 |
Sander Hofman +31
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Marcel Kemp +31
40 268 6494 |
Brittney Wolff
Zatezalo +1 408 483 3207 |
Peter Cheang +886
3 659 6771 |
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 24,900 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.
Forward Looking StatementsThis press release
contains forward looking statements, which you can generally
identify by the use of words like "may", "will", "expect",
"intends", "contemplate", "are confident" and variations of these
words or comparable words. The forward looking statements contained
herein include statements relating to expected results for the
first quarter of 2020 and full year 2020 outlook including revenues
and gross margin, shipments, revenue recognition, ability to serve
customers, expectations on customer demand, operations, the
expected impact of the Covid-19 pandemic on the foregoing including
the impact on ASML's business, financial results, operations,
shipments, customer demand and related matters. These statements
are not historical facts, but rather are based on current
expectations, estimates, assumptions and projections and you 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, risks
related to the Covid-19 virus on the global economy and financial
markets, as well as on ASML and its customers and suppliers, the
impact on ASML's and its customers' and suppliers' operations and
other risks relating to the Covid-19 virus and other factors that
may impact ASML's sales and gross margin, including customer demand
and ASML's ability to supply its products and 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.
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