ASML Lowers 1Q Guidance, Pauses Buyback Due to Coronavirus
March 30 2020 - 2:49AM
Dow Jones News
By Adria Calatayud
ASML Holding NV on Monday lowered its guidance for the first
quarter of 2020 and said that it has paused its share-buyback
program on the back of uncertainties arising from the coronavirus
pandemic.
The Dutch maker of semiconductor equipment said it now expects
revenue for the first quarter to be between 2.4 billion euros and
2.5 billion euros ($2.67 billion-$2.78 billion) compared with
previous guidance of EUR3.1 billion to EUR3.3 billion. Gross margin
for the first quarter is anticipated to be between 45% and 46%,
lower than its previous expectation of between 46% and 47%, ASML
said.
Revenue that the company wasn't able to recognize in the first
quarter will shift to the second and third quarters of the year, it
said.
ASML said Covid-19 has had a limited impact on its manufacturing
capability so far and hasn't reduced demand for its systems,
although it has caused some supply-chain issues as well as shipment
delays due to restrictions.
The company said it doesn't plan to execute any share buybacks
in the second quarter, following a pause in the execution of its
program in the first quarter. To date, ASML has repurchased shares
worth EUR507 million under its current program, the company
said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
March 30, 2020 02:34 ET (06:34 GMT)
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