News Article
Strong results for ASML marred by order worries
Dutch lithography equipment giant ASML has reported impressive financial results for the fourth quarter of 2004, making net profits of euro 109 million on net sales of euro 785 million. However, concerns have been raised over the state of the company's order book, which shrunk significantly compared with the previous quarter.
Dutch lithography equipment giant ASML has reported impressive financial results for the fourth quarter of 2004, making net profits of euro 109 million on net sales of euro 785 million. However, concerns have been raised over the state of the company's order book, which shrunk significantly compared with the previous quarter.
ASML's fourth quarter net sales leapt by 29% sequentially and 60% year on year, with net profits up more than 100% from the euro 41 million achieved in the third quarter. The company suffer a loss in the same period last year.
The bullish results were thanks largely to a leap in the average selling prices of new lithography machines by around 25% compared with the previous quarter. The company is now for the first time selling more equipment for the new 300mm-diameter wafer technology than the older 200mm-wafer set-up. Chip makers are prepared to pay more for 300mm lithography machines because they are more productive.
The one blot in the company's results was its order book. ASML's order backlog slimmed from 183 lithography systems at the end of the third quarter to just 131 at the conclusion of the fourth quarter. This compares with a figure of 170 systems that analysts were forecasting. The fall in backlog orders could hit the company in the second quarter of 2005.
Overall in 2004, ASML achieved net profits of euro 235 million (2003: euro 160 million loss) on net sales of euro 2.47 billion (euro 1.54 billion)
ASML's fourth quarter net sales leapt by 29% sequentially and 60% year on year, with net profits up more than 100% from the euro 41 million achieved in the third quarter. The company suffer a loss in the same period last year.
The bullish results were thanks largely to a leap in the average selling prices of new lithography machines by around 25% compared with the previous quarter. The company is now for the first time selling more equipment for the new 300mm-diameter wafer technology than the older 200mm-wafer set-up. Chip makers are prepared to pay more for 300mm lithography machines because they are more productive.
The one blot in the company's results was its order book. ASML's order backlog slimmed from 183 lithography systems at the end of the third quarter to just 131 at the conclusion of the fourth quarter. This compares with a figure of 170 systems that analysts were forecasting. The fall in backlog orders could hit the company in the second quarter of 2005.
Overall in 2004, ASML achieved net profits of euro 235 million (2003: euro 160 million loss) on net sales of euro 2.47 billion (euro 1.54 billion)
