News Article
ASML announces 2008 third quarter results
The lithography systems provider addresses weak market with lower costs and strong product line up.
ASML Holding announces 2008 third quarter results according to US GAAP as follows:
Q3 2008 net sales of €696 million versus Q2 2008 net sales of € 844 million (Q3 2007 net sales of € 934 million).
Q3 2008 net income of € 73 million or 10.5 percent of net sales versus Q2 2008 net income of € 192 million or 22.7 percent of net sales (Q3 2007 net income of € 166 million or 17.8 percent of net sales).
Q3 2008 net bookings valued at € 498 million with 31 systems including 18 new and 13 used systems, leading to an order backlog valued at € 1,028 million as of September 28, 2008.
“Sales and profit in the third quarter were in line with our guidance thanks to our leading position in immersion lithography products where market demand has held up despite a weak global economy and credit turmoil,” said Eric Meurice, president and CEO of ASML. “Generating 75 percent of our net sales and 87 percent of our bookings in the quarter, our immersion systems enable customers to aggressively reduce their cost per function in a difficult semiconductor environment. Demand for capacity expansion systems remained weak and as guided we lowered our expenses significantly in response to a softening business environment,” Meurice said.
In Q3 2008, ASML’s net sales of € 696 million included 26 new and 11 used systems, totalling net system sales of € 591 million, and net service and field options sales of € 105 million. Net system sales for Q2 2008 included the shipment of 31 new and 8 used machines, totalling € 726 million, and net service and field options sales of € 118 million.
The Q3 2008 average selling price for a new system was stable at € 21.6 million, compared with the Q2 2008 average selling price for a new system of € 21.7 million, reflecting the focus on our most advanced technology. The Q3 2008 average selling price for all ASML systems sold was € 16.0 million, compared with the Q2 2008 ASP of €18.6 million, as a result of a larger proportion of used systems.
Q3 2008 net bookings totalled 31 systems valued at € 498 million. The orders contained 18 new systems with an average selling price for new systems of € 22.1 million and 13 used systems with an average selling price of € 7.7 million. We received bookings for 16 immersion systems, four of which for used systems.
ASML’s order backlog as of September 28, 2008 was € 1,028 million, totalling 53 systems with an average selling price of € 19.4 million. For comparison, ASML’s backlog as of June 29, 2008 was valued at € 1,106 million, totalling 59 systems with an average selling price of € 18.8 million.
In Q3 2008, ASML generated a net income of € 73 million or € 0.17 per ordinary share as compared with a net income of € 192 million in Q2 2008 or € 0.45 per ordinary share including non recurring tax income of approximately € 70 million.
The company’s Q3 2008 gross margin was 38.1 percent, compared with the Q2 2008 gross margin of 40.0 percent, consistent with a lower level of net sales.
Q3 2008 research and development (R&D) costs were € 130 million net of credits, stable compared with Q2 2008 R&D costs of € 130 million net of credits.
Selling, general and administrative (SG&A) costs were € 52 million in Q3 2008, compared with SG&A costs of € 56 million in Q2 2008.
Net cash from operations was € 21 million in Q3 2008, impacted by push outs of planned systems into 2009. ASML ended Q3 2008 with € 1,313 million in cash and cash equivalents.
“The current economic turmoil and the reassessment by some of our customers of their investments and strategic alliances make it difficult for us to guide on short term bookings or give a mid term sales forecast. However, we received orders for 16 immersion systems in the third quarter, which is a testimonial to the strength of our advanced product portfolio. Even during this downturn, continued immersion technology investments remain necessary for technology transitions and we expect to see quarterly sales at levels that should secure a positive operating profit margin. This will be supported by our ability to further adjust costs with our outsourced business flexibility model. ASML’s strong financial position will allow for sustained strategic investments in technology development and production facilities that will be required for success when the industry recovers. Indeed, we will be shipping in H1 2009 our latest TWINSCAN XT:1950i immersion system which offers a 25 percent performance improvement compared to our current leading architecture and takes single exposure imaging down to 38 nanometres. In addition to investing in a new double patterning lithography platform to address the 32 nanometre node and beyond, we are making significant investments in Extreme Ultraviolet (EUV) in order to lead the industry into the next generation technology. We just unveiled a production system roadmap that supports cost effective chip manufacturing to 22 nanometres and beyond, and have orders for five production systems with delivery starting in 2010,” Meurice said.
In view of the wait and see attitude of the market, the company expects to ship 26 systems in Q4 2008 with an average selling price of € 20.6 million for new systems and an average selling price for all systems of € 16.5 million. As previously guided, ASML’s 2008 full year net sales will decline around 20 percent and the company will thereby outperform peers. ASML expects a gross margin in Q4 2008 of approximately 36 percent, R&D expenditures to be at € 124 million net of credits and SG&A costs to decrease to € 47 million. We have used and will use the flexibility in our organizational model to reduce costs without forced redundancies.
Q3 2008 net sales of €696 million versus Q2 2008 net sales of € 844 million (Q3 2007 net sales of € 934 million).
Q3 2008 net income of € 73 million or 10.5 percent of net sales versus Q2 2008 net income of € 192 million or 22.7 percent of net sales (Q3 2007 net income of € 166 million or 17.8 percent of net sales).
Q3 2008 net bookings valued at € 498 million with 31 systems including 18 new and 13 used systems, leading to an order backlog valued at € 1,028 million as of September 28, 2008.
“Sales and profit in the third quarter were in line with our guidance thanks to our leading position in immersion lithography products where market demand has held up despite a weak global economy and credit turmoil,” said Eric Meurice, president and CEO of ASML. “Generating 75 percent of our net sales and 87 percent of our bookings in the quarter, our immersion systems enable customers to aggressively reduce their cost per function in a difficult semiconductor environment. Demand for capacity expansion systems remained weak and as guided we lowered our expenses significantly in response to a softening business environment,” Meurice said.
In Q3 2008, ASML’s net sales of € 696 million included 26 new and 11 used systems, totalling net system sales of € 591 million, and net service and field options sales of € 105 million. Net system sales for Q2 2008 included the shipment of 31 new and 8 used machines, totalling € 726 million, and net service and field options sales of € 118 million.
The Q3 2008 average selling price for a new system was stable at € 21.6 million, compared with the Q2 2008 average selling price for a new system of € 21.7 million, reflecting the focus on our most advanced technology. The Q3 2008 average selling price for all ASML systems sold was € 16.0 million, compared with the Q2 2008 ASP of €18.6 million, as a result of a larger proportion of used systems.
Q3 2008 net bookings totalled 31 systems valued at € 498 million. The orders contained 18 new systems with an average selling price for new systems of € 22.1 million and 13 used systems with an average selling price of € 7.7 million. We received bookings for 16 immersion systems, four of which for used systems.
ASML’s order backlog as of September 28, 2008 was € 1,028 million, totalling 53 systems with an average selling price of € 19.4 million. For comparison, ASML’s backlog as of June 29, 2008 was valued at € 1,106 million, totalling 59 systems with an average selling price of € 18.8 million.
In Q3 2008, ASML generated a net income of € 73 million or € 0.17 per ordinary share as compared with a net income of € 192 million in Q2 2008 or € 0.45 per ordinary share including non recurring tax income of approximately € 70 million.
The company’s Q3 2008 gross margin was 38.1 percent, compared with the Q2 2008 gross margin of 40.0 percent, consistent with a lower level of net sales.
Q3 2008 research and development (R&D) costs were € 130 million net of credits, stable compared with Q2 2008 R&D costs of € 130 million net of credits.
Selling, general and administrative (SG&A) costs were € 52 million in Q3 2008, compared with SG&A costs of € 56 million in Q2 2008.
Net cash from operations was € 21 million in Q3 2008, impacted by push outs of planned systems into 2009. ASML ended Q3 2008 with € 1,313 million in cash and cash equivalents.
“The current economic turmoil and the reassessment by some of our customers of their investments and strategic alliances make it difficult for us to guide on short term bookings or give a mid term sales forecast. However, we received orders for 16 immersion systems in the third quarter, which is a testimonial to the strength of our advanced product portfolio. Even during this downturn, continued immersion technology investments remain necessary for technology transitions and we expect to see quarterly sales at levels that should secure a positive operating profit margin. This will be supported by our ability to further adjust costs with our outsourced business flexibility model. ASML’s strong financial position will allow for sustained strategic investments in technology development and production facilities that will be required for success when the industry recovers. Indeed, we will be shipping in H1 2009 our latest TWINSCAN XT:1950i immersion system which offers a 25 percent performance improvement compared to our current leading architecture and takes single exposure imaging down to 38 nanometres. In addition to investing in a new double patterning lithography platform to address the 32 nanometre node and beyond, we are making significant investments in Extreme Ultraviolet (EUV) in order to lead the industry into the next generation technology. We just unveiled a production system roadmap that supports cost effective chip manufacturing to 22 nanometres and beyond, and have orders for five production systems with delivery starting in 2010,” Meurice said.
In view of the wait and see attitude of the market, the company expects to ship 26 systems in Q4 2008 with an average selling price of € 20.6 million for new systems and an average selling price for all systems of € 16.5 million. As previously guided, ASML’s 2008 full year net sales will decline around 20 percent and the company will thereby outperform peers. ASML expects a gross margin in Q4 2008 of approximately 36 percent, R&D expenditures to be at € 124 million net of credits and SG&A costs to decrease to € 47 million. We have used and will use the flexibility in our organizational model to reduce costs without forced redundancies.
