DRAM memory market enhances sales for ASML
EUV lithography expert ASML has announced its quarterly financial results
Peter Wennink, President and Chief Executive Officer of ASML gives an insight into the company's success and future goals.
He says, "ASML's second-quarter operational performance was as planned, excluding the impact of Cymer, which we were pleased to include as an ASML company per 30 May after having received all the regulatory approvals for the acquisition. Our foundry and logic customers continue to prepare for the lithography-intensive 20-14 nm technology nodes, to be used for next-generation mobile electronic devices."
"During the second quarter we started to see additional demand from DRAM customers, driven by a healthy mobile DRAM memory market, which could potentially drive 2013 full-year sales to a level of up to EUR (€)5 billion, excluding Cymer sales. With regards to the development of the EUV platform, scanner imaging and overlay performance improved to levels where we are now engaging with customers on a strategy for an insertion targeted at the 10nm logic node."
"The first NXE:3300B systems are in the process of shipment and installation at customer sites, as we progress to improve the performance of the light source. In the second quarter, we established good performance, stability and reliability of the pre-pulse source concept at up to 55 Watts, and we therefore remain confident in our target of 70 wafers per hour productivity in 2014," adds Wennink.
The accounting impact of the preliminary purchase price allocation and the Cymer consolidation negatively impacted the Q2 gross margin by 1.2 percentage points and the net income margin by 2.1 percentage points.
Outlook
For the third quarter of 2013, ASML (including Cymer) expects net sales of about €1.3 billion, a gross margin of about 40 percent, R&D costs of about €245 million, other income of €17 million - which consists of contributions from participants of the Customer Co-Investment Program - and SG&A costs of about €91 million.
The guidance on gross margin and operating cost in the second half of 2013 will include a number of non-cash accounting adjustments, negatively impacting gross margin due to purchase price allocation adjustments related to the acquisition of Cymer.
The main items relate to the valuation of Cymer inventory at fair value which is expected to have an impact of approximately €60 million and the amortization of intangibles which is expected to have an impact of approximately €20 million.
Also included in the second-half outlook are expected expenses related to share-based compensation of approximately EUR 20 million as a result of the acquisition of Cymer.
ASML expects full-year 2013 sales at a level of up to €5 billion (excluding an expected contribution of about €180 million from Cymer), which is above its previous guidance of a level similar to the €4.73 billion of 2012. The firm expects three EUV systems to be recognised for revenue in 2013.
Update Share Buy Back Program
As part of ASML's policy to return excess cash to shareholders through dividend and regularly timed share buy backs, ASML has announced its intention to purchase up to €1.0 billion of its own shares within the 2013-2014 timeframe.
Up to 1st July 2013, ASML acquired 1.4 million shares for a total consideration of €84.7 million. The repurchased shares will be cancelled. The share buy- back program may be suspended, modified or discontinued at any time.
On 17th July 2013, ASML will also publish the Statutory Interim Report for the six-month period ended 30th June 2013.
