ASML Reports Strong Revenue and Growing EUV Sales
ASML Holding NV (the Netherlands) reported second-quarter revenue totaling more than EUR 1.7 billion thanks in part to growing sales of its extreme ultraviolet (EUV) lithography systems to foundry and memory customers, according to its 20 July 2016 earnings report. Sales revenue increased more than 5 percent compared to last year.
The company reported second-quarter net sales of EUR 1.74 billion and orders of EUR 1.6 billion. ASML CEO Peter Wennink attributed the sales increase to rebounding international semiconductor process tool investment, including more interest in the company's EUV platforms. The company noted that its NXE:3350B EUV system currently processes 1,200 wafers per day at a customer site, moving closer to its 2016 goal of sustained 1,500 wafer-per-day production.
In addition to EUV sales growth, ASML indicated that sales of its deep ultraviolet (DUV) tools are progressing along with holistic lithography equipment uptake by lead customers. The company has received four additional orders for EUV systems, bringing the overall backlog to 10 units worth approximately EUR 1 billion. In its guidance for third-quarter 2016 revenue, ASML indicated that net sales should closely parallel second-quarter results, but with a higher gross margin of about 47 percent.
Wennink stated that second-quarter sales figures were increased partially by revenue that was recognized from late-2015 EUV installations. He said that ASML expected total 2016 sales to exceed the company's 2015 record year; however, final performance will somewhat depend on when EUV revenue can be recognized as well as the size of the combined 10/7nm ramp.
ASML announced its intent to acquire Hermes Microvision, Inc. in June to enhance its holistic lithography capabilities. This will impact the firm's stock buyback program, which Wennink said would be temporarily suspended to allow ASML to focus on the Hermes transition.
