Press release - Veldhoven, the Netherlands, April 13, 2011
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Press release - Veldhoven, the Netherlands, April 13, 2011
ASML Holding NV (ASML) today announces 2011 first quarter results according to US GAAP as follows:
“A strong first quarter confirms our confidence that 2011 is expected to be another record year for ASML,” said Eric Meurice, President and Chief Executive Officer of ASML. “We shipped 21 of our most advanced volume production immersion system TWINSCAN NXT:1950, the industry’s premier immersion platform capable of overlay of less than 3 nanometers (nm) in high volume production of 175 wafers per hour. We also shipped 39 dry lithography tools as our customers continue to execute their strategic fab investments in new technology and capacity to meet demand. We continued to prepare the industry for the next generation of lithography as we shipped the second and third NXE:3100 Extreme Ultraviolet (EUV) scanners for customers to develop their chip production processes for the coming years,” Meurice added.
In Q1 2011, ASML’s net sales of EUR 1,452 million included 56 new and 7 used systems, totaling net system sales of EUR 1,284 million, and net service and field options sales of EUR 168 million. Net system sales for Q4 2010 included the shipment of 56 new and 13 used machines, totaling EUR 1,313 million, and net service and field options sales of EUR 208 million.
The Q1 2011 average selling price for a new system was EUR 22.5 million, compared with the Q4 2010 average selling price for a new system of EUR 22.4 million. The Q1 2011 average selling price for all ASML systems sold was EUR 20.4 million, compared with the Q4 2010 average selling price of EUR 19.0 million.
Q1 2011 net bookings totaled 40 systems valued at EUR 845 million, including advanced immersion systems for critical layers as well as KrF systems for less critical layers mainly ordered by Foundry customers for capacity additions, with a total average selling price of EUR 21.1 million.
ASML’s systems backlog as of March 27, 2011 was EUR 3,330 million, including 134 systems with an average selling price of EUR 24.9 million. ASML’s systems backlog as of December 31, 2010 was valued at EUR 3,856 million, totaling 157 systems with an average selling price of EUR 24.6 million.
In Q1 2011, ASML generated net income of EUR 395 million, or EUR 0.90 per ordinary share as compared with net income in Q4 2010 of EUR 407 million or EUR 0.94 per ordinary share.
The company’s Q1 2011 gross margin was 44.7% compared with the Q4 2010 gross margin of 45%.
Q1 2011 research and development (R&D) costs were EUR 145 million, compared with Q4 2010 R&D costs of EUR 141 million.
Selling, general and administrative (SG&A) costs were EUR 54 million in Q1 2011, compared with SG&A costs of EUR 50 million in Q4 2010.
Net cash from operations was EUR 1,101 million in Q1 2011. ASML ended Q1 2011 with EUR 2,699 million in cash and cash equivalents, compared with EUR 1,950 million at the end of Q4 2010. This cash includes pre-payments for EUV production systems which will be invested into the program in coming quarters.
“We booked EUR 845 million worth of orders in the first quarter of 2011 and expect order intake of between EUR 900 million and EUR 1 billion in Q2 2011,” Eric Meurice said. “The semiconductor manufacturers are certainly showing caution in assessing the economic impact of the Japanese earthquake on their supply chain as well as on the overall end-product market; some customers have indeed re-timed a limited number of deliveries. However, the structural needs for lithography capacity continue to be sufficiently large for 2011 so that such schedule changes do not impact significantly our revenues expectation for the year, to hit a record level clearly above EUR 5 billion: DRAM memory investment is still low compared with last year, but NAND Flash memory and Foundry Logic players continue their strategic build-up of 2x nm and 4x-3x nm capacity respectively. Beyond those nodes, we are progressing further our EUV technology as we shipped the first three NXE:3100 systems and are planning to ship three more over the coming months. We have not yet proven the full light source power performance, but progress is being made while the industry is securing the infrastructure development and while we are qualifying the overall system itself,” Meurice said.
ASML expects Q2 2011 net sales of around EUR 1.5 billion and gross margin in Q2 2011 of about 45%. We have elected to increase our R&D costs for Q2 and potentially Q3 by EUR 5 million to EUR 150 million so as to strengthen our strategic investments, as the revenue line is strong. SG&A costs are expected at EUR 55 million.
As part of ASML’s policy to return excess cash to shareholders through dividend and regularly timed share buyback programs, ASML in January 2011 announced its intention to purchase up to EUR 1 billion of its own shares within two years. As part of this program ASML has purchased 4,6 million shares for a total consideration of EUR 142 million up to March 27, 2011. ASML intends to cancel the repurchased shares. The share buyback program may be suspended, modified or discontinued at any time. All transactions under this program are published on ASML’s website on a weekly basis.
In addition to reporting financial figures in accordance with US GAAP, ASML also reports financial figures in accordance with IFRS for statutory purposes. The most significant differences between US GAAP and IFRS that affect ASML concern the capitalization of certain product development costs, the accounting of share-based payment plans, the accounting of income taxes and the accounting of reversal of inventory write-downs. ASML’s quarterly IFRS consolidated income statement, consolidated statement of cash flows, consolidated statement of financial position and a reconciliation of net income and equity from US GAAP to IFRS are available on www.asml.com.
The consolidated balance sheets of ASML Holding N.V. as of March 27, 2011, the related consolidated statements of operations and consolidated statements of cash flows for the quarter ended March 27, 2011 as presented in this press release are unaudited.