ASML reports €4.0 billion net sales and €1.0 billion net income in Q2 2021

Net sales now expected to grow by around 35% in 2021

Press release - Veldhoven, the Netherlands, July 21, 2021

Today, ASML Holding NV (ASML) has published its 2021 second-quarter results.

  • Q2 net sales of €4.0 billion, gross margin of 50.9%, net income of €1.0 billion

  • Q2 net bookings of €8.3 billion

  • ASML expects Q3 2021 net sales between €5.2 billion and €5.4 billion and a gross margin between 51% and 52%

  • ASML announces a new share buyback program of up to €9 billion to be executed by December 31, 2023

(Figures in millions of euros unless otherwise indicated) Q1 2021 Q2 2021
Net sales 4,364 4,020
...of which Installed Base Management sales 1 1,235 1,071
     
New lithography systems sold (units) 73 69
Used lithography systems sold (units) 3 3
     
Net bookings 2 4,740 8,271
     
Gross profit 2,352 2,045
Gross margin (%) 53.9 50.9
     
Net income 1,331 1,038
EPS (basic; in euros) 3.21 2.52
     
End-quarter cash and cash equivalents and short-term investments 4,656 5,374

(1) Installed Base Management sales equals our net service and field option sales.

(2) Our systems net bookings include all system sales orders for which written authorizations have been accepted (for EUV excluding the High-NA systems).

Numbers have been rounded for readers' convenience. A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com.

CEO statement and outlook

"Our second-quarter net sales came in at €4.0 billion, which is within our guidance. The gross margin came in at 50.9%, above our guidance, which is mainly due to higher revenue in software upgrades as customers want to increase capacity quickly, as well as one-off revenue accounting releases. Our second-quarter net bookings came in at €8.3 billion, including €4.9 billion from EUV systems, bringing the total backlog at €17.5 billion.

 

"The demand continues to be high across all market segments and our product portfolio. This is a reflection of the market that is focused on increasing capacity to support the build-up of the digital infrastructure. The long-term demand is not only for advanced nodes, but also for legacy and mature nodes in Logic as well as Memory. We are working to maximize output and we currently expect net sales growth by around 35% in 2021 compared to last year with an expected gross margin between 51% and 52%," said ASML President and Chief Executive Officer Peter Wennink.

 

ASML expects third-quarter net sales between €5.2 billion and €5.4 billion with a gross margin between 51% and 52%, R&D costs of around €645 million and SG&A costs of around €180 million. The estimated annualized effective tax rate is expected to be around 15% for 2021.

 

Products and business highlights

  • In our EUV business, the first TWINSCAN NXE:3600D system was shipped to a customer. The system offers 15% to 20% productivity improvement capability and around 30% improved overlay compared with the TWINSCAN NXE:3400C.

     

    We are now ramping EUV in volume production for Memory with plans to implement EUV on future nodes across three DRAM customers.

     

  • In our DUV business, the TWINSCAN NXT:2000i (an ArFi immersion system) achieved a record of exposing over 6,300 wafers in a single day at a customer.

     

    The 100th TWINSCAN was refurbished, demonstrating our commitment to the circular economy. This year we expect to ship 20 refurbished PAS systems (introduced 30 years ago and still running at high utilization at our customers) and six refurbished TWINSCAN systems.

     

  • In our Applications business, we shipped the first YieldStar 1385 this quarter. This next-generation tool provides the ability to measure after etch device patterns enabling extended yield control capability to our customers. YieldStar 1385 delivers improved accuracy and ~50% productivity improvement capability over the YieldStar 1375.

 

New share buyback program

As part of ASML's financial policy to return excess cash to its shareholders through growing dividends and share buybacks, ASML announces a new share buyback program which will start on July 22, 2021, and is to be executed by December 31, 2023. As part of this program, ASML intends to repurchase shares up to an amount of €9 billion, of which we expect a total of up to 0.45 million shares will be used to cover employee share plans. ASML intends to cancel the remainder of the shares repurchased. The new program will replace the previous €6 billion share buyback program 2020–2022, under which ASML has repurchased approximately 11.7 million shares for an approximate amount of €5.2 billion, and which will not be completed for the full amount in light of the new share buyback program.

 

The share buyback program will be executed within the limitations of the existing authority granted by the Annual General Meeting of Shareholders (AGM) on April 29, 2021, and of the authority to be granted by future AGMs. The share buyback program may be suspended, modified or discontinued at any time. All transactions under this program will be published on ASML's website on a weekly basis.

 

Quarterly video interview, investor call

With this press release, ASML has published a video interview in which CEO Peter Wennink discusses the 2021 second-quarter results and outlook for 2021. This can be viewed on the Q2 2021 results page.

 

An investor call for both investors and the media will be hosted by CEO Peter Wennink and CFO Roger Dassen on July 21, 2021, at 15:00 Central European Time / 09:00 US Eastern Time. Details can be found on the Q2 2021 results page.

About ASML

US GAAP and IFRS Financial Reporting

Regulated information

Forward-looking statements

Contact information

Monique Mols

Head of Media Relations

Brittney Wolff Zatezalo

Corporate communications manager US

Karen Lo

Communications Asia

Skip Miller

VP Investor Relations – Worldwide

Marcel Kemp

Director Investor Relations Europe

Peter Cheang

Director Investor Relations Asia