ASML Q1 Profit Rises, Orders Up; Refrains From Q2, FY20 Guidance Due To Covid-19

(RTTNews) - Dutch semiconductor equipment maker ASML Holding N.V. (ASML) reported Wednesday that its first-quarter net income grew to 390.6 million euros from last year's 355.4 million euros. Earnings per share were 0.93 euro, up from 0.84 euro a year ago.

Income before income taxes grew to 415.3 million euros from 326.4 million euros last year.

Total net sales increased to 2.44 billion euros from 2.23 billion euros last year. Net system sales, meanwhile, dropped to 1.58 billion euros from 1.69 billion euros last year.

Gross profit as a percentage of net sales was 45.1 percent, up from 41.6 percent last year.

In the quarter, sales of lithography systems increased to 57 units from prior year's 48 units. Value of booked systems was 3.09 billion euros, up from 1.40 billion euros last year. Net bookings lithography systems climbed to 73 units from 34 units a year ago.

Further, ASML said it intends to declare a total dividend for 2019 of 2.40 euros per ordinary share, including a final dividend payment of 1.35 euros per ordinary share, as will be proposed to shareholders at the Annual General Meeting scheduled for April 22.

The company also said the three-year share buyback program to purchase shares up to 6 billion euros, to be executed within the 2020-2022 time frame, remains in place.

Looking ahead, ASML said it refrains from guidance due to increased uncertainty in current environment due to Covid-19 pandemic.

ASML President and Chief Executive Officer Peter Wennink, said, "The demand outlook is currently unchanged and we have not encountered any push-outs or cancellations this year. ...Our order intake is strong. ..However, in light of the current risks and uncertainties related to COVID-19, we decided to refrain from giving guidance for Q2 and for the full year 2020. There is significant uncertainty about how the current COVID-19 crisis will impact the global GDP development, end markets, our manufacturing capability and supply chain."