ASML Q1 Profit Soars On Higher System Sales

(RTTNews) - Dutch semiconductor equipment maker ASML Holding NV (ASML) reported Wednesday significantly higher profit in its first quarter as revenues were benefited by increased system sales. Looking ahead, for the second quarter, the company projects sequentially higher net sales, but weak margin.

ASML President and Chief Executive Officer Peter Wennink said, "A positive industry environment provided a strong start to 2017 and healthy demand is expected to continue throughout the rest of the year. Our DUV business saw strong demand from all sectors of the industry..... Our second-quarter guidance shows that we expect these trends continue."

For the first quarter, net income on US GAAP basis climbed to 452.1 million euros from last year's 198.0 million euros, with earnings per share improving to 1.05 euros from 0.46 euros in the prior year.

Net income based on IFRS grew to 460.9 million euros from 230.8 million euros a year ago.

Income from operations in the quarter climbed to 534.8 million euros from 228.0 million euros a year ago.

Gross profit as a percentage of net sales increased to 47.6 percent from 42.6 percent last year. Income from operations margin improved to 27.5 percent from 17.1 percent a year ago.

Total net sales for the quarter grew to 1.94 billion euros from 1.33 billion euros in the previous year. Net system sales climbed to 1.22 billion euros from 859.8 million euros last year. Net service and field option sales grew to 727.8 million euros from 473.4 million euros a year ago.

In the quarter, sales of lithography systems increased to 44 units from 33 units sold a year ago.

Lithography systems backlog was 94 units with a value of 4.51 billion euros, compared to prior year's 76 units, with a value of 3.02 billion euros.

Net lithography bookings increased to 55 units with a value of 1.89 billion euros, from 30 units with a value of 835 million euros in the previous year.

Looking ahead, for the second quarter, ASML expects net sales between 1.9 billion euros and 2.0 billion euros, which includes approximately 200 million euros EUV revenue, and gross margin between 43 and 44 percent.

The company expects three NXE:3400B shipments in the second-quarter of 2017.

Further, ASML said it has submitted a proposal to the 2017 Annual General Meeting of Shareholders on April 26, to declare a dividend in respect of 2016 of 1.20 euros per ordinary share, compared with 1.05 euros per share paid in respect of 2015.

In Amsterdam, ASML shares settled at 121.95 euros on Tuesday, down 0.04 percent.