ASML Q3 Profit Climbs On Margin Strength; Backs FY14 Sales View

(RTTNews) - Dutch semiconductor equipment maker ASML Holding NV (ASML) reported Wednesday higher profit in the third quarter, boosted by margin strength, even as net sales were nearly flat.

A decline in net system sales due to lower unit sales was more than offset by growth in net service and field option sales. For the fourth quarter, the company projected sequentially lower sales and gross margin. The company also backed fiscal 2014 sales forecast, supported by solid backlog.

President and Chief Executive Officer Peter Wennink said, "Looking ahead, we see a solid start to 2015. In memory, we expect higher sales in H1 driven by the strong backlog. In logic, the ramp of 20/16/14 nanometer nodes is expected to continue, but the timing and volume depends on the business allocations by our customers' customers."

For the third quarter, the company's net income, on a US GAAP basis, climbed to 244.0 million euros ($308.43 million) from the prior year's 193.1 million euros. Earnings per share improved to 0.56 euro from 0.43 euro last year.

The firm's total net sales were 1.322 billion euros, compared with last year's 1.318 million euros.

Net system sales declined to 884.5 million euros from 959.5 million euros a year ago, while net service and field option sales grew to 437.7 million euros from 358.7 million euros.

In the quarter, sales of systems dropped to 30 units from prior year's 34 units, while average selling price of system sales grew to 29.5 million euros from 28.2 million euros a year ago.

The company's gross margin was 43.7 percent for the quarter, higher than prior year's margin of 40.3 percent. According to the firm, profit margin on net sales fell just short of previous guidance due to a couple of system shipments shifting into the fourth quarter, which does not impact full-year guidance.

Looking ahead, for the fourth quarter, ASML expects net sales of around 1.3 billion euros, and gross margin of about 43 percent.

For the full year, the company remains on track to meet its net sales forecast of at least 5.6 billion euros.

In Amsterdam, ASML shares gained 1.97 euros or 2.74 percent on Tuesday, and settled at 73.90 euros.