Message #18 From:
NewsBot Date: October 17, 2006 10:00:00 PM
ASML News ASML Announces 2006 Third Quarter Results, Record Sales, Profit and Sustained Outlook
VELDHOVEN, the Netherlands--(BUSINESS WIRE)--ASML Holding NV (ASML) today announced 2006 third quarter results
according to US GAAP as follows:
Net sales of EUR 958 million, up 80 percent versus year ago, and up
two percent versus Q2 2006 at EUR 942 million
Operating profit of EUR 239 million or 25.0 percent of net sales, up
more than threefold versus year ago, and sustained versus Q2 2006 at
EUR 238 million or 25.2 percent of sales
Net profit of EUR 172 million or 17.9 percent of net sales, up more
than threefold versus year ago, and up three percent versus Q2 2006 at
EUR 167 million or 17.7 percent of sales
Net bookings valued at EUR 1,193 million with 95 systems including 88
new and 7 refurbished systems, an increase in net bookings value of 10
percent versus Q2 2006 net bookings valued at EUR 1,083 million with
93 systems including 78 new and 15 refurbished systems
“Record revenues and profit in Q3 2006, as
well as strong bookings above our initial expectation, confirm the
healthy state of the semiconductor lithography market and ASML’s
increasing market share,” said Eric Meurice,
president and CEO. “In addition to strong
i-line system bookings, our market position is reinforced by further
progress in Japan and by the industry’s
ordering for immersion production ramp-ups. With 28 ASML immersion tools
shipped, including 15 TWINSCAN™ XT:1700i
systems, the only available system capable of 45-nanometer volume
manufacturing, and with our shipments of the industry’s
first two full-field EUV development systems, ASML consolidates its
technology leadership.”
Operations Update
In Q3 2006, net sales increased by 80 percent year-on-year and by two
percent from the previous quarter to EUR 958 million as ASML shipped 59
new and 12 refurbished systems for sales of EUR 856 million and
generated revenue from field option and service sales of EUR 102
million. In Q2 2006, ASML shipped 58 new and 14 refurbished systems for
sales of EUR 841 million and generated revenue from field option and
service sales of EUR 101 million.
The average selling price for a new system in Q3 2006 increased to EUR
13.8 million from EUR 13.7 million in the previous quarter. The average
selling price for all ASML systems sold in Q3 2006 increased to EUR 12.1
million from EUR 11.7 million in the previous quarter, due to a Q3 2006
mix favoring 300-millimeter ArF systems.
As expected last month when ASML raised its bookings outlook, Q3 2006
net bookings reached 95 systems valued at EUR 1,193 million, including
88 new systems with an average selling price of EUR 13.2 million. ASML’s
strong bookings trend of the past nine months has led to an October 1,
2006 backlog at record value of EUR 2,126 million with 151 systems and
an average selling price of EUR 14.1 million, compared with July 2, 2006
backlog value of EUR 1,830 million with 127 systems and an average
selling price of EUR 14.4 million.
Gross margin was 40.8 percent in Q3 2006, at the high end of the company’s
guidance range, versus 40.4 percent in Q2 2006. Operating profit was EUR
239 million in Q3 2006 versus EUR 238 million in Q2 2006. Net profit in
Q3 2006 increased to EUR 172 million or EUR 0.37 per ordinary share.
Q3 2006 research and development (R&D) costs were EUR 100 million net of
credit, an increased investment compared with Q2 2006 R&D costs of EUR
92 million to sustain ASML’s technology
leadership and enable growth.
Selling, general and administrative (SG&A) expenses remained flat at EUR
51 million in Q3 2006 compared with the previous quarter. Q3 2006 SG&A
increased by seven percent versus year ago while Q3 2006 sales increased
by 80 percent year-on-year.
Year to date, ASML has bought back 40.4 million of its ordinary shares
representing 8.33 percent of outstanding shares at the beginning of
2006. After conversion rights were exercised under prior bonds due
October 15, 2006, the company has achieved a net reduction of 8.4
million shares. ASML is currently near its target level of EUR 1 billion
in net cash, which is comprised of total cash and equivalents minus
convertible subordinated bonds. ASML reiterates its commitment to return
cash above its net cash target to the shareholders through share
buybacks, resulting in reduction of the number of shares outstanding.
Outlook
“After nine months of strong bookings due to
a fairly high semiconductor unit growth of up to 19 percent in 2006, as
well as a strong flash memory capacity build-up, we expect unit bookings
in Q4 2006 to remain high at 65 units, with upside potential, reflecting
two drivers: a continuous need for capacity in semiconductor segments
other than flash, and a continuous increase in ASML’s
market share,” said Eric Meurice. “Industry
analyst projections indicate single-digit semiconductor unit growth in
2007, which should translate into lithography demand for ASML in 2007 at
about 2006 level, as we expect that the anticipated pause in lithography
purchasing by the flash memory segment could be offset by the ramp-up of
our new product, the XT:1900i immersion system, and by steady gains in
ASML’s market share.”
ASML expects to ship 69 systems in Q4 2006 with an average selling price
of EUR 14.2 million for new systems and an average selling price for all
systems of EUR 12.9 million, supporting our previous guidance of an
overall revenue growth of 40 percent in 2006 versus 2005. Seventy four
percent of the unit backlog has Q4 2006 and Q1 2007 shipment dates,
supporting a gross margin in Q4 2006 between 40 and 41 percent.
The company expects to build an additional 10 immersion systems in 2006,
preparing for customers’ semiconductor volume
production ramp early in 2007.
Supported by ASML’s current financial
performance, R&D expenses in Q4 2006 are expected to increase to EUR 105
million net of credit in support of advanced immersion and EUV systems
developments. ASML’s outsourcing strategy
will continue to allow the company to adapt its cost structure up or
down rapidly and efficiently throughout a cycle while continuously
reinforcing its technology leadership.
SG&A expenses in Q4 2006 are expected to remain at EUR 51 million.
ASML is the world's leading provider of lithography systems for the
semiconductor industry, manufacturing complex machines that are critical
to the production of integrated circuits or chips. Headquartered in
Veldhoven, the Netherlands, ASML is traded on Euronext Amsterdam and
NASDAQ under the symbol ASML. For more information, visit the Web site
at ASML.com
IFRS Financial Reporting
ASML's primary accounting standard for quarterly earnings releases and
annual reports is US GAAP, the accounting standards generally accepted
in the United States. Quarterly US GAAP statements of
operations, statements of cash flows and balance sheets, and a
reconciliation of net income and equity from US GAAP to IFRS are
available on ASML.com
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 stock option plans and the
accounting of existing convertible bonds. Quarterly IFRS statements of
operations, statements of cash flows, balance sheets and a
reconciliation of net income and equity from US GAAP to IFRS are
available on ASML.com
Investor and Media Call
A conference call for investors and media will be hosted today by CEO
Eric Meurice and CFO Peter Wennink at 15:00 PM Central European Time /
09:00 AM Eastern US time. Dial-in numbers are: in the Netherlands +31 20
531 5871 and in the US +1 706 679 0473. Access is also via ASML.com to
listen to the conference call.
A presentation about 2006 third quarter results is available on ASML.com
A replay of the Investor and Media Call will be available on ASML.com
until November 20, 2006.
Forward Looking Statements
"Safe Harbor" Statement under the US Private Securities Litigation
Reform Act of 1995: the matters discussed in this document may include
forward-looking statements that are subject to risks and uncertainties
including, but not limited to: economic conditions, product demand and
semiconductor equipment industry capacity, worldwide demand and
manufacturing capacity utilization for semiconductors (the principal
product of our customer base), competitive products and pricing,
manufacturing efficiencies, new product development, ability to enforce
patents, the outcome of intellectual property litigation, availability
of raw materials and critical manufacturing equipment, trade
environment, the prevailing market price for ASML shares, and other
risks indicated in the risk factors included in ASML’s
Annual Report on Form 20-F and other filings with the US Securities and
Exchange Commission.
