Continued solid growth of sales
and profitability expected in 2018
VELDHOVEN, the Netherlands, January 17, 2018
- ASML Holding N.V. (ASML) today publishes its 2017 fourth-quarter
and full-year results.
-
Q4 net sales of EUR 2.56 billion, gross margin
45.2 percent
-
2017 net sales of EUR 9.05 billion, net income
EUR 2.1 billion
-
ASML expects Q1 2018 net sales around EUR 2.2
billion and a gross margin between 47 and 48 percent
-
ASML announces 2018-2019 share buyback program
for EUR 2.5 billion and proposes 17 percent dividend increase to
EUR 1.40 per share
(Figures in millions of euros unless
otherwise indicated) |
Q3 2017 |
Q4 2017 |
FY 2016 |
FY 2017 |
Net sales |
2,447 |
2,561 |
6,795 |
9,053 |
...of which Installed Base Management sales(1,2) |
628 |
606 |
2,123 |
2,679 |
|
|
|
|
|
Other income (Co-Investment Program) |
24 |
24 |
94 |
96 |
|
|
|
|
|
New lithography systems sold (units) |
48 |
48 |
139 |
174 |
Used lithography systems sold (units) |
7 |
9 |
18 |
24 |
|
|
|
|
|
Net bookings(3) |
2,154 |
2,935 |
5,396 |
9,358 |
Systems backlog(3) |
5,693 |
6,685 |
3,961 |
6,685 |
|
|
|
|
|
Gross profit |
1,050 |
1,156 |
3,044 |
4,077 |
Gross margin (%) |
42.9 |
|
45.2 |
|
44.8 |
|
45.0 |
|
|
|
|
|
|
Net income |
557 |
644 |
1,472 |
|
2,119 |
EPS (basic; in euros) |
1.30 |
1.50 |
3.46 |
4.93 |
|
|
|
|
|
End-quarter cash and cash equivalents and short-term
investments |
2,678 |
3,288 |
4,057 |
3,288 |
(1) As of January 1, 2017, ASML presents net sales
with respect to metrology and inspection systems as part of net
system sales instead of Installed Base Management sales. The
comparative numbers have been adjusted to reflect this change in
accounting policy.
(2) Installed Base Management sales equals our net
service and field option sales.
(3) Net bookings and Systems backlog are
calculated without giving effect to the impact of adopting the new
Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842)
which ASML will adopt as of January 1, 2018.
A complete summary of US GAAP Consolidated
Statements of Operations is published on www.asml.com
CEO Statement
"ASML generated record sales and net income in 2017, helped by a
strong fourth quarter. Due to industry strength, some customers
requested earlier shipments of their lithography systems, which we
were able to accommodate. Earlier-than-expected revenue recognition
of two Extreme Ultraviolet (EUV) systems contributed to the strong
performance in the fourth quarter as well. With EUV sales crossing
the 1.1 billion euro mark, 2017 was the year in which preparations
for inserting EUV into high-volume chip manufacturing shifted into
a higher gear. This is underlined by orders for 10 more EUV systems
in the fourth quarter. Sales of our Holistic Lithography and
Installed Base Management products also showed significant growth
in 2017," ASML President and Chief Executive Officer Peter Wennink
said.
"These results reflect our technology leadership
and the success of our comprehensive product portfolio as well as
the strong growth fundamentals in our industry, which enable the
continued innovation in personal electronics, artificial
intelligence, cloud computing and mobility. For 2018 we expect
continued solid growth of sales and profitability."
2017 Product and Business Highlights
-
With a total of 161 new DUV systems shipped in
2017, a 21 percent increase from 2016, ASML's supply chain and
factories were capable of significantly boosting output in reaction
to increased customer demand, supporting fast ramps of advanced
nodes in memory and logic. We also provided three customers with
early-access versions of the TWINSCAN NXT:2000i, our most advanced
immersion lithography system, for process development of next node
devices. As a sign of the continuously increasing maturity of the
NXT platform, the NXT:2000i system meets or exceeds all of its
performance targets. For 3D NAND customers, we expanded our options
portfolio to improve focus performance on high-topography wafers
and handle strongly-warped wafers, both of which are typical for
this application.
-
Our Holistic Lithography product portfolio
showed growth in all product categories: computational lithography
software products, metrology and inspection systems and process
window control software products. ASML also broadened its product
offering with the creation of an e-beam-based pattern fidelity
metrology system, ePfm5, and shipped the first HMI eXplore 6000 EUV
reticle defect inspection system.
-
ASML shipped 10 EUV systems to multiple
customers in support of their plans to use the technology in
high-volume manufacturing starting in 2018 and 2019, up from 4
shipments in 2016. ASML also demonstrated a number of technology
milestones, achieving a throughput of 125 wafers per hour,
demonstrating a full-size, defect-free EUV pellicle, and achieving
EUV-to-DUV immersion overlay of 2 nanometers, which is in line with
the requirement for the 5 nanometer logic node.
-
Installed Base Management sales surpassed EUR
2.6 billion in 2017, an increase of more than 25 percent over the
prior year.
-
ASML continued to support China's expanding
semiconductor industry. Our system sales to China grew by more than
20 percent in 2017. Alongside shipments to mainland fabs operated
by non-Chinese customers, we are planning to ship to five domestic
Chinese customers in 2018.
Outlook
For the first-quarter of 2018, ASML expects net sales around EUR
2.2 billion, a gross margin between 47 and 48 percent, R&D
costs of about EUR 350 million, SG&A costs of about EUR 115
million. Our target effective annualized tax rate is around 14
percent.
Dividend Proposal
ASML will submit a proposal to the 2018 Annual General Meeting of
Shareholders to declare a dividend in respect of 2017 of EUR 1.40
per ordinary share (for a total amount of approximately EUR 600
million), compared with a dividend of EUR 1.20 per ordinary share
paid in respect of 2016.
New Share Buyback Program
As part of ASML's financial policy to return excess cash to
shareholders through dividends and regularly timed share buybacks,
ASML announces a new share buyback program, to be executed within
the 2018-2019 time frame. As part of this program, ASML intends to
purchase shares up to EUR 2.5 billion. ASML intends to cancel these
shares after repurchase, with the exception of up to 2.4 million
shares which will be used to cover employee share plans. This
buyback program will start on January 18, 2018. 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 26, 2017 and of the authority 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 (www.asml.com/investors) on a weekly
basis.
The total amount repurchased under the 2016-2017
program, which was concluded in December 2017, was EUR 900 million,
for which ASML purchased 8.2 million of its shares at an average
price of EUR 109.33 per share.
Media
Relations Contacts |
Investor
Relations Contacts |
Monique
Mols, phone +31 6 5284 4418 |
Skip
Miller, phone +1 480 235 0934 |
Niclas
Mika, phone +31 6 201 528 63 |
Marcel
Kemp, phone +31 40 268 6494 |
Press Conference and Investor Conference
Call
CEO Peter Wennink and CFO Wolfgang Nickl will host a press
conference at 11:00 AM Central European Time, which will be webcast
live on www.asml.com.
A conference call for investors and media will be
hosted by CEO Peter Wennink and CFO Wolfgang Nickl at 15:00 Central
European Time / 09:00 AM U.S. Eastern time. To register for the
call and receive dial-in information, go to
www.asml.com/qresultscall. Listen-only access is also
available via www.asml.com.
About ASML
ASML is one of the world's leading manufacturers of chip-making
equipment. Our vision is to enable affordable microelectronics that
improve the quality of life. To achieve this, our mission is to
invent, develop, manufacture and service advanced technology for
high-tech lithography, metrology and software solutions for the
semiconductor industry. ASML's guiding principle is continuing
Moore's Law towards ever smaller, cheaper, more powerful and
energy-efficient semiconductors. This results in increasingly
powerful and capable electronics that enable the world to progress
within a multitude of fields, including healthcare, technology,
communications, energy, mobility, and entertainment. ASML is a
multinational company with offices in 60 cities in 16 countries,
headquartered in Veldhoven, the Netherlands. We employ more than
19,000 people on payroll and flexible contracts (expressed in full
time equivalents). ASML is traded on Euronext Amsterdam and NASDAQ
under the symbol ASML. More information about ASML, our products
and technology, and career opportunities is available on
www.asml.com.
US GAAP and IFRS Financial Reporting
ASML's primary accounting standard for quarterly earnings releases
and annual reports is US GAAP, the accounting principles generally
accepted in the United States of America. Quarterly US GAAP
consolidated statements of operations, consolidated statements of
cash flows and consolidated balance sheets, and a reconciliation of
net income from US GAAP to IFRS as adopted by the EU ('IFRS') are
available on www.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 and the
accounting of income taxes. ASML's quarterly IFRS consolidated
statement of profit or loss, consolidated statement of cash flows,
consolidated statement of financial position and a reconciliation
of net income from US GAAP to IFRS are available on
www.asml.com.
The consolidated balance sheets of ASML Holding
N.V. as of December 31, 2017, the related consolidated
statements of operations and consolidated statements of cash flows
for the quarter and year ended December 31, 2017 as presented
in this press release are unaudited.
2017 Annual Reports
ASML will publish its 2017 Integrated Report based on US GAAP and
its 2017 Integrated Report based on IFRS on February 7, 2018. The
reports will be published on our website at www.asml.com.
Regulated Information
This press release contains inside information within the meaning
of Article 7(1) of the EU Market Abuse Regulation.
Forward Looking Statements
This document contains statements relating to certain projections,
business trends and other matters that are forward-looking,
including statements with respect to expected trends and outlook,
systems backlog, expected financial results and trends, including
expected sales, EUV revenue, gross margin, R&D and SG&A
expenses, other income, and annualized effective tax rate for the
first quarter of 2018, and expected financial results and trends
for the full year 2018, including the expectation for continued
solid growth in sales and profitability in 2018, annual revenue
opportunity for ASML and EPS potential by 2020 with significant
further growth potential into the next decade, expected industry
trends and expected trends in the business environment, statements
with respect to the intent of customers to insert EUV into volume
manufacturing, supply chain and service capabilities, ASML's
commitment to secure system performance, shipments, and the planned
shipment of advance products to domestic Chinese customers in 2018,
and support for volume manufacturing, including availability,
productivity, throughput, shipments and the ability to support a
larger installed base, including timing of shipments (including
planned EUV shipments in 2018 and 2019), shrink being a key driver
supporting innovation and providing long-term industry growth,
lithography enabling affordable shrink and delivering value to
customers, the expected continuation of Moore's law and that EUV
will continue to enable Moore's law and drive long term value for
ASML beyond the next decade, the expected impact of the new revenue
recognition standard on revenue and net income, intention to return
excess cash to shareholders, statements about our proposed
dividend, dividend policy and intention to repurchase shares and
statements with respect to the new share repurchase plan for
2018-2019. You can generally identify these statements by the use
of words like "may", "will", "could", "should", "project",
"believe", "anticipate", "expect", "plan", "estimate", "forecast",
"potential", "intend", "continue", "targets", "commits to secure"
and variations of these words or comparable words. These statements
are not historical facts, but rather are based on current
expectations, estimates, assumptions and projections about the
business and our future financial results and readers should not
place undue reliance on them. Forward-looking statements do not
guarantee future performance and involve risks and uncertainties.
These risks and uncertainties include, without limitation, economic
conditions, product demand and semiconductor equipment industry
capacity, worldwide demand and manufacturing capacity utilization
for semiconductors, including the impact of general economic
conditions on consumer confidence and demand for our customers'
products, competitive products and pricing, the impact of any
manufacturing efficiencies and capacity constraints, performance of
our systems, the continuing success of technology advances and the
related pace of new product development and customer acceptance of
new products including EUV, the number and timing of EUV systems
expected to be shipped and recognized in revenue, delays in EUV
systems production and development and volume production by
customers, including meeting development requirements for volume
production, demand for EUV systems being sufficient to result in
utilization of EUV facilities in which ASML has made significant
investments, our ability to enforce patents and protect
intellectual property rights, the outcome of intellectual property
litigation, availability of raw materials, critical manufacturing
equipment and qualified employees, trade environment, changes in
exchange rates, changes in tax rates, available cash and liquidity,
our ability to refinance our indebtedness, distributable reserves
for dividend payments and share repurchases, results of the new
share repurchase plan 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. These
forward-looking statements are made only as of the date of this
document. We do not undertake to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Link to Press Release
Link to Consolidated Financial Statements
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ASML Holding via Globenewswire
ASML Holding NV (NASDAQ:ASML)
Historical Stock Chart
From Mar 2024 to Apr 2024
ASML Holding NV (NASDAQ:ASML)
Historical Stock Chart
From Apr 2023 to Apr 2024