ASML Missed 2Q Expectations, But Says 2020 Outlook Is Unchanged by Pandemic -- Update
--ASML Holding's second-quarter net profit rose but missed
--The Dutch company said its growth expectations for 2020
haven't changed despite the pandemic
--ASML said the impact of the recession triggered by the
coronavirus pandemic is unclear
By Adria Calatayud
ASML Holding NV said Wednesday that net profit for the second
quarter rose sharply, but missed forecasts, and that its growth
expectations for 2020 haven't changed despite the coronavirus
The Dutch maker of semiconductor equipment said the rollout of
its most advanced chip-making technology, called extreme
ultraviolet lithography or EUV, has continued during the pandemic.
However, analysts said a fall in new orders and cautious comments
on the outlook for next year suggest ASML's customers may take
longer to confirm deliveries as they adapt to the economic
difficulties caused by the pandemic.
"We don't know what the impact of the recession will exactly
be," ASML President and Chief Executive Peter Wennink said.
For the second quarter, the company made a net profit of 751
million euros ($856.2 million) compared with EUR476 million for the
year-earlier period. Analysts expected a profit of EUR863.1
million, according to a FactSet-provided consensus.
ASML said net sales for the second quarter rose to EUR3.33
billion from EUR2.57 billion a year before, but this fell short of
analysts' expectations. The company had previously said revenue it
wasn't able to recognize in the first quarter would shift to the
second and third quarters.
ASML shipped nine extreme ultraviolet lithography, or EUV,
systems--its most advanced technology--in the quarter, but booked
revenue from seven.
"The miss essentially stems from a delay in revenue recognition
for two EUV shipments that ASML expects to recognize in the second
half of 2020," Frederic Yoboue, analyst at investment bank Bryan
Garnier, said in a note to clients.
The company said its operational capabilities are now largely
back to normal. In the second quarter, ASML received new orders
worth EUR1.1 billion, down from EUR3.09 billion in the previous
quarter, it said.
The company, which hadn't provided guidance for the second
quarter in light of uncertainty caused by the pandemic, said it
expects sales for the third quarter to be between EUR3.6 billion
and EUR3.8 billion, with a gross margin of between 47% and 48%. In
the second quarter, ASML's gross margin was 48.2%.
"Our 2020 growth expectations are largely unchanged relative to
our view at the start of the year," Mr. Wennink said.
ASML said it has agreed to acquire Berliner Glas, a privately
held manufacturer of ceramic and optical modules. Financial details
of the deal won't be disclosed, it said.
Shares at 1010 GMT were down 0.6% at EUR341.20.
Write to Adria Calatayud at email@example.com
(END) Dow Jones Newswires
July 15, 2020 07:13 ET (11:13 GMT)
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