The quarterly report of the Dutch holding ASML is predictable attracted attention Exchange participant, as this company is the largest supplier of lithographic scanners used in the manufacture of semiconductor components. Results for the quarter exceeded analysts’ expectations, with ASML significantly increasing revenue and net income.
For example, ASML’s first-quarter revenue rose 91% year over year to €6.74 billion, while net income almost tripled to €1.96 billion. Previously, analysts forecast that the company would post sales of no more than €6.31 billion and net income of no more than €1.62 billion. CEO Peter Wennink acknowledged that ASML’s customers are postponing equipment availability or otherwise reacting to the difficult economic environment, but overall the company maintains its good prospects for the future.
“Total demand still exceeds our production capacity for this year and now we have orders for 38.9 billion euros,” – said the head of the holding. According to him, companies in the industry are adjusting their inventory levels, so the outfitter is getting rather conflicting signals from customers in the face of ASML. In the last quarter, the order volume for the supply of equipment fell by 46% compared to the same period last year to 3.75 billion euros.
In the current quarter, ASML’s sales are expected to increase to EUR 6.75 billion in the mid-range, according to its own forecasts, and thus also exceed the expectations of the analysts, who named the maximum amount of EUR 6.42 billion. In the past quarter, ASML’s profit margin hit 50.6%, beating analysts’ expectations as well. This was made possible by increased profits from the sale of lithography devices in the EUV and DUV classes.
The Chinese market, where U.S. authorities are so eager to cut shipments, provided ASML with about 8% of total sales in the first quarter and up to 20% of future orders. In this geographical area, the company’s sales will even grow this year, despite the introduction of export restrictions by the Dutch authorities. ASML has yet to receive clear requirements from the latter, but expects to apply for an export license that will allow it to ship scanners to China for immersion lithography work. According to company management, the existing export restrictions should not have any significant impact on ASML’s activities this year.