ASML Announces 2004 Second Quarter Results; `A Stronger, Longer Upturn'.VELDHOVEN Veldhoven ( (helpinfo)) is a municipality and a town on the Gender stream in the southern Netherlands, located just southwest of Eindhoven. , the Netherlands -- ASML Holding ASML is a Dutch company and the world’s primary supplier of lithography systems for the semiconductor industry. Of all the major chip producers worldwide, more than 80% are ASML customers. NV (ASML ASML Abstract State Machine Language ASML Anisotropic Shielded Microstrip Line ) today announced its financial results for the second quarter of 2004 as follows:
-- Order backlog of 174 lithography systems - 147 new and 27
refurbished systems - valued at EUR 1,800 million as of June 27,
2004.
Q1 2004: 163 systems / EUR 1,357 million value
Q2 2003: 62 systems / EUR 678 million value
-- Total sales of EUR 616 million
Q1 2004: Total sales of EUR 453 million
Q2 2003: Total sales of EUR 329 million
-- Gross margin of 35.6 percent
Q1 2004: 32.2 percent
Q2 2003: 22.0 percent
-- Net profit of EUR 65 million
Q1 2004: Net profit of EUR 21 million
Q2 2003: Net loss of EUR 64 million
"ASML's Q2 2004 financial results reflect the continuing upturn. And we expect that the positive market conditions will stay with us well into 2005," said Doug Dunn, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , ASML. "ASML began the year with good momentum and delivered two solid financial quarters. As economic growth indicators have started to show positive signs and the demand for chips increases, our customers turn to us to deliver high productivity systems." "ASML made significant adjustments in 2003 to the way we approach our business. The focus on operational excellence, cash flow generation and improving the quality of our earnings is paying off. With all this good news and the recent signing of a major new customer in Japan, we remain enthusiastic about our prospects for the remainder of 2004 and beyond." Outlook ASML improved its gross margin by 3.4 percent in Q2 2004. A further improvement of 2 percentage points is expected in Q3 2004. ASML expects the gross margin will reach 40 percent by Q4 2004. ASML anticipates that Q3 2004 new unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. will remain at similar levels to those of Q2 2004. It is expected that new unit sales will accelerate in Q4 2004. ASML expects 2004 research and development (R&D) expenses to range between EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 65 - 70 million per quarter and 2004 sales, general and administrative expenses (SG&A) to range between EUR 50 - 55 million per quarter. Financial Position In Q2 2004, ASML generated a net profit of EUR 65 million or EUR 0.14 per ordinary share. This compares with a Q1 2004 net profit of EUR 21 million or EUR 0.04 per ordinary share and a Q2 2003 net loss of 64 million or EUR 0.13 per ordinary share. ASML concluded the second three months of 2004 with an additional EUR 84 million in cash and cash equivalents, bringing the cash total to EUR 1,236 million as of June 27, 2004. Operations Update Total sales for Q2 2004 were 72 systems - 57 new and 15 refurbished. Total net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for Q2 2004 were EUR 616 million as compared with total net sales in Q1 2004 of EUR 453 million and total net sales in Q2 2003 of EUR 329 million. In Q2 2004, revenue from service and field options was EUR 73 million as compared with revenue from service and field options of EUR 65 million in Q1 2004 and EUR 70 million in Q2 2003. The Q2 2004 average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. including refurbished systems was EUR 7.6 million as compared with Q1 2004 average selling price of EUR 6.7 million and Q2 2003 average selling price of EUR 6.3 million. The average selling price of systems in the backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. to be shipped in the next six months is EUR 9.1 million. The order backlog comprises 174 lithography lithography (lĭthŏg`rəfē), type of planographic or surface printing. It is distinguished from letterpress (relief) printing and from intaglio printing (in which the design is cut or etched into the plate). systems with approximately 75 percent expected to ship in the next six months. The remaining 25 percent is expected to ship in the following six months. R&D expenditures for Q2 2004 were 69 million net of credit, as compared with Q1 2004 expenditures of EUR 70 million net of credit and Q2 2003 expenditures of EUR 73 million, net of credit. SG&A expenses totaled EUR 50 million in Q2 2004 as compared with EUR 48 million in Q1 2004 and EUR 55 million in Q2 2003. About ASML 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 Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. or chips. Headquartered in Veldhoven, the Netherlands, ASML is traded on Euronext Amsterdam and NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on under the symbol ASML. For more information, visit the Web site at ASML.com. Conference Call - Additional Call ASML now sponsors two conference calls to discuss the 2004 Q2 financial results. Both calls will be hosted by ASML CEO Doug Dunn and CFO See Chief Financial Officer. Peter Wennink and will be held today, July 14, 2004, as follows:
Press Call - 10:00 a.m. Central European Time / 4:00 a.m. EST
Dial in number: the Netherlands - +31 20 531 5821; the UK - +44
207 6642 363; the US - +1 706 679 0473
Financial Analyst Call - 16.30 Central European Time / 10.30
Eastern US Time
Dial in numbers: the Netherlands - +31 20 531 5821; the UK - +44
207 6642 363; and the US - +1 706 679 0473
The conference calls will be Web cast on ASML.com and available for replay from July 14 - 21 by dialing +31 70 315 4300, (for press) pass code 577 658, (for financial analysts) pass code 153 398. Replays of the Web casts will be available on ASML.com until August 16. Pre-Recorded Message A pre-recorded message from ASML CEO Doug Dunn on the financial results is available on ASML.com, under Q2 2004 Financial Results. Forward Looking Statements This document includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor industry capacity, competitive products and pricing, manufacturing efficiencies, new product development, ability to enforce patents, the outcome of intellectual property litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , availability of raw materials and critical manufacturing equipment, trade environment and other risks indicated in filings with the US Securities and Exchange Commission. |
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