ASML REPORTS 1999 ANNUAL RESULTS.Business Editors VELDHOVEN Veldhoven ( (helpinfo)) is a municipality and a town on the Gender stream in the southern Netherlands, located just southwest of Eindhoven. , The Netherlands--(BUSINESS WIRE)--Jan. 20, 2000 ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. 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). Holding N.V. (ASML ASML Abstract State Machine Language ASML Anisotropic Shielded Microstrip Line ) today reported its financial results for 1999. In 1999 ASML shipped 217 units, of which 152 were Step &Scan systems and 65 were Step &Repeat systems (or &uot;wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. steppers&uot;). Of the 217 units, 22 were used and refurbished. This compares to 162 units shipped in 1998, of which 7 were used. The significant wafer stepper step·per n. 1. One that steps, especially in a fast or spirited manner. 2. Informal A dancer. Noun 1. business is a result of the industry upturn, with customers adding capacity in existing production lines. The number of Step &Scan systems confirms the ASML's success in the advanced technology fabs. 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 amounted to 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. 1,197 million for the year ended December December: see month. 31, 1999 compared to net sales of EUR 779 million in 1998. The upturn in the semiconductor market continued throughout the second half of 1999. The 1999 annual results reflect both this upturn and ASML's strong position in leading edge products. Bookings amounted to 325 units whereas in 1998 ASML reported 55 bookings. Of these, 192 were received in the second half of 1999, resulting in a 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. of 159 systems at December 31, 1999 with a value of EUR 968 million. At June June: see month. 30 the backlog was 104 units with a value of EUR 616 million and at December 31, 1998 it consisted of 51 systems with a value of EUR 289 million. Net income for the year 1999 amounted to EUR 81 million or EUR 0.58 per share, compared to EUR 62 million or EUR 0.45 per share in 1998. Net income of EUR 4 million for the first half of 1999 reflected the impact of the industry downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. while the result of EUR 77 million for the second half of 1999 underlines the industry recovery. Gross margin in 1999 was 33.4 percent compared to 38.2 in 1998. Gross margin in the second half of 1999 was 36.1 percent, an improvement of 8.1 percent from gross margin in the first half, which had been impacted by new product introductions and under-utilized capacity in ASML's production facilities. Initial shipments of newly introduced products involve significantly higher costs that decrease with the ramping up of volume production, as demonstrated in the second half. Net research and development costs in 1999 amounted to EUR 138 million (1998: EUR 115 million) reflecting ASML's continuing drive to further strengthen its technological leadership in current and next generation lithography. Further expansion of ASML's infrastructure to support the current upturn of the IC industry led to an increase of EUR 46 million in selling, general and administrative expenses to EUR 140 million. Increased costs for the expansion of ASML's worldwide information technology organization accounted for almost half of the total increase. The remainder of the cost increase was evenly divided between selling expenses, caused by higher net sales levels, facility costs, reflecting the first full year cost of ASML's building expansion, and customer support costs. The latter reflect the increased requests from customers for a broader service scope, including process support and around-the-clock a·round-the-clock adj. Variant of round-the-clock. Adj. 1. around-the-clock - at all times; "around-the-clock nursing care" day-and-night, round-the-clock, nonstop service. Together with the service requirements for new product introductions, ASML expects that this customer demand will continue in 2000, increasing hiring, training and other customer support costs. The number of employees increased from 2,364 at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1998 to 2,983 at year-end 1999. Commenting on the results, Doug DOUG Dumb Old Utility Guy Dunn Dunn may refer to: Places
To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale to volume. Customer interest is high for the whole product line, which underlines the strong fundamentals of the new period of growth. The strong market demand is reflected in the strong order intake in the second half of 1999. On top of market growth, we expect to continue to gain new customers and therefore also market share. Preliminary data from Dataquest (Dataquest Inc., San Jose, CA, www.dataquest.com) A major market research and analysis firm in the information field. Dataquest offers market intelligence on more than 25 topics and provides conferences, annual subscriptions and custom research. indicates that ASML's market share (measured in USD USD In currencies, this is the abbreviation for the U.S. Dollar. 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. ) increased from 29 percent in 1998 to approximately 37 percent in 1999.&uot; &uot;To respond to this growth,&uot; Doug Dunn continued, &uot;ASML has to continue to ramp up production, as we successfully did from the first to the second half of the year. It is likely that the growth momentum will continue during the year 2000. As we continue to add incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales, we expect that because of our flexible business model, net profit growth will exceed net sales growth.&uot; ASML also reported today that it will put on the agenda of the General Meeting of Shareholders on March 23, 2000 a proposal for a three-for-one stock split of its common stock and its priority shares to increase the availability of shares and potentially broaden the base of shareholders. About ASML: ASM Lithography, founded in 1984, is a world leader in advanced photolithography A lithographic technique used to transfer the design of circuit paths onto printed circuit boards as well as the circuit paths and electronic elements of a chip onto a wafer's surface. A photomask is created with the design for each layer of the board or wafer (chip). systems that are essential to the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. 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. . ASML is publicly traded on both the Amsterdam Exchanges Amsterdam Exchange (AEX) Exchange that comprises the AEX-Effectenbeurs, the AEX-Optiebeurs (formerly the European Options Exchange or EOE) and the AEX-Agrarische Termijnmarkt. and on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (R) under the symbol &uot;ASML&uot;. Please visit the company's website at http://www.asml.com or email us at investor.relations@asml.com for more information on ASML. &uot;Safe Harbor&uot; Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Except for historical information, the matters discussed in this news release that may be considered 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. may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, pricing competition, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and manufacturing efficiencies, and other risks detailed from time to time in reports filed by the Company with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.
Summary Consolidated
Statements of Operations
For the year ended
December 31, 1997 1998 1999 1999
(Amounts in thousands
except per share data) EUR EUR EUR USD(1)
----------------------------------------------------------------------
Net sales 817,952 779,196 1,197,490 1,204,961
Costs of sales 474,260 481,588 798,040 803,019
Gross profit on sales 343,692 297,608 399,450 401,942
Research and development
costs 93,136 144,651 173,967 175,052
Research and development
credits (13,613) (29,965) (36,128) (36,353)
Selling, general and
administrative expenses 57,611 94,210 140,181 141,056
Total expenses 137,134 208,896 278,021 279,755
Operating income 206,558 88,712 121,429 122,187
Gain on sale of marketable
securities (14,130) 0 0 0
Interest (income) expense,
net (714) (1,218) 3,150 3,170
Income before income taxes 221,403 89,930 118,279 119,017
Provision for income taxes 72,109 27,930 37,529 37,763
Net income 149,294 62,000 80,750 81,254
Basic net income per
ordinary share 1.08 0.45 0.58 0.58
Diluted net income per
ordinary share 1.08 0.45 0.58 0.58
Number of ordinary shares
used in computing per
share amounts (in thousands):
Basic 138,000 138,167 138,733
Diluted 138,798 139,032 140,113
(1) EUR amounts have been translated, solely for the convenience of
the reader, at the rate of USD 1.00 to EUR 0.9938
Ratios and Other Data
1997 1998 1999
----------------------------------------------------------------------
Gross profit on sales as a % of net
sales 42.00% 38.20% 33.40%
Operating income as a % of net sales 25.30% 11.40% 10.10%
Net income as a % of net sales 18.30% 8.00% 6.70%
Shareholders' equity as a % of total
assets 65.90% 53.30% 36.00%
Sales of systems (units) 211 162 217
of which sales of new systems 200 155 195
of which sales of wafersteppers 204 132 65
Number of employees at year end 2,019 2,364 2,983
&uot;Safe Harbor&uot; Statement under the U.S. Private Securities
Litigation Reform Act of 1995: the matters discussed in this document
include forward-looking statements that are subject to risks and
uncertainties including, but not limited to, economic conditions,
product demand and industry capacity, competitive products and
pricing, manufacturing efficiencies, new product development, ability
to enforce patents, availability of raw materials and critical
manufacturing equipment, trade environment, and other risks indicated
in filings with the U.S. Securities and Exchange Commission.
Summary Consolidated Balance Sheets
As of December 31, 1998 1999 1999
(Amounts in thousands) EUR EUR USD(1)
----------------------------------------------------------------------
ASSETS
Cash and cash equivalents 150,987 603,064 606,826
Accounts receivable, net 209,448 455,158 457,998
Inventories, net 389,096 375,859 378,204
Other assets 51,701 39,592 39,839
Intangible fixed assets 0 19,969 20,094
Property, plant and equipment 136,590 202,157 203,418
----------------------------------------------------------------------
Total assets 937,822 1,695,799 1,706,379
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 165,341 295,514 297,358
Convertible subordinated loans 272,268 789,033 793,956
Shareholders' equity 500,213 611,252 615,065
----------------------------------------------------------------------
Total liabilities and Shareholders'
equity 937,822 1,695,799 1,706,379
Summary Consolidated
Statements of Cash Flows
For the year ended
December 31, 1997 1998 1999 1999
(Amounts in thousands) EUR EUR EUR USD(1)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income 149,294 62,000 80,750 81,254
Depreciation and
amortization 16,066 34,014 42,516 42,781
Realized gain on sale of
marketable securities (14,130) 0 0 0
Change in assets and
liabilities (174,421) (145,771) (89,506) (90,064)
Other adjustments 7,118 (3,895) 4,322 4,349
Net cash provided by
(used in) operating
activities (16,073) (53,652) 38,082 38,320
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from sale of
marketable securities 15,964 0 6,807 6,849
Net capital expenditures (41,438) (95,491) (126,849) (127,640)
Disbursements for loans 0 (6,807) 0 0
Other investing activities 12,531 0 0 0
Net cash used in investing
activities (12,943) (102,298) (120,042) -120,791
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net proceeds from issuance
of convertible
subordinated loans 0 265,461 503,748 506,891
Proceeds from issuance of
shares and stock options 0 1,833 31,609 31,806
Other financing activities 3,768 5,556 0 0
Net cash provided by
financing activities 3,768 272,850 535,357 538,697
Effect of changes in
exchange rates on cash 511 (865) (1,320) (1,328)
Net increase (decrease) in
cash and cash equivalents (24,737) 116,035 452,077 454,898
Effective beginning of fiscal year 1999, ASML changed ist
reporting currency from Dutch guilders to EUR. Prior year balances
have been restated on the fixed exchange rate as of January 1st, 1999
(EUR 1.00 to NLG 2.20371). The comparative balances reported in EUR
depict the same trends as would have been presented if ASML had
continued to present balances in Dutch guilders. Balances for periods
prior to January 1st, 1999 are not comparable to the balances of other
companies that report in EUR having restated amounts from a different
currency than Dutch guilders.
All figures are based on US GAAP.
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