ASML Reports Annual Results 2000.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. 18, 2001 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 ) (Nasdaq:ASML) today reported its annual results for the year 2000. Highlights In the year 2000 ASML produced growth records for sales, earnings and order intake, gained significant new customers and launched its first 300 mm product TWINSCAN(TM). 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 ASML realized net sales of 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. 2,184 million for the year ended December December: see month. 31, 2000, compared to net sales of EUR 1,197 million in 1999. Unit shipments of ASML's systems were 368 in 2000, of which 264 were Step & Scan systems (or `scanners') and 104 were Step & Repeat systems (or `wafersteppers'). Of the 368 units, 38 were used and refurbished. This compares to 217 units shipped in the same period last year, consisting of 152 scanners and 65 wafersteppers, of which 22 were used and refurbished. In addition to the increased number of unit shipments in 2000 versus 1999, net sales were strengthened due to an increase in the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. (by approximately 7%) for ASML's new systems. In the second half of 2000, ASML shipped its first TWINSCAN(TM) 300 mm systems. Net Income and Gross Margin Net income for the year ended December 31, 2000 amounted to EUR 347 million or EUR 0.83 per share (fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. income per share EUR 0.80), compared to EUR 81 million or EUR 0.19 basic and fully diluted income per share in 1999. As expected, net income for 2000 reflects the strong demand ASML experienced during the year. In addition to the increased business volume, the increase in net profit was caused by significantly improved gross margins on product sales. Overall gross margin in 2000 was 41.1% compared to 33.4% in 1999. Adjusted for the gross margin on used system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. , which can fluctuate significantly, and the margin on service sales, the gross margin of new systems increased from 33.1% in 1999 to 42.9% in 2000. Cost control measures, as well as learning curve benefits at ASML's production site and in its supply chain, together with the improved utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be rates that accompanied ASML's higher sales volumes, led to lower cost of sales in 2000. By comparison, gross margin in 1999 had been negatively affected by significantly higher costs for production and the introduction of newly developed products. Sales and cost of sales are primarily denominated in euros, thus mitigating mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. the effect of exchange rate fluctuations on the gross margin. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Research and development expenses amounted to EUR 236 million (1999: EUR 174 million) reflecting the company's continuing development efforts focused on the introduction of its new 300 mm TWINSCAN(TM) family and next optical and post optical lithography solutions. Research and development credits decreased by EUR 17 million to EUR 19 million. This decrease is a direct result of a re-alignment of subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. priorities within the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. technology subsidy agencies. Selling, general and administrative expenses increased by EUR 48 million to EUR 188 million for the period to December 31, 2000. Customer support costs, primarily increased training and build up of support not directly related to service sales, accounted for approximately 20% of this increase. The remainder of the increase represents the infrastructure costs (IT, facilities, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. ) in support of higher business volumes. To cope with its growth ASML was able to attract almost 1400 people, increasing its number of employees from 2,983 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. 1999 to 4,377 at December 31, 2000. This increase occurred mainly in the areas of customer support, manufacturing and research and development. Order intake and 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. In the year 2000, orders for 464 systems were received, compared to orders for 325 systems in 1999. This order intake and shipments of systems in 2000 resulted in a backlog of 255 systems at December 31, 2000 (159 units at December 31, 1999). This backlog includes 23 TWINSCAN(TM) systems. The value of the order book amounted to EUR 1,751 million, compared to EUR 968 million at the end of 1999. At the end of June June: see month. 30, 2000 the backlog was 207 units with a value of EUR 1,248 million. Company's comments Commenting on the results Doug DOUG Dumb Old Utility Guy Dunn Dunn may refer to: Places
2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the merger remains subject to approval by SVG's stockholders, other U.S. regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals and other customary closing conditions. Subject to the afore-mentioned, the merger is expected to close in early 2001." Doug Dunn further commented: "In 2000 we saw customer demand accelerate beyond previous expectations, creating pressure on our production capacity and increasingly, on the capacity of our supply chain. We have seen customer demand soften over the last two months, a trend that will be closely monitored. However, the current situation is that customer demand still exceeds ASML's capacity for 2001, which is higher than the output for the year 2000. In the coming months the development of our customer's business may give a clearer indication on the direction of this trend and on the expectations for the full year 2001. Despite the current softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in the IC industry we see unchanged strong demand for leading edge products, such as our 300 mm TWINSCAN(TM) platform, 193 nm and advanced 248 nm DUV DUV Deep Ultraviolet DUV Data-Under-Voice DUV Design Under Verification tools. The semiconductor industry will continue to be a high-growth industry in the medium and long term. We are well positioned to play a leading role in serving the needs of this dynamic industry." About ASML: ASML, founded in 1984, is a world leader in advanced lithography systems that are essential in 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. . The company is publicly traded on both the Amsterdam Exchange 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 "ASML". Visit the company's web site at http://www.asml.com for more information. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement "Safe Harbor" 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, 1998 1999
(Amounts in thousands except per share data) EUR EUR
Net sales 779,196 1,197,490
Costs of sales 481,588 798,040
Gross profit on sales 297,608 399,450
Research and development costs 144,651 173,967
Research and development credits (29,965) (36,128)
Selling, general and administrative expenses 94,210 140,182
Total expenses 208,896 278,021
Operating income 88,712 121,429
Interest (income) expense, net (1,218) 3,150
Income before income taxes 89,930 118,279
Provision for income taxes 27,930 37,529
Net income 62,000 80,750
Basic net income per ordinary share(2) 0.15 0.19
Diluted net income per ordinary share(2) 0.15 0.19
Number of ordinary shares used in
computing per share amounts (in thousands):
Basic(2) 414,501 416,199
Diluted(2) 417,096 420,339
2000 2000
EUR USD(1)
Net sales 2,184,150 2,027,995
Costs of sales 1,286,584 1,194,600
Gross profit on sales 897,566 833,395
Research and development costs 235,726 218,873
Research and development credits (18,555) (17,228)
Selling, general and administrative expenses 187,696 174,276
Total expenses 404,867 375,921
Operating income 492,699 457,474
Interest (income) expense, net (2,141) (1,988)
Income before income taxes 494,840 459,462
Provision for income taxes 147,562 137,012
Net income 347,278 322,450
Basic net income per ordinary share(2) 0.83 0.77
Diluted net income per ordinary share(2) 0.80 0.75
Number of ordinary shares used in
computing per share amounts (in thousands):
Basic(2) 418,581
Diluted(2) 436,998
(1) EUR amounts have been translated, solely for the convenience of
the reader, at the rate of USD 1.00 to EUR 1.0770
(2) All net income per ordinary share amounts have been retroactively
adjusted to reflect the three-for-one stock split in April 2000.
Ratios and Other Data
1998 1999 2000
Gross profit on sales as a % of net sales 38.20% 33.40% 41.10%
Operating income as a % of net sales 11.40% 10.10% 22.60%
Net income as a % of net sales 8.00% 6.70% 15.90%
Shareholders' equity as a % of total assets 53.30% 36.00% 40.60%
Sales of systems (units) 162 217 368
of which sales of new systems 155 195 330
of which sales of wafersteppers 132 65 104
Number of employees at year end 2,364 2,983 4,377
'Safe Harbor' 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 he U.S. Securities and Exchange Commission.
Summary Consolidated Balance Sheets
As of December 31, 1999 2000 2000
(Amounts in thousands) EUR EUR USD(1)
ASSETS
Cash and cash equivalents 603,064 840,474(3) 780,384
Accounts receivable, net 455,158 680,747 632,077
Inventories, net 375,859 501,946 466,060
Other assets 39,592 96,823 89,900
Intangible fixed assets 19,969 17,870 16,592
Property, plant and equipment 202,157 273,047 253,526
Total assets 1,695,799 2,410,907 2,238,539
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 295,514 481,332 446,918
Convertible subordinated loans 789,033 828,730 769,480
Shareholders' equity 611,252 979,726 909,681
Minority interest 0 121,119 112,460
Total liabilities and
Shareholders' equity 1,695,799 2,410,907 2,238,539
Summary Consolidated Statements of Cash Flows
For the year ended December 31, 1998 1999
(Amounts in thousands) EUR EUR
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income 62,000 80,750
Depreciation and amortization 34,014 42,516
Change in assets and liabilities (145,771) (89,506)
Other adjustments (3,895) 4,322
Net cash provided by (used in) operating
activities (53,652) 38,082
CASH FLOWS FROM INVESTING ACTIVITIES:
Disbursements for loans (6,807) 0
Net capital expenditures (95,491) (127,918)
Other investing activities 0 7,858
Net cash used in investing activities (102,298) (120,060)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of convertible
subordinated loans 265,461 503,905
Proceeds from issuance of shares, stock options
and conversion 1,833 31,609
Other financing activities 5,556 0
Net cash provided by financing activities 272,850 535,514
Effect of changes in exchange rates on cash (865) (1,459)
Minority interest 0 0
Net increase (decrease) in cash
and cash equivalents 116,035 452,077
For the year ended December 31, 2000 2000
(Amounts in thousands) EUR USD(1)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income 347,278 322,450
Depreciation and amortization 66,792 62,017
Change in assets and liabilities (235,233) (218,415)
Other adjustments 8,339 7,743
Net cash provided by (used in) operating
activities 187,176 173,794
CASH FLOWS FROM INVESTING ACTIVITIES:
Disbursements for loans 0 0
Net capital expenditures (130,085) (120,785)
Other investing activities 0 0
Net cash used in investing activities (130,085) (120,785)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of convertible
subordinated loans 0 0
Proceeds from issuance of shares, stock options
and conversion 18,093 16,799
Other financing activities 0 0
Net cash provided by financing activities 18,093 16,799
Effect of changes in exchange rates on cash 41,107 38,168
Minority interest 121,119(3) 112,460
Net increase (decrease) in cash
and cash equivalents 237,410 220,436
Effective beginning of fiscal year 1999, ASML changed its
reporting currency from Dutch guilders to EUR. Prior year balances
have been restated based 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.
(3) Cash and cash equivalents contains an amount of EUR 121,119 of
restricted cash related to a structured financing subsidiary. This
amount is not available for operating and/or investing activities
of the company.
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