Veldhoven, the Netherlands, January 17, 2018
ASML Holding N.V. (ASML) today publishes its 2017 fourth-quarter and full-year results.
- Q4 net sales of EUR 2.56 billion, gross margin 45.2%
- 2017 net sales of EUR 9.05 billion, net income EUR 2.1 billion
- ASML expects Q1 2018 net sales around EUR 2.2 billion and a gross margin between 47% and 48%
- ASML announces 2018-2019 share buyback program for EUR 2.5 billion and proposes 17% dividend increase to EUR 1.40 per share
|(Figures in millions of euros unless otherwise indicated)||Q3 2017||Q4 2017||FY 2016||FY 2017|
|...of which Installed Base Management sales(1,2)||628||606||2,123||2,679|
|Other income (Co-Investment Program)||24||24||94||96|
|New lithography systems sold (units)||48||48||139||174|
|Used lithography systems sold (units)||7||9||18||24|
|Net bookings (3)||2,154||2,935||5,396||9,358|
|Systems backlog (3)||5,693||6,685||3,961||6,685|
|Gross margin (%)||42.9||45.2||44.8||45.0|
|EPS (basic; in euros)||1.30||1.50||3.46||4.93|
|End-quarter cash and cash equivalents and short-term investments||2,678||3,288||4,057||3,288|
2Installed Base Management sales equals our net service and field option sales.
3Net bookings and Systems backlog are calculated without giving effect to the impact of adopting the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842) which ASML will adopt as of January 1, 2018.
A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com.
"ASML generated record sales and net income in 2017, helped by a strong fourth quarter. Due to industry strength, some customers requested earlier shipments of their lithography systems, which we were able to accommodate. Earlier-than-expected revenue recognition of two Extreme Ultraviolet (EUV) systems contributed to the strong performance in the fourth quarter as well. With EUV sales crossing the 1.1 billion euro mark, 2017 was the year in which preparations for inserting EUV into high-volume chip manufacturing shifted into a higher gear. This is underlined by orders for 10 more EUV systems in the fourth quarter. Sales of our Holistic Lithography and Installed Base Management products also showed significant growth in 2017," ASML President and Chief Executive Officer Peter Wennink said.
"These results reflect our technology leadership and the success of our comprehensive product portfolio as well as the strong growth fundamentals in our industry, which enable the continued innovation in personal electronics, artificial intelligence, cloud computing and mobility. For 2018 we expect continued solid growth of sales and profitability."
2017 product and business highlights
- With a total of 161 new DUV systems shipped in 2017, a 21% increase from 2016, ASML's supply chain and factories were capable of significantly boosting output in reaction to increased customer demand, supporting fast ramps of advanced nodes in memory and logic. We also provided three customers with early-access versions of the TWINSCAN NXT:2000i, our most advanced immersion lithography system, for process development of next node devices. As a sign of the continuously increasing maturity of the NXT platform, the NXT:2000i system meets or exceeds all of its performance targets. For 3D NAND customers, we expanded our options portfolio to improve focus performance on high-topography wafers and handle strongly-warped wafers, both of which are typical for this application.
- Our Holistic Lithography product portfolio showed growth in all product categories: computational lithography software products, metrology and inspection systems and process window control software products. ASML also broadened its product offering with the creation of an e-beam-based pattern fidelity metrology system, ePfm5, and shipped the first HMI eXplore 6000 EUV reticle defect inspection system.
- ASML shipped 10 EUV systems to multiple customers in support of their plans to use the technology in high-volume manufacturing starting in 2018 and 2019, up from 4 shipments in 2016. ASML also demonstrated a number of technology milestones, achieving a throughput of 125 wafers per hour, demonstrating a full-size, defect-free EUV pellicle, and achieving EUV-to-DUV immersion overlay of 2 nanometers, which is in line with the requirement for the 5 nanometer logic node.
- Installed Base Management sales surpassed EUR 2.6 billion in 2017, an increase of more than 25% over the prior year.
- ASML continued to support China's expanding semiconductor industry. Our system sales to China grew by more than 20 percent in 2017. Alongside shipments to mainland fabs operated by non-Chinese customers, we are planning to ship to five domestic Chinese customers in 2018.
For the first-quarter of 2018, ASML expects net sales around EUR 2.2 billion, a gross margin between 47% and 48%, R&D costs of about EUR 350 million, SG&A costs of about EUR 115 million. Our target effective annualized tax rate is around 14%.
ASML will submit a proposal to the 2018 Annual General Meeting of Shareholders to declare a dividend in respect of 2017 of EUR 1.40 per ordinary share (for a total amount of approximately EUR 600 million), compared with a dividend of EUR 1.20 per ordinary share paid in respect of 2016.
New share buyback program
As part of ASML's financial policy to return excess cash to shareholders through dividends and regularly timed share buybacks, ASML announces a new share buyback program, to be executed within the 2018–2019 time frame. As part of this program, ASML intends to purchase shares up to EUR 2.5 billion. ASML intends to cancel these shares after repurchase, with the exception of up to 2.4 million shares which will be used to cover employee share plans. This buyback program will start on January 18, 2018. The share buyback program will be executed within the limitations of the existing authority granted by the Annual General Meeting of shareholders (AGM) on April 26, 2017 and of the authority granted by future AGMs. The share buyback program may be suspended, modified or discontinued at any time. All transactions under this program will be published on ASML's website on a weekly basis.
The total amount repurchased under the 2016–2017 program, which was concluded in December 2017, was EUR 900 million, for which ASML purchased 8.2 million of its shares at an average price of EUR 109.33 per share.
Press conference and investor conference call
CEO Peter Wennink and CFO Wolfgang Nickl will host a press conference at 11:00 AM Central European Time, which will be webcast live on www.asml.com.
A conference call for investors and media will be hosted by CEO Peter Wennink and CFO Wolfgang Nickl at 15:00 Central European Time / 09:00 AM U.S. Eastern time. To register for the call and receive dial-in information, go to the Investors section of the website. Listen-only access is also available via www.asml.com.
2017 annual reports
ASML will publish its 2017 Integrated Report based on US GAAP and its 2017 Integrated Report based on IFRS on February 7, 2018. The reports will be published on our website at www.asml.com.
ASML is one of the world’s leading manufacturers of chip-making equipment. Our vision is a world in which semiconductor technology is everywhere and helps to tackle society’s toughest challenges. We contribute to this goal by creating products and services that let chipmakers define the patterns that integrated circuits are made of. We continuously raise the capabilities of our products, enabling our customers to increase the value and reduce the cost of chips. By helping to make chips cheaper and more powerful, we help to make semiconductor technology more attractive for a larger range of products and services, which in turn enables progress in fields such as healthcare, energy, mobility and entertainment. ASML is a multinational company with offices in more than 60 cities in 16 countries, headquartered in Veldhoven, the Netherlands. We employ more than 23,000 people on payroll and flexible contracts (expressed in full-time equivalents). ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML. More information about ASML, our products and technology, and career opportunities is available on www.asml.com.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
US GAAP financial reporting
ASML's quarterly financial reporting is prepared in accordance with US GAAP, the accounting principles generally accepted in the United States of America. The consolidated balance sheets of ASML Holding N.V. as of March 31, 2019, the related consolidated statements of operations and consolidated statements of cash flows for the three months ended March 31, 2019 as presented in this press release are unaudited and available on www.asml.com.
This press release contains forward looking statements, which you can generally identify by the use of words like "may," "will," "expect," "contemplate," and variations of these words or comparable words. The forward looking statements contained herein include statements relating to the Memorandum of Understanding, the expectation of executing a definitive settlement and cross-license agreement and dismissal of all legal proceedings in February 2019 and the terms of such agreements and related matters. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections and you should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, the risk that definitive agreements are not entered into within the expected time-frame indicated above or at all and risks relating to the terms of such agreements and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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