Given that we’re in two different locations, you know, should there be any kind of technical difficulties that would separate one of the parties the separated party will rejoin the call as soon as we possibly can get them back on.So at this time, I would like to draw your attention to the Safe Harbor Statement contained in our press release today and in our second quarter results presentation, both of which you can find on our website at www.asml.com. This Safe Harbor Statement will apply to this call and all associated presentation materials. As a reminder, the length of the call will be 60 minutes. And now I’d like to turn the call over to Eric for a brief introduction. Eric Meurice Thank you, Craig. Good afternoon, good morning everybody. Thank you for attending our conference call. Now that I’m in the city currently, I realize how much courage it is for all of us or you to wake up at 6 o’clock to listen to us. But before we begin the Q&A session, Peter and I will provide as usual an overview and some commentary on our third quarter and our view forward. As usual, Peter will start with a review of our financials in Q3 with added comments on our short term outlook. I will complete the introduction with some specific comments early on current status and planning regarding immersion and EUV. So Peter, please. Peter Wennink Thank you, Eric, and welcome to everyone. As Eric mentioned, I would like to take a moment to share some observations on the events of the last quarter as well as some details on our third quarter results. Our third quarter sales came in over EUR1.4 billion and we’re evenly distributed across all sectors. Again as in the second quarter, they included roughly equivalent unit shipments of non-critical KrF and Island systems and critical level ArF immersion systems. I would like to highlight that we have now shipped more than 100 TWINSCAN NXT 1950 immersion systems bring the total number of ASML immersion systems sold to over 320.
The average selling price of all systems in the third quarter was EUR23.2 million, that’s an increase of EUR2 million per unit, first to second quarter with an average selling price of new systems of EUR27 million, which is EUR4.4 million increase over the second quarter.Service and field option sales for the quarter came in at EUR185 million, which is not substantially different than the second quarter. We also recognized sales for the first time of EUV systems for a total amount of EUR80 million. Our third quarter net income was EUR355 million, which is 24% of sales, creating an earnings per share of EUR0.84 for the quarter, excluding the margin EUV business net income would have been 26% of sales. Updating our previously announced share buyback program, as of September 25, 2011 ASML has repurchased roughly 21 million shares for EUR560 million giving an average buyback price of around EUR27. As stated before ASML intends to cancel the repurchased shares. And at the end of third quarter, we have about EUR2.8 billion in cash and cash equivalents. Third quarter net bookings, excluding EUV, came in at 23 systems valued at EUR514 million, which is essentially one system above our guided level. Booked ASPs declined from EUR24.7 million in the second quarter to EUR22.4 million in third quarter, which is due to a product mix shift towards some lower ASP non-critical tools especially KrF. Bookings strength was in the foundry sector, 41% of total booking forward by NAND Flash 30% with 18% from DRAM and the rest came from IDM. Our order backlog exiting Q3 was EUR2 billion, excluding EUV, which totaled 74 systems with an average selling price of nearly EUR27 million per unit. For the fourth quarter of 2011, we expect net sales to be above EUR1.1 billion, includes revenue recognition of one EUV system and NXE:3100 at EUR40 million. This system will be recognized again with zero profit margins. And resulting in a gross margin of the total expected sales for the quarter of about 41%, but excluding this EUV system the gross margin that would be about 42%. Read the rest of this transcript for free on seekingalpha.com