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At this time, I’d like to draw your attention to the Safe-Harbor statement contained in today’s press release and in our first quarter results presentation, both of which you can find on our website at asml.com. This Safe Harbor statement will apply to this call and to 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, thank you for attending the first quarter 2012 results conference call. Before we begin the Q&A session, as usual Peter and I would like to provide an overview and some commentary in the first quarter and provide a view forward. As usual, Peter will start with the review of Q1 financial performance, his comments on the short-term outlook and I will complete this introduction with some further comments on our current market view update for the long-term. So Peter if you will? Peter Wennink Thank you, Eric and welcome to everyone. Summarizing our first quarter, sales came in at €1.25 billion, essentially the same as the previous quarter. This quarter sales were again significantly skewed towards the Foundry IDM sectors with 75%, including non-critical KrF capacity additions. 9% of the first quarter sales went to the DRAM sector representing only six system shipments. The average selling price of all systems shipped in the first quarter was €20.2 million, and this reflects the high KrF systems shipments versus the previous quarter. Service and field option sales came in at €202 million, again driven by the adoption of performance enhancing field options. We also recognized sales of one EUV system for a total amount of €44 million, which is one quarter earlier than planned. It’s due to a faster than anticipated installation and customer acceptance process. This had an impact on our gross margin by the way the EUV shipment for the quarter of about 1.5 percentage points.
Updating on our previously announced share buyback program, as of April 1, 2012, out of the total program, ASML had repurchased 29.8 million shares, of which 4.1 million shares in the first quarter for a total amount of €839 million, of which €139 million in Q1 giving an average buyback price of €28. The repurchased shares have been or will be canceled.At the end of the first quarter, we had close to €3 billion in cash and cash equivalents. The first quarter net bookings came in at 36 systems valued at €865 million. The booked average selling price shot up from €19.2 million in Q4 to €24 million in the first quarter. That’s due to a product mix shift towards the most advanced tools. Our first quarter bookings profiles of foundry increasing slightly to 74% of the total, followed by IDMs at 13%, NAND at 8% and DRAM at only 5%. Our order backlog at the end of the first quarter was €1.6 billion, totaling 56 systems with an impressive average selling price of €28.5 million. The backlog profile at quarter-end changed again as combined memory continued on a downward trend to only 23% of the total backlog versus 27% at the end of last year. As to the outlook, we can confirm our earlier guidance of €2.4 billion net sales for the first half 2012 and given a continued solid six months of visibility, we can now say that the third quarter sales are expected to be stable at Q1 and Q2 levels. Based on this visibility and in combination with our first quarter backlog, we expect orders in the next quarter to adequately cover our sales expectation. We believe that specific quarterly order guidance has become less relevant over time due to the fact that fewer, but larger customers are placing bigger and lumpier orders, making quarterly order patterns more and more imprecise. On top of that, customers have significantly increased their visibility towards us of their real shipment needs, leaving the order placements as a kind of secondary and almost administrative consideration in the business process. Read the rest of this transcript for free on seekingalpha.com