ASML Holding NV (ASML) Deutsche Bank 2012 Technology Conference Call September 11, 2012 7:00 PM ET Executives Craig DeYoung – VP, IR Analysts Kai Korschelt – Deutsche Bank Presentation Kai Korschelt
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So here is our sales over the course of the last few years. If we do as I guided, which I tried to indicate the range of guidance, because the second half we guided EUR2.2 billion to EUR2.4 billion in revenue. So you see that if we achieve that, which I believe we will, it will be our second best year on record. So it’s still quite exciting for us.System sales broke down this way, just still a lot of systems to the foundry, about 61% of our shipments in the quarter supporting ramp of the 28-nanometer node, not so much to the NAND and the DRAM guys, nor the IDMs, but we’ll see that change. If we look at our backlog, you see growth in the IDM space. Foundries reduced a bit and we expected that second half deliveries to the foundries would be less than the first. There were a confluence of events in the first quarter that drove foundry quite aggressively. The challenges of meeting demand in a relatively low-yield environment and in a state of heightened competition between all the – at least the four foundry players created kind of a fervor in ordering and deliveries in the quarter. So we see that moderate a bit in the second half. Again, that’s what we anticipated would happen. We took a number of orders in the DRAM and the – sorry, in the NAND space. I wouldn’t be confused or misled by that. Just by way of example, we took 10 orders in the NAND space, half of which were emerging, the other half were KrF tools, which suggest an addition of capacity in an environment where you wouldn’t think capacity was being added. But in fact that was over three different customers. So if you take, that’s one-and-a-half tools or so each – of each tied to each customer. So it doesn’t represent much of a capacity addition. So again, I wouldn’t want that to be misunderstood. It’s probably more just about balancing out fabs and adding some capacity in the leading-edge nodes, et cetera, to meet the demand. I’ll talk about what that will do for the different memory sectors in terms of bit supply opportunity in a moment.
Regards the co-investment program, everybody is aware that we’ve raised almost EUR1.4 billion in R&D from three of our largest customers, Intel, TSMC and Samsung. Those will be used for two things in the main – well, three: current EUV, next-generation EUV and the development of 450 millimeter. We’re obliged now to develop in the 2015 timeframe 450-millimeter capable tools on three different wavelengths of light, so that at least one customer can start to debug 450 processors out in a couple of years from now.That will result in minority equity stakes by the three customers actually totaling 23% in aggregate. The current status is as of Friday, we got an authorization from our shareholders to issue additional shares. I won’t talk about the mechanics of this and waste our time, if you will, here. All of that’s available on our website, the timing, the mechanics and everything. So I’d refer you there. If there is any questions after that, then I’d be glad to answer them. We will return all the proceeds from the issuance. We’ll have to issue shares, sell them to the equity investors, our customer investors, and then we’ll take that money and return it to you through what might seem a light bit complicated mechanism we call it a synthetic share buyback where we return capital to you and then do a reverse split. Those numbers, again, are all defined in the timing of that on our website, if you’d like to look at that. Read the rest of this transcript for free on seekingalpha.com