ASML Holding N.V. Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • ASML reported Q1 2023 net sales of €6.7 billion, exceeding guidance due to faster EUV and Deep UV system installations.
  • Gross margin reached 50.6%, above expectations, driven by strong system revenue mix.
  • Net income was €2 billion (29% margin), with EPS of €4.96.
  • ASML recognized revenue for 17 EUV systems (€2.9 billion) and shipped 9 EUV units.
  • Installed Base Management (IBM) revenue was €1.4 billion, below guidance due to lower upgrade activity.

Comparison vs. Prior Periods (Q4 2022)

  • System bookings dropped to €3.8 billion (down from €6.3 billion in Q4), reflecting weaker near-term demand but still aligned with long-term backlog strength.
  • IBM revenue declined from the higher levels seen in 2022 when utilization and upgrade cycles were strong.
  • Margin performance improved sequentially due to favorable product mix and faster system acceptance.

Market and Demand Commentary

  • Customers face weak demand in consumer electronics, inflation pressure, and elevated inventories.
  • Automotive, industrial, and mature-node markets remain robust.
  • Memory customers are aggressively cutting CapEx and output; logic customers show mixed utilization depending on end-market exposure.
  • Despite near-term caution, customers continue strategic technology investments and follow long-term roadmaps.

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Operator: Good day, and thank you for standing by. Welcome to the ASML 2023 First Quarter Financial Results Conference Call on April 19, 2023. At this time, all participants are in a listen-only mode. After the speakers' introduction, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference call over to Mr. Skip Miller. Please go ahead. Skip Miller: Thank you, operator. Welcome, everyone. This is Skip Miller, Vice President, Investor Relations at ASML. Joining me today on the call are ASML's CEO, Peter Wennink; and our CFO, Roger Dassen. The subject of today's call is ASML's 2023 first quarter results. The length of this call will be 60 minutes, and questions will be taken in the order that they are received. This call is also being broadcast live over the Internet at asml.com. A transcript of management's opening remarks and a replay of the call will be available on our website shortly following the conclusion of this call. Before we begin, I'd like to caution listeners that comments made by management during this conference call will include forward-looking statements within the meaning of the Federal Securities Laws. These forward-looking statements involve material risks and uncertainties. For a discussion of risk factors, I encourage you to review the Safe Harbor statement contained in today's press release and presentation found on our website at asml.com and

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