ASML Holding N.V. Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Q3 2020 Overview

  • Total net sales were €4.0 billion, above guidance, driven by strong EUV system revenue.
  • Recognized revenue for 14 EUV systems (10 systems shipped in Q3 plus 4 shipped in Q2 and accepted in Q3). This is a significant increase from Q2 due to delayed acceptances.
  • EUV systems represented 66% of total system revenue, the first time exceeding DPV system revenue.
  • Net system sales were weighted toward Logic (79%), with Memory at 21%.
  • Installed base management (service and upgrades) revenue was €862 million, showing consistent strength and slightly up from previous quarters.
  • Gross margin was 47.5%, in line with guidance despite high EUV mix, which typically pressures margins.
  • Operating expenses remained disciplined: R&D €534 million and SG&A €132 million, slightly below expectations.
  • Net income was €1.061 billion (26.8% of sales), with EPS of €2.54.
  • Cash and short-term investments remained stable at €4.4 billion.
  • New system bookings were €2.9 billion, including €595 million in EUV, but with a net reduction of four EUV systems due to timing delays for certain customers’ node ramps.

Q4 2020 Outlook

  • Expected net sales between €3.6 billion and €3.8 billion.

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Operator: Thank you for standing by. Welcome to the ASML 2020 Third Quarter Financial Results Conference Call on October 14, 2020. Throughout today’s introduction, all participants will be in a listen-only mode. After ASML’s introduction, there will be an opportunity to ask questions. I would now like to -- wait for the moment. I would now like to open the question-and-answer queue. [Operator Instructions] I would now like to hand the conference call over to Mr. Skip Miller. Please go ahead, sir. Skip Miller: Yeah. Thank you, Operator. Welcome, everyone. This is Skip Miller, Vice President of Investor Relations at ASML. Joining me today on the call is ASML’s CEO, Peter Wennink; and our CFO, Roger Dassen. The subject of today’s call is ASML’s 2020 third quarter results. The length of this call will be 30 -- 60 minutes and questions will be taken in the order 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 rele

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