--ASML's third-quarter net profit rose and exceeded expectations
--The company will be a few systems shy of 35 shipments of its most advanced tools in 2020, its CFO said
--CEO Peter Wennink said ASML faces near-term uncertainty from multiple fronts
By Adria Calatayud
ASML Holding NV said Wednesday that net profit for the third quarter rose sharply, exceeding expectations, as it confirmed its outlook for 2020 and said it experienced no major disruptions due to the coronavirus pandemic.
Net profit for the quarter was 1.06 billion euros ($1.24 billion) compared with EUR626.8 million for the year-earlier period, the Dutch maker of semiconductor equipment said. Analysts had expected a net profit of EUR915.6 million, according to a consensus forecast provided by FactSet and based on estimates by 10 analysts.
Third-quarter net sales came in at EUR3.96 billion, up from EUR2.99 billion a year before, ASML said. Gross margin for the quarter was 47.5%.
The company had guided for revenue of between EUR3.6 billion and EUR3.8 billion with a gross margin between 47% and 48%.
ASML said it shipped 10 extreme ultraviolet lithography systems--the company's most advanced technology--in the quarter, and that net bookings stood at EUR2.87 billion.
Chief Financial Officer Roger Dassen said the company shipped 23 EUV units in the first nine months of the year, and that it will be a few systems shy of 35 shipments for 2020 as a whole.
For the fourth quarter, the company said it expects revenue to be between EUR3.6 billion and EUR3.8 billion and gross margin to be around 50%. For 2021, ASML expects low double-digit revenue growth, but acknowledged there are uncertainties due to the macroeconomic environment.
President and Chief Executive Peter Wennink said in a call with analysts that the company faces near-term uncertainty from several fronts due to customer-readiness issues and U.S.-China trade situation, in addition to the pandemic, but that it still sees long-term demand drivers.
Following recent U.S. restrictions, ASML would need to obtain an export license to ship to specific Chinese customers directly from the U.S., but will be able to ship deep ultraviolet--or DUV--lithography systems from the Netherlands without a license, Mr. Wennink said.
ASML also said it will declare an interim dividend for 2020 of EUR1.20 a share, and that it will resume share buybacks this week under a EUR6 billion program that was paused earlier this year due to coronavirus-related uncertainty.
Write to Adria Calatayud at email@example.com
(END) Dow Jones Newswires