- Orders for three EUV systems show customer base expanding to six
VELDHOVEN, the Netherlands, October 19, 2016 - ASML Holding N.V. (ASML) today publishes its 2016 third-quarter results.

Q3 net sales of EUR 1.81 billion, gross margin 46.0 percent
ASML guides Q4 2016 net sales between EUR 1.7 and 1.8 billion and a gross margin between 47 and 48 percent
ASML continues to expect HMI acquisition to close in Q4

(Figures in millions of euros unless otherwise indicated)
Q2 2016 Q3 2016
Net sales 1,740 1,815
...of which service and field option sales 486 577
Other income (Co-Investment Program) 23 23
New systems sold (units) 39 38
Used systems sold (units) 7 2
Average Selling Price (ASP) of net system sales 27.3 31.0
Net bookings 1,566 1,415
Systems backlog 3,371 3,462
Gross profit 741 834
Gross margin (%) 42.6 46.0
Net income 354 396
EPS (basic; in euros) 0.83 0.93
End-quarter cash and cash equivalents and short-term investments 2,926 4,313

A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com

CEO Statement
"As anticipated, our third-quarter sales were driven by logic customers building out the 10 nanometer node, which represented more than 80 percent of net system sales, as well as continued growth in net service and field option sales. We also recognized partial revenue for one EUV system at shipment, which had not been included in our previous guidance. This lifted third-quarter net sales above guidance but also decreased our gross margin by 1.4 percentage points. For the remainder of the year, a mix of sales to both logic and memory customers keeps us on track to finish the year with record annual sales, for the third consecutive year," ASML President and Chief Executive Officer Peter Wennink said.

"Our EUV program continued to make progress on key industrialization metrics and we took orders for three NXE:3400 EUV systems in the quarter. This means that six customers are now actively engaged in the EUV introduction in both memory and logic."

Product and Business Highlights
· In Deep Ultraviolet (DUV) lithography, we have shipped a total of 38 TWINSCAN NXT:1980 systems since introduction last year, enabling the 10 nanometer logic node ramp. In addition to new system sales, customers also upgrade existing systems to NXT:1980 performance. These upgrades are ramping in volume, supporting revenue growth from our installed base. For customers producing 3D NAND memory chips, we introduced a large-range level sensor as an option to our line of XT "dry" systems in the third quarter. This option improves leveling and hence focus performance on 3D NAND high-topology layers.

· In Holistic Lithography, we concluded a high-volume, multi-year purchase agreement with a leading chip maker, who will use ASML's complete suite of Brion process window enhancement products for its high-volume production applications to achieve higher yield at the most advanced nodes. In addition, we successfully rolled out our latest litho control software to both memory and foundry customers in the third quarter. Most regulatory approvals for the acquisition of Hermes Microvision Inc. (HMI) have been received and we continue to expect it to close in the fourth quarter.

· In Extreme Ultraviolet (EUV) lithography, one of our customers demonstrated an average productivity of more than 1,500 wafers per day (wpd) over three days on a NXE:3350B. The best availability performance shown by an EUV system was above 90 percent over four weeks on a NXE:3300B. We shipped one NXE:3350B system in the third quarter. In Q4, we expect to ship one system; two additional systems will be delayed into early 2017, one due to customer fab readiness and one due to late material delivery.

Outlook
For the fourth-quarter of 2016, ASML expects net sales between EUR 1.7 and 1.8 billion, a gross margin between 47 and 48 percent, R&D costs of about EUR 275 million, other income of about EUR 23 million -- which consists of contributions from participants of the Customer Co-Investment Program, SG&A costs of about EUR 100 million (which includes one-off acquisition-related costs of around EUR 10 million) and an effective annualized tax rate of around 13 percent.

Update Share Buyback Program
As part of ASML's financial policy to return excess cash to shareholders through dividends and regularly timed share buyback programs, ASML in January 2016 announced its intention to purchase up to EUR 1.5 billion of shares to be executed within the 2016-2017 time frame. ASML intends to cancel the shares upon repurchase.

Through October 2, 2016, ASML has acquired 4.8 million shares under this program for a total consideration of EUR 400 million. The repurchased shares will be canceled.

The share buyback program is currently paused while we are in the midst of the HMI acquisition process. We continue to expect to complete the full 2016-2017 program, yet it may be further suspended, modified or discontinued at any time. Any transactions under this program will be published on ASML's website (www.asml.com/investors) on a weekly basis.

tijd 09.01
De AEX 453.79 +0,66 +0,15% ASML EUR 95,86 +3,04 vol. 99.000