VELDHOVEN, the Netherlands, 17 July 2013 - ASML Holding N.V. (ASML) today publishes 2013 second-quarter results.
ASML Q2 2013 results as guided, before impact of Cymer consolidation
ASML raises expectation for full-year 2013 sales of up to EUR 5 billion, before Cymer consolidation
Q2 2013 ASML (excluding Cymer) June 2013 Cymer* Preliminary Purchase Price Allocation Q2 2013 ASML (including Cymer) Q1 2013 ASML
Net sales 1,155 32 1,187 892
...of which service and field option sales 239 32 271 215
Other income (Co-Investment Program) 16 16 14
New systems sold (units) 34 34 25
Used systems sold (units) 4 4 4

Net bookings, excluding EUV 1,065 1,065 715
Net bookings, excluding EUV (units) 38 38 25
ASP of booked systems, excluding EUV 28.0 28.0 28.6
Systems backlog, excluding EUV 1,395 1,395 1,266
Systems backlog, excluding EUV (units) 42 42 42
Gross profit 483 18 (19) 482 341
Gross margin (%) 41.8 40.6 38.2

Net income 239 0 (18) 221 96
EPS (in euro) 0.52 0.24

End-quarter cash and cash equivalents and short-term investments 2,225 126 2,351 2,620
(Figures in millions of euros unless otherwise indicated)
* after elimination of intercompany sales to ASML
CEO Statement
"ASML's second-quarter operational performance was as planned, excluding the impact of Cymer, which we were pleased to include as an ASML company per 30 May after having received all the regulatory approvals for the acquisition. Our foundry and logic customers continue to prepare for the lithography-intensive 20-14 nanometer (nm) technology nodes, to be used for next-generation mobile electronic devices. During the second quarter we started to see additional demand from DRAM customers, driven by a healthy mobile DRAM memory market, which could potentially drive 2013 full-year sales to a level of up to EUR 5 billion, excluding Cymer sales. With regards to the development of the EUV platform, scanner imaging and overlay performance improved to levels where we are now engaging with customers on a strategy for an insertion targeted at the 10nm logic node. The first NXE:3300B systems are in the process of shipment and installation at customer sites, as we progress to improve the performance of the light source. In the second quarter, we established good performance, stability and reliability of the pre-pulse source concept at up to 55 Watts, and we therefore remain confident in our target of 70 wafers per hour productivity in 2014," said Peter Wennink, President and Chief Executive Officer of ASML.
The accounting impact of the preliminary purchase price allocation and the Cymer consolidation negatively impacted the Q2 gross margin by 1.2 percentage points and the net income margin by 2.1 percentage points.
Second Quarter 2013 Product Highlights
More than 200 TWINSCAN NXT:1950i/1960Bi systems in total have now been installed.
The next platform, TWINSCAN NXT:1970Ci, which offers overlay, focus and productivity improvements and which is scheduled for shipment before end-Q3 2013, has achieved full wafer overlay down to 1.9 nm and focus uniformity of less than 12 nm, thereby supporting the next-generation device production requirement.
Six NXE:3100 EUV systems operating at customer sites have exposed a cumulative total of more than 44,000 wafers.
We are in the process of installing NXE:3300B systems at customer sites, and plan to ship a total of 5 in 2013; we have 11 NXE:3300B system orders and commitments for a further 7 systems.
Overlay between the NXE:3300B and NXT systems, relevant for device production, has been demonstrated at less than 3.5 nm.
We are in process of preparing six 450 mm scanners, as part of the Customer Co-Investment Program.
Outlook
For the third quarter of 2013, ASML (including Cymer) expects net sales of about EUR 1.3 billion, a gross margin of about 40 percent, R&D costs of about EUR 245 million, other income of EUR 17 million -- which consists of contributions from participants of the Customer Co-Investment Program -- and SG&A costs of about EUR 91 million.
The guidance on gross margin and operating cost in the second half of 2013 will include a number of non-cash accounting adjustments, negatively impacting gross margin due to purchase price allocation adjustments related to the acquisition of Cymer. The main items relate to the valuation of Cymer inventory at fair value which is expected to have an impact of approximately EUR 60 million and the amortization of intangibles which is expected to have an impact of approximately EUR 20 million.
Also included in the second-half outlook are expected expenses related to share-based compensation of approximately EUR 20 million as a result of the acquisition of Cymer.
ASML expects full-year 2013 sales at a level of up to EUR 5 billion (excluding an expected contribution of about EUR 180 million from Cymer), which is above our previous guidance of a level similar to the EUR 4.73 billion of 2012; we expect three EUV systems to be recognized for revenue in 2013.
Update Share Buy Back Program
As part of ASML's policy to return excess cash to shareholders through dividend and regularly timed share buy backs, ASML has announced its intention to purchase up to EUR 1.0 billion of its own shares within the 2013-2014 timeframe. Up to 1 July 2013, ASML acquired 1.4 million shares for a total consideration of EUR 84.7 million. The repurchased shares will be cancelled. All transactions under the buy-back programs are published on ASML's website (www.asml.com/investors). The share buy back program may be suspended, modified or discontinued at any time.