. Full-year sales impacted by timing of logic capacity ramp
VELDHOVEN, the Netherlands, 16 July 2014 - ASML Holding N.V. (ASML) today publishes 2014 second-quarter results.

ASML reports Q2 2014 sales as guided, gross margin above guidance
ASML guides Q3 2014 net sales at around EUR 1.4 billion and a gross margin of around 42 percent
ASML sees full-year 2014 net sales of around EUR 5.6 billion as logic customers re-evaluate the timing of the capacity ramps for their next nodes and 3 EUV systems will now ship in 2015 due to customer requests for the latest upgrades

(Figures in millions of euros unless otherwise indicated)
Q2 2014 Q1 2014
Net sales 1,644 1,397
...of which service and field option sales 401 367
Other income (Co-Investment Program) 20 20
New systems sold (units) 27 35
Used systems sold (units) 4 5
Average Selling Price (ASP) of net system sales 40.1 25.8
Net bookings, excluding EUV 1,048 1,070
Net bookings, excluding EUV (units) 29 30
ASP of booked systems, excluding EUV 36.1 35.7
Systems backlog, excluding EUV 1,763 1,939
Systems backlog, excluding EUV (units) 46 47
Gross profit 752 610
Gross margin (%) 45.7 43.6
Net income 399 249
EPS (basic; in euro) 0.91 0.57
End-quarter cash and cash equivalents and short-term investments 2,711 2,998

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

CEO Statement
"Second-quarter sales came in as expected, and gross margin was above the guided range due to better contribution from service and field options as well as product mix, concentrated on the sale of our latest TWINSCAN NXT:1970Ci immerson scanner and bringing the average selling price to EUR 40 million. In EUV, we have made significant progress in the last quarter, doubling productivity, and we are on track towards our target of 500 wafers per day around the end of the year. In our EUV source development program, we demonstrated improvements towards the customer requirement for volume production in 2016 of typically 1,500 wafers per day. We are working closely with customers to determine the volume production insertion points for the 10 and 7 nanometer nodes. Production of the NXE:3300B systems is ongoing; however, 3 of the previously targeted 8 deliveries will shift into 2015 as some customers prefer the option to upgrade their system from NXE:3300B to NXE:3350B specifications, addressing the next level of volume production requirements. With regards to our markets, deliveries of our DUV systems in the second half 2014 will be driven by memory customers, with the ramp of the 20 nm, 16 nm and 14 nm logic nodes set to continue. However, as we discussed last quarter, some customers continue to evaluate the timing of their deliveries to synchronise supply and demand, leading to an adjustment of the fourth quarter shipment forecast. As a result of these developments, we are guiding full-year 2014 net sales of around EUR 5.6 billion," said ASML President and Chief Executive Officer Peter Wennink.

Second-Quarter 2014 Product Highlights
TWINSCAN productivity continues to set new records: a TWINSCAN NXT:1950i system with a productivity enhancement package has processed more than 5,250 wafers in a single day, while another NXT:1960Bi system imaged more than 1.5 million wafers in a one year period.
The first TWINSCAN NXT:1960Bi system has been upgraded at a customer site, bringing it to full NXT:1970Ci system performance.
We started shipping our next-generation integrated metrology system, the YieldStar 250D to support 14 nm logic and 2x nm memory metrology requirements. This system, combined with Holistic Lithography feedback loops, has demonstrated intra-field CDU improvement of 30 percent, focus uniformity improvement of 25 percent and on product overlay improvement of 30 percent in logic and memory applications.
We recognized one NXE:3300B tool in revenue, and we have now shipped a total of 6 NXE:3300B EUV systems to logic and memory customers.

Outlook
For the third quarter of 2014, ASML expects net sales of around EUR 1.4 billion, a gross margin of around 42 percent, R&D costs of about EUR 260 million, other income of about EUR 20 million -- which consists of contributions from participants of the Customer Co-Investment Program -- and SG&A costs of about EUR 80 million.
For the 2014 full year we expect total net sales of around EUR 5.6 billion.


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 shares in 2013-2014. Up until 29 June 2014, ASML has acquired 9.5 million shares under this program for total consideration of EUR 611 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.