Press release - Veldhoven, the Netherlands, October 19, 2022
Today ASML Holding NV (ASML) has published its 2022 third-quarter results.
- Q3 net sales of €5.8 billion, gross margin of 51.8%, net income of €1.7 billion
- Record quarterly net bookings in Q3 of €8.9 billion2
- ASML expects Q4 2022 net sales between €6.1 billion and €6.6 billion and a gross margin around 49%
- Expected sales for the full year €21.1 billion at the midpoint of the Q4 guidance
- The value of fast shipments* in 2022 leading to delayed revenue recognition into 2023 is expected to be around €2.2 billion
(*) A fast shipment process skips some of the testing in our factory. Final testing and formal acceptance then takes place at the customer site. This leads to a deferral of revenue recognition for those shipments until formal customer acceptance, but does provide our customers with earlier access to wafer output capacity.
(Figures in millions of euros unless otherwise indicated) | Q2 2022 | Q3 2022 |
---|---|---|
Net sales | 5,431 | 5,778 |
...of which Installed Base Management sales 1 | 1,290 | 1,524 |
New lithography systems sold (units) | 83 | 80 |
Used lithography systems sold (units) | 8 | 6 |
Net bookings 2 | 8,461 | 8,920 |
Gross profit | 2,665 | 2,994 |
Gross margin (%) | 49.1 | 51.8 |
Net income | 1,411 | 1,701 |
EPS (basic; in euros) | 3.54 | 4.29 |
End-quarter cash and cash equivalents and short-term investments | 4,402 | 3,363 |
(1) Installed Base Management sales equals our net service and field option sales.
(2) Our systems net bookings include all system sales orders for which written authorizations have been accepted.
Numbers have been rounded for readers' convenience. A complete summary of US GAAP Consolidated Statements of Operations is published on www.asml.com.
CEO statement and outlook
"Our third-quarter net sales came in at €5.8 billion with a gross margin of 51.8% — above our guidance. There is uncertainty in the market due to a number of global macro-economic concerns including inflation, consumer confidence and the risk of a recession. While we are starting to see diverging demand dynamics per market segment, the overall demand for our systems continues to be strong. This resulted in record bookings in the third quarter of around €8.9 billion of which €3.8 billion is EUV, including High-NA systems.
We are continuing to assess and follow the new US export control regulations. Based on our initial assessment, the new restrictions do not amend the rules governing lithography equipment shipped by ASML out of the Netherlands and we expect the direct impact on ASML's overall 2023 shipment plan to be limited.
"ASML expects fourth-quarter net sales between €6.1 billion and €6.6 billion with a gross margin around 49%. ASML expects R&D costs of around €880 million and SG&A costs of around €265 million. For the full year, we expect revenue of €21.1 billion with a gross margin approaching 50%," said ASML President and Chief Executive Officer Peter Wennink.
Products and business highlights
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In our DUV business, we shipped the first TWINSCAN NXT:2100i to a customer. This newest immersion scanner enables over 20% improvement of on-product** overlay.
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Several customers have adopted Alignment Optimization 12 Color as process-of-record for their leading nodes. It improves wafer alignment by generating and measuring twelve wavelengths (or colors) instead of just four, ensuring a more robust alignment that reduces wafer-to-wafer overlay variation by over 20% when combined with scanner modeling improvements and alignment optimization software.
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In our EUV High-NA business, we received additional orders for the TWINSCAN EXE:5200; all current EUV customers have now submitted orders for High-NA.
(**) for a typical logic application
Update share buyback program and quarterly dividend
In the third quarter we purchased around €1.0 billion worth of shares under the current 2021-2023 share buyback program. Details of this program as well as transactions pursuant thereto are published on ASML's website (www.asml.com/investors). We completed our current share buyback program.
On November 11, 2022 we will hold our Investor Day where we will provide an update on our long-term business plan, including any new share buyback program.
An interim dividend of €1.37 per ordinary share will be made payable on November 14, 2022. Full details are published on ASML’s website.
Quarterly video interview and investor call
With this press release, ASML has published a video interview in which CFO Roger Dassen discusses the 2022 third-quarter results and outlook for 2022. This video and the transcript can be viewed on www.asml.com.
An investor call for both investors and the media will be hosted by CEO Peter Wennink and CFO Roger Dassen on October 19, 2022 at 15:00 Central European Time / 09:00 US Eastern Time. Details can be found on the Q3 2022 results page.
About ASML
US GAAP Financial Reporting
Regulated information
Forward Looking Statements