ASML Q3 Profit Climbs; Sees Sequentially Lower Sales In Q4

(RTTNews) - Dutch semiconductor equipment maker ASML Holding NV (ASML) Wednesday reported higher profit in its third quarter with on increased sales as it sold more systems despite weak average selling price.

Looking ahead, the company projects sequentially lower net sales in its fourth quarter, saying its foundry customers are slightly more cautious with their investment plans than the company's earlier expectations. However, ASML said it remains on track for a record year in terms of sales.

For the third quarter, net income on US GAAP basis climbed to 322.4 million euros from last year's 244 million euros. Earnings per share were 0.75 euro, compared to 0.56 euro a year ago.

Net sales increased to 1.55 billion euros from 1.32 billion euros a year ago. Of this, net system sales were 975.3 million euros, and service and field option sales were 574 million euros, both rose from the prior year.

The company sold 44 systems with an average selling price of 22.2 million euros, compared to last year's sales of 30 systems with a price of 29.5 million euros. Looking ahead, for the fourth quarter, ASML expects net sales at approximately 1.4 billion euros, and a gross margin of around 45 percent.

ASML President and CEO Peter Wennink said, "Despite slightly lower deliveries to our logic customers in Q3 and Q4, this segment clearly remains committed to ramp the 10 nanometer node, which we expect to start in Q2 2016. Currently, our memory customers indicate that their system demand will continue at a healthy level throughout the first half of 2016, albeit somewhat below the Q3 level."

In Amsterdam, ASML shares settled at 77.89 euros on Tuesday, down 1.77 percent.