ASML Q4 Profit Down On Weak Sales; Lifts Dividend; Plans Share Buy Back

(RTTNews) - Dutch semiconductor equipment maker ASML Holding NV (ASML) Wednesday reported that its fourth-quarter net income, on IFRS basis, was 344.3 million euros, compared to 385 million euros last year.

Net income based on US GAAP was 292.4 million euros, down from 304.8 million euros a year ago.

Total net sales declined to 1.43 billion euros from 1.49 billion euros a year ago. Net system sales fell to 880.9 million euros from prior year's 1.09 billion euros, while net service and field option sales increased.

Looking ahead, for the first-quarter of 2016, ASML expects net sales at approximately 1.3 billion euros, and a gross margin of around 42%

The company expects second-quarter sales to increase significantly from the first-quarter level as it expects logic customers to take shipments of edge immersion tools in the second quarter in preparation of their 10 nanometer node ramp.

Further, ASML proposed a dividend per ordinary share of EUR 1.05 per ordinary share, which is 50 percent higher compared with last year.

ASML also announced a new share buyback program, to be executed within the 2016-2017 time frame. As part of this program, ASML intends to purchase shares up to 1.5 billion euros, which includes an amount of approximately 500 million euros remaining from the prior program, announced on January 21.