ASML Q3 Profit Rises; Sees Record Annual Sales; Stock Up

(RTTNews) - Shares of ASML Holding NV (ASML) are gaining around 4 percent in the early morning trading in Amsterdam after the Dutch semiconductor equipment maker reported Wednesday higher profit in its third quarter on higher margin and net system sales. System unit sales were lower than last year, but average price increased. For the fourth quarter, the company sees lower net sales, but higher margin sequentially.

For the full year, ASML expects record sales.

For the third quarter, net income increased to 395.9 million euros from last year's 322.4 million euros. Earnings per share were 0.93 euro from 0.75 euro a year ago.

Income from operations as a percentage of net sales improved to 27.3 percent from 24.0 percent last year. Gross profit margin was 46 percent, higher than 45.4 percent last year.

Total net sales increased to 1.815 billion euros from prior year's 1.549 billion euros. Net system sales grew to 1.238 billion euros from last year's 975.3 million euros. Net service and field option sales were 576.4 million euros, slightly higher than last year.

Sales of systems, meanwhile, declined to 40 units from 44 units a year ago. Average selling price of system sales grew to 31 million euros from 22.2 million euros last year.

Net bookings grew to 43 units from 35 units last year. Value of booked systems was 1.415 billion euros from 904 billion euros a year ago.

ASML President and Chief Executive Officer Peter Wennink said, "As anticipated, our third-quarter sales were driven by logic customers building out the 10 nanometer node, which represented more than 80 percent of net system sales.... For the remainder of the year, a mix of sales to both logic and memory customers keeps us on track to finish the year with record annual sales, for the third consecutive year."

Looking ahead, for the fourth-quarter of 2016, ASML expects net sales between 1.7 billion euros and 1.8 billion euros, and a gross margin between 47 and 48 percent.

In Amsterdam, ASML shares were trading at 96.35 euros, up 3.80 percent.