ASML Warns of Possible 20% Drop This Year

In the latest indication of the deep downturn in the semiconductor capital equipment industry, Netherlands-based ASML Holding (ASML) warned that its 2008 revenues could be down 20% from 2007.

The company posted Q2 sales of 844 million Euros, down from 919 million in Q1, and 930 million a year ago. Q2 net income was 192 million, including a tax credit of 70 million, compared to 145 million in Q1, and 160 million in the year ago quarter. Bookings in the quarter totaled 632 million Euros, boosting backlog to 1.1 billion Euros.

But what is shaking the stock this morning is the warning for the full year that 2008 sales could fall by as much as 20% versus 2007. ASML said “the current macro-economic weakness” may force customers to “delay capacity additions for non-leading edge processes.”

ASML this morning was down $2.61, or 11.1%, to $20.99; currently back to $23.07, down 2.25%.

Comments

[Kandinsky]

Fall 20%? yeah, but only when no capacity investments at all will take place before year´s end, which is an unlikely scenario.