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ASML Holding N.V. (ASML)

  • Apr. 16, 2014, 11:40 AM
    • ASML (ASML -5.5%) has lowered its 1H14 sales outlook. Moreover, the lithography equipment kingpin says logic IC customers are "encountering timing uncertainties in next-generation device designs" for 2H, and that NAND flash memory makers are "continuing their evaluation of [3D] NAND and future-node planar technologies, resulting in uncertainties for system demand."
    • ASML's remarks about logic customers might partly be a reference to Intel, which has reportedly delayed the launch of its 14nm Broadwell CPUs. NAND vendors have been keeping a lid on capex for some time; recent price pressure might encourage them to do so.
    • Chip equipment peers Applied Materials (AMAT -2%), KLA-Tencor (KLAC -2.5%), Lam Research (LRCX -2.5%), Axcelis (ACLS -2.6%), Camtek (CAMT -5.8%), and Ultratech (UTEK -0.9%) are off in sympathy. Compared with many other tech companies, the group has held up well during the March/April selloff.
    • One silver lining: ASML says multiple customers are qualifying 10nm EUV lithography equipment, and that it expects to recognize revenue on 8 EUV systems in 2014. Investments in both EUV and 450mm wafers have been delayed.
    • Gartner has forecast chip wafer fab equipment spend will grow 14.9% in 2014 to $31B, after falling 9.1% in 2013.
    | Apr. 16, 2014, 11:40 AM | Comment!
  • Apr. 16, 2014, 9:09 AM
    | Apr. 16, 2014, 9:09 AM | 1 Comment
  • Apr. 16, 2014, 4:25 AM
    • ASML's (ASML) Q1 net profit almost halved to €249.1M ($344M) from €481M in Q4 but exceeded expectations of €230M. Profit in Q1 a year earlier was €96M.
    • Sales slumped 24% on quarter to €1.4B, as expected. On year, revenue rose 57% from  €892M.
    • ASML downgraded its H1 sales forecast due to slowing revenues in Q2, saying it expects turnover of €3B including extreme ultraviolet (EUV) systems for producing smaller chips. The company's prior guidance was €3B excluding EUV products.
    • "That ASML is now including EUV in its sales guidance means a difference on a yearly basis of around €500-600M, which is about 10% of sales," says ING analyst Robin van den Broek.
    • Shares are -3.6% in Amsterdam. (PR)
    | Apr. 16, 2014, 4:25 AM | Comment!
  • Apr. 16, 2014, 12:05 AM
  • Apr. 15, 2014, 5:30 PM
  • Mar. 13, 2014, 6:37 PM
    • Lithography equipment giant ASML has "paused" the development of hardware meant to work with next-gen 450mm wafers, which offer 125% more wafer space (and thus better economies of scale) than current-gen 300mm wafers. Likewise, Applied Materials (AMAT) CEO Gary Dickerson says the 450mm migration "has definitely been pushed out from a timing standpoint."
    • Due to ASML's move, Intel (INTC), which agreed in 2012 to pour $4.1B into the company to help finance investments in 450mm wafers and EUV lithography, has "adjusted" the pace of its payments to ASML.
    • Last year, Intel began constructing a $2B Oregon development fab meant to be its first 450mm facility. But it's reevaluating its timetable amid soft PC demand and concerns about its share of the bill. Spokesman Chuck Mulloy: "We still believe 450 is the right thing to do ... But we have been clear: we will not do it ourselves."
    • EUV, considered necessary to maintain Moore's Law long-term, has also seen delays. ASML CEO Peter Wennink recently predicted EUV will reach the stability levels required by chip manufacturers by the 2H16 or 2017.
    • Other chip equipment makers: KLAC, LRCX, RTEC, NVMI, UTEK, TOELF
    | Mar. 13, 2014, 6:37 PM | 6 Comments
  • Jan. 24, 2014, 2:08 PM
    • Chip equipment stocks aren't getting spared from a general market selloff after Samsung (SSNLF - the world's #2 chipmaker) guided for its 2014 chip capex to be flat Y/Y. AMAT -1.6%. LRCX -3.7%. ASML -0.7%. UTEK -2.2%. RTEC -3.2%. MTSN -5.1%.
    • Industry analyst Robert Marie observes this is the first time since 2009 that Samsung hasn't upped its chip capex budget. With Intel and TSMC (the industry's two other big clients) also guiding for capex to be flat (if not down) this year, Marie is cautious about 2014 growth, even though others have forecast sales will rebound sharply this year following a rough 2013.
    • KLA-Tencor (KLAC -2.2%) is joining the selloff even though the company posted an FQ2 EPS beat yesterday afternoon, and provided healthy FQ3 guidance - revenue of $790M-$850M and EPS of $1-$1.20 vs. a consensus of $814.5M and $1.11 - on its CC (transcript). KLA also forecast FQ3 bookings will be in a range of $700M-$800M (implies 10% Q/Q growth at the midpoint), and struck an upbeat tone about 2014 investments in 20nm and 3D NAND flash capacity.
    • KLA still expects 10%+ industry growth this year, but admits its outlook is "slightly weaker" than it was three months ago. The company also believes industry adoption of EUV lithography (important for ASML) has generally been pushed out to the 7nm process node from the 10nm node.
    | Jan. 24, 2014, 2:08 PM | Comment!
  • Jan. 22, 2014, 3:33 AM
    • ASML's (ASML) Q4 net profit jumped 62% to €481M vs forecasts of €422M.
    • Sales climbed to €1.85B from €1.02B a year earlier and topped consensus of €1.81B, boosted by the acquisition of light-source manufacturer Cymer.
    • Sold 53 new systems vs 25.
    • Expects Q1 sales of €1.71B, below analyst estimates of €1.4B, and a gross margin of around 42%; reiterates its H1 revenue forecast of €3B, excluding extreme ultraviolet light (EUV) sales.
    • Increases dividend by 15% to €0.61 a share.
    • ASML says it's on track with the development of its EUV technology for producing smaller chips. The company has already delivered its first EUV scanners and expects to ship another eight in 2014. (PR)
    | Jan. 22, 2014, 3:33 AM | Comment!
  • Jan. 22, 2014, 12:05 AM
  • Jan. 21, 2014, 5:30 PM
  • Jan. 9, 2014, 9:41 AM
    • Alcatel-Lucent (ALU -4.6%) has been cut to Hold by Deutsche, while rival Ericsson (ERIC -0.2%) has been upgraded to Buy. However, Morgan Stanley has started Alcatel at Overweight.
    • Nvidia (NVDA -2.1%) has been cut to Hold by Canaccord a few days after unveiling its Tegra K1 app processors.
    • Angie's List (ANGI +9.1%) has been upgraded to Strong Buy by Raymond James.
    • Autodesk (ADSK +2.1%) has been upgraded to Overweight by Evercore.
    • Chipmaker STMicroelectronics (STM -1.2%) has been cut to Sell by Deutsche, and CPU core licensing giant ARM (ARMH -5.5%) has been cut to Hold.
    • EXFO (EXFO -8.3%) has been cut to Hold by TD Securities, and to Underperform by CIBC, after missing FQ1 estimates and providing soft FQ2 guidance.
    • ASML (ASML +0.9%) has been started at Buy by ING.
    | Jan. 9, 2014, 9:41 AM | 6 Comments
  • Dec. 4, 2013, 4:49 PM
    • During a Credit Suisse conference talk, KLA-Tencor (KLAC -2.7%) CFO Bren Higgins stated his company's FQ2 (Dec. quarter) bookings could miss the midpoint of its guidance range. The potential shortfall is attributed to a $100M order push-out for reticle inspection tools used in the production of cutting-edge 10nm chips.
    • KLA had guided on its FQ1 CC (transcript) for FQ2 bookings of $800M-$950M ($875M midpoint), up from FQ1's $790M and well above revenue guidance of $670M-$730M.
    • Susquehanna's Mehdi Hosseini, who rates KLA a Negative, is "puzzled" by Higgins' explanation, given Intel (long at the bleeding edge of chip manufacturing) is the only company investing in 10nm R&D for now - the chip giant is just getting set to mass-produce 14nm chips - and that KLA's reticle inspection bookings have been in the ~$70M range in recent quarters.
    • The reticle inspection market has been a weak spot for KLA. However, during an upbeat September conference talk, Higgins said demand was improving.
    • Chip equipment sales have been expected to improve in 2014: Trade group SEMI just estimated sales will rise 23% in 2014, after dropping 13% in 2013.
    • Several chip equipment peers have followed KLA lower: AMAT -3%. ASML -2.5%. LRCX -2.9%. RTEC -1.5%. MTSN -2.5%.
    | Dec. 4, 2013, 4:49 PM | Comment!
  • Nov. 26, 2013, 9:36 AM
    • FireEye (FEYE +4.3%) has been upgraded to Overweight by Barclays.
    • ASML (ASML +0.6%) has been upgraded to Buy by SocGen.
    • Cadence (CDNS +1.7%) has been upgraded to Outperform by Pac Crest.
    • Cornerstone OnDemand (CSOD +3.7%) has been upgraded to Overweight by Stephens.
    • (WUBA +2.7%) has been started at Buy by Citi, and at Outperform by Pac Crest.
    • Qunar (QUNR +0.3%) has been started at Outperform by Pac Crest, and at Hold by Sifel.
    • Extreme Networks (EXTR +5.1%) has been started at Buy by Needham.
    | Nov. 26, 2013, 9:36 AM | Comment!
  • Oct. 17, 2013, 9:56 AM
    • IBM (IBM -5.9%) has been cut to Neutral by UBS following its big Q3 revenue miss.
    • Xilinx (XLNX -5%) has been downgraded to neutral ratings by Piper and Raymond James, and upgraded to Outperform by Baird, and after beating FQ3 estimates and issuing soft FQ4 revenue guidance.
    • SanDisk (SNDK +5.8%) has been upgraded to Strong Buy by Needham after soundly beating Q3 estimates and issuing decent Q4 revenue guidance.
    • JinkoSolar (JKS +10.3%) has been has been upgraded to Outperform by Credit Suisse.
    • ASML (ASML -1.9%) has been cut to Neutral by HSBC a day after releasing its Q3 results.
    • CEVA (CEVA -1.3%) has been cut to Neutral by Wedbush.
    • Salesforce (CRM +0.3%) has been started at Buy by Argus.
    • SolarCity (SCTY +8.9%) has been started at Overweight by JPMorgan a week after providing strong Q3 metrics and even stronger 2014 guidance.
    • NQ Mobile (NQ +6%) and Vipshop (VIPS -0.7%) havebeen started at Outperform by Macquarie.
    | Oct. 17, 2013, 9:56 AM | Comment!
  • Oct. 16, 2013, 6:47 AM
    • ASML (ASML): FQ2 EPS of €0.44 misses by €0.08.
    • Revenue of €1.32B (+11% Y/Y). (PR)
    | Oct. 16, 2013, 6:47 AM | Comment!
  • Oct. 16, 2013, 12:05 AM
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Company Description
ASML Holding NV is a provider of lithography systems for the semiconductor industry, manufactures complex machines that are critical to the production of integrated circuits or chips. Its products include TWINSCAN, PAS 5500, Optics, among others.