Wed, Apr. 15, 6:33 AM
Tue, Apr. 14, 5:30 PM
Fri, Jan. 23, 2:25 PM
- Applied Materials (AMAT -1.7%) and ASML (ASML -1.5%) are off moderately after chip equipment peer KLA-Tencor (KLAC -7.1%) offered soft guidance (for the third quarter in a row) to go with an FQ2 beat. The Nasdaq is up 0.3%
- On the CC (transcript), CEO Rick Wallace stated KLA has seen orders from both foundry and logic clients for sub-20nm manufacturing equipment "pushed to later in the calendar year." KLA thinks the delays "reflect yield and process stability issues associated with bringing these advanced device architectures to market."
- In July and October, KLA primarily referenced foundry clients when explaining its light guidance. The logic client reference could be about Intel (by the far the biggest of them), which provided a conservative 2015 capex budget last week.
- Wallace also mentioned some orders related to "trailing-edge" manufacturing processes have been "a bit elusive," and that (notably) KLA thinks this is due to "some competitive dynamics in terms of second source strategies and so on."
- Analysts pressed KLA regarding its foundry-related issues, given TSMC is spending heavily and ASML reported strong Taiwanese foundry bookings (presumably from TSMC) earlier this week. On the other hand, memory was a strong point for both KLA and ASML in calendar Q4, respectively accounting for 44% and 27% of the companies' bookings.
Wed, Jan. 21, 6:25 AM
Tue, Jan. 20, 5:30 PM
Oct. 15, 2014, 1:49 PM
- Though ASML (ASML -3.5%) slightly missed Q3 EPS estimates and fell short of a Q3 revenue consensus of $1.81B by $120M, the company also forecast Q4 sales of €1.3B ($1.68B), above a $1.52B consensus.
- The lithography equipment giant also expects "a solid start to 2015," aided by strong demand from memory manufacturers (Samsung?). Logic IC-related orders for advanced processes (14/16/20nm) are expected to keep growing, but "the timing and volume depends on the business allocations by [ASML's] customers' customers."
- Q3 bookings totaled €1.4B, above revenue of €1.32B. But bookings for next-gen EUV lithography systems (previous) only totaled €47M. Moreover, ASML suggests it will only ship 9 EUV systems next year, less than the 12-15 previously forecast.
- Nonetheless, ASML says its EUV program made "substantial progress" on a technical level in Q3. The company is "working with a customer towards a mid-node insertion of EUV at the 10 nanometer logic node expected in late 2016" (possibly TSMC), and says other clients are "preparing for initial learning in a manufacturing environment."
- Like many other stocks, shares are having a rough day.
- Q3 results, PR
Oct. 15, 2014, 5:52 AM
Oct. 14, 2014, 5:30 PM
Jul. 25, 2014, 4:58 PM
- KLA-Tencor (KLAC -1.9%) guided on its FQ4 CC (transcript) for FQ1 revenue of $590M-$650M (-6% Y/Y at the midpoint) and EPS of $0.34-$0.54, well below a consensus of $740M and $0.88. Bookings are expected to drop to $600M-$800M from an FQ4 level of $898M (topped guidance of $625M-$825M).
- Several chip equipment peers underperformed following the numbers on a weak day for stocks. AMAT -2.4%. ASML -2%. RTEC -3.5%. UCTT -3.2%. MTSN -2.3%. The group has had a good run this year on optimism about industry consolidation and a strong up-cycle.
- Discussing its guidance, KLA observed delivery for major FQ4 orders for 14nm equipment from a foundry client (likely Samsung or Globalfoundries) isn't expected to start until FQ2. The company added it's generally cautious about 2014 foundry revenue.
- But KLA expects revenue growth to resume in FQ2, and is optimistic about 2015 demand, as foundry clients (responsible for 68% of FQ4 orders) invest heavily to ramp 16nm and 14nm production. Samsung and Globalfoundries have big 14nm plans for 2015; TSMC is attempting to counter with its 16nm FinFET+ process.
- FQ4 gross margin was 56%, missing KLA's guidance midpoint by 150 bps and contributing to an EPS miss. KLA blames product mix and higher-than-expected services costs. GM is expected to fall to 54%-55% in FQ1 due to lower revenue.
Jul. 16, 2014, 3:23 AM| 2 Comments
Jul. 15, 2014, 5:30 PM
Apr. 24, 2014, 1:42 PM
- Lam Research (LRCX +11%) beat FQ3 estimates and guided on its CC (transcript) for FQ4 revenue of $1.19B-$1.29B and EPS of $1.14-$1.28, above a consensus of $1.16B and $1.09. Ultratech (UTEK +3.6%) missed Q1 estimates, but has reiterated guidance for 25%-30% 2014 revenue growth (above a 23.5% consensus).
- Just as importantly for the industry, Lam has forecast the global wafer fab equipment market will be worth $32B in 2014 - $1B more than what Gartner previously forecast.
- Lam also mentioned it has "seen some strengthening" in DRAM equipment orders - clients have been conservative with their capex following industry consolidation - and a "sustained commitment" among logic/foundry clients (Intel and TSMC?) to advanced processes (20nm, 3D transistors, etc.). However, there have been "some slight delays" in 3D NAND flash investments.
- Chip equipment peers are also up: AMAT +1.4%. KLAC +1.5%. ASML +2.1%. ACLS +1.6%. CAMT +5.3%. RTEC +1.5%. PLAB +3.4%. One notable exception is Teradyne (TER -4.1%), which provided light Q2 EPS guidance - $0.36-$0.43 vs. a consensus of $0.49 - to go with a Q1 beat. Revenue guidance is in-line.
- The group sold off last week after ASML offered soft guidance and a cautious 2H outlook. KLA reports after the bell.
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, 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, 12:05 AM
Apr. 15, 2014, 5:30 PM
ASML vs. ETF Alternatives
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.
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