ASML delivered four euv machines in the previous quarter and achieved relatively low turnover

ASML delivered a total of four euv machines to its customers in the first quarter of 2020. In that quarter, the Veldhoven company achieved lower sales than expected, which, according to ASML, was partly caused by delivery problems.

Commenting on its quarterly results, ASML says it has delivered four EUV machines in the past three months, but only two of these deliveries contributed to its revenue. That’s because some customers have asked to speed up delivery of the systems by shipping them before the usual factory acceptance tests have been completed. Such tests check whether a manufactured machine meets the specifications and solve any problems by the manufacturer, so that the machine can be immediately put into use once on site. According to ASML, this accelerated delivery means a delay in revenue recognition, because final acceptance only takes place after successful installation by the customer. In the last quarter of 2019, the company sold 67 new lithography systems, up from 49 in the last quarter.

Turnover amounted to 2.44 billion euros, compared to 4.04 billion euros in the last quarter of 2019. ASML was expected to record a turnover of between 3.1 and 3.3 billion euros in the past quarter. Current sales were also lower than expected due to certain delays in deliveries to Wuhan in China and customers in other regions, caused by Covid-19-related restrictions. There were also problems in the supply chain. In the first quarter of 2019, turnover amounted to 2.23 billion euros, which was then the lowest turnover in two years. Profits in the past three months amounted to 391 million euros, compared to 1.1 billion euros in the last quarter of last year. In the first quarter of last year, the profit amounted to 355 million euros.

ASML CEO Peter Wennink said in a statement that there is considerable uncertainty about how the covid-19 crisis will affect production capacity and the supply chain. Due to the current risks and uncertainties, the company does not provide an outlook for the second quarter, which has now started, but Wennink emphasizes that demand remains stable. ASML has not yet had to deal with cancellations or postponed orders. In the first quarter, almost 3.1 billion euros in orders were received from the chip machine builder, while in the last quarter of 2019 that amount amounted to 2.4 billion euros. He also previously indicated that the Covid-19 outbreak has had only limited impact on ASML’s manufacturing capacity so far.