ASML Holding(ASML)2024-04-17 11:00Financial Performance - Q1 2024 total net sales of €5.3 billion, gross margin of 51.0%, and net income of €1.2 billion[3][4] - Q1 2024 gross margin was 50.6%, with net income as a percentage of net sales at 29.0%[29] - Net income for the quarter ended Apr 2, 2023, was €1,955.8 million, compared to €1,223.8 million in the previous quarter[39] - Total net sales for the quarter ended Mar 31, 2024, were €5,290.0 million, down from €7,237.0 million in the previous quarter[40] - Gross profit as a percentage of net sales was 51.0% for the quarter ended Mar 31, 2024, compared to 51.4% in the previous quarter[41] - Net income as a percentage of net sales decreased to 23.1% for the quarter ended Mar 31, 2024, from 28.3% in the previous quarter[41] - Net income for the quarter ended Mar 31, 2024 was €1,223.8 million, a decrease of 40.2% compared to €2,048.1 million in Dec 31, 2023[43] Sales and Bookings - Q1 2024 net bookings of €3.6 billion, including €656 million from EUV systems[3][4] - Q1 2024 net system bookings were €3,611 million[22] - Q4 2023 net system bookings were €9,186 million[23] - Q1 2024 lithography systems sold were 100 units, with net bookings of 3,752[29] - Sales of lithography systems dropped to 70 units in the quarter ended Mar 31, 2024, from 124 units in the previous quarter[41] - Value of booked systems was €3,611 million for the quarter ended Mar 31, 2024, down from €9,186 million in the previous quarter[41] Future Outlook - Q2 2024 total net sales expected between €5.7 billion and €6.2 billion, with a gross margin between 50% and 51%[3][4] - 2024 full-year outlook unchanged, with total net sales expected to be similar to 2023[3][4] - ASML's 2025 revenue opportunity modeled between €30 billion and €40 billion, with a gross margin between 54% and 56%[14] - Q2 2024 total net sales are expected to be between €5.7 billion and €6.2 billion, with a gross margin between 50% and 51%[26] - Expected Q2 2024 net sales and gross margin results[45] - Full year 2024 revenue and gross margin expectations[45] - Revenue and gross margin opportunities for 2025 and 2030[45] Costs and Expenses - Q1 2024 R&D costs of around €1,070 million and SG&A costs of around €295 million[4] - Q2 2024 R&D costs are projected to be around €1,070 million, and SG&A costs around €295 million[26] - 2024 estimated annualized effective tax rate is expected to be between 16% and 17%[26] Cash Flow and Shareholder Returns - ASML expects to return significant cash to shareholders through growing dividends and share buybacks, with €400 million worth of shares repurchased in Q1 2024[5][14] - Q1 2024 free cash flow was €194 million[31] - ASML intends to declare a total dividend for 2023 of €6.10 per ordinary share, with a final dividend proposal of €1.75 per share[24] - Share repurchase program and dividend growth plans[45] Balance Sheet and Assets - Q1 2024 shareholders' equity as a percentage of total assets was 27.8%[37] - Cash and cash equivalents increased to €7,004.7 million from €5,100.8 million[38] - Cash and cash equivalents decreased from €7,004.7 million in Dec 31, 2023 to €5,100.8 million in Mar 31, 2024, a decrease of 27.2%[42] - Inventories increased from €8,850.7 million in Dec 31, 2023 to €9,864.5 million in Mar 31, 2024, an increase of 11.5%[42] - Total assets decreased from €39,957.5 million in Dec 31, 2023 to €39,042.6 million in Mar 31, 2024, a decrease of 2.3%[42] - Short-term investments increased significantly from €5.4 million in Dec 31, 2023 to €305.3 million in Mar 31, 2024[42] Operational Metrics - ASML shipped 66 new lithography systems and 4 used lithography systems in Q1 2024[4] - ASML shipped its first NXE:3800E system in Q1 2024, featuring new multiplatform technologies for higher throughput and stability[18] - Number of payroll employees in FTEs increased to 40,940 in the quarter ended Mar 31, 2024, from 40,310 in the previous quarter[41] - Number of temporary employees in FTEs decreased to 1,773 in the quarter ended Mar 31, 2024, from 2,107 in the previous quarter[41] Cash Flow Activities - Net cash used in operating activities was €251.9 million for the quarter ended Mar 31, 2024, compared to net cash provided by operating activities of €3,197.0 million in Dec 31, 2023[43] - Purchase of property, plant and equipment was €417.3 million for the quarter ended Mar 31, 2024, a decrease of 28.5% compared to €584.0 million in Dec 31, 2023[43] - Net cash used in financing activities was €927.4 million for the quarter ended Mar 31, 2024, compared to €545.1 million in Dec 31, 2023[43] Liabilities - Total current liabilities decreased from €16,274.7 million in Dec 31, 2023 to €15,048.7 million in Mar 31, 2024, a decrease of 7.5%[42] Risks and Challenges - Expected impact of export control policies and regulations[45] - Risks related to semiconductor industry demand and capacity[45] - Impact of macroeconomic uncertainty on the semiconductor industry[45] - Risks associated with supply chain constraints and logistics[45] Strategic Plans - Plans to increase production capacity[45] - Expected performance and capabilities of new systems[45] Financial Reporting - The financial statements are prepared in accordance with US GAAP and should be read in conjunction with the 2023 Annual Report[44]