ASML Holding(ASML)2021-04-21 19:18Financial Data and Key Metrics Changes - Net sales for Q1 2021 were €4.4 billion, exceeding guidance due to higher installed base business from upgrades [9] - Net income for Q1 was €1.3 billion, representing 30.5% of net sales, resulting in an EPS of €3.21 [10] - Gross margin for Q1 was 53.9%, above guidance primarily due to additional software upgrade business [10] - Cash, cash equivalents, and short-term investments at the end of Q1 were €4.7 billion [11] Business Line Data and Key Metrics Changes - Net system sales were €3.1 billion, with 78% from Logic and 22% from Memory [10] - Installed Base Management sales for Q1 were €1.2 billion, above guidance due to increased upgrade business [10] - Q1 net system bookings were €4.7 billion, with €2.3 billion for EUV systems and 76% driven by Logic [11] Market Data and Key Metrics Changes - Logic revenue is now expected to grow around 30% year-on-year, up from the previous estimate of 10% [16] - Memory revenue is expected to increase around 50% year-on-year, up from the previous estimate of 20% [17] - Installed Base business is expected to grow around 10% this year [18] Company Strategy and Development Direction - The company plans to transition to the NXE:3600D system in the second half of the year, which will provide a 15% to 20% productivity increase compared to the NXE:3400C systems [20] - The company is increasing R&D investments, primarily in EUV, to support aggressive product roadmaps [12] - The company is ramping up capacity to support customer demand, with a focus on both DUV and EUV systems [21] Management's Comments on Operating Environment and Future Outlook - Management noted a significant increase in demand across all market segments due to a steeper than expected recovery in semiconductor demand [15] - The company expects continued strong demand for both Logic and Memory, driven by digital transformation and technological sovereignty trends [22][23] - Management expressed confidence in future growth, with expectations for sales growth towards 30% this year [24] Other Important Information - The company plans to declare a total dividend of €2.75 per ordinary share for 2020, a 15% increase compared to 2019 [14] - The company purchased 3.5 million shares for over €1.6 billion under the share buyback program [14] Q&A Session Questions and Answers Question: Follow-up on EUV revenue target for this year - Management indicated that while the EUV revenue target remains at 30%, supply chain constraints limit potential upside for 2021 [28] Question: Could key customers share development costs for High-NA? - Management believes it is unlikely as the current financial situation does not necessitate such arrangements [30] Question: Is the upside from domestic China included in the updated guidance? - Management confirmed that the previously anticipated €600 million upside from China is now included in the revised guidance [39] Question: How is EUV bookings trending for the current quarter? - The current backlog for EUV is €7.4 billion, indicating strong demand and healthy order intake expected for the next quarter [64]