ASML Holding(US:ASML)2024-07-17 14:00Financial Data and Key Metrics Changes - Total net sales for Q2 2024 were €6.2 billion, slightly above guidance [7] - Net system sales reached €4.8 billion, comprising €1.5 billion from EUV sales and €3.3 billion from non-EUV sales [7] - Gross margin for the quarter was 51.5%, exceeding guidance due to higher-than-expected Immersion Systems [8] - Net income for Q2 was €1.6 billion, representing 25.3% of total net sales, resulting in an EPS of €4.01 [8] - Free cash flow improved to €386 million, although pressure remains due to customer support and higher inventory levels [9] Business Line Data and Key Metrics Changes - Installed base management sales for Q2 were €1.48 billion, slightly above guidance [8] - Net system bookings totaled €5.6 billion, with €2.5 billion from EUV and €3.1 billion from non-EUV bookings [11] - Logic accounted for 73% of net system bookings, while Memory made up the remaining 27% [11] Market Data and Key Metrics Changes - The backlog at the end of Q2 2024 was approximately €39 billion [11] - The semiconductor industry is showing signs of recovery, with improved lithography tool utilization levels [13] - Demand in the memory segment is primarily driven by DRAM technology, with expected revenue growth compared to 2023 [14] Company Strategy and Development Direction - The company expects EUV revenue growth in 2024, with plans to recognize revenue from a similar number of EUV systems as in 2023 [15] - The company views 2024 as a transition year, focusing on capacity ramp and technology investments for future demand [17] - Long-term growth opportunities are supported by secular growth drivers in semiconductor end markets, including energy transition and AI [18][20] Management's Comments on Operating Environment and Future Outlook - Despite macro uncertainties, the semiconductor industry is trending towards healthier levels [13] - The company anticipates a stronger second half of 2024 compared to the first half, with significant capacity additions expected in 2025 [14][20] - Management remains confident in long-term growth opportunities, despite near-term uncertainties [20] Other Important Information - The company paid a final dividend of €1.75 per ordinary share in Q2 2024, totaling €6.10 per share for 2023 [12] - The company purchased 106,000 shares for a total of €96 million in Q2 2024 [12] Q&A Session Summary Question: Bookings composition and outlook for EUV orders - The majority of bookings (73%) were related to Logic, indicating strong demand from foundry customers, including 2 nanometer orders [24] - No high NA bookings were included in the current quarter [24] Question: Implications of potential trade restrictions on China - The company refrains from commenting on rumors but emphasizes the significant opportunity in the mature semiconductor market [30][31] Question: Expectations for 2 nanometer orders and AI's impact - The company expects a gradual buildup of orders for 2 nanometer technology, with AI driving much of the industry's recovery [36][39] Question: DRAM adoption of EUV layers and future layer count - The company anticipates an increase in EUV layers across nodes, with a consistent trend expected in the foreseeable future [45] Question: Capacity preparation and investments - The company is increasing capacity across the board, including high NA tools, to meet future demand [60] Question: Revenue expectations for the second half of the year - The company expects a progressive buildup of revenue, with around €1 billion in deferred revenue recognized in the second half [79] Question: Customer conversations and emerging shipment outlook - No significant changes in customer conversations were noted, with continued strong demand for immersion tools [88]