ASML Holding(ASML)2024-07-17 16:47Financial Data and Key Metrics Changes - Total net sales for Q2 2024 were EUR 6.2 billion, slightly above guidance [8] - Net system sales reached EUR 4.8 billion, comprising EUR 1.5 billion from EUV sales and EUR 3.3 billion from non-EUV sales [8] - Gross margin was 51.5%, exceeding guidance due to higher immersion system sales [9] - Net income for Q2 was EUR 1.6 billion, representing 25.3% of total net sales, resulting in an EPS of EUR 4.01 [9] - Free cash flow improved to EUR 386 million, although pressures remain due to customer support and higher inventory levels [10] Business Line Data and Key Metrics Changes - Logic accounted for 54% of net system sales, while Memory contributed 46% [8] - Installed base management sales were EUR 1.48 billion, slightly above guidance [9] - Q2 net system bookings totaled EUR 5.6 billion, with 73% from Logic and 27% from Memory [10] Market Data and Key Metrics Changes - The backlog at the end of Q2 2024 was approximately EUR 39 billion [10] - The semiconductor industry is showing signs of recovery, with improved lithography tool utilization among Logic and Memory customers [13] Company Strategy and Development Direction - The company expects EUV revenue growth in 2024, with plans to recognize revenue from one to two High NA systems [15] - The focus remains on preparing for future demand, particularly in 2025, driven by AI and new fabs being constructed globally [17] - The company aims to maintain a similar level of revenue from the Installed Base business compared to last year, anticipating customer upgrades in preparation for 2025 [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic uncertainties but remains confident in long-term growth opportunities, particularly in AI and semiconductor end markets [18] - The company expects a stronger second half of 2024 compared to the first half, with revenue anticipated to be similar to last year [14] - The anticipated annualized effective tax rate for 2024 is between 16% and 17% [11] Other Important Information - A final dividend of EUR 1.75 per ordinary share was paid in Q2 2024, with a total dividend for 2023 of EUR 6.10 per share [12] - The company purchased 106,000 shares for a total of EUR 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. No High NA bookings were included in the EUR 2.5 billion EUV bookings for the quarter [22] - The company confirmed expectations for 2025 revenues to be between EUR 30 billion and EUR 40 billion, with more specific guidance to be provided at the upcoming Capital Markets Day [23] Question: Implications of potential trade restrictions on China - Management refrained from commenting on rumors but emphasized the importance of the mature semiconductor market, which remains significant for revenue [25] Question: Expectations for 2-nanometer orders - The company indicated a healthy start for the N2 foundry business, with additional orders expected as customers ramp up production [29] Question: DRAM adoption of EUV layers - The company expects continued growth in EUV usage across all nodes, with gradual adoption by customers [35] Question: Capacity preparation for new fabs - Most of the impact from new fabs is expected to be felt after 2025, with preparations being made to meet future demand [56] Question: Revenue expectations for the second half of 2024 - The company anticipates a progressive buildup of revenue, with around EUR 1 billion in deferred revenue expected to be recognized in the second half [59]