ASML Q1 Revenue: €5.29B, Down 21%!

On April 17, 2024, ASML, a leading manufacturer of photolithography machines, released its financial report for the first quarter of 2024. During this period, ASML achieved a net sales revenue of €5.29 billion, marking a 21% year-on-year decline, falling within the projected revenue range. However, the gross margin stood at 51.0%, surpassing the previously estimated range of 48% to 49%, while net profit reached €1.224 billion, down by 38% compared to the same period last year. The company received new orders amounting to €3.6 billion, with €656 million of orders attributed to EUV technology.

ASML explained that the higher-than-expected gross margin of 51% in the first quarter was due to increased sales of immersion lithography and EUV technology compared to dry lithography systems. Additionally, a reduction in some non-recurring expenses contributed to the rise in gross margin.

In terms of product and service sales breakdown, out of the €5.29 billion net sales revenue in the first quarter, €1.3 billion came from installed base management services, while net system sales amounted to €3.966 billion.

Within net system sales, EUV systems accounted for 46%, AiFi systems 39%, KrF systems 8%, and ArF Dry lithography machines 3%.

In the first quarter, 63% of sales came from logic process manufacturers, while 37% came from memory manufacturing companies. This indicates that spending on equipment by memory chip manufacturers remains conservative.

Regarding the sales quantity of various lithography systems, in the first quarter, 11 EUV systems were sold, 20 ArFi systems (a decrease of approximately 30% compared to the previous quarter), 25 KrF systems (a decrease of over 50% compared to the previous quarter), 10 i-Line systems, and 4 ArF Dry systems.

In terms of regional sales contribution to net systems, in the first quarter, mainland China still accounted for 49% (an increase of 10 percentage points from the previous quarter), EMEA (Europe, Middle East, Africa) region accounted for 20%, South Korea for 19%, and Taiwan dropped to 6%.

△ Net system sales breakdown (Quarterly)

It should be noted that these percentages represent the regional sales contribution of net systems only, as ASML did not provide regional breakdowns for the €1.3 billion installed base management services. Even excluding this, mainland China likely contributed to over 40% of the revenue in the first quarter of this year.

ASML's financial report indicates that new orders in the first quarter of 2024 amounted to €3.6 billion (with €656 million from EUV), lower than the €3.8 billion in the first quarter of 2023, and significantly lower than the €9.2 billion in the fourth quarter of 2023. ASML stated that new order situations are typically unstable, but considering the current backlog, receiving new orders of over €4 billion each quarter for the next three quarters would enable the company to reach the midpoint of its net sales target by early 2025.

ASML forecasts a net sales revenue for the second quarter of 2024 to be between €5.7 billion and €6.2 billion, with an estimated €1.4 billion coming from installed base management services. The gross margin is expected to range between 50% and 51%.

ASML President and CEO Peter Wennink further noted that an estimated €1.4 billion from installed base management services is expected in the second quarter. Additionally, R&D costs for the second quarter are estimated to be approximately €1.07 billion, with sales and management expenses around €295 million.