ASML bounces back to Q2 profit on strong sales

July 14, 2010 By MIKE CORDER , Associated Press Writer

(AP) -- ASML Holding NV, a key supplier to computer chip makers like Intel and Samsung, said Wednesday it bounced back to a profit in the second quarter due to a sharp rebound in demand - a further sign the technology sector is recovering quickly.

ASML's earnings announcement came a day after U.S. Intel posted its largest quarterly net income in a decade thanks to a strengthening and more sophisticated factories.

Intel's results topped Wall Street's forecasts and it raised its guidance. Investors sent the up more than 5 percent in extended trading and tech stocks also climbed across Asia.

ASML, which supplies tools to chip makers, said it made a net profit of euro239 million ($300 million), compared to a loss of euro104 million in the same period last year. Revenues rose to euro1.07 billion from euro277 million in last year's second quarter.

The Dutch company said in a statement it expects full-year sales in 2010 to be 10-15 percent higher than its 2007 record of euro3.8 billion as chip makers make up for under-investment during the .

"This level of sales is expected to continue into 2011, barring a major macro-economic downturn, as it is supported by a number of fundamental growth drivers," ASML CEO Eric Meurice said in a statement.

Investors welcomed the news, with ASML stock rising 5.6 percent in early trading to euro25.76 ($32.38) on the Amsterdam exchange. The price later dropped to euro25.22 ($31.70), still a rise of 3.3 percent over the previous day's close. Amsterdam's broader AEX index was down a quarter percentage point.

ASML makes lithography systems, machines that use focused beams of light to map out the physical circuitry of , at the heart of the . A single machine costs more than euro20 million, and the average selling price for a new system in the second quarter was euro25.6 million.

The company, based in Veldhoven, said it booked orders worth euro1.18 billion ($1.48 billion) in the second quarter and expects bookings of around euro1.3 billion in the third quarter. That's a sign that and other chip makers see enough demand for their products that they are needing the tools to make them.

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Buyck
not rated yet Jul 15, 2010
They working on the newest technology to continu Moore's Law! With there "NXE 3300B" ready by two years (2012) they can shrink the nodes down to 5 nanometer !

link: http://www.mysemi...ght.html

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