ASML bounces back to Q2 profit on strong sales

Jul 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.

Explore further: Stock market shrugs off net neutrality vote

5 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

ASML returns to profit in third quarter, orders up

Oct 14, 2009

(AP) -- ASML Holding NV, a key supplier to computer chip makers, reported Wednesday a net profit of euro20 million ($29.7 million) for the third quarter, ending a nine-month streak of losses, and said new orders had increased ...

Dutch semiconductor tech company ASML reports profit

Apr 14, 2010

Dutch company ASML, a key supplier of computer chip-making systems, said Wednesday it had turned last year's losses into a 107-million-euro first quarter net profit, predicting record 2010 sales.

'Collapse' in semiconductor demand hits ASML

Jul 15, 2009

Dutch computer chip equipment maker ASML announced net losses for the first quarter after a collapse in sales, but said it saw signs of improving market conditions.

ASML announces 151 mln euro net loss for 2009

Jan 20, 2010

Dutch company ASML, a key supplier of computer chip-making systems, reported a 151-million-euro (214-million-dollar) net loss for 2009 despite making a 50-million-euro fourth quarter net profit.

'Collapse' in semiconductor demand hits ASML

Apr 15, 2009

Dutch computer chip equipment maker ASML on Wednesday announced net losses for the first quarter after a collapse in sales, but said it saw signs of improving market conditions.

Intel says PC sales improving; profit beats Street

Apr 14, 2009

(AP) -- Intel Corp.'s first-quarter profit blew past Wall Street's grim forecasts as the chip maker's CEO proclaimed Tuesday that personal computer sales "bottomed out" and have started recovering.

Recommended for you

Google hits back at rivals with futuristic HQ plan

7 hours ago

Google unveiled plans Friday for a new campus headquarters integrating wildlife and sweeping waterways, aiming to make a big statement in Silicon Valley—which is already seeing ambitious projects from Apple ...

Ericsson sues Apple over patent violations

15 hours ago

Swedish telecoms group Ericsson announced Friday a lawsuit against Apple claiming that the US tech giant continued to use its technology in iPhones and other wireless devices after refusing to renew a licencing ...

Stock market shrugs off net neutrality vote

22 hours ago

(AP)—The stock market largely shrugged off the Federal Communications Commission's vote to impose tougher rules on broadband providers like Comcast, Verizon and AT&T to prevent them from creating paid fast lanes for the ...

Judge orders suspension of WhatsApp in Brazil

Feb 26, 2015

(AP)—A judge says he has ordered the suspension of the globally popular instant messaging system WhatsApp across Brazil because it has allegedly failed to help in an investigation.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

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

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.