VELDHOVEN, Netherlands--(BUSINESS WIRE)--ASML Holding NV (ASML) (NASDAQ:ASML) (Amsterdam:ASML) today publishes 2011 fourth quarter and full year results.
- Full year 2011 net sales and net income were at record levels.
- Net bookings in Q4 2011 of EUR 710 mln (37 units).
- Dividend proposed of EUR 0.46 per share (up from EUR 0.40).
|
|
Q4 2011 |
Q3 2011 |
FY 2011 |
FY 2010 |
|||||||
| Net sales | 1,211 | 1,459 | 5,651 |
4,508 |
|||||||
| ...of which service and field option | |||||||||||
| sales | 218 | 185 | 767 | 613 | |||||||
| New systems sold (units) | 35 | 46 | 195 | 154 | |||||||
| Used systems sold (units) | 6 | 9 | 27 | 43 | |||||||
| Net bookings, excluding EUV | 710 | 514 | 2,909 | 6,213 | |||||||
| Net bookings, excluding EUV (units) | 37 | 23 | 134 | 285 | |||||||
| ASP of booked systems, excluding EUV | 19.2 | 22.4 | 21.7 | 21.8 | |||||||
| Systems backlog, excluding EUV | 1,733 | 1,994 | 1,733 | 3,856 | |||||||
| Systems backlog, excluding EUV | |||||||||||
| (units) | 71 | 74 | 71 | 157 | |||||||
| Gross margin excluding EUV | 42.4 | % | 44.5 | % | 44.3 | % | n/a | ||||
| Gross margin | 41.0 | % | 42.1 | % | 43.3 | % | 43.4 | % | |||
| End-quarter cash and cash equivalents | 2,732 | 2,838 | 2,732 | 1,950 | |||||||
| Net income | 285 | 355 | 1,467 | 1,022 | |||||||
| EPS (in euro) | 0.69 | 0.84 | 3.45 | 2.35 | |||||||
| (Figures in millions of euros unless | |||||||||||
| otherwise indicated) |
Fourth Quarter and Full Year 2011 Highlights
- We recognized 101 immersion systems in the full year 2011, 78 of which were our most advanced production system TWINSCAN NXT:1950i
- The overlay accuracy of the TWINSCAN NXT:1950i improved to 4 nanometers from 5.5 nanometers on product wafers to levels that are sufficient to support most advanced manufacturing nodes.
- A number of TWINSCAN NXT:1950i have reached the productivity milestone of more than 4,000 wafers in a single day at customer manufacturing sites – one system within 15 days after installation.
- More than 300 systems processed more than one million wafers each within one year, and four TWINSCAN NXT:1950i systems achieved the milestone of imaging one million wafers within 11 months.
- Holistic Lithography add-ons, which optimize mask design through Brion computational lithography and which improve scanner control using Yieldstar metrology, generated close to EUR 200 million of sales in 2011.
- Of our new EUV lithography platform five NXE:3100 systems are operational and printing wafers, the sixth system is expected to start imaging in Q1 2012 with revenue recognition for this system expected in Q2 2012.
- Imaging performance of the NXE:3100 has improved, demonstrating imaging resolution with enhancement technology down to 16 nanometer in single exposure mode.
- The productivity of our Extreme Ultraviolet (EUV) systems improved to 5-7 wafers per hour at customer sites supported by several source technologies, targeting 60 wafers per hour later in 2012.
- During the quarter, the number of exposed wafers on NXE:3100 systems more than doubled to a total of over 5,300 wafers.
- Assembly and integration of several NXE:3300 scanners is ongoing -- the volume production successor of the NXE:3100 -- for first shipment in the second half of 2012; a total of 11 NXE:3300 systems have been ordered.
Outlook
- ASML expects first half 2012 net sales of about EUR 2.4 billion.
- Q1 2012 bookings expected at a level above Q4 2011 bookings.
“We achieved 2011 record sales and profit in line with guidance initially issued a year ago, confirming the robustness of the fundamentals of the lithography business and the value of our systems. We thank our customers for their support and our employees for their hard work and dedication in realizing our potential,” said Eric Meurice, President and Chief Executive Officer of ASML. “We expect a healthy start for 2012, as we plan Q1 2012 bookings at a level above that of Q4 2011 and a first half sales level of about EUR 2.4 billion. Our customers are indeed continuing their introductions of advanced chip designs with the need to build critical mass capacity for those nodes. This trend is extended from 2011 for the Logic segment, accelerating for NAND Flash memory and expected to kick in for DRAM memory later in the year. Our customers’ development of these sub 30-nanometer nodes is supported by our portfolio of advanced TWINSCAN NXT:1950i immersion scanners and our widening portfolio of Holistic Lithography add-on products enabling optimized modeling and manufacturing within ever tighter tolerances. For the next generation nodes, we continue to make progress in bringing EUV technology to the market: we have achieved a low but relatively stable throughput at customer sites with our NXE:3100 system, enabling them to further their recipe development. Indeed, more than 5,300 wafers have now been processed and imaging at 16 nm exposure has been demonstrated, driving the development of the necessary EUV infrastructure and customer processes. In parallel, we are focusing on the light source, which currently limits the system throughput, to reach our objective of proven 60 wafers per hour in the second half of 2012. The work packages required for success to increase raw light power, raise duty cycle and improve conversion efficiency, have been identified and the progress in each area supports our roadmap at this time,” Meurice said.
For the first quarter 2012, ASML expects net sales of about EUR 1.2 billion. Sales are expected to have a gross margin in Q1 2012 of about 43 percent. R&D costs for Q1 are expected at EUR 145 million to support our strategic investments. SG&A costs are expected at EUR 54 million.
Dividend and share buy back program
Due to ASML's strong financial position and operating cash flow prospects, we intend to continue to return excess cash to shareholders through regular share buy backs and increasing dividends, thus rewarding our shareholders for their continued investment.
ASML intends to increase the dividend by 15% compared with last year. Therefore, we will submit a proposal to the 2012 Annual General Meeting of Shareholders (AGM) to declare a dividend in respect of 2011 of EUR 0.46 per ordinary share (for a total amount of approximately EUR 190 million), compared with a dividend of EUR 0.40 per ordinary share paid in respect of 2010. The proposed dividend represents 13 percent of net income per ordinary share.
As of December 31, 2011 ASML had purchased 25.7 million shares for a total amount of EUR 700.0 million as part of its intention, as announced on January 19, 2011, to purchase up to EUR 1,000 million of its own shares within two years. The purpose of the share buy back program is to return cash to shareholders through reduction of the number of issued shares. Of the shares purchased, 13.2 million have been cancelled in 2011 with the remaining shares to be cancelled in 2012. In order to fully use the maximum room available in 2012 for dividend withholding tax-exempt share buy backs, ASML announces at this time to increase the size of the current share buy back program to an amount of EUR 1,130 million for 2012. The company has an opportunity to execute a synthetic share buy back, similar to the one in 2007, of well over one billion euros, which will be decided upon in due time.
Furthermore, ASML announces its intention to purchase up to 2.2 million of additional shares during 2012 for the purpose of covering outstanding employee stock and stock option plans. These shares will be held as treasury shares.
Both share buy back programs will be executed within the limitations of the existing authority granted by the AGM on April 20, 2011 and, if granted, of the authority proposed to future AGMs. The share buy back programs may be suspended, modified or discontinued at any time. All transactions under these programs are published on ASML’s website (www.asml.com/investors) on a weekly basis.
About ASML
ASML is one of the world's leading providers of lithography systems for the semiconductor industry, manufacturing complex machines that are critical to the production of integrated circuits or chips. Headquartered in Veldhoven, the Netherlands, ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML. ASML has almost 8,000 employees on payroll (expressed in full time equivalents), serving chip manufacturers in more than 55 locations in 16 countries. More information about our company, our products and technology, and career opportunities is available on our website: www.asml.com
Investor and Media Conference Call
A conference call for investors and media will be hosted by CEO Eric Meurice and CFO Peter Wennink at 15:00 PM Central European Time / 09:00 AM Eastern U.S. time. Dial-in numbers are: in the Netherlands +31 10 29 44 290 and the US +1 646 254 3365 (US participants will have to quote the following confirmation code when dialing into the conference: 8788824). To listen to the conference call, access is also available via www.asml.com
A replay of the Investor and Media Call will be available on www.asml.com
2011 Annual Reports
ASML will publish its 2011 Annual Report on Form 20-F, Statutory Annual Report and Remuneration Report on February 14, 2012. The reports will be published on our website at www.asml.com
US GAAP and IFRS Financial Reporting
ASML's primary accounting standard for quarterly earnings releases and annual reports is US GAAP, the accounting standard generally accepted in the United States. Quarterly US GAAP consolidated statements of operations, consolidated statements of cash flows and consolidated balance sheets, and a reconciliation of net income and equity from US GAAP to IFRS are available on www.asml.com
In addition to reporting financial figures in accordance with US GAAP, ASML also reports financial figures in accordance with IFRS for statutory purposes. The most significant differences between US GAAP and IFRS that affect ASML concern the capitalization of certain product development costs, the accounting of share-based payment plans, the accounting of income taxes and the accounting of reversal of inventory write-downs. ASML’s quarterly IFRS consolidated income statement, consolidated statement of cash flows, consolidated statement of financial position and a reconciliation of net income and equity from US GAAP to IFRS are available on www.asml.com
The consolidated balance sheets of ASML Holding N.V. as of December 31, 2011, the related consolidated statements of operations and consolidated statements of cash flows for the quarter ended December 31, 2011 as presented in this press release are unaudited.
Regulated Information
This press release, the US GAAP consolidated financial statements, the IFRS consolidated financial statements and the Statutory Interim Report published on www.asml.com comprise regulated information within the meaning of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
Forward Looking Statements
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of systems backlog, IC unit demand, financial results, average selling price, gross margin and expenses, dividend policy and intention to repurchase shares. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of manufacturing efficiencies and capacity constraints, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, available cash, distributable reserves for dividend payments and share repurchases, and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission.
| ASML - Summary U.S. GAAP Consolidated Statements of Operations 1,2 | ||||||||||||
|
Three months ended, |
Twelve months ended, | |||||||||||
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 | |||||||||
| (in millions EUR, except per share data) | ||||||||||||
| Net system sales | 992.7 | 1,313.1 | 4,883.9 | 3,894.7 | ||||||||
| Net service and field option sales | 218.2 | 208.3 | 767.1 | 613.2 | ||||||||
| Total net sales | 1,210.9 | 1,521.4 | 5,651.0 | 4,507.9 | ||||||||
| Total cost of sales | 714.5 | 836.7 | 3,201.6 | 2,552.7 | ||||||||
| Gross profit on sales | 496.4 | 684.7 | 2,449.4 | 1,955.2 | ||||||||
| Research and development costs | 150.4 | 141.0 | 590.3 | 523.4 | ||||||||
| Selling, general and administrative costs | 56.3 | 50.1 | 217.9 | 181.1 | ||||||||
| Income from operations | 289.7 | 493.6 | 1,641.2 | 1,250.7 | ||||||||
| Interest income (expense), net | 1.5 | (1.1 | ) | 7.4 | (8.2 | ) | ||||||
| Income before income taxes | 291.2 | 492.5 | 1,648.6 | 1,242.5 | ||||||||
| Provision for income taxes |
(6.5) |
4 |
(85.7 | ) | (181.6 | ) | (220.7 | ) | ||||
| Net income | 284.7 | 406.8 | 1,467.0 | 1,021.8 | ||||||||
| Basic net income per ordinary share | 0.69 | 0.94 | 3.45 | 2.35 | ||||||||
| Diluted net income per ordinary share |
3 |
0.68 | 0.93 | 3.42 | 2.33 | |||||||
| Number of ordinary shares used in computing per share amounts (in millions): | ||||||||||||
| Basic | 415.6 | 435.9 | 425.6 | 435.1 | ||||||||
| Diluted |
3 |
419.0 | 439.9 | 429.1 | 439.0 | |||||||
| ASML - Ratios and Other Data 1,2 | |||||||||||
| Three months ended, | Twelve months ended, | ||||||||||
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 | ||||||||
| Gross profit on sales as a percentage of net sales | 41.0 | 45.0 | 43.3 | 43.4 | |||||||
| Income from operations as a percentage of net sales | 23.9 | 32.4 | 29.0 | 27.7 | |||||||
| Net income as a percentage of net sales | 23.5 | 26.7 | 26.0 | 22.7 | |||||||
| Income taxes as a percentage of income before income taxes | 2.3 |
4 |
17.4 | 11.0 | 17.8 | ||||||
| Shareholders’ equity as a percentage of total assets | 47.4 | 44.9 | 47.4 | 44.9 | |||||||
| Sales of systems (in units) | 41 | 69 | 222 | 197 | |||||||
| Average selling price of systems sales (EUR millions) | 24.2 | 19.0 | 22.0 | 19.8 | |||||||
| Value of systems backlog excluding EUV (EUR millions) | 1,733 | 3,856 | 1,733 | 3,856 | |||||||
| Systems backlog excluding EUV (in units) | 71 | 157 | 71 | 157 | |||||||
| Average selling price of systems backlog excluding EUV (EUR millions) | 24.4 | 24.6 | 24.4 | 24.6 | |||||||
| Value of booked systems excluding EUV (EUR millions) | 710 | 2,315 | 2,909 | 6,213 | |||||||
| Net bookings excluding EUV (in units) | 37 | 117 | 134 | 285 | |||||||
| Average selling price of booked systems excluding EUV (EUR millions) | 19.2 | 19.8 | 21.7 | 21.8 | |||||||
| Number of payroll employees in FTEs | 7,955 | 7,184 | 7,955 | 7,184 | |||||||
| Number of temporary employees in FTEs | 1,935 | 2,061 | 1,935 | 2,061 | |||||||
| ASML - Summary U.S. GAAP Consolidated Balance Sheets 1,2 | ||||||
| Dec 31, 2011 | Dec 31, 2010 | |||||
| (in millions EUR) | ||||||
| ASSETS | ||||||
| Cash and cash equivalents | 2,731.8 | 1,949.8 | ||||
| Accounts receivable, net | 880.6 | 1,123.5 | ||||
| Finance receivables, net | 78.9 | 12.6 | ||||
| Current tax assets | 32.1 | 12.7 | ||||
| Inventories, net | 1,624.6 | 1,497.2 | ||||
| Deferred tax assets | 120.7 | 134.5 | ||||
| Other assets | 238.1 | 214.2 | ||||
| Total current assets | 5,706.8 | 4,944.5 | ||||
| Finance receivables, net | - | 28.9 | ||||
| Deferred tax assets | 38.7 | 71.0 | ||||
| Other assets | 307.3 | 235.7 | ||||
| Goodwill | 146.0 | 141.3 | ||||
| Other intangible assets, net | 8.4 | 13.7 | ||||
| Property, plant and equipment, net | 1,053.6 | 745.3 | ||||
| Total non-current assets | 1,554.0 | 1,235.9 | ||||
| Total assets | 7,260.8 | 6,180.4 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | 2,233.0 | 2,157.2 | ||||
| Long-term debt | 733.8 | 708.7 | ||||
| Deferred and other tax liabilities | 176.7 | 155.7 | ||||
| Provisions | 10.0 | 11.8 | ||||
| Accrued and other liabilities | 663.1 | 373.1 | ||||
| Total non-current liabilities | 1,583.6 | 1,249.3 | ||||
| Total liabilities | 3,816.6 | 3,406.5 | ||||
| Shareholders’ equity | 3,444.2 | 2,773.9 | ||||
| Total liabilities and shareholders’ equity | 7,260.8 | 6,180.4 | ||||
| ASML - Summary U.S. GAAP Consolidated Statements of Cash Flows 1,2 | ||||||||||||||||
| Three months ended, | Twelve months ended, | |||||||||||||||
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 | |||||||||||||
| (in millions EUR) | ||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
| Net income | 284.7 | 406.8 | 1,467.0 | 1,021.8 | ||||||||||||
| Depreciation and amortization | 40.1 | 39.5 | 165.2 | 151.4 | ||||||||||||
| Impairment | 2.5 | 7.0 | 12.3 | 8.6 | ||||||||||||
| Loss on disposals of property, plant and equipment | 1.2 | 0.9 | 3.4 | 2.9 | ||||||||||||
| Share-based payments | 3.6 | 2.3 | 12.4 | 12.1 | ||||||||||||
| Allowance for doubtful debts | 0.5 | (2.1 | ) | 0.8 | (1.3 | ) | ||||||||||
| Allowance for obsolete inventory | 23.0 | 5.2 | 60.2 | 55.7 | ||||||||||||
| Deferred income taxes | 27.6 | (43.1 | ) | 63.2 | 28.1 | |||||||||||
| Changes in assets and liabilities | (250.8 | ) | (114.1 | ) | 286.0 | (339.3 | ) | |||||||||
| Net cash provided by operating activities | 132.4 | 302.4 | 2,070.5 | 940.0 | ||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
| Purchases of property, plant and equipment | (93.8 | ) | (68.9 | ) | (301.0 | ) | (128.7 | ) | ||||||||
| Proceeds from sale of property, plant and equipment | - | 3.8 | - | 3.8 | ||||||||||||
| Net cash used in investing activities | (93.8 | ) | (65.1 | ) | (301.0 | ) | (124.9 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
| Dividend paid | - | - | (172.6 | ) | (87.0 | ) | ||||||||||
| Purchase of shares | (161.1 | ) | - | (700.5 | ) | - | ||||||||||
| Net proceeds from issuance of shares and stock options | 8.0 | 10.5 | 34.1 | 31.0 | ||||||||||||
| Deposits from customers | - | 150.0 | (150.0 | ) | 150.0 | |||||||||||
| Repayment of debt | (0.7 | ) | (0.3 | ) | (2.6 | ) | (1.4 | ) | ||||||||
| Tax benefits from stock options | - | (0.3 | ) | - | 0.1 | |||||||||||
| Net cash provided by (used in) financing activities | (153.8 | ) | 159.9 | (991.6 | ) | 92.7 | ||||||||||
| Net cash flows | (115.2 | ) | 397.2 | 777.9 | 907.8 | |||||||||||
| Effect of changes in exchange rates on cash | 8.9 | 4.6 | 4.1 | 4.9 | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | (106.3 | ) | 401.8 | 782.0 | 912.7 | |||||||||||
| ASML - Quarterly Summary U.S. GAAP Consolidated Statements of | ||||||||||||||||
| Operations 1,2 | ||||||||||||||||
| Three months ended, | ||||||||||||||||
| Dec 31, | Sep 25, | Jun 26, | Mar 27, | Dec 31, | ||||||||||||
| 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||||||
| (in millions EUR, except per share data) | ||||||||||||||||
| Net system sales | 992.7 | 1,273.2 | 1,333.6 | 1,284.4 | 1,313.1 | |||||||||||
| Net service and field option sales | 218.2 | 185.3 | 195.8 | 167.8 | 208.3 | |||||||||||
| Total net sales | 1,210.9 | 1,458.5 | 1,529.4 | 1,452.2 | 1,521.4 | |||||||||||
| Total cost of sales | 714.5 | 845.1 | 839.4 | 802.6 | 836.7 | |||||||||||
| Gross profit on sales | 496.4 | 613.4 | 690.0 | 649.6 | 684.7 | |||||||||||
| Research and development costs | 150.4 | 149.8 | 144.7 | 145.4 | 141.0 | |||||||||||
| Selling, general and administrative costs | 56.3 | 56.3 | 50.9 | 54.4 | 50.1 | |||||||||||
| Income from operations | 289.7 | 407.3 | 494.4 | 449.8 | 493.6 | |||||||||||
| Interest income (expense), net | 1.5 | 2.2 | 1.8 | 1.9 | (1.1 | ) | ||||||||||
| Income before income taxes | 291.2 | 409.5 | 496.2 | 451.7 | 492.5 | |||||||||||
| Provision for income taxes | (6.5 | ) | (4 | ) | (54.3 | ) | (64.1 | ) | (56.7 | ) | (85.7 | ) | ||||
| Net income | 284.7 | 355.2 | 432.1 | 395.0 | 406.8 | |||||||||||
| Basic net income per ordinary share | 0.69 | 0.84 | 1.01 | 0.90 | 0.94 | |||||||||||
| Diluted net income per ordinary share |
3 |
0.68 | 0.84 | 1.00 | 0.90 | 0.93 | ||||||||||
| Number of ordinary shares used in computing per share amounts (in millions): | ||||||||||||||||
| Basic | 415.6 | 421.9 | 429.5 | 436.6 | 435.9 | |||||||||||
| Diluted |
3 |
419.0 | 425.3 | 432.9 | 440.6 | 439.9 | ||||||||||
| ASML - Quarterly Summary Ratios and other data 1,2 | ||||||||||
| Three months ended, | ||||||||||
| Dec 31, | Sep 25, | Jun 26, | Mar 27, | Dec 31, | ||||||
| 2011 | 2011 | 2011 | 2011 | 2010 | ||||||
| Gross profit on sales as a percentage of net sales | 41.0 | 42.1 | 45.1 | 44.7 | 45.0 | |||||
| Income from operations as a percentage of net sales | 23.9 | 27.9 | 32.3 | 31.0 | 32.4 | |||||
| Net income as a percentage of net sales | 23.5 | 24.4 | 28.3 | 27.2 | 26.7 | |||||
| Income taxes as a percentage of income before income taxes | 2.3 |
4 |
13.2 | 12.9 | 12.6 | 17.4 | ||||
| Shareholders’ equity as a percentage of total assets | 47.4 | 46.2 | 43.9 | 43.9 | 44.9 | |||||
| Sales of systems (in units) | 41 | 55 | 63 | 63 | 69 | |||||
| Average selling price of systems sales (EUR millions) | 24.2 | 23.2 | 21.2 | 20.4 | 19.0 | |||||
| Value of systems backlog excluding EUV (EUR millions) | 1,733 | 1,994 | 2,756 | 3,330 | 3,856 | |||||
| Systems backlog excluding EUV (in units) | 71 | 74 | 105 | 134 | 157 | |||||
| Average selling price of systems backlog excluding EUV (EUR millions) | 24.4 | 26.9 | 26.2 | 24.9 | 24.6 | |||||
| Value of booked systems excluding EUV (EUR millions) | 710 | 514 | 840 | 845 | 2,315 | |||||
| Net bookings excluding EUV (in units) | 37 | 23 | 34 | 40 | 117 | |||||
| Average selling price of booked systems excluding EUV (EUR millions) | 19.2 | 22.4 | 24.7 | 21.1 | 19.8 | |||||
| Number of payroll employees in FTEs | 7,955 | 7,848 | 7,697 | 7,402 | 7,184 | |||||
| Number of temporary employees in FTEs | 1,935 | 2,050 | 2,159 | 2,122 | 2,061 | |||||
| ASML - Quarterly Summary U.S. GAAP Consolidated Balance Sheets 1,2 | ||||||||||
| Dec 31, | Sep 25, | Jun 26, | Mar 27, | Dec 31, | ||||||
| 2011 | 2011 | 2011 | 2011 | 2010 | ||||||
| (in millions EUR) | ||||||||||
| ASSETS | ||||||||||
| Cash and cash equivalents | 2,731.8 | 2,838.1 | 2,742.1 | 2,699.5 | 1,949.8 | |||||
| Accounts receivable, net | 880.6 | 811.8 | 895.1 | 1,018.8 | 1,123.5 | |||||
| Finance receivables, net | 78.9 | 116.2 | 61.9 | - | 12.6 | |||||
| Current tax assets | 32.1 | 1.0 | 1.0 | 1.0 | 12.7 | |||||
| Inventories, net | 1,624.6 | 1,455.8 | 1,610.4 | 1,565.6 | 1,497.2 | |||||
| Deferred tax assets | 120.7 | 129.9 | 126.4 | 125.3 | 134.5 | |||||
| Other assets | 238.1 | 248.8 | 253.5 | 257.5 | 214.2 | |||||
| Total current assets | 5,706.8 | 5,601.6 | 5,690.4 | 5,667.7 | 4,944.5 | |||||
| Finance receivables, net | - | - | - | - | 28.9 | |||||
| Deferred tax assets | 38.7 | 48.4 | 67.5 | 67.5 | 71.0 | |||||
| Other assets | 307.3 | 248.4 | 214.6 | 227.2 | 235.7 | |||||
| Goodwill | 146.0 | 139.2 | 132.4 | 133.3 | 141.3 | |||||
| Other intangible assets, net | 8.4 | 9.7 | 11.0 | 12.3 | 13.7 | |||||
| Property, plant and equipment, net | 1,053.6 | 1,060.3 | 960.2 | 848.7 | 745.3 | |||||
| Total non-current assets | 1,554.0 | 1,506.0 | 1,385.7 | 1,289.0 | 1,235.9 | |||||
| Total assets | 7,260.8 | 7,107.6 | 7,076.1 | 6,956.7 | 6,180.4 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities | 2,233.0 | 2,030.9 | 2,229.6 | 2,441.7 | 2,157.2 | |||||
| Long-term debt | 733.8 | 733.1 | 705.7 | 695.6 | 708.7 | |||||
| Deferred and other tax liabilities | 176.7 | 184.6 | 187.5 | 177.3 | 155.7 | |||||
| Provisions | 10.0 | 10.1 | 10.1 | 10.6 | 11.8 | |||||
| Accrued and other liabilities | 663.1 | 864.7 | 833.8 | 579.6 | 373.1 | |||||
| Total non-current liabilities | 1,583.6 | 1,792.5 | 1,737.1 | 1,463.1 | 1,249.3 | |||||
| Total liabilities | 3,816.6 | 3,823.4 | 3,966.7 | 3,904.8 | 3,406.5 | |||||
| Shareholders’ equity | 3,444.2 | 3,284.2 | 3,109.4 | 3,051.9 | 2,773.9 | |||||
| Total liabilities and shareholders’ equity | 7,260.8 | 7,107.6 | 7,076.1 | 6,956.7 | 6,180.4 | |||||
| ASML - Quarterly Summary U.S. GAAP Consolidated Statements of | |||||||||||||||
| Cash Flows 1,2 | |||||||||||||||
| Three months ended, | |||||||||||||||
| Dec 31, | Sep 25, | Jun 26, | Mar 27, | Dec 31, | |||||||||||
| 2011 | 2011 | 2011 | 2011 | 2010 | |||||||||||
| (in millions EUR) | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
| Net income | 284.7 | 355.2 | 432.1 | 395.0 | 406.8 | ||||||||||
| Depreciation and amortization | 40.1 | 43.0 | 42.9 | 39.2 | 39.5 | ||||||||||
| Impairment | 2.5 | 9.2 | 0.3 | 0.3 | 7.0 | ||||||||||
| Loss on disposals of property, plant and equipment | 1.2 | 0.3 | 1.5 | 0.4 | 0.9 | ||||||||||
| Share-based payments | 3.6 | 4.0 | 1.8 | 3.0 | 2.3 | ||||||||||
| Allowance for doubtful debts | 0.5 | (0.9 | ) | - | 1.2 | (2.1 | ) | ||||||||
| Allowance for obsolete inventory | 23.0 | 14.3 | 13.6 | 9.3 | 5.2 | ||||||||||
| Deferred income taxes | 27.6 | (3.9 | ) | (7.5 | ) | 47.0 | (43.1 | ) | |||||||
| Changes in assets and liabilities | (250.8 | ) | (83.0 | ) | 14.6 | 605.2 | (114.1 | ) | |||||||
| Net cash provided by operating activities | 132.4 | 338.2 | 499.3 | 1,100.6 | 302.4 | ||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
| Purchases of property, plant and equipment | (93.8 | ) | (79.8 | ) | (60.7 | ) | (66.7 | ) | (68.9 | ) | |||||
| Proceeds from sale of property, plant and equipment | - | - | - | - | 3.8 | ||||||||||
| Net cash used in investing activities | (93.8 | ) | (79.8 | ) | (60.7 | ) | (66.7 | ) | (65.1 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
| Dividend paid | - | - | (172.6 | ) | - | - | |||||||||
| Purchase of shares | (161.1 | ) | (173.7 | ) | 4.0 | (223.2 | ) | 4.0 | (142.5 | ) | - | ||||
| Net proceeds from issuance of shares and stock options | 8.0 | 2.5 | 2.5 | 21.1 | 10.5 | ||||||||||
| Net proceeds from other long-term debt | - | - | - | - | - | ||||||||||
| Deposits from customers | - | - | - | (150.0 | ) | 150.0 | |||||||||
| Repayment of debt | (0.7 | ) | (0.6 | ) | (0.7 | ) | (0.6 | ) | (0.3 | ) | |||||
| Tax benefits from stock options | - | - | - | - | (0.3 | ) | |||||||||
| Net cash provided by (used in) financing activities | (153.8 | ) | (171.8 | ) | (394.0 | ) | (272.0 | ) | 159.9 | ||||||
| Net cash flows | (115.2 | ) | 86.6 | 44.6 | 761.9 | 397.2 | |||||||||
| Effect of changes in exchange rates on cash | 8.9 | 9.4 | (2.0 | ) | (12.2 | ) | 4.6 | ||||||||
| Net increase (decrease) in cash and cash equivalents | (106.3 | ) | 96.0 | 42.6 | 749.7 | 401.8 | |||||||||
ASML - Notes to the Summary U.S. GAAP Consolidated Financial Statements
Basis of Presentation
ASML follows accounting principles generally accepted in the United States of America (“U.S. GAAP”). Further disclosures, as required under U.S. GAAP in annual reports, are not included in the summary consolidated financial statements. Unless stated otherwise, the accompanying consolidated financial statements are stated in millions of euros (‘EUR’).
Principles of consolidation
The consolidated financial statements include the accounts of ASML Holding N.V. and all of its subsidiaries and the variable interest entities in which the Company is the primary beneficiary (together referred to as “ASML” or the “Company”). Subsidiaries are all entities over which ASML has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. All intercompany profits, balances and transactions have been eliminated in the consolidation.
Use of estimates
The preparation of ASML’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the balance sheet dates, and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates.
Recognition of revenues
The Company recognizes revenue when all four revenue recognition criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; seller’s price to buyer is fixed or determinable; and collectability is reasonably assured. At ASML, this policy generally results in revenue recognition from the sale of a system upon shipment. The revenue from the installation of a system is generally recognized upon completion of that installation at the customer site. Each system undergoes, prior to shipment, a "Factory Acceptance Test" in the Company’s clean room facilities, effectively replicating the operating conditions that will be present on the customer's site, in order to verify whether the system will meet its standard specifications and any additional technical and performance criteria agreed with the customer. A system is shipped, and revenue is recognized, only after all specifications are met and customer sign-off is received or waived. In case not all specifications are met and the remaining performance obligation is not essential to the functionality of the system but is substantive rather than inconsequential or perfunctory, a portion of the sales price is deferred. Each system's performance is re-tested upon installation at the customer's site, the Company has never failed to successfully complete installation of a system at a customer’s premises.
The main portion of ASML’s revenue is derived from contractual arrangements with the Company’s customers that have multiple deliverables, such as installation and training services and prepaid extended and enhanced (optic) warranty contracts. For each of the specified deliverables ASML determines the selling price by using either vendor specific objective evidence (‘VSOE’), third party evidence (‘TPE’) or by best estimate of the selling price (‘BESP’). For transactions entered into, or materially modified, as of January 1, 2011, when the Company is unable to establish relative selling price using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The total arrangement consideration is allocated at inception of the arrangement to all deliverables on the basis of their relative selling price. The revenue relating to the undelivered elements of the arrangements is deferred at their relative selling prices until delivery of these elements. Revenue from installation and training services is recognized when the services are completed. Revenue from prepaid extended and enhanced (optic) warranty contracts is recognized over the term of the contract.
Foreign currency risk management
The Company uses the euro as its invoicing currency in order to limit the exposure to foreign currency movements. Exceptions may occur on a customer by customer basis. To the extent that invoicing is done in a currency other than the euro, the Company is exposed to foreign currency risk.
It is the Company’s policy to hedge material transaction exposures, such as forecasted sales and purchase transactions and accounts receivable and payable. The Company hedges these exposures through the use of foreign exchange contracts.
As of December 31, 2011, equity includes EUR 4.9 million loss (net of taxes: EUR 4.4 million loss; December 31, 2010: EUR 35.9 million loss) representing the total anticipated loss to be charged to sales, and EUR 11.6 million gain (net of taxes: EUR 10.3 million gain; December 31, 2010: EUR 6.1 million loss) to be released to cost of sales, which will offset the EUR equivalent of foreign currency denominated forecasted sales and purchase transactions.
ASML – Reconciliation U.S. GAAP – IFRS 1,2
| Net income | Three months ended, | Twelve months ended, | ||||||||||
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 | |||||||||
| (in millions EUR) | ||||||||||||
| Net income under U.S. GAAP | 284.7 | 406.8 | 1,467.0 | 1,021.8 | ||||||||
| Development costs (see Note 1) | 25.8 | (33.2 | ) | (2.2 | ) | (19.5 | ) | |||||
| Share-based payments (see Note 2) | 0.3 | 0.5 | (0.3 | ) | 0.3 | |||||||
| Reversal of write-downs (see Note 3) | 3.4 | (5.1 | ) | 4.6 | (14.6 | ) | ||||||
| Income taxes (see Note 4) | 2.8 | (6.8 | ) | 24.9 | (2.5 | ) | ||||||
| Net income under IFRS | 317.0 | 362.2 | 1,494.0 | 985.5 | ||||||||
| Shareholders’ equity | Dec 31, | Sep 25, | Jun 26, | Mar 27, | Dec 31, | |||||||
| 2011 | 2011 | 2011 | 2011 | 2010 | ||||||||
| (in millions EUR) | ||||||||||||
| Shareholders’ equity under U.S. GAAP | 3,444.2 | 3,284.2 | 3,109.4 | 3,051.9 | 2,773.9 | |||||||
| Development costs (see Note 1) | 233.0 | 205.8 | 213.5 | 226.1 | 234.3 | |||||||
| Share-based payments (see Note 2) | 2.7 | 1.1 | 4.2 | 9.8 | 6.6 | |||||||
| Reversal of write-downs (see Note 3) | 7.2 | 3.8 | 5.6 | 5.8 | 2.6 | |||||||
| Income taxes (see Note 4) | 32.7 | 28.5 | 20.6 | 18.4 | 5.1 | |||||||
| Shareholders’ equity under IFRS | 3,719.8 | 3,523.4 | 3,353.3 | 3,312.0 | 3,022.5 | |||||||
Notes to the reconciliation from U.S. GAAP to IFRS
Note 1 Development costs
Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS 38, ASML capitalizes certain development expenditures that are amortized over the expected useful life of the related product generally ranging between one and three years. Amortization starts when the developed product is ready for volume production.
Under U.S. GAAP, ASML applies ASC 730, “Research and Development”. In accordance with ASC 730, ASML charges costs relating to research and development to operating expense as incurred.
Note 2 Share-based Payments
Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January 1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of its share-based payments with respect to stock options and stock granted to its employees after November 7, 2002. Under IFRS, at period end a deferred tax asset is computed on the basis of the tax deduction for the share-based payments under the applicable tax law and is recognized to the extent it is probable that future taxable profit will be available against which these deductible temporary differences will be utilized. Therefore, changes in the Company’s share price do affect the deferred tax asset at period-end and result in adjustments to the deferred tax asset.
As of January 1, 2006, ASML applies ASC 718 “Compensation- Stock Compensation” which requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those instruments. ASC 718’s general principle is that a deferred tax asset is established as the Company recognizes compensation costs for commercial purposes for awards that are expected to result in a tax deduction under existing tax law. Under U.S. GAAP, the deferred tax recorded on share-based compensation is computed on the basis of the expense recognized in the financial statements. Therefore, changes in the Company’s share price do not affect the deferred tax asset recorded in the Company’s financial statements.
Note 3 Reversal of write-downs
Under IFRS, ASML applies IAS 2 (revised), “Inventories”. In accordance with IAS 2, reversal of a prior period write-down as a result of a subsequent increase in value of inventory should be recognized in the period in which the value increase occurs.
Under U.S. GAAP, ASML applies ASC 330 “Inventory”. In accordance with ASC 330 reversal of a write-down is prohibited as a write-down creates a new cost basis.
Note 4 Income taxes
Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January 1, 2005. In accordance with IAS 12 unrealized net income resulting from intercompany transactions that are eliminated from the carrying amount of assets in consolidation give rise to a temporary difference for which deferred taxes must be recognized in consolidation. The deferred taxes are calculated based on the tax rate applicable in the purchaser’s tax jurisdiction.
Under U.S. GAAP, the elimination of unrealized net income from intercompany transactions that are eliminated from the carrying amount of assets in consolidation give rise to a temporary difference for which prepaid taxes must be recognized in consolidation. Contrary to IFRS, the prepaid taxes under U.S. GAAP are calculated based on the tax rate applicable in the seller’s rather than the purchaser’s tax jurisdiction.
"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of 1995: the matters discussed in this document may include forward-looking statements, including statements made about our outlook, realization of systems backlog, IC unit demand, financial results, average selling price, gross margin and expenses, dividend policy and intention to repurchase shares. These forward looking statements are subject to risks and uncertainties including, but not limited to: economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors (the principal product of our customer base), including the impact of general economic conditions on consumer confidence and demand for our customers’ products, competitive products and pricing, the impact of manufacturing efficiencies and capacity constraints, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products, our ability to enforce patents and protect intellectual property rights, the risk of intellectual property litigation, availability of raw materials and critical manufacturing equipment, trade environment, changes in exchange rates, available cash, distributable reserves for dividend payments and share repurchases, and other risks indicated in the risk factors included in ASML’s Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission.
1 These financial statements are unaudited.
2Numbers have been rounded.
3 The calculation of diluted net income per ordinary share assumes the exercise of options issued under ASML stock option plans and the issue of shares under ASML share plans for periods in which exercises or issues would have a dilutive effect. The calculation of diluted net income per ordinary share does not assume exercise of such options or issue of shares when such exercises or issue would be anti-dilutive.
4 The quarterly tax rate is determined, calculating annualized tax rates every quarter. The annualized tax rate at the end of the fourth quarter was lower than the annualized tax rate as calculated at the end of the third quarter. This was mainly caused by tax benefits related to previous years’ taxes and releases in the liability for unrecognized tax benefits.
The effect of the reduced annualized rate is reported in the fourth quarter and results in a substantial lower fourth quarter tax rate compared to previous quarters tax rate.