ASML Holding NV (NASDAQ:ASML) Q1 2019 Earnings Conference Call Transcript

Apr 17, 2019 • 09:00 am ET

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ASML Holding NV (NASDAQ:ASML) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to ASML 2019 First Quarter Financial results Conference Call on April 17, 2019. Throughout today's introduction, all participants will be in listen-only mode. After ASML's introduction there will be an opportunity to ask questions. (Operator Instructions)

I would now like to turn the conference call over to Mr. Skip Miller. Go ahead, please, sir.

Executive
Skip Miller

Thank you, operator. Good afternoon and good morning, ladies and gentlemen. This is Skip Miller, Vice President of Investor Relations at ASML. Joining me today from ASML's headquarters in Veldhoven, The Netherlands is ASML's CEO, Peter Wennink; and our CFO, Roger Dassen.

The subject of today's call is ASML's 2019 first quarter results. The length of this call will be 60 minutes and questions will be taken in the order they are received. This call is also being broadcast live over the Internet at asml.com. A transcript of management's opening remarks and a replay of the call will be available on our website shortly following the conclusion of this call.

Before we begin, I'd like to caution listeners that comments made by management during this conference call will include forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve material risks and uncertainties. For a discussion of risk factors, I encourage you to review the Safe Harbor statement contained in today's press release and presentation found on our website at a asml.com and in ASML's annual report on Form 20-F and other documents, as filed with the Securities and Exchange Commission.

With that I'd like to turn the call over to Peter Wennink for a brief introduction.

Executive
Peter Wennink

Thank you Skip. Good morning, good afternoon, ladies and gentlemen, and thank you for joining us for our first quarter 2019 results conference call. Before we begin the question-and-answer session, Roger and I would like to provide an overview and some commentary on the first quarter as well as provide our view of the coming quarters. And Roger will start with a review of our Q1 financial performance with some added comments on our short-term outlook, and I will complete the introduction with some additional comments on the current business environment and our future business outlook. Roger, if you will.

Executive
Roger Dassen

Thank you, Peter. Welcome everyone. I will first highlight some of the first quarter accomplishments, and then provide our guidance for the second quarter of 2019. Although this was a modest quarter in absolute numbers, we did report both sales and gross margin above our guidance. Q1 net sales came in at EUR2.23 billion, slightly above guidance driven by an additional EUV shipment in the quarter.

Net system sales of EUR1.69 billion was more weighted towards Logic 60% with the remaining 40% for memory, the same split as previous quarter. We reported EUV system revenue of EUR371 million from four shipments. Installed base management sales for the quarter came in at EUR540 million, which was slightly lower than guided due to lower-upgrade business. Gross margin for the