ASML HOLDING NV (NASDAQ:ASML) Q3 2020 Earnings Conference Call - Final Transcript

Oct 14, 2020 • 09:00 am ET

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ASML HOLDING NV (NASDAQ:ASML) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by. Welcome to the ASML 2020 Third Quarter Financial Results Conference Call on October 14, 2020. Throughout today's introduction, all participants will be in a listen-only mode. After ASML's introduction, there will be an opportunity to ask questions. I would now like to open the question-and-answer queue [Operator Instructions]

I would now like to hand the call over to Mr. Skip Miller. Please go ahead, sir.

Executive
Skip Miller

Yes. Thank you, operator. Welcome, everyone. This is Skip Miller, Vice President of Investor Relations at ASML. Joining me today on the call is ASML's CEO, Peter Wennink; and our CFO, Roger Dassen. The subject of today's call is ASML's 2020 third quarter results. The length of this call will be 30 to 60 minutes and questions will be taken in the order that they are received. This call is also being broadcast live over the Internet at asml.com. The 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 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. Welcome, everyone, and thank you for joining us for our Q3 2020 results conference call. I hope all of you and your families are healthy and safe.

Before we begin the Q&A session, Roger, and I would like to provide you with an overview and some commentary on the third quarter, as well as provide our view on the coming quarters; and Roger will start with a review of our Q3 financial performance with added comments on our short-term outlook. I will complete the introduction with some additional comments on the current business environment and our future business outlook. Roger?

Executive
Roger Dassen

Thank you, Peter. Welcome, everyone. I will first review the third quarter financial results and then provide guidance on the fourth quarter of 2020.

Net sales came in above guidance at EUR4 billion, primarily due to additional EUV system revenue. We shipped 10 EUV systems and recognized revenue from 14 systems this quarter. For the four systems that shipped in Q2, but did not receive factory acceptance testing before shipment, we were able to complete customer site acceptance test and recognized revenue this quarter, bringing the total to 14 EUV revenue systems in Q3.

EUV system revenue this quarter was 66% of total system revenue, which is the first time EUV was higher than Deep UV system revenue. This further confirms EUV has entered