ASML expects losses of up to $90M

July 6, 2001 – Veldhoven, Netherlands – Dutch semiconductor toolmaker ASML Holding NV expects a first-half loss of up to $90 million (105 million Euros) after a “sudden and sharp” decline in orders by chipmakers.

After last year’s record profit, ASML said the outlook for FY2001 remained “very uncertain.”

ASML CEO Doug Dunn said recent conversations with customers had lead him to believe that the semiconductor market is not likely to recover in 4Q01, as he had previously believed.

“This means that this year’s demand for our mainstream products could be lower than previously anticipated,” he said.

ASML said it will report its first half results in two weeks with recently acquired US-based Silicon Valley Group Inc.(SVG).

ASML noted that its own operations, excluding SVG, were about break-even in the first half, as it had previously predicted. But including SVG, which it purchased six weeks ago, the company will report a net loss of between $81 and $90 million.

The company said that second quarter revenues at SVG would fall by more than 40% from a quarter earlier, against earlier guidance of a 30-40% fall.

“Furthermore, order push-outs and cancellations resulted in a sudden and sharp decline in the order backlog and shipments in the second quarter,” ASML said.

Dunn said ASML is carrying out “additional programs across all divisions to reduce costs and save cash,” which includes “measures related to discretionary spending, staffing levels and capital expenditure plans.”

In 2000 ASML reported a net profit of $297 million on sales of $1.8 billion. The company initially expected to outperform those results in 2001.


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