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Dutch chipmaker ASML tops sales estimates in upbeat results for sector
Europe’s largest semiconductor equipment maker has beaten forecasts with a set of results that put a positive spin on the market following months of negative predictions.
ASML saw a 12pc increase in third quarter sales. Revenue rose to more than €2.7 billion ($3.1 billion) year-on-year, while profits increased 22pc to €680 million.
"Our third quarter sales were as expected...while our gross margin was slightly above expectations," said chief executive Peter Wennink.
The Dutch firm, which produces photolithography parts for the semiconductor industry, saw its share price jump 6.3pc on Wednesday. It said it expects a gross margin in the final quarter of the year to hit 48pc.
Wennick said the company was accelerating its production speed for its components. "In the memory segment, we see strong momentum continuing, as evidenced by our Q3 order intake," Mr Wennick said.
ASML is considered a bellwether of the global high-tech industry as it supplies sector giants such as Samsung and Intel. Its lithography systems are used to manufacture processor chips, as well as memory chips, that essential for mobile phones and tablets.
ASML is the only supplier selling extreme high-tech ultraviolet lithography machines, securing five new orders. The machines can cost in the region of £75m each.
ING analyst Marc Hesselink said: "The market will take this update positively as the stock was down 20pc since its peak on worries that the memory segment would slow down."
ASML's main competition is from Japan's Nikon, but the Dutch firm has extended its market share in recent years.
The global semicomductor market has been hit by concerns from analysts that it is reaching its peak after several quarters of record growth. Samsung, which will report its results later this month, told analysts it expects to continue its spell of record results with sales of up to 65tn won (£44bn).