ASML Holding NV, the Dutch semiconductor equipment maker, reported a sharp rise in profits for the third quarter yesterday and said it expects business to grow again in the fourth quarter — a sign of strength among its clients, which include all major computer chip makers.
Net profit for the quarter ended Sept. 26 was 269 million euros (US$374 million), versus 72.8 million euros in the same period a year ago, and up from 239 million euros in the second quarter of this year. Sales more than doubled from a year ago to 1.18 billion euros.
ASML makes lithography systems, multimillion-dollar machines used in the semiconductor industry to map out the circuitry of computer chips.
The company said its order backlog has grown even as it shipped more systems and is now valued at 2.7 billion euros, up from 2.4 billion euros.
ASML received 1.3 billion euros worth of orders in the third quarter “and we expect bookings in the fourth quarter to exceed the Q3 level,” chief executive Eric Meurice said in a statement.
Shares rose 1.6 percent to 22.435 euros in early Amsterdam trading.
Meurice said the company believes there is higher structural demand for its products “notwithstanding mixed signals of less bullish growth of personal computer demand and memory price declines,” citing growth rates for memory chips and capital investment by foundries.
As a result, he said, ASML will increase its quarterly research and development budget to 140 million euros for “as long as demand remains strong.” Its R&D budget in the third quarter last year was 75 million euros, increasing to 125 million euros in the second quarter this year.
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