Covid-19 hits ASML’s first quarter three ways

Covid-19 hits ASML’s first quarter three ways

Business news |
By Peter Clarke

However, the company said that it expects revenue lost in the 1Q20 to be shifted to 2Q20 and 3Q20.

The updated guidance from the company is that revenue in 1Q20 will be between €2.4 billion and €2.5 billion. At the mid-point this is down by 23 percent from the previous guidance of €3.1 billion to €3.3 billion.

“Until now the Covid-19 outbreak has had limited impact on ASML’s manufacturing capability. Also, from a customer point of view, we have not seen a reduction in the demand for our systems this year,” said Peter Wennink, CEO of ASML, in a statement.

Wennink added that there are three three Covid-19-related effects are impacting 1Q20 results.

The first is delays of deep ultraviolet (DUV) scanner shipments to Wuhan, China and some other locations due to shipment and travel restrictions. The second is some issues within ASML’s own supply chain, which Wennink said have now been solved. The third is that some customers have asked ASML to expedite shipments of extreme ultraviolet (EUV) scanners ahead of the normal Factory Acceptance Tests (FAT). This means that revenue recognition for this equipment will take place after successful installation at the customer site.

ASML also announced it will continue the pause in share buy-back program from 1Q20 into 2Q20.

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