Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ASML Holding NV -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (895)	1/15/2004 8:46:47 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 43461

ASML CEO Says Breakeven Point Will Go Down To 130 Machines Thursday January 15, 4:32 am ET AMSTERDAM -(Dow Jones)- Dutch semiconductor machine maker ASML Holding NV aims to be able to break even on the back of 130 machine sales annually, Chief Executive Doug Dunn told a media conference Thursday. ADVERTISEMENT ASML, which implemented a major restructuring in 2003 and targets the layoff of 11% of its workforce, said its current break-even point is below the sale of 160 machines a year. However, Dunn declined to give a timeframe for reaching the 130-machine break- even point. Analysts previously said ASML in the first quarter of 2004 could bring its break-even point to 130 machines. But following their forecast, ASML's restructuring was delayed due to ongoing talks with staff representatives. ASML said cost-reduction results were delayed. ASML earlier Thursday reported a swing to profitability in the fourth quarter of 2003, following five consecutive quarters of losses. Dunn said ASML will stay profitable in each quarter in 2004. ASML Chief Financial Officer Peter Wennink said while 2003 was a year of restructuring for ASML, in 2004 the company will focus on improving its gross margin. Dunn said he expects ASML's gross margin will break through the 35% level " somewhere in 2004." Its fourth-quarter gross margin stood at 29%. Elaborating on ASML's break-even point, Wennink said it is possible the break- even point of 130 machines could be reached at the end of the first half of 2004. ASML, which in December received its first order for its new immersion- lithography system from Taiwan Semiconductor Manufacturing Co. (TSM), said it has high hopes for the immersion technology. Immersion lithography works by putting water in between the lens of the lithography machine and the silicon wafer. By having water rather than air between the two objects, the chipmaker gets better focus and can make smaller chips with thinner circuits. ASML's delivery of the system to TSMC is set for the third quarter of 2004. "We expect to start high-volume sales of immersion tools in 2005 or 2006," Dunn said. Japan's Nikon Corp. , one of ASML's main rivals, has indicated it will start mass-production of its immersion-lithography machines in 2006. Asked if ASML shareholders could expect a dividend pay-out, Wennink said: "For the time being, at least during 2004, ASML will keep the profits within the company." ASML will use its money primarily for investment purposes, he said. At 1040 GMT, ASML shares were down 42 cents, or 2.4%, at EUR16.88 on the Euronext Amsterdam bourse. Analysts said the decline mainly reflected U.S. chip giant Intel Corp. (NasdaqNM:INTC - News)'s overnight warning on first-quarter sales. -By Joon Knapen, Dow Jones Newswires; 31-20-6260770; joon.knapen@dowjones.com ASML's order backlog is expected to be stable or slightly up in the first quarter of 2004 compared with the year-end level of 124 machines, CFO Wennink told Dow Jones Newswires. Doug Dunn, ASML's 59-year-old president and CEO is to retire before end 2004. ASML has retained an executive search firm to assist in identifying a successor but Wennink declined to comment on whether he or other current board members were among the candidates to take on the top job.