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

To: Jim Oravetz who wrote (512)	1/20/1999 2:42:00 PM
From: Alan Villalon	Read Replies (1) \| Respond to of 42388

The question is : Should one hold or dump and buy back after the selling associated with the earnings release?

To: Jim Oravetz who wrote (512)	2/17/1999 1:17:00 PM
From: Jim Oravetz	Respond to of 42388

February 17, 1999 Dow Jones Newswires ASML CEO Sees Sales Nearly Tripling In Five Years Dow Jones Newswires By Toby Sterling AMSTERDAM (Dow Jones)--Although the machines that Dutch semiconductor equipment supplier ASM Lithography Holding NV (ASMLF) builds are incredibly complex, the math used to calculate a coming boom in sales for the company is simple. Dataquest and other market analysts have estimated that the annual sales of the machines ASML builds, which are used to help create the intricate interconnections on semiconductor chips, will rise from a current level of $2.7 billion to $7.3 billion in 2003. "In that case, we triple," Chief Executive Willem Maris told Dow Jones Newswires, referring to ASML sales. ASML has been hard-hit by an ongoing slump in the semiconductor market and saw its 1998 profits fall 58% from 1997, to NLG137 million, while sales dropped 4.4% to NLG1.72 billion. But the slowdown has also had a silver lining. By most estimates, the company has gained 11% of world lithography sales since the slump began in 1996, and now holds 31% of the market. "There's always a chance to gain market share during a dip, that's very normal," Maris said. He said manufacturers looking for ways to cut costs have realized that although ASML's machines are more expensive than those made by competitors, they are more cost-efficient in the long run. Maris said that ASML will continue to make gains on competitors Nikon Co. (J.NIK) and Canon Inc. (CANNY) in 1999 for the same reasons it has done so during the downturn. Maris will retire as chairman Jan. 1 and be succeeded by former Philips Electronics NV (PHG) executive Doug Dunn. According to ASML's head of investor relations, Jan Hoefnagels, one reason for this is that the machines of the Dutch group have a faster output rate. Also, ASML designs its machines in such a way that the crucial parts are easy to replace if companies wish to upgrade them - and as lithography technology is constantly improving, upgrades are frequent. Maris also expects that ASML's improved reputation will help draw more clients. "It's become more factual that we are the technology leader," Maris said. He noted that ASML's client list now includes many high-profile semiconductor makers such as South Korea's Hyundai Group (Q.HGP) and Samsung Group (Q.SSG); Taiwan's TSM Co. (TSM); Micron Technology Inc. (MU) of the U.S.; and Dutch Royal Philips Electronics NV (PHG). "At this point, every serious semiconductor manufacturer is at least looking at our machines - several are evaluating them," Maris said. ASML announced a new business partner just last week when it said it received a NLG100 million order from U.S. mobile phone maker Motorola Inc. (MOT). At the same time, ASML announced a new order valued around NLG200 million and NLG250 million from long-time client Samsung, larger than analysts had expected. Analysts said that the deals were early indications of a start in the semiconductor market. Investors are betting that the recovery is already underway and have pushed ASML's share price up to around EUR40.90, a 51% increase since the start 1999. Despite the Samsung and Motorola orders, Maris repeated that he doesn't expect ASML to see real benefits from a recovery until the second half of 1999. "Unfortunately, there are very few Samsungs in the world," he said. However, Maris said that South Korean manufacturers weren't the only ones that are interested in making capital investments in the coming year. "Taiwan will also be aggressive," he said. "As other semiconductor makers move to smaller chips, they have to invest. Otherwise, they're not competitive. We're lucky we're in that market." He added that because lithography machines are vital to the semiconductor manufacturing process, companies tend to make their purchase a high priority. But Maris said that the cycles in the semiconductor market were the most important factors in determining ASML's sales. "We don't see an Asia crisis," he said. "Our clients are in Taiwan and South Korea. Maybe there's a crisis in other Asian countries, but we have seen no negative influence there." The chairman said that ASML had worked out financing plans for customers that asked for them, but that no customer received ASML products at a discount. Maris said the six-year cycles in the semiconductor market will continue, and as a result, the market will have another downturn after the coming boom, in the year 2003. "It's a fact in our industry," he said. -By Toby Sterling; 31/20/626/0770; tsterling@ap.org