ASML Lowers 1Q Guidance, Pauses Buyback Due to Coronavirus

   By Adria Calatayud 
 

ASML Holding NV on Monday lowered its guidance for the first quarter of 2020 and said that it has paused its share-buyback program on the back of uncertainties arising from the coronavirus pandemic.

The Dutch maker of semiconductor equipment said it now expects revenue for the first quarter to be between 2.4 billion euros and 2.5 billion euros ($2.67 billion-$2.78 billion) compared with previous guidance of EUR3.1 billion to EUR3.3 billion. Gross margin for the first quarter is anticipated to be between 45% and 46%, lower than its previous expectation of between 46% and 47%, ASML said.

Revenue that the company wasn't able to recognize in the first quarter will shift to the second and third quarters of the year, it said.

ASML said Covid-19 has had a limited impact on its manufacturing capability so far and hasn't reduced demand for its systems, although it has caused some supply-chain issues as well as shipment delays due to restrictions.

The company said it doesn't plan to execute any share buybacks in the second quarter, following a pause in the execution of its program in the first quarter. To date, ASML has repurchased shares worth EUR507 million under its current program, the company said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

March 30, 2020 02:34 ET (06:34 GMT)

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