Dutch company ASML delivered a profit beat of €644m ($788.32m) for the quarter ending December up from €524m a year earlier and strength of the semiconductor industry buoyed its 2018 outlook. Analysts had expected profit of €454m.
The company which supplies equipment to chipmakers said its better-than-expected net profit was a result of several customers asking for early delivery of products as the semiconductor industry flourishes.
ASML is a maker of advanced semiconductor equipment systems and has a focus on lithography systems.
Sales of €2.56bn topped the company’s own forecast of €2.1bn and net sales in the first quarter of 2018 according to ASML were a robust €2.2bn. Its 2018 outlook hangs on its considerable backlog of orders.
A backlog that grew to €6.7bn from €5.7bn at the end of September and includes 10 orders of its newest, most expensive machine. ASML’s lithography machines, can run up to €100m each and are used by chipmakers to manage and lay out the micro-chips required for a range of devices.
CEO Peter Wennink said in a statement, “For 2018 we expect continued solid growth of sales and profitability.”