By Kyle Morris

ASML Holding NV on Wednesday reported increased sales and net profit for the fourth quarter of 2021, but warned that sales for first quarter of 2022 will be lower due to the delayed recognition of shipments.

The Dutch semiconductor-equipment maker said the recognition of around 2 billion euros ($2.27 billion) of first-quarter shipments will be delayed into later quarters as it is introducing a fast-shipment process amid high demand.

"In order to support our customers, we are providing them with high-productivity upgrade solutions for their installed base, and we are reducing cycle time in our factory to ship more systems. One way to reduce cycle time is through a fast shipment process that skips some of the testing in our factory," Chief Executive Peter Wennink said. "This leads to a deferral of revenue recognition for those shipments until formal customer acceptance, but does provide our customers with earlier access to wafer output capacity."

ASML expects first-quarter net sales for 2022 between EUR3.3 billion and EUR3.5 billion with a gross margin of around 49%.

Net profit for the fourth quarter of 2021 was EUR1.77 billion, within the guidance range and compared with EUR1.35 billion a year earlier. Net sales were EUR4.99 billion compared with EUR4.25 billion and the gross margin for the three months was 54.2%, higher than guided due to strong Installed Base revenue and higher than the same period a year earlier, which was 52%.

The company declared a total dividend for 2021 of EUR5.50 a share compared with EUR2.75 a share a year earlier.

"Looking at the full year--even taking into account our current expectation of fast-shipment-related revenue shifts of six EUV systems into 2023--we expect a revenue growth of around 20%," Mr. Wennink said.

Write to Kyle Morris at kyle.morris@dowjones.com

(END) Dow Jones Newswires

January 19, 2022 02:23 ET (07:23 GMT)

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